Margin of Error Statistics Example 4

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Example 4

hard
If the confidence level is increased from 90% to 99% while the sample size and variability stay the same, what happens to the margin of error?

Solution

  1. 1
    Step 1: A higher confidence level uses a larger critical value, which makes the confidence interval wider.
  2. 2
    Step 2: Therefore, the margin of error increases when the confidence level increases.

Answer

The margin of error increases.
There is a tradeoff between confidence and precision. To be more confident that an interval captures the true parameter, we usually need a wider interval and therefore a larger margin of error.

About Margin of Error

The margin of error is the maximum expected difference between a sample statistic and the true population parameter, typically expressed as a plus-or-minus value. It equals half the width of a confidence interval and decreases as sample size increases.

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