Question

Why are confidence interval estimations important to clearly reporting data analysis results? Please include a real-world business example in your response.

Answer 1

There are two types of estimates

1. point estimates

2. interval estimates

point estimates are generally a point representing the whole data and interval estimates are basically an interval in which observations may lie.

For example, If you have to estimate the weight of women in your locality one way is to say, the mean weight is 130 lbs this is point estimate. the other way is the weight of women is between 115 to 140 lbs. now most of the women will have weight between this range. this is called interval estimate.

ow from this you can identify whether to start a weight loss campaign in the locality or not. Mean alone can not give a clear picture of the scenario.