1. Margin of error. A TV newscaster reports the results of a poll of voters, and then says, "The margin of error is plus or minus 4%. Explain carefully what that means.
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Textbook Solutions for Stats: Modeling The World
Question
25. Payments. In a May 2007 Experian/Gallup PersonalCredit Index poll of 1008 U.S. adults aged 18 and over,8% of respondents said they were very uncomfortablewith their ability to make their monthly payments ontheir current debt during the next three months. A moredetailed poll surveyed 1288 adults, reporting similaroverall results and also noting differences among fourage groups: 1829, 3049, 5064, and 65+.a) Do you expect the 95% confidence interval for the trueproportion of all 18- to 29-year-olds who are worriedto be wider or narrower than the 95% confidence intervalfor the true proportion of all U.S. consumers?Explain.b) Do you expect this second polls overall margin of errorto be larger or smaller than the Experian/Galluppolls? Explain.
Solution
The first step in solving 19 problem number 25 trying to solve the problem we have to refer to the textbook question: 25. Payments. In a May 2007 Experian/Gallup PersonalCredit Index poll of 1008 U.S. adults aged 18 and over,8% of respondents said they were very uncomfortablewith their ability to make their monthly payments ontheir current debt during the next three months. A moredetailed poll surveyed 1288 adults, reporting similaroverall results and also noting differences among fourage groups: 1829, 3049, 5064, and 65+.a) Do you expect the 95% confidence interval for the trueproportion of all 18- to 29-year-olds who are worriedto be wider or narrower than the 95% confidence intervalfor the true proportion of all U.S. consumers?Explain.b) Do you expect this second polls overall margin of errorto be larger or smaller than the Experian/Galluppolls? Explain.
From the textbook chapter Confidence Intervals for Proportions you will find a few key concepts needed to solve this.
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