Prediction Intervals

The prediction interval is a probabilistic estimate of the range within which future observations are likely to fall, given the existing observed data. It is commonly used in regression analysis, aiming to provide a range that is expected to contain future observation values, thereby helping decision-makers assess the uncertainty of predictions. Constructing prediction intervals can enhance the reliability and practicality of models, especially in fields such as finance, economics, and engineering, where it holds significant application value.