Calculating a confidence interval allows us to get an idea about the possible range of realizations of a random variable with a reasonable degree of certainty. If the population variance is known, the population mean will fall between the sample mean minus z of, alpha divided by 2, times the standard error, and, the sample mean plus z of, alpha divided by 2, times the standard error. If you’re a sales executive, you might want to calculate a range for your sales next quarter with 95% certainty.
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Some other open-access resources you may consider are—Variance and Standard Deviation, Confidence Interval with Unknown Variance, and Standard Normal Distribution.
