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8/30/2012

Margin of Error Margin of Error


The 100(1-)% confidence interval on a Suppose we find the following 95% confidence
population mean, , is interval:

25 75
x z / 2 x z / 2
n n What is the margin of error, E?

Margin of Error Margin of Error


Suppose you are told that the length of a So, the margin of error, E, is then
particular confidence interval on a population

mean is 40. You are also told that the sample E z / 2
mean is 85. n
Find the lower and upper endpoints of the confidence
This is a very useful quantity. If you tell me what
interval. (That is, find the confidence interval on the
true population mean, ).
your standard deviation () is, the level of
confidence you would like to have (1-), and
how far off you can afford to be from the true
mean, , (E) - I can tell you what sample size (n)
you need!!

1
8/30/2012

Margin of Error Margin of Error


Example
Consider the hotdog sodium example again. The
A formula for sample size, n population standard deviation of sodium level is = 100.
How many hotdogs should I sample in order to estimate
Solve the margin of error formula for n:
the population mean of sodium level with 95% confidence
and a margin of error of 20mg.
E z / 2
n Solution
First, we have = 100, E = 20, and 1 = 0.95. Since 1
= 0.95, then = 0.05, and z / 2 z0.05 / 2 z0.025 1.96
z
2

n /2
This is the sample size needed. If E
it turns out to be a decimal,
round up to the nearest whole
number!

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