Thank you for the opportunity to help you with your question!
Strictly speaking a 95% confidence interval means that if we were to take 100 different samples and compute a 95% confidence interval for each sample, then approximately 95 of the 100 confidence intervals will contain the true mean value (μ). In practice, however, we select one random sample and generate one confidence interval, which may or may not contain the true mean. The observed interval may over- or underestimate μ. Consequently, the 95% CI is the likely range of the true, unknown parameter. The confidence interval does not reflect the variability in the unknown parameter. Rather, it reflects the amount of random error in the sample and provides a range of values that are likely to include the unknown parameter. Another way of thinking about a confidence interval is that it is the range of likely values of the parameter (defined as the point estimate + margin of error) with a specified level of confidence (which is similar to a probability).
Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 29th, 2015
Did you know? You can earn $20 for every friend you invite to Studypool!