This exercise continues the study of the robustness of the Students t method for constructing confidence intervals.
Question:
a. The true mean of the N(0, 1) distribution is 0. Based on the simulation results, estimate the coverage probability (proportion of samples for which the confidence interval covers the true mean) for samples of size 5 from the N(0, 1) distribution. (Since the assumptions underlying the Students t method are satisfied here, your answer should be very close to 95%.)
b. The true mean of the lognormal distribution with μ = 1 and Ï2 = 0.25 is 3.0802. Based on the simulation results, estimate the coverage probability (proportion of samples for which the confidence interval covers the true mean) for samples of size 5 from the lognormal distribution with μ = 1 and Ï2 = 0.25.
c. The true mean of the gamma distribution with r = 0.5 and λ = 0.5 is 1. Based on the simulation results, estimate the coverage probability (proportion of samples for which the confidence interval covers the true mean) for samples of size 5 from the gamma distribution with r = 0.5 and λ = 0.5.
Step by Step Answer: