Confidence intervals 1

Download: ConfidenceIntervalDemo_init.xlsx

Download: ConfidenceIntervalDemo_final.xlsx

This is a lecture on confidence intervals that involves a simulations-based demo. The slides and the “final” version of the Excel file are pretty much all you need to follow along and take notes, unless you want to actually code the simulation too (which isn’t necessary).

If you do want to do the coding as well, start with the “init” file but note that since the screencast was recorded, the RNGs have been recoded as lambda functions (rather than VBA UDFs as in this video). Practically speaking that means:

use L.rnorm when directed to use rnorm
use =L.GetSeed() (with no arguments) instead of =GetSeed(1) to generate a volatile seed.

Below are the time stamps for the video. They are also present in the YouTube version of the video (as clickable links).

00:00 Setup
04:27 Interval estimates
07:34 Prediction intervals (PIs)
13:41 Calculating PI
20:44 PI Plot
29:59 PI to confidence intervals (CIs)
36:47 Calculating CIs when sigma is not known
47:02 Interpretation of CIs

The Central Limit Theorem Confidence intervals 2