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That, my friend, is not a question.

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That, my friend, is not a question.

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Confidence interval considers the entire data series to fix the band width with mean and standard deviation considers the present data where as prediction interval is for independent value and for future values.

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There are a few good books on it actually. You should look it up.

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Specifically, which to use in this scenario?

Recommend a wireless phone plan from the alternatives listed above. The company is going to commit to using this phone plan for a long time. [Hint: use the relevant Margin of Error here.]

It's from a test question. We're a given a regression analysis on phone minutes usage for a sample of company but the company stated in this question was not included in the sample (Therefore, prediction interval should be used?)

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A point forecast is a single answer e.g. it is going to rain at 1pm. An interval forecast is based on uncertainity e.g. it is going to rain between 12pm and 2pm. An interval forecast is used because a forecast is always precisly wrong and appromatley right, y.e. don't give a precise answer because it will be wrong.

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