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99% Confidence Interval

Definition

A 99% confidence interval represents the range of values within which we can be 99% confident that the true value lies based on our sample data. It provides an estimate for an unknown population parameter with a high level of certainty.

Analogy

Imagine you have a jar filled with jelly beans but don't know how many are inside. You take a random sample of 100 jelly beans and calculate the average weight. The 99% confidence interval would give you a range within which you can be highly confident (99% confident) that the average weight of all jelly beans in the jar falls.

Related terms

Confidence Level: The confidence level is the degree of certainty or probability associated with a confidence interval. It indicates how often such intervals, calculated from different samples, would contain the true population parameter.

Margin of Error: The margin of error refers to the maximum amount by which an estimate obtained from a sample may deviate from the true value in the population. It quantifies uncertainty and measures how reliable an estimate is within a given confidence level.

Sampling Distribution: A sampling distribution is a theoretical distribution that represents all possible samples drawn from a population. It allows us to understand how sample statistics vary and provides insights into estimating population parameters accurately.