Precision – Precision is the range within which the population average (or other parameter) will lie in accordance with the reliability specified in the confidence level as a percentage of the estimate ± or as a numerical quantity. For instance, if the estimate is Rs. 4000 and the precision desired is ± 4%, then the true value will be no less than Rs. 3840 and no more than Rs. 4160. This is the range (Rs 3840 to Rs. 4160) within which the true answer should lie. But if we desire that the estimate should not deviate from the actual value by more than Rs. 200 in either direction, in that case the range would be Rs. 3800 to Rs. 4200.
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