Back to Basics: Are You Confident?
Calculating confidence intervals
- Quality Progress
- March 2021
- Volume 54 Issue 3
- pp. 64
- Sherman, Peter
- Riverwood Associates, Dunwoody, GA
Confidence intervals allow you to estimate population parameters (such as the mean, standard deviation and proportions) with a known degree of certainty or confidence. When unsure about a decision, confidence intervals are better than providing a single-point estimate. The confidence interval is bounded by a lower and upper limit, which are determined by the risk associated with making a wrong conclusion about the parameter of interest. This is known as alpha risk and is stated in terms of probability.