Asked by Aikunduz Baltabaeva on May 02, 2024

verifed

Verified

{Movie Revenues Narrative} Which interval in the previous two questions is narrower: the confidence interval estimate of the expected value of y or the prediction interval for the same given value of x (10 years)and same confidence level? Why?

Confidence Interval

An aggregate of values, concluded from statistical review of samples, assumed to likely house the unknowable value of a population parameter.

Prediction Interval

A range of values that is likely to include the value of an unknown parameter for a future observation with a specified probability.

  • Attain an understanding of the principle and deployment of prediction intervals.
verifed

Verified Answer

GW
Gursimran WarainchMay 07, 2024
Final Answer :
The confidence interval estimate of the expected value of y is narrower than the prediction interval for the same given value of x (10 years)and some confidence level.This is because there is less error in estimating a mean value as opposed to predicting an individual value.