Margin of Error vs Standard 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.
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.
Standard error
Sampling distributions
The standard error is the standard deviation of a statistic's sampling distribution, showing how much the statistic typically varies from sample to sample.
The standard error plays the same role for a statistic that the standard deviation plays for raw data, and it gets smaller as the sample size grows. For example, the standard error of a sample proportion is (the square root of p times one minus p, divided by n). For a sample mean it is (sigma, the population standard deviation, over the square root of n). A smaller standard error means the estimate is more precise, which narrows a confidence interval.