aprilryan said:Hey all I have one last question for you. I just need clarification on point estimate and margin of error as I have to find both in a problem. Let's say the endpoints are 5.9 and 8.1. When I do a margin of error problem, I subtract the mean of 7 from 8.1 right? When I do point estimate do I add or subtract 8.1 from 5.9 or the margin of error?
Thanks! Hope you all have a great summer!
The margin of error is the range of values within which the true population parameter is likely to fall, while the point estimate is a single value that is used to estimate the population parameter. In other words, the margin of error gives an indication of the precision of the point estimate.
The margin of error can be calculated by taking the critical value (which is based on the desired confidence level) and multiplying it by the standard deviation of the sample divided by the square root of the sample size.
The margin of error is important because it helps to determine the reliability of the point estimate. A larger margin of error indicates that the point estimate is less precise and therefore less reliable as an estimate of the true population parameter.
Yes, the margin of error can be reduced by increasing the sample size. This is because a larger sample size reduces the standard error, which in turn decreases the margin of error.
The confidence level and margin of error have an inverse relationship. As the confidence level increases, the margin of error also increases. This means that there is a wider range of values within which the true population parameter is likely to fall at a higher confidence level.