Intro to Econometrics
Adjusting confidence intervals refers to the process of modifying the range of values that a statistic can take to ensure a certain level of certainty about the population parameter it estimates. This is often necessary when dealing with multiple comparisons or sample sizes, as failing to adjust can lead to misleadingly narrow intervals that do not adequately reflect the true uncertainty in the estimates. The adjustments help maintain the overall confidence level across various tests or estimates.
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