For statistical modeling and analyses, construction of a confidence interval for a parameter of interest is an important inferential task to quantify the uncertainty around the parameter estimate. For instance, the true average lifetime of a cell phone can be a parameter of interest, which is unknown to both manufacturers and consumers. Its confidence interval can guide the manufacturers to determine an appropriate warranty period as well as to communicate the device reliability and quality to consumers. Unfortunately, exact methods to build confidence intervals are often unavailable in practice and approximate procedures are employed instead.
Have you ever wondered what it’s like to run an insurance company? What role does statistics play in insurance company operations and how can its use be profitable? In this article, we’re going to explore property insurance and a very recent improvement in statistical modeling in this area.
Can you imagine lying really, really still for at least 15 minutes? That is the reality of patients who need to complete a magnetic resonance imaging (MRI) scan. Even if you could keep still for that long, a scan could take up to 15 – 90 minutes! Patients need to lie as still as possible so that the MRI machine can capture images used to detect and diagnose diseases. Even the tiniest patient movement can distort the final image that is returned.