Daily Archives: January 23, 2020

Ranges Overlap

In the last post I mentioned that when we have two different estimates, each with its own uncertainty range (note: I use the 95% confidence interval almost all the time, or to be precise the ±2σ range), the fact that their ranges overlap isn’t the proper statistical test for whether the estimates are significantly different. Somebody asked about that.

Just for a gut feeling: I know that when error ranges overlap, there are values that fall in the “plausible range” for both estimates, which suggests that the estimates may well be in agreement. But sometimes, those “plausible in both ranges” values are unlikely in both ranges. Unlikely isn’t so implausible, but unlikely for both is unlikely squared, and that’s too implausible to be plausible.

What follows is some of the math, and it’s really simple, really, but I know that turns off some readers. Others want it; feel free to skip it and enjoy the remainder of the day.

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