Business Analytics: Understanding and Using Confidence Intervals

Learn basic techniques for constructing and interpreting confidence intervals, as well as what they can tell you about your personal and business decisions.

Introduction

• The applicability of confidence intervals

1. The Use of Confidence Intervals

• Confidence intervals in everyday life
• Purpose of confidence intervals
• The calculation of confidence intervals
• Sample and a population parameters
• Interpret confidence intervals
• Choose and calculate the right standard error
• Distributions: z versus t
• Arrange for the original metric
• Calculate confidence intervals with software

2. Hypothesis Testing with Two Means

• Compare means using confidence intervals
• Design the analysis
• Quantify the mean difference
• Use R to compare means

Conclusion

• Next steps