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Confidence Level

Definition

Confidence level refers to how confident we are that our interval estimate contains or captures the true population parameter. It represents our degree of certainty or reliability in estimating this parameter.

Analogy

Think about a weather forecast. The confidence level is like the percentage chance of rain mentioned in the forecast. A higher confidence level means we are more certain that it will rain, while a lower confidence level indicates less certainty.

Related terms

Significance Level: The probability of rejecting the null hypothesis when it is actually true.

Standard Error: A measure of the variability or spread of sample statistics around their population parameters.

Hypothesis Testing: A statistical method used to make inferences about population parameters based on sample data and assumptions.

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AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.