Compare and contrast confidence intervals and prediction ...

[lindiwe]

Compare and contrast confidence intervals and prediction intervals.
 
  What will be an ideal response?

Question 2

When a marketing manager surveys a few of the customers for the purpose of drawing a conclusion about the entire list of customers, she is applying:
 
  A) inferential statistics.
  B) descriptive statistics.
  C) quantitative models.
  D) numerical measures.

[bhavsar]

Answer to Question 1

A confidence interval provides an interval estimate of a population parameter such as mean or proportion. A prediction interval provides a range for predicting the value of a new observation that is not a natural attribute of that population like mean or proportion. A confidence interval is associated with the sampling distribution of a statistic, but a prediction interval is associated with the distribution of the random variable itself.

Answer to Question 2

A