Different kinds of data analytics have differing levels of utility and confidence. In general, as the utility level increases, what happens to the confidence level?

Question

Elizabeth Woodard

Mathematics

13 June, 22:55

Different kinds of data analytics have differing levels of utility and confidence. In general, as the utility level increases, what happens to the confidence level?

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Answers (1)

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Ryleigh Hutchinson · Answer 1

The answer to the question is;

The confidence level decreases.

Step-by-step explanation:

The magnitude of confidence level reflects the utility level of how we estimate the population parameter. That is an indication of the confidence level specifies the utility level of related statistical parameter.

The magnitude of the confidence level is inversely proportional to the utility level. That is an increase in the confidence level results in a decrease in the utility level and vise versa.

For example, if the confidence level that there will be a scarcity in an essential commodity in a few days is 99 % then shoppers would divert their resoucrces to purchase that essential commodity, that is the utility of the money shoppers have is reduced as it is mostly focused on the essential commodity.

If the confidence level that there would be a scarcity was stated as 95 % then the money shoppers have to spend will be diverted to a wider variety of items, therefore, rising the utility of the money.