What is the difference between confidence intervals and margin of error?

What is the difference between confidence intervals and margin of error?

Confidence intervals provide a range of values that likely contain the population parameter, while margin of error indicates the maximum expected difference between the sample estimate and the true population value.

Can you give me an example of how they are used in statistics?

Sure! If a survey shows that 60% of respondents prefer product A, with a 95% confidence interval of 55% to 65%, the margin of error is 5%. This means we are 95% confident that the true preference in the population is between 55% and 65%.

How do I calculate the margin of error?

The margin of error can be calculated using the formula: ME = Z * (σ/√n), where Z is the Z-score for your confidence level, σ is the standard deviation, and n is the sample size.

What factors affect the width of a confidence interval?

The width of a confidence interval is affected by the sample size, the variability in the data, and the confidence level chosen. Larger samples and lower variability lead to narrower intervals.