Page 200 - Statistics for Dummies
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                                         Part IV: Guesstimating and Hypothesizing with Confidence
                                                    The number of standard errors you have to add or subtract to get the MOE

                                                    depends on how confident you want to be in your results (this is called your
                                                    confidence level). Typically, you want to be about 95% confident, so the basic
                                                    rule is to add or subtract about 2 standard errors (1.96, to be exact) to get the
                                                    MOE (you get this from the Empirical Rule; see Chapter 9). This allows you to
                                                    account for about 95% of all possible results that may have occurred with
                                                    repeated sampling. To be 99% confident, you add and subtract 2.58 standard
                                                    errors. (This assumes a normal distribution on large n; standard deviation
                                                    known. See Chapter 11.)
                                                    You can be more precise about the number of standard errors you have to add
                                                    or subtract in order to calculate the MOE for any confidence level; if the condi-
                                                    tions are right, you can use values on the standard normal (Z-) distribution. (See
                                                    Chapter 13 for details.) For any given confidence level, a corresponding value
                                                    on the standard normal distribution (called a z*-value) represents the number
                                                    of standard errors to add and subtract to account for that confidence level.
                                                    For 95% confidence, a more precise z*-value is 1.96 (which is “about” 2), and
                                                    for 99% confidence, the exact z*-value is 2.58. Some of the more commonly
                                                    used confidence levels (also known as percentage confidence), along with
                                                    their corresponding z*-values, are given in Table 12-1.
                                                      Table 12-1         z*-Values for Selected (Percentage)
                                                                                 Confidence Levels
                                                      Percentage Confidence      z*-Value
                                                      80                         1.28
                                                      90                         1.645
                                                      95                         1.96
                                                      98                         2.33
                                                      99                         2.58
                                                    To find a z*-value like those in Table 12-1, add to the confidence level to make
                                                    it a less-than probability and find its corresponding z-value on the Z-table. For
                                                    example, a 95% confidence level means the “between” probability is 95%, so
                                                    the “less-than” probability is 95% plus 2.5% (half of what’s left), or 97.5%. Look
                                                    up 0.975 in the body of the Z-table and find z * = 1.96 for a 95% confidence level.
                                                    Calculating margin of error
                                                    for a sample proportion


                                                    When a polling question asks people to choose from a range of answers
                                                    (for example, “Do you approve or disapprove the president’s performance?”),







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