Asked by Jayleen Ailani on Jul 01, 2024

verifed

Verified

Compare and contrast confidence intervals and prediction intervals.

Confidence Intervals

A range of values, derived from sample statistics, that is believed to contain the value of an unknown population parameter with a certain level of confidence.

Prediction Intervals

A prediction of the range within which future results are expected to occur, with a specified level of confidence, based on existing observations.

  • Grasp the difference between confidence intervals and prediction intervals.
verifed

Verified Answer

JP
Jamil PittmanJul 04, 2024
Final Answer :
A confidence interval provides an interval estimate of a population parameter such as mean or proportion.A prediction interval provides a range for predicting the value of a new observation that is not a natural attribute of that population like mean or proportion.A confidence interval is associated with the sampling distribution of a statistic,but a prediction interval is associated with the distribution of the random variable itself.