How does a point estimate differ from an interval estimate?

A point estimate is a specific value calculated from sample data that serves as a best guess for a population parameter. For example, if you were estimating the average height of students in a university, you might determine that the average height, based on your sample, is 170 cm. This single value is the point estimate.

In contrast, an interval estimate provides a range of values within which the population parameter is expected to lie, along with a certain level of confidence. For instance, you might calculate that you are 95% confident the average height of all students lies between 168 cm and 172 cm. This range represents the uncertainty associated with the estimation process.

Therefore, the correct option highlights that a point estimate outputs one value (the estimation) while an interval estimate encompasses a range, illustrating the fundamental difference between the two types of estimates in statistical analysis.