Confidence Level

In statistical inference, it is common practice to report the point estimate of a population parameter along with its standard error (square root of the variance). Often, the point estimator and its standard error are combined by adding and subtracting from the point estimate a multiple of the standard error to obtain an interval estimator. Suppose θ denotes an estimator of θ and v(

) denotes its variance, then is an interval estimator of the parameter 9. The constant c is chosen in such a way that if the sampling process is repeated for a large number of times and for each sample an interval estimator is obtained, then approximately a pre-defined percentage of the intervals will enclose θ. This pre-defined percentage is known as ...