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Confidence Interval

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CONFIDENCE INTERVAL

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1. Confidence Interval

Confidence interval is a range of values which are likely to contain population parameter of

interest and is constructed at different confidence levels. It estimates the true value of a

population statistics. (Reichardt, & Gollob, 2016) The bigger the sample collected the narrow the

confidence interval.

Importance of confidence interval for population mean

It gives a range of value with known probability of capturing population parameter.

Helps one not to be so confidence that the population values are exactly equal to the single point

estimate as a result makes us more careful when interpreting data hence keeping us in proper

perspective. (Reichardt, & Gollob, 2016)

Tells us parameter of interest and not distribution of individual values.

Point estimate

This is a given single value that is used to estimate the population parameter, this includes a

sample mean ( x ) which represent mean population ( µ)

The point estimate is the statistic calculated from sample data used to estimate the true unknown

value in the population called the parameter. (Saunders, 2014)

Examples of point estimates

Sample means which is used to find the center of continuous data

Sample proportions which is used to find the mean part or share per whole

Sample standard error which describes the spread of data for means and proportions.

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CONFIDENCE INTERVAL NAME: REGISTRATION NUMBER: COURSE: 1. Confidence Interval Confidence interval is a range of values which are likely to contain population parameter of interest and is constructed at different confidence levels. It estimates the true value of a population statistics. (Reichardt, & Gollob, 2016) The bigger the sample collected the narrow the confidence interval. Importance of confidence interval for population mean It gives a range of value with known probability of capturing population parameter. Helps one not to be so confidence that the population values are exactly equal to the single point estimate as a result makes us more careful when interpreting data hence keeping us in proper perspective. (Reichardt, & Gollob, 2016) Tells us parameter of interest and not distribution of individual values. Point estimate This is a given single value that is used to estimate the population parameter, this includes a sample mean ( x ) which represent mean population ( µ) The point estimate is the statistic calculated from sample data used to estimate the true unknown value in the population called the parameter. (Saunders, 2014) Examples of point estimates Sample means which is used to find the center of continuous data Sample proportions which is used to find the mean part or share per whole Sample standard error which describes the spread of data for means and proportions. 2. Best point estimator for population mean X=∑𝑋𝑖/𝑛 Where X is the sample mean ...
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