Difference between prediction intervals and confidence intervals

This post provides a good explanation about the Prediction interval and confidence interval. I just forwarded it here to keep a record. The original author has many other enlightening posts about forecasting as well, which are interesting to check. One example I can think of is in simple linear regression. For example, if I give you the value of the covariate for a future point, and then we would like to predict the value of the response. The confidence interval for this response is used to cover the expected value of y.┬áBut the prediction interval is used to cover a … Continue reading Difference between prediction intervals and confidence intervals