87. Confidence Interval Clarifications.

After introducing confidence intervals and showing how to calculate them. There were several exercises you were asked to use the same data to find other confidence intervals. Let’s take a step back and try to understand confidence intervals a bit better. Here is a graph of a normal distribution you know where the sample mean is in the middle of the graph. Now if we know that a variable is normally distributed we are basically making the statement that the majority of observations will be around the mean and the rest far away from it. Let’s draw a confidence interval. There is the lower limit and the upper limit and 95 percent confidence interval would imply that we are 95 percent confident that the true population mean falls within this interval. There is 2.5 percent chance that it will be on the left of the lower limit and 2.5 percent chance it will be on the right overall. There was 5 percent chance that our confidence that