Question: Using R: Suppose we decide to use the Monte Carlo method to check coverage of a 95% confidence interval (CI) formula. We generated nsim=1000 data

Using R: Suppose we decide to use the Monte Carlo method to check coverage of a 95% confidence interval (CI) formula. We generated nsim=1000 data sets from the known distribution, calculate the 95% confidence interval on each data set and check the empirical coverage (that is, the proportion of those 1000 confidence intervals that contains the true parameter). Suppose that the CI formula is wrong, and the true coverage is only 92%. What is the probability that our empirical coverage is greater than 94%?

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