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Up10
Confidence interval = Point estimate +- t-critical * std error
While calculating this confidence interval is it assumed that we are using 2 tailed t test?
So if we are given 5% significance level should it be taken as 5% in both tails?
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Up5
yes we assume a 2 tailed t test. however you may have misunderstood something here.
so in a normal distribution for example, if it is a 95% confidence interval (i.e. 5% significance level), it means it is the z-score that leaves a probability of 2.5% (α/2) on the upper tail (right-hand tail) of the standard normal distribution. it isn’t 5% in each tail, but 5% in total, which means 2.5% in each tail.
so that means t=1.960
hope this clarifies
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