When to use a confidence interval
Use a confidence interval whenever you estimate a population quantity — a mean, a proportion, a difference — from a sample and want to communicate the uncertainty around that estimate. CIs are often more informative than a bare p-value because they show both the size of an effect and its precision.
How to read it correctly
The confidence level describes the procedure, not a single interval. “95% confident” means the method captures the true parameter 95% of the time over many repetitions. Once you compute a specific interval, the true value is either in it or not — there is no probability attached to that one interval. For the intuition behind this, try the interactive confidence-interval simulator.
Assumptions
- Random sampling from the population of interest.
- Approximate normality of the sampling distribution — satisfied for means by the Central Limit Theorem when n ≳ 30, and for proportions when np and n(1−p) both exceed ~10.
- Independent observations.
Common mistakes
- Probability misreading — “95% chance the mean is in this interval” is wrong (see above).
- Overlapping-CI fallacy — two 95% CIs that overlap slightly can still reflect a significant difference; compare the CI of the difference instead.
- Confusing a CI with a prediction interval — a CI bounds the mean, not individual future values.
Worked example
A sample of 40 with mean 100 and SD 15 gives a 95% CI for the mean of roughly 100 ± 4.8, i.e. about [95.2, 104.8]. Quadrupling the sample size halves the margin of error. Enter your data above to compute the interval; see the confidence intervals guide for more.