Question

Describe how you could use confidence intervals to help make a decision in your current job, a past job, or life situation. Include a description of the decision, how the interval would impact the decision, and how data could ideally be collected to determine the interval.

 

Answer 1

 

""Describe how you could use confidence intervals to help make a decision in your current job, a past job, or life situation. Include a description of the decision, how the interval would impact the decision, and how data could ideally be collected to determine the interval. ""

.

Suppose I am a dietician , and work on weight loss of clients

A new client comes in and asks about the average weight loss that happens with the diet plans

So in case if one gives a point estimate, like on an average 5 kgs are lost, the client may later be unsatsified if he looses less han 5kgs

So it is always beneficial to provide an interval of estimate rather than a fixed point estimate

this interval estimate is called confidence interval

So in case if I response, the weight loss of clients on an average with these diet plans lies between 3 to 7 kgs

This gives a higher satisfaction to the client even if he looses 3.5 kgs, which is lesser than the point estimate of 5 kgs

Thus , we can observe that at any consideration providing a range of numbers increases the chances of the true population mean to lie in that range

.

For data collection, following points must be taken into consideration:

• Random sampling
• Cover entire population
• Large sample size
• Outliers must be avoided