learning about confidence intervals. Confidence intervals are often misinterpreted and commonly confused with the probability that something is likely to happen. Explore the understanding of these concepts. you will discuss how calculating a confidence interval is similar to or different than gambling.

Confidence Intervals

The "range of plausible values" interpretation for an interval estimate can be refined with the notion of aconfidence interval. A confidence interval is an interval, computed from a sample, that has a predetermined chance of capturing the value of the population parameter. Remember that the parameter is a fixed value; it is the sample that is prone to variability. The method used to construct a confidence interval should capture the parameter for a predetermined proportion of all possible samples. Some (hopefully most) samples will give intervals that contain the parameter and some (hopefully just a few) will give intervals that miss the target.

Confidence Interval

Aconfidence intervalfor a parameter is an interval computed from sample data by a method that will capture the parameter for a specified proportion of all samples.

The success rate (proportion of all samples whose intervals contain the parameter) is known as theconfidence level.