Question

3. Examine the following equation for the margin of error when estimating the Population Mean.

( does it increase or decrease?)

Indicate the effects of Margin of error resulting from:

a. Standard error

b. Sample size

c. Confidence level

d. Standard deviation

Answer 1

We know that the margin of error is given by:

a. Increase in the standard error results in the increase in the margin of error and vice versa.

b. Increase in the sample size results in the decrease in standard error which results in the decrease of margin of error.

Hence when sample size increases, margin of error decreases and vice versa.

c. Increase in confidence level results in the increase in the margin of error as the critical value of the test statistic increases and vice versa.

d. Increase in the standard deviation results in the increase in the margin of error and vice versa.