Prediction and Confidence Intervals
Free SOA Exam SRM (Statistics for Risk Modeling) lesson in Linear Models. 21 min read, ~3,158 words.
A confidence interval bands the mean response; a prediction interval bands a single new. The PI is always wider. The PI standard error has an extra "+1" inside the radical that accounts for irreducible noise. That term never shrinks even with infinite data. Both intervals widen as moves away from...
Read the full lesson, free →
Worked examples, audio narration, and practice. No signup to read.
What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Example 4
- Example 5
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 2f
Browse all free Exam SRM lessons or jump into free Exam SRM practice questions.