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15.01.2015
Objective:This section will explain the meaning of the Confidence Interval (CI) in statistical analysis. The CI states that with 92% confidence, the proportion of all similar companies with the plan will between 46% and 56%. The improved outlook follows other recent signs that the depressed housing market is slowly improving. In March, builders requested the highest number of permits to build new homes and apartments in 3 A? years.
Mortgage rates have fallen to record lows and hiring has picked up, making it easier for more Americans to buy homes. Often, statistics are not expressed in terms of one number but rather as a range or an interval with a given level of confidence.


That's the highest reading since May 2007 and up from a downwardly revised reading of 24 in April. And the number of people who signed contracts to buy homes rose in March to the highest level in nearly two years. Still, many would-be buyers are having difficulty qualifying for home loans or can't afford larger down payments required by banks. For proportions, the normal distribution approximates the binomial for n x P(hat) is greater than or equal to 5.Most common confidence interval selections are 90%, 95%, or 99% but are dependent on the voice of the customer, your company, project, and other factors.
The larger your sample size, the more confidence one can be that their answers represent the population. If the sample is not then one cannot rely on the confidence intervals calculated, because you can no longer rely on the measures of central tendency and dispersion.Sampling plans are an important step to ensure the data taken within is reflective and meaningful to represent the population.


Click here for information regarding sampling plans.PercentageThe accuracy of the CI also depends on the percentage of your sample that picks a particular answer. It is easier to be sure of extreme answers than those aren't, thus the interval is not linear.



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