When to use it

Use it after checking the population, dependence and estimator assumptions.

When to be cautious

A confidence interval is not a probability that this particular realised interval contains the fixed parameter. Small-sample means often require a t method.

Apply it

z = (observation − mean) / standard deviation

For a mean with known population standard deviation σ and suitable independent sampling, a normal interval is sample mean ± z* × σ/√n. With estimated σ, use an appropriate t procedure and check assumptions; a prediction interval is a different quantity.

  1. Specify the parameter and the sampling design.
  2. Choose an appropriate standard error and critical value.
  3. Report the interval with its assumptions and practical relevance.

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An example in practice

A convenience sample gives a narrow numerical interval but can still be badly biased. Improve recruitment before presenting precision as representativeness.

Source & credit

Standard mathematical statistics; the handbook is an authoritative technical reference, not a claim of sole origin.

NIST/SEMATECH: statistical methods

This explanation and example are independently written. The source is a reading reference; linking it does not grant permission to reuse its text, figures or assessments.

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