Interpreting Conclusions
Learn confidence-level interpretation, type i errors and multiple testing.
Confidence-Level Interpretation
Objective: Explain confidence-level interpretation, apply the stated method, and check its conditions.
A valid 95% confidence procedure covers a fixed true parameter in 95% of repeated samples in the long run. Once an interval is computed, frequentist coverage does not assign a 95% probability to the fixed parameter lying in that particular interval. Coverage depends on design and assumptions. Confidence refers to the repeated procedure, not a probability assigned to a fixed parameter.
Formulas
- Long-run coverage = confidence level
Worked examples
Try itIn a simulation of 700 intervals from a valid 95% confidence procedure, what is the expected number covering a fixed true parameter?Show answer
Step 1: The confidence level describes the long-run procedure. Step 2: Use 0.95·700. Step 3: The expected count is 665; actual simulations vary.
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