Question

Minium 150-200 words: Why is a confidence interval better than a point estimate? Provide an example

Answer 1

confidence interval better than a point estimate:

   Point estimation gives us a specific incentive as an estimate of the population parameter. Interval estimation gives us a scope of qualities which is probably going to contain the population parameter. This interval is known as a confidence interval.

The issue with utilizing a point gauge is that despite the fact that it is the absolute best figure you can make about the estimation of a populace parameter, it is additionally generally off-base.

A noteworthy preferred standpoint of utilizing interim estimation is that you furnish a scope of qualities with a known likelihood of catching the populace parameter (e.g., on the off chance that you get from SPSS a 95% confidence interval you can profess to have 95% certainty that it will incorporate the genuine population parameter.

An interval estimate (i.e., confidence intervals ) likewise encourages one to not be confident to the point that the populace esteem is actually equivalent to the single point estimate. That is, it makes us more watchful by they way we decipher our information and helps keep us in appropriate point of view.

As a matter of fact, maybe the best thing of all to do is to give both the point gauge and the interim gauge. For instance, our best gauge of the population mean is the esteem 32,640 and 30,913.71 to $34,366.29.

Note: that the greater your example estimate, the more tight the confidence interval will be.