Question

Discuss how knowing the confidence interval for some statistical parameter (typically, but not always, the mean value) can affect the decision-making we conduct around that parameter on engineering projects. What might we do differently as a result of having confidence in a range of values rather than feeling we actually know a specific value?

Answer 1

When we carry out a Measurement of a population, we take into account different patterns when estimating both the final prediction - to which the projected survey is projected - as well as the quality of said measurement. When such measurement is made, the estimated range of data belonging to an unknown population and which in turn will be included in said measurement must be taken into account. This range is what we know as the Confidence Interval, whose value has generally been standardized at 95%.

The meaning of this Interval is no more than 95% reliability against repeated samples that could alter the final result. The value of the parameter allows you to 'immunize' against these problems. Instead of providing a timely estimate of the parameter of interest, the confidence interval provides an estimate of the parameter interval.

In the event that a specific value is sought in the result or from the sample, and we would like to obtain a range of those parameter values, it is when the Confidence Interval tool is of vital importance, as it will give the required result.