A range around an estimate that would contain the true value a stated share of the time across repeated samples. A wider interval comes with higher confidence.
Where you will meet it
Confidence interval comes up in 8 learning outcome notes across the FRM syllabus.
A few of them:
Hypothesis Testing FRM Part I · Quantitative analysis
“A confidence interval and a hypothesis test use the same ingredients: the estimate, its standard error and a critical value.”
Estimating Market Risk Measures: An Introduction and Overview FRM Part II · Market risk measurement and management
“A rough 95 percent confidence interval is the estimate plus or minus 1.96 standard errors.”
Linear Regression FRM Part I · Quantitative analysis
“A 95% confidence interval is the estimate plus or minus 1.96 × standard error, or the t critical value in small samples.”
Linear Regression FRM Part I · Quantitative analysis
“The t-statistic, the p-value and the confidence interval are three views of the same test of H0: β = b0 against a two-sided alternative.”
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