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Interval estimates Definition

Inferences regarding the likelihood that a population value will fall within a certain range.

Interval estimates are a range of values, derived from sample data, used to estimate an unknown population parameter (such as a mean or proportion) with a certain level of confidence. They typically include a confidence interval around a point estimate.

What are the key aspects of interval estimates in marketing research?

• Provide both a range and a confidence level (e.g., 95%).
• Reflect uncertainty around sample-based estimates.
• Calculated using standard error and critical values.
• Wider intervals indicate more uncertainty; narrower intervals suggest more precision.
• Commonly used in survey research and forecasting.

Why are interval estimates important in market research?

They help researchers express the reliability and precision of their findings. Interval estimates offer more informative and statistically sound insights than single-point estimates, supporting better decision-making.

Who relies on interval estimates in marketing research?

• Data analysts and statisticians.
• Research consultants and forecasters.
• Customer insights and brand tracking teams.
• Advertising effectiveness researchers.
• Executives making data-driven strategic decisions.

How do market researchers use interval estimates?

Researchers use interval estimates to report survey results, test hypotheses, evaluate market size and predict consumer behavior. For example, instead of stating a product satisfaction score is 78, they might report it as 78 ± 3 with 95% confidence.