Precise and Shorthand Interpretation
Learn about precise and shorthand interpretation with confidence intervals.
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Let’s return our attention to 95% confidence intervals. The precise and mathematically correct interpretation of a 95% confidence interval is a little long-winded:
Precise interpretation: If we repeated our sampling procedure a large number of times, we expect about 95% of the resulting confidence intervals to capture the value of the population parameter.
This is what we observed. Our confidence interval construction procedure is 95% reliable. That is to say, we can expect our confidence intervals to include the true population parameter about 95% of the time.
A common but incorrect interpretation is that there’s a 95% probability that the confidence interval contains
So, if the 95% confidence level only relates to the reliability of the confidence interval construction procedure and not to a given confidence interval itself, what insight can be derived from a given confidence interval? For example, going back to the pennies example, we found that the percentile method 95% confidence interval for
Loosely ...