Interpretation of marketing data

• What does confidence in statistics describe?

  Probability
• What does a 95% confidence level indicate?

  95 out of 100 estimates fall within the interval
• If a confidence interval is constructed, what does it specify?

  Upper and lower values for estimates
• How does a confidence interval relate to the accuracy of an estimate?

  A wider interval indicates less precision in estimates
• What is the action of estimating or concluding something based on trends called?

  Extrapolation
• What does extrapolation assume about existing trends?

  That they will continue
• In what situation would you use extrapolation?

  When predicting future trends
• How does extrapolation differ from interpolation?

  Extrapolation predicts beyond known data