Confidence limit

In statistics, a confidence interval (CI) is a type of interval estimate (of a population parameter) that is computed from the observed data. The confidence level is the frequency (i.e., the proportion) of possible confidence intervals that contain the true value of their corresponding parameter. In other words, if confidence intervals are constructed using a given confidence level in an infinite number of independent experiments, the proportion of those intervals that contain the true value of the parameter will match the confidence level.

Confidence intervals consist of a range of values (interval) that act as good estimates of the unknown population parameter. However, the interval computed from a particular sample does not necessarily include the true value of the parameter. Since the observed data are random samples from the true population, the confidence interval obtained from the data is also random. If a corresponding hypothesis test is performed, the confidence level is the complement of the level of significance; for example, a 95% confidence interval reflects a significance level of 0.05. If it is hypothesized that a true parameter value is 0 but the 95% confidence interval does not contain 0, then the estimate is significantly different from zero at the 5% significance level.

The desired level of confidence is set by the researcher (not determined by data). Most commonly, the 95% confidence level is used. However, other confidence levels can be used, for example, 90% and 99%.

Factors affecting the width of the confidence interval include the size of the sample, the confidence level, and the variability in the sample. A larger sample size normally will lead to a better estimate of the population parameter.

Confidence intervals were introduced to statistics by Jerzy Neyman in a paper published in 1937.

Interval estimates can be contrasted with point estimates. A point estimate is a single value given as the estimate of a population parameter that is of interest, for example, the mean of some quantity. An interval estimate specifies instead a range within which the parameter is estimated to lie. Confidence intervals are commonly reported in tables or graphs along with point estimates of the same parameters, to show the reliability of the estimates.

...
Wikipedia