Why Would Manufacturers and Businesses Be Interested in Constructing a Confidence

question 88

Essay

Why would manufacturers and businesses be interested in constructing a confidence interval for the population variance? Would manufacturers and businesses want large or small variances?

---

Definitions:

Sample Mean

The average value of a sample subset of a larger population, used as an estimate of the population mean.

Point Estimate

A single value estimate for a population parameter derived from a sample.

Population Mean

The average value of a population's characteristics.

Standard Deviation

A statistical metric that quantifies the variation or dispersion of a set of data points from the mean.