From the course: Statistics Foundations 3: Using Data Sets
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Alternative confidence intervals
From the course: Statistics Foundations 3: Using Data Sets
Alternative confidence intervals
- For some people 95% just isn't good enough. So what happens if someone demands a 98% confidence interval? Well, let's remember a 95% confidence interval stretches in equal distances in opposite directions from our distribution mean, or proportion, how far? Enough to include 95% of the probability distribution, which means that a 98% confidence interval would have to stretch a little bit farther so our interval would include 98% of the probability distribution. So, you see, my numbers aren't necessarily better, I simply increase the size of my interval. For example, let's say you lost your car keys. Perhaps you're 75% sure the keys are in the living room, but you're 99% sure the keys are somewhere in the house. By simply extending the possible location of where your keys could be you've increased the probability your keys are in the designated area. You increased the area of your confidence interval. With that in mind, let's…
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