Confidence Interval vs Margin of Error
Both terms below come up in the same part of the course, and students mix them up. Here is each one defined on its own, side by side, so you can see where they part company.
Confidence interval
Confidence intervals
A confidence interval is a range of plausible values for a population parameter, built from a sample as the estimate plus or minus a margin of error.
A confidence interval gives a range for an unknown population parameter instead of a single guess, acknowledging that samples vary. Its width reflects the uncertainty in the estimate: more data and less spread give a narrower interval. For example, a 95% confidence interval of 52% plus or minus 3% for support runs from 49% to 55%. The general form is , where the standard error measures the typical size of sampling error.
Margin of error
Confidence intervals
The margin of error is how far a point estimate may reasonably sit from the true parameter; it equals the critical value times the standard error.
The margin of error sets the reach on each side of a point estimate in a confidence interval, so the interval is . It grows with the confidence level and shrinks as the sample size grows, since more data lower the standard error. For example, a poll reporting 47% with a 3% margin of error gives the interval 44% to 50%. In symbols, for a mean with known population standard deviation , where is the critical value and the sample size.