Have Confidence in Your Statistical Analysis!: Learning How to Use Confidence Intervals
Confidence intervals are the most valuable statistical tools available to decision makers. However, for a variety of reasons, confidence intervals are not used as frequently as they should. This article answers two questions that are often misunderstood:
- Why are point estimates useless for making decisions?
- What is the best confidence level?
Why are Point Estimates Useless for Making Decisions?
Example 1: Suppose I measure the hardness of five steel parts, and the measurements are 57, 55, 57, 56 and 55. The mean of these measurements is 56. Usually, we expect this value to represent something about a larger population of parts. The population mean µ cannot be known with certainty, but the sample mean, 56, is our best estimate of the population mean, based only on these five parts. The number 56 is a point estimate of the population mean.
The Right Tool Matters!
Pocket Stats, Part 3: Sample Size for Pass-Fail Tests
Examining Radiology with Statistical Analysis
Sales, Six Sigma and Statistics: How One Team Used Statistical Analysis to Solve a Sales Challenge and Make Money
Pocket Stats: Quick Significance Tests You Can Remember, Part 2
Pocket Stats: Quick Significance Tests You Can Remember
Getting Through This Economic Downturn With Style
Lean Six Sigma & Process Excellence Philippines Summit 2015
May 19- 21, 2015
Grand Connaught Rooms, London, United Kingdom
June 29- 1, 2015
Operational excellence for Insurance
October 26- 28, 2015