Qnt. 561 Week 4 Dqs
Both confidence intervals and hypotheses testing involve estimations of population parameters using a small sample from the population. It is important to note that while confidence intervals give an estimation of the possible true values of population parameters, hypothesis testing involves formulating alternative and null hypotheses in order to test if a statement about the population is true.
We can estimate the range of values that could exist for the whole population by using data from our sample. It allows us to determine whether there is enough evidence for certain claims about our study. This also helps us to understand how credible these claims are by providing a context for the potential variability of estimated results because it is based on only a portion of all available data.
In contrast, hypotheses testing is a process that requires statistical evidence and analysis to determine whether a hypothesis can be supported. The probability theory is heavily used and rigorous calculations are required to arrive at valid results.
In conclusion, while both methods produce approximate estimates about populations parameters , they serve different purposes – confidence intervals help us gain greater understanding of how reasonable certain predictions might be due its inclusion of margins of error into calculations whereas hypothesis tests allow organizations decide if any given statement is true or false thus providing them with actionable insights.