NCEA Level 3Margin of errorAS 91584

Margin of error: the three rules of thumb

What this lesson covers

  • The margin of error measures sampling variation only, not bias or other errors.
  • The 1/√n rules of thumb are not in the booklet, so they must be learned.
Key idea

One sample, one answer

  • A different sample gives a slightly different result.
  • The margin of error measures how much.
  • It turns a sample result into a range.
Key idea

What a margin of error covers

  • Sampling variation, and nothing else.
  • Not bias, non-response or wording.
  • Keep the two ideas apart.
Worked example

Rule 1: one proportion

  • Learn it: not in the booklet
  • Then form the interval.
  1. MOE ≈ 1/√none proportion
  2. n = 1000: MOE ≈ 1/√1000
  3. = 0.0316 ≈ 3.2%4 decimal places
  4. 42% ± 3.2%
  5. 42 − 3.2 = 38.8
  6. 42 + 3.2 = 45.2
  7. 38.8% to 45.2%
Key idea

Form the interval, then say what it means

  • A margin of error on its own is not an answer.
  • Name the population and the variable.
  • Between 38.8% and 45.2% of all voters.
Worked example

Four times the sample, half the margin

  • n = 100: 10%.
  • n = 400: 5%.
  • n = 1600: 2.5%.
Four times the sample, half the margin
Worked example

Rule 2: a difference within one group

  • Two results, one sample.
  • One up, the other down.
  • So the margin doubles.
  1. A: 42%, B: 35%same 1000 voters
  2. MOE ≈ 2 × 1/√nsame sample
  3. = 2 × 1/√1000 = 2 × 0.0316
  4. = 0.0632 ≈ 6.3%
  5. 42 − 35 = 7 pointsthe difference
  6. 7 − 6.3 = 0.7
  7. 7 + 6.3 = 13.3
  8. 0.7 to 13.3 points
Worked example

Is zero in the interval?

  • Difference: 7 points ± 6.3.
  • 0.7 to 13.3 points.
  • All above zero: A leads B.
Is zero in the interval?
Worked example

Rule 3: a difference between two groups

  • Two independent samples.
  • Each has its own 1/√n.
  1. A: n = 400, 58% yes
  2. B: n = 625, 47% yes
  3. A: 1/√400 = 1/20 = 5%
  4. B: 1/√625 = 1/25 = 4%
Worked example

1.5 × the average margin of error

  • Average, then times 1.5.
  • Difference ± that margin.
  1. A: 5%, B: 4%
  2. average = (5 + 4)/2 = 4.5%
  3. MOE ≈ 1.5 × 4.5 = 6.75%two samples
  4. 58 − 47 = 11 pointsthe difference
  5. 11 − 6.75 = 4.25
  6. 11 + 6.75 = 17.75
  7. 4.25 to 17.75 points
Key idea

Pick the rule first

  • The wrong rule: a named 2025 error.
  • One proportion, same sample, or two samples?
  • The answer picks the rule.
SituationMOE
One proportion1/√n
Two, same sample2 × 1/√n
Two samples1.5 × average MOE
Key idea

When the rules do not apply

  • Proportions roughly 30% to 70%.
  • A random sample.
  • Never a cover for bias.
ConditionNeeds
Proportionabout 30% to 70%
Samplerandom
Coverssampling error only
Key idea

Where the marks are

  • Achieved: a margin of error and an interval.
  • Merit: interpret it in context.
  • Excellence: right rule, its limits, a claim.
Summary

What to take away

  • Pick the rule, form the interval, then interpret it in context.
One proportion1/√n
Same sample2 × 1/√n
Two samples1.5 × average MOE
Thenform the interval
Only if30% to 70%, random
Not coveredbias, non-response
Your turn

Your turn: four questions

  • Pause here and answer each one.
  • Decide which rule fits first.
  • Write each interval in full.
GivenFind
1n = 900, 45% say yesinterval
2same poll: 45% v 38%A − B
360% of 100, 45% of 400difference
44% of 1000rule OK?
Show answer

1. MOE 1/√900 = 3.3%; 41.7% to 48.3%. 2. Same sample: 2/√900 = 6.7%; difference 7: 0.3 to 13.7 points. 3. Two samples: 1.5 × (10% + 5%)/2 = 11.25%; difference 15: 3.75 to 26.25 points. 4. No: 4% is outside 30% to 70%, so the rule overstates the margin.

Worked example

The answers: questions 1 and 2

  1. 1. MOE ≈ 1/√900 = 1/30one proportion
  2. = 0.0333 ≈ 3.3%
  3. 45 − 3.3 = 41.7, 45 + 3.3 = 48.3
  4. 41.7% to 48.3%
  5. 2. MOE ≈ 2/√900 = 2/30same sample
  6. = 0.0667 ≈ 6.7%
  7. 45 − 38 = 7 pointsthe difference
  8. 7 − 6.7 = 0.3, 7 + 6.7 = 13.7
  9. 0.3 to 13.7 points
Worked example

The answers: questions 3 and 4

  1. 3. 1/√100 = 10%, 1/√400 = 5%two samples
  2. average = (10 + 5)/2 = 7.5%
  3. MOE ≈ 1.5 × 7.5 = 11.25%
  4. 60 − 45 = 15 pointsthe difference
  5. 15 − 11.25 = 3.75
  6. 15 + 11.25 = 26.25
  7. 3.75 to 26.25 points
  8. 4. p = 4%: outside 30% to 70%
  9. rule does not applyit overstates the margin

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