đ Understanding Margin of Error
What is Margin of Error?
Margin of error tells you how accurate your survey results are. If your survey shows 60% of people prefer option A with a Âą5% margin of error, the true population value is likely between 55% and 65%. It's a measure of the uncertainty in your survey results.
Key Concepts
- Confidence Level: How certain you want to be (95% is standard - means 95 out of 100 times, the true value falls within the margin).
- Sample Size: Larger samples = smaller margin of error = more accurate results.
- Population Size: Only matters for small populations (if sampling >5% of population).
- Sample Proportion: 50% gives the maximum margin (worst case scenario).
The Formula
For large populations:
Margin of Error = Z Ã â(p(1-p)/n)
Where:
- Z = Z-score for confidence level (1.96 for 95%)
- p = sample proportion (as decimal)
- n = sample size
Common Margins by Sample Size (95% Confidence)
- đ 100 respondents: Âą9.8% margin of error
- đ 200 respondents: Âą6.9% margin of error
- đ 400 respondents: Âą4.9% margin of error
- đ 600 respondents: Âą4.0% margin of error
- đ 1,000 respondents: Âą3.1% margin of error
- đ 1,500 respondents: Âą2.5% margin of error
Best Practices
- Use 95% confidence level (industry standard)
- Aim for Âą3-5% margin for professional surveys
- Use 50% proportion if you don't know expected results (conservative approach)
- Report your margin of error alongside survey results
- Remember: margin only accounts for sampling error, not response bias
Common Mistakes
- â Confusing margin of error with confidence level
- â Not reporting margin of error with survey results
- â Ignoring non-response bias (margin only accounts for random sampling error)
- â Using too small samples for subgroup analysis
- â Assuming smaller margin is always better (cost vs. precision tradeoff)