Re: How was CDS

Posted by Granpa Simpson on May 26, 2014; 6:26am
URL: http://discussion-forum.276.s1.nabble.com/How-was-CDS-tp7590568p7590633.html

I think that the confidence interval will contract, this is because as sample size increases standard error will decrease and t*se will decrease too and if you put it the same on both sides of the confidence limits, the confidence interval contract...e.g suppose beta*=5 and se=4 initially, now if increases then the se suppose goes down to 3.85 in that case u can verify that the region contracts as compared to the initial values..also precision will increase as the standard error will go down!!!!