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coefficient of determination (C1)<br />A ratio of the explained variation to the total variation of values from a regression :L[Y(estimated)-Y(mean)f :L[Y(actual)-Y(mean)f & This ratio can range f rom 0 to 1, being 0 if all the variation is unexplained and I if all the variation is explained.<br /><em>See also:</em> linear correlation
confidence interval (C1)<br />The range within which, to a certain percentage, one is confident that a sample statistic lies. Thus, with a 95 per cent confidence interval, if we sample 1,000 voters to ascertain their current opinion of the government we can be confident that only fifty are unrepresentative of the population as a whole. Confidence intervals are stated for MEANS, STANDARD DEVIATIONS, proportions and differences.<br /><em>See also:</em> confidence level
consumer's surplus (D1)<br />The area, shaded in the figure, under an individual consumer's demand curve which shows the difference between what a consumer is willing to pay and what actually is paid. It will be greater for richer consumers as they have a higher demand; hence, when the price structure is designed to reflect consumer incomes, higher income groups pay more for a good service, e.g. employed persons are charged more than unemployed. This major concept, introduced into economics by DUPUIT and refined by MARSHALL and HICKS, has become a major tooJ of COST-BENEFIT ANALYSIS.
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