

We are % confident that the population parameter is between.

\text\) Subsection 5.2.5 Interpreting confidence intervals ¶Ī careful eye might have observed the somewhat awkward language used to describe confidence intervals. On the other hand, if we report a range of plausible values - a confidence interval - we have a good shot at capturing the parameter.

If we report a point estimate, we probably will not hit the exact population parameter. On the other hand, if we toss a net in that area, we have a good chance of catching the fish. We can throw a spear where we saw a fish, but we will probably miss. Using only a point estimate is like fishing in a murky lake with a spear, and using a confidence interval is like fishing with a net. Subsection 5.2.1 Capturing the population parameterĪ plausible range of values for the population parameter is called a confidence interval. In addition to supplying a point estimate of a parameter, a next logical step would be to provide a plausible range of values for the parameter. However, a point estimate is rarely perfect usually there is some error in the estimate.
