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A Confidence Interval Constructed Around a Point Prediction from a Regression

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A confidence interval constructed around a point prediction from a regression model is called a prediction interval,because the actual point being estimated is not a population parameter.

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Definitions:

Normal Distribution

A bell-shaped data distribution where most observations cluster around the central peak and the probabilities for values further away from the mean taper off equally in both directions.

Sample Proportion

The fraction or percentage of a sample that exhibits a particular trait or attribute.

Population Proportion

The percentage of individuals in a population who share a certain characteristic or attribute.

Expected Value

The expected value of a random variable is the long-run average value of repetitions of the experiment it represents.

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