1- Explain the Confidence Interval for business and economics in research topics that positions the area for decision making. 2- Discuss the Normal Curve distribution family and its application in...

45448 Assignment
Confidence intervals in the fields of business and economics for decision making
What are confidence intervals?
Confidence intervals give a range of values with mean at the middle. This interval precisely gives the range within which the mean will lie for sufficiently large random samples. i.e. Confidence interval will have lower bound as
Mean-margin of error and upper bound = Mean + margin of error.
Margin of error is calculated as Critical value * std dev/sq rt of sample size n.
Confidence levels can be 90%, 95% or 100% generally. The more the confidence level the wider the interval and also the less the sample size, the more the width of confidence interval.
When we find 90% confidence interval we can say that for large number of samples of sufficiently large size, the mean of all samples will fall within this interval with 90% confidence.
Thus this gives us an estimate of average for future dealings. In business and economics where forecasting is compulsory, this confidence interval goes a long way to help to decide about the demand, price rise, the prices of competitive products, etc.
Normally with a large sample randomly taken so as to represent the population we can find the mean, std...