Exercise

Exercise 5 - Why the t-Distribution?

Why did the t-distribution confidence intervals work so much better?

50 XP

The t-distribution takes the variability into account and generates larger confidence intervals.

Because the t-distribution shifts the intervals in the direction towards the actual mean.

This was just a chance occurrence. If we run it again, the CLT will work better.

The t-distribution is always a better approximation than the normal distribution.