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STATISTICS-BASICS5 MIN READ

Confidence Intervals Are Decision Ranges

Interpret a confidence interval as uncertainty around an estimate.

The statistic should match the decision, not the slide template. Intervals make uncertainty visible A confidence interval turns a sample estimate into a decision range. The point estimate says what this sample observed. The interval says how much sampling wobble to expect because we did not measure the entire population or process. In repeated sampling, a 95 percent confidence procedure would capture the true parameter about 95 percent of the time. The mechanism has three levers: variability, sample size, and confidence level. More variability widens the interval, larger samples narrow it, and higher confidence widens it. The interval is not…

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