The confidence interval estimate of the expected value of y will be narrower than the prediction interval for the same given value of x and confidence level. This is because there is less error in estimating a mean value as opposed to predicting an individual value.

Question

Quizplus · Accepted Answer

The confidence interval estimate of the mean value of y will be narrower than the prediction interval because it is based on the variation within the sample data, whereas the prediction interval includes the variability and uncertainty due to the unknown variation outside the sample data. Therefore, the estimation uncertainty is smaller for the mean value compared to predicting an individual value.

The Confidence Interval Estimate of the Expected Value of Y