Credible Interval

A credible interval is a range within which we believe a parameter, like an average or probability, lies, based on the data and our prior knowledge. Unlike traditional confidence intervals, which are a frequentist concept, credible intervals come from Bayesian statistics and directly reflect our degree of belief. For example, a 95% credible interval means there is a 95% chance that the true value is within that range, given the data and prior information. It provides an intuitive way to express uncertainty about an estimate.