Interpret margin of error and form a plausible interval estimate.
Turn a sample statistic and margin of error into a plausible population interval.
Core Idea
The margin of error defines a range around the sample statistic — add and subtract it to get the interval where the true population value plausibly falls.
Understanding
A sample statistic on its own is a point estimate — one number. The margin of error turns it into an interval estimate by marking how far the true value could reasonably be from that point.
The formula is straightforward:
If a survey finds that 45% of residents support a new park, with a margin of error of 3 percentage points, the plausible range for the true support level is
The margin of error goes in both directions. A common SAT trap is an answer that only adds or only subtracts the margin of error. You always need both ends of the interval.
Step by Step
- Identify the sample statistic (mean or proportion).
- Identify the margin of error.
- Compute the lower bound: statistic minus margin of error.
- Compute the upper bound: statistic plus margin of error.
- State the interval: the true population value plausibly lies between the lower and upper bounds.
Misconceptions
- Only adding the margin of error (getting just an upper bound) or only subtracting it — the interval extends in both directions.
- Thinking the margin of error is a percentage of the statistic rather than an absolute amount to add and subtract.
- Believing the true value is guaranteed to be inside the interval — it's plausible, not certain.
Worked Example
A poll of 600 randomly selected adults found that 52% support a new policy, with a margin of error of 4 percentage points. Which of the following is the best interpretation of this result?
Select an answer to see the explanation