A confidence interval constructed around a point prediction from a regression model is called a prediction interval,because the actual point being estimated is not a population parameter.

Question

Quizplus · Accepted Answer

A prediction interval provides a range around a single observation predicted by the regression model, accounting for the uncertainty in the prediction itself, whereas a confidence interval is constructed around a parameter estimate to indicate the range within which the true population parameter is expected to lie. The distinction lies in the prediction interval's focus on the uncertainty of individual predictions rather than estimating population parameters.

A Confidence Interval Constructed Around a Point Prediction from a Regression