Point vs.

Interval estimation
Estimation is the process of making inferences from a sample about an unknown population
parameter. An estimator is a statistic that is used to infer the value of an unknown parameter.
A point estimate is the best estimate, in some sense, of the parameter based on a sample. It
should be obvious that any point estimate is not absolutely accurate. It is an estimate based on
only a single random sample. If repeated random samples were taken from the population, the
point estimate would be expected to vary from sample to sample.
A confidence interval is an estimate constructed on the basis that a specified proportion of the
confidence intervals include the true parameter in repeated sampling. How frequently the
confidence interval contains the parameter is determined by the confidence level. 95% is
commonly used and means that in repeated sampling 95% of the confidence intervals include the
parameter. 99% is sometimes used when more confidence is needed and means that in repeated
sampling 99% of the intervals include the true parameter. It is unusual to use a confidence level
of less than 90% as too many intervals would fail to include the parameter. Likewise, confidence
levels larger than 99% are not used often because the intervals become wider the higher the
confidence level and therefore require large sample sizes to make usable intervals.