Q 8.62 - Elementary Statistics

Question

The margin of error is also called the maximum error of the estimate. Explain why.

Step-by-Step Solution

Answer

This is because margin of error is estimating the mean of population by sample mean.

Step 1: Given Information

We are given with margin of error. We need to state why it is referred to as maximum error of estimate.

Step 2: Explanation

For the given confidence level, estimating the mean of population by given sample mean is called margin of error.

Mathematically,

$E=z_{\frac{a}{2}}\left(\frac{\sigma }{\sqrt{n}}\right)$

Therefore, the margin of error is greater of the maximum error of the estimate.