Confidence Intervals

A confidence interval is a range of values used to estimate an unknown population’s
parameter to express the uncertainty associated with a sample. For instance, a 95% confidence
interval for the mean hours of sleep per night could be (7.2, 8.1). This means that we are 95%
confident that the true population mean that humans sleep lies between 7.2 and 8.1 hours.
Despite the uncertainties in professional settings, the confidence interval assists employers in
making better-informed decisions that conform with organizational success.
The confidence interval estimates the population parameter and measures its precision.
According to Gorard (2019), confidence intervals are a measure of likelihood or uncertainty
on a range of possible effect sizes that could have been produced by random sampling
variation. I have frequently used confidence intervals in my place of work. For instance, the
approach assisted me in measuring the precision of estimates in the success rate of the
marketing campaign of my firm’s new product. During the process, I identified that 60% of
the customer sample population would be interested in purchasing the product. Notably, the
estimated interval was at (0.55, 0.63), meaning that the valid proportion of customers who
would be interested in the product was at 55% and 63%. The data provided me with a range of
plausible values that assisted me in making enhanced decisions. Given a chance, I would
proceed to make the same decision. This is because the confidence interval depicted an
estimated acceptable success rate of the marketing campaign. Overall, the confidence interval
helped me make better-informed decisions, proceed efficiently, and instigate success.

Conclusion

Despite the uncertainties in professional settings, the confidence interval assists
employers in making better-informed decisions that conform with organizational success. A
confidence interval is a range of values used to estimate an unknown population’s parameter
to express the uncertainty associated with a sample. All in all, the confidence interval is used

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to estimate the population parameter, measure its precision and make efficient decisions that
promote the goals and targets of an entity.