Final answer:
A range of values used to estimate a population parameter is called a confidence interval. It uses the sample mean and standard deviation as point estimates and incorporates a margin of error based on the confidence level and the standard error.
Step-by-step explanation:
The range of values used to estimate a population parameter of interest is called a confidence interval. A confidence interval is computed from a sample statistic and provides a range of values that is likely to contain the unknown population parameter. The calculation takes into account the sample mean (the point estimate for the population mean), the sample standard deviation (the point estimate for the population standard deviation), the desired confidence level, and the size of the sample. It is important to note that the confidence interval includes a margin of error which depends on the standard error of the mean and the confidence level.
To construct a confidence interval for a population mean, the following steps are typically followed:
- Find the point estimate for the population mean.
- Calculate the error bound using the desired confidence level.
- Create the confidence interval by adding and subtracting the error bound from the point estimate.
- Interpret the confidence interval in the context of the problem.