confidence level

confidence level definition - business

confidence level

The probability associated with a confidence interval. For example, suppose a statistical study indicates that 70% of people who sample a new peanut butter cookie will choose to purchase at least one package. If the study indicates a 95% probability to the confidence interval of 70% ± 3%, the researcher is relatively certain that between 67% and 73% of tasters will buy the cookies.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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