Risk Management and Insurance
A confidence interval is a statistical range that estimates where a population parameter lies, providing a measure of uncertainty around that estimate. It is defined by an upper and lower bound, often calculated from sample data, and indicates the degree of confidence that this range contains the true parameter value. Confidence intervals are essential in risk measurement and quantification as they help assess the reliability of estimates, while also being crucial in statistical analysis for evaluating risk levels and decision-making processes.
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