Confidence Intervals

In this part, we will build confidence intervals to estimate a range in which a population parameter is likely to lie (with a level of certainty specified by what is called the ‘confidence level’).

We will examine three possible cases of estimation:

  1. A true mean where the population standard deviation (σ) is known
  2. A true mean where the population standard deviation (σ) is unknown
  3. A true proportion or percentage for a population

We will also calculate the standard error (width of the interval on either side of the mean) as well as the sample size required when a maximum standard error size is specified/required.

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An Introduction to Business Statistics for Analytics (1st Edition) Copyright © 2024 by Amy Goldlist; Charles Chan; Leslie Major; Michael Johnson is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License, except where otherwise noted.

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