JentooSAT®

SAT® · Math: Problem-Solving and Data Analysis

Interpreting Margin of Error

A margin of error turns one sample estimate into a range of plausible values for the whole population. It does not measure the biggest possible mistake, it describes how far off a typical sample tends to land.

A single survey only measures a sample, never the whole population, so the number it reports almost certainly isn't the exact truth. The margin of error admits this honestly. Instead of pretending the sample percentage or sample mean is exact, it builds a window around that estimate: estimate minus the margin, up to estimate plus the margin. Everything inside that window counts as a plausible value for the population.

Take a poll showing 52 percent support with a margin of error of 3 points, at 95 percent confidence. That claims the true population support plausibly sits between 49 percent and 55 percent, and that the sampling method used to build intervals like this one succeeds in capturing the real value about 95 percent of the time it's used. It is not a guarantee for this particular poll, and it is not the worst-case error pollsters could make. Bigger mistakes are always possible, from bad sampling to dishonest answers. The margin of error only accounts for the ordinary wobble you get from sampling a limited group at random.

Push the confidence level up from 95 percent to 99 percent and the interval has to widen, because demanding a higher success rate across repeated samples means leaving less room for error. This is the same tradeoff that runs through the rest of data analysis in this unit: tighter claims about a population always cost something, whether that's a wider interval, a bigger sample, or less confidence. Reading margin of error correctly means reading it as a statement about a method's reliability, not a promise about one result.

Key terms

Margin of error
The distance added to and subtracted from a sample estimate to build an interval of plausible population values.
Plausible interval
The range from estimate minus margin of error to estimate plus margin of error.
Confidence level
The success rate of the method used to build the interval across many repeated samples, such as 95 percent.
Sample estimate
A statistic, like a mean or percentage, calculated from a random sample rather than the whole population.

Watch it explained

  1. How it worksHow does a margin of error turn a single estimate into an interval of plausible values?
  2. How it worksWalk me through what a 52 percent result with a 3 point margin of error actually claims.
  3. Worked exampleFind the plausible interval for a sample mean of 18.4 with a margin of error of 1.2.
  4. Common mistakeWhy isn't the margin of error the largest mistake the pollsters could possibly have made?
  5. Going furtherWhat changes about the interval when the confidence level is raised from 95 to 99 percent?

Check yourself

Your turneasy1 of 3
A study reports a sample mean of 31 with a margin of error of 2.45. What is the upper endpoint of the plausible interval for the population mean?

End of topic.