To create a confidence interval from a bootstrap distribution using percentiles, we keep the middle values and chop off a certain percent from each tail. Indicate what percent of values must be chopped off from each tail for a 99% confidence interval:
Question
To create a confidence interval from a bootstrap distribution using percentiles, we keep the middle values and chop off a certain percent from each tail. Indicate what percent of values must be chopped off from each tail for a 99% confidence interval:
Solution
A 99% confidence interval means that we want to keep the middle 99% of the values in our bootstrap distribution.
To find out what percent of values must be chopped off from each tail, we subtract the confidence level from 100%.
100% - 99% = 1%
Since we have two tails in a distribution (the left and the right), we divide this 1% evenly across both tails.
1% / 2 = 0.5%
So, for a 99% confidence interval, we must chop off 0.5% of values from each tail of the bootstrap distribution.
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