[EMAIL PROTECTED] (Robert J. MacG. Dawson) wrote in message 
news:<[EMAIL PROTECTED]>...
> [...]
>  Suppose I show you a barrel that looks as if it would contain about a
> million jellybeans, and you grab a handful (say, fifty) and you count
> them and find that half are green.  You'd be able to estimate that half
> the jellybeans in the barrel are green, and you'd have some idea of how
> good that estimate was - say between about 35% and 65% with about 95%
> confidence.
> 
>  Now suppose I tell you - surprise - the barrel has a false bottom and
> only contains 10,000 jellybeans, 1% of the number you'd assumed. Does it
> seem reasonable that your estimate has just got a lot better? (People
> making this mistake usually assume that a small population can be
> estimated better, not worse.)

It *can* be estimated better: in this case the confidence interval is now
only .99757 times as wide as it used to be. The mistake is to overstate
the improvement.

>  Or suppose the barrel is connected to a huge underground warehouse
> contianing a billion well-mixed jellybeans. Do you suddenly lose
> confidence in your estimate?

Yes, a little: the confidence interval is now 1.0000245 times as wide
as it originally was.
.
.
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