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 estimate±(critical value)×(standard error)\text{estimate} \pm (\text{critical value}) \times (\text{standard error}), where the standard error measures the typical size of sampling error.

Full entry for confidence interval

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 estimate±margin of error\text{estimate} \pm \text{margin of error}. 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, margin of error=zσn\text{margin of error} = z^* \cdot \frac{\sigma}{\sqrt{n}} for a mean with known population standard deviation σ\sigma, where zz^* is the critical value and nn the sample size.

Full entry for margin of error

Where each one fits in the course