Margin of error

Definition taught in Estimation examples, part of Data analysis

Margin of error

Type Definition
Taught in Estimation examples
Part Data analysis
Worked examples 2
Questions using it 3

For a random sample with mean \mu and finite variance, the approximate confidence interval for \mu with confidence 1-\alpha is \overline X\pm z_{1-\alpha/2}\,s/\sqrt n. Its half-width, z_{1-\alpha/2}\,s/\sqrt n, is the margin of error.

Examples

Narrowing a pilot interval

A pilot sample of 100 elderly people in nursing homes gave a 95% confidence interval (59.3,\,82.5) kg for the mean weight. What sample size is needed for a 95% margin of error of 1 kg?

The pilot half-width is (82.5-59.3)/2=11.6 kg at n=100. The margin scales as 1/\sqrt n, so a margin of 1 kg needs

n\ge 100\times 11.6^2=13456.

Recovering the pilot standard deviation with a t_{99} quantile near 1.98 and then planning the new interval with z_{0.975}=1.96 lowers the requirement to 13188. Either figure is a sample of more than thirteen thousand.

Hours of sleep

Question page: Hours of sleep

Four students produced a 95% confidence interval 16.753\pm 7.39 hours for the mean hours slept over a weekend. What is the smallest sample size that would bring the margin of error down to 2 hours, keeping the same estimated standard deviation and the same normal approximation to the critical value?

The pilot margin is 7.39=t_{3,\,0.975}\,s/\sqrt{4} with t_{3,\,0.975}\approx 3.182, so s\approx 4.65. A future sample of size n has margin t_{n-1,\,0.975}\,s/\sqrt n. The smallest n for which this is at most 2 is n=24: t_{23,\,0.975}\approx 2.07 and 2.07\times 4.65/\sqrt{24}\approx 1.96<2, while n=23 is just over 2.

Used in

See also

Random sample · Confidence interval · Welch interval

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