Confidence Interval and Standard Deviation

The interval and standard deviation are related by the following equation:

sd = CI/z

where sd is the standard deviation, CI is the confidence interval, and z is the the "z statistic" based on the specified confidence and the normal distribution. The user can enter an interval and confidence, and the standard deviation will be computed; or the user can enter a standard deviation and confidence, and the interval will be computed.  

In practical terms entering an interval (or standard deviation) and confidence is an indication of how much error the user believes is associated with the observed value.

The standard deviation becomes important when using an inverse model.  The weight assigned to each of the observations points is a function of the standard deviation.  This weight is used in the objective function that the inverse model tries to minimize.  An observation point with a small standard deviation will have a greater influence on the objective function than a point with a large standard deviation.

The user must enter an interval (or standard deviation) and confidence in the Properties Dialog. Although these values are rarely quantified the following examples may prove helpful.

If the user had the following set of head measurements for one observation well:
Date
                Head
May 10, 1998         55.0
July 10, 1998        50.5

September 5, 1998    48.6
November 15, 1998    49.1
February 2, 1999     50.8
March 12, 1999       54.0
April 1, 1999        57.2

The mean of the data is 52.17 and the standard deviation is 3.25. The user could enter this standard deviation and a confidence of 95%.

Many times the user does not have this much data available. Usually the user will only have one measured value.  In this case the user must use engineering judgement to estimate an interval or standard deviation. For example, if I have a single head measurement of 45.7 ft and I believe that observation to be accurate to within a 1 foot. Then I would enter 1 foot as my interval.

Related Links:
Observation Weights

Properties Dialog

Automated Parameter Estimation