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Equation 5 · AI Governance and Regulation in Practice: An Advanced Technical Guide

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nn

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nn

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This is a standard one-sided Wald confidence bound, included here only because it exposes a real assumption practitioners often skip: a raw sampled error rate without its confidence interval says nothing about whether the true rate is actually below a threshold, especially at the sample sizes ( n in the low hundreds) that most red-team exercises actually use. A “measured” 2% confabulation rate on 150 prompts has a confidence interval wide enough to be consistent with a true rate several times higher.

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