Confidence Intervals and Significance Levels

In a previous post , I mentioned about  expected value and variance of different distributions.

Taking the same statistical concepts further, we now want to compute confidence intervals for our estimate.

Note:

  • While thinking about Confidence Intervals, it is a good exercise to identify what distribution is representative of your estimate.
    • The reason this is needed is because the confidence interval  is dependent on standard deviation.  As such, it would be necessary to know how you are computing your standard deviation.
    • An alternative would be if we compute the variance from base principles.

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(https://en.wikipedia.org/wiki/Standard_deviation)

 

 

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