What controls the width of a confidence interval, and how large must a sample be to achieve a required precision?
Relate the margin of error to confidence level and sample size, and determine the sample size needed for a required margin of error
WACE Year 12 Mathematics Methods Unit 4 margin of error and sample size: the margin of error formula, how confidence level and sample size affect width, and solving for the sample size needed for a required precision, with worked examples.
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What this dot point is asking
SCSA Unit 4 develops the margin of error as the half-width of a confidence interval for a proportion. This dot point asks you to relate it to the confidence level and sample size, and to find the sample size required for a given precision. It is examined in both sections, with sample-size calculations common in the calculator-assumed section.
The margin of error
A confidence interval for a proportion has the form , where is the margin of error.
Two levers control : the confidence level through , and the sample size through . A higher confidence level needs a larger and so a wider interval. A larger sample shrinks the standard error and so narrows the interval.
The square-root relationship
Because depends on , precision improves slowly with sample size. To halve the margin of error you must roughly quadruple , since . This is why large gains in precision become expensive.
Determining the sample size
Rearranging the margin-of-error formula for lets you find the sample size needed for a target margin .