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Understanding Confidence Intervals

Explore how to create confidence intervals using bootstrapping to estimate population parameters. Understand the percentile and standard error methods for constructing confidence intervals, their interpretation, and when to apply each method effectively using the infer package in R.

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Let’s start this section with an analogy involving fishing, and assume we’re trying to catch a fish. On one hand, we can use a spear, while on the other, we can use a net. Using the net will probably allow us to catch more fish!

Now think back to our pennies exercise where we were trying to estimate the true population mean year μ\mu of all US pennies. Think of the value of μ\mu as a fish.

On one hand, we can use the appropriate point estimate/sample statistic to estimate μ\mu, which we saw in the ...