Confidence Intervals and Coverage

Install and import#

bash

npm install fintech-algorithms

import { confidenceIntervalsAndCoverage } from "fintech-algorithms/financial-mathematics-statistics-and-data-foundations/sampling-estimation-and-statistical-inference/confidence-intervals-and-coverage";

Signature#

confidenceIntervalsAndCoverage(input)

Worked example#

verified This is the worked example published in the article, replayed by the test suite on every run. The output cannot drift.

Input#

input

{
  "sample": [2, 3, 4, 3, 4],
  "estimates": [3, 3.1, 3.2, 3.3, 3.4],
  "populationMean": 3.2,
  "alpha": 0.05,
  "mseBenchmark": 0.1,
  "nullMean": 3,
  "alternativeMean": 3.5,
  "practicalThreshold": 0.1,
  "comparisons": 5
}

Call#

confidenceIntervalsAndCoverage(input)

Returns#

object with 2 fields: lower, upper

{
  "lower": 2.4666486279434823,
  "upper": 3.933351372056518
}

Diagrams#

How it works#

This page states the contract — how to call it correctly. The article explains the concept: why it works, and where it breaks.

Read the article →

References#

Product and Process Comparisons — NIST/SEMATECH e-Handbook
Confidence Intervals — NIST/SEMATECH e-Handbook
Historical-example decision