Posted on:

25 Jan 2021


Do I need to come up with as many confidence intervals as periods of interest?


In the practical example about confidence intervals, I assume the confidence intervals we found tell us how many pairs of shoes we need to have in stock to ensure we're are not short on stock at any time during the entire year. If the company makes several orders of shoes during the year (let's say quarterly), is it necessary to have confidence intervals for each period in order to know how many shoes to have in inventory at any given period of time? (For example, Q1 - CI (1.36, 2.45) = 2 pairs, Q2 - CI (2.02, 4.61) = 5 pairs, Q3 - CI (1.23, 1.89) = 2 pairs, Q4 - CI (3.56, 5.12) = 5 pairs, size 8 only).

Hope my question was clear enough.

Thanks in advance.

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