Introduction The Confidence Interval (CI) is a vital statistical tool that quantifies the uncertainty associated with an estimate. It provides a range within which the true value is likely to fall, giving decision-makers a measure of confidence in their conclusions. This mental model is deeply rooted in human psychology as we seek certainty in our […]
Introduction The Central Limit Theorem (CLT) is a fundamental concept in statistics that holds great relevance in decision-making processes. It states that when independent random variables are added, their sum tends to follow a normal distribution, regardless of the shape of the original variables’ distribution. This mental model is anchored in human psychology as we […]