Many people do not like or trust single point estimates for

Many people do not “like” or “trust” single point estimates for things they need measured. Looking back at the data examples you have provided in the previous discussion questions on this issue, how might adding confidence intervals help managers accept the results better? Why? Ask a manger in your organization if they would prefer a single point estimate or a range for important measures, and why? Please share what they say.

Solution

Sol)

Point estimation gives us a particular value as an estimate of the population parameter. .

Interval estimation gives us a range of values which is likely to contain the population parameter. This interval is called a confidence interval.

Example:

. For example, a poll may seek to estimate the proportion of adult residents of a city that support a proposition to build a new sports stadium. Out of a random sample of 200 people, 106 say they support the proposition. Thus in the sample, 0.53 of the people supported the proposition. This value of 0.53 is called a point estimate of the population proportion. It is called a point estimate because the estimate consists of a single value or point.

But if we use 95% Confidence intervals is (0.46,0.599)

ie., 95% Confidence that the population Proportion is between (0.46,0.599)

So If we Compare Point and Interval Estimate, we have more chance that our population proportion is lies between these intervals comparing to Point interval.

Hence Many Statisticians Prefer the Range Intervals(Interval estimates).