Tuesday, August 13, 2013

A Must-Read Post for Econometrics Students

Confidence Intervals - and how to interpret them correctly?

Hopefully, the correct interpretation was emphasized, again and again, by your instructor is Intro. Stats. 100. Even so, it's alarming to see how many grad. students (and faculty!) still get it wrong.

The concept of a confidence interval was first introduced by Jerzy Neyman and his co-authors. I've posted about some of the history of this here, and noted that even a future Nobel Laureate didn't "get it" when Neyman presented the concept at a seminar!

With this in mind, a really nice post appeared on the Statistical Research blog today. Its title is, When Discussing Confidence Level With Others, and I strongly recommend it.

© 2013, David E. Giles