Problem Solving & Data Analysis Hard
⏱ 12 min 📊 Hard ⭐ Premium

Margin of Error and Confidence Intervals

Interpret margin of error, confidence intervals, and understand what affects their width.

Before you read
Answer first — see what you already know.

A consumer survey of 900 adults finds that 58% prefer Brand X, with a margin of error of 3.3%. Which statement is best supported?

Check your answer
Answer:

C

Before you read
Answer first — see what you already know.

A marketing researcher wants to reduce the margin of error from 6% to 3%. If the original sample size was 300, approximately what sample size is needed?

Check your answer
Answer:

B

Theory

Margin of Error

The margin of error tells you how much the sample result might differ from the true population value.

Sample result±Margin of error\text{Sample result} \pm \text{Margin of error}

Example: If a poll finds 52% support with a margin of error of ±\pm3%, the true support is likely between 49% and 55%.

303540455055606570
52% ± 3%: confidence interval [49%, 55%]

This range is called the confidence interval.

Example 1

A survey finds that 40% of students prefer online classes, with a margin of error of ±\pm4%. What is the confidence interval?

Lower bound: 40%−4%=36%40\% - 4\% = 36\%

Upper bound: 40%+4%=44%40\% + 4\% = 44\%

Confidence interval: 36% to 44%

The true proportion is likely between 36% and 44%.
Theory

What Affects the Margin of Error?

Larger sample size →\to smaller margin of error (more precise).

Higher confidence level →\to larger margin of error (more certain but less precise).

The approximate formula (for proportions):
Margin of error≈1n\text{Margin of error} \approx \frac{1}{\sqrt{n}}

where nn is the sample size. To halve the margin of error, you need 4 times the sample size!

Example 1

A poll of 400 people has a margin of error of ±\pm5%. About what margin of error would a poll of 1,600 people have?

Sample size quadrupled: 1600=4×4001600 = 4 \times 400

Margin of error halved: 5%2=2.5%\frac{5\%}{2} = 2.5\%

±\pm2.5%

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