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Problem-Solving and Data AnalysisHardInterpreting a margin of error

Problem-Solving and Data Analysis practice question

A random sample of 500 households finds that 36% own a bicycle, with a margin of error of 4 percentage points. Which of the following is the most appropriate conclusion?

  1. A. The percentage of ALL households that own a bicycle is plausibly between 32% and 40%.Correct
  2. B. Exactly 36% of all households own a bicycle.
  3. C. Between 32% and 40% of the 500 sampled households own a bicycle.
  4. D. 4% of households own a bicycle.

Answer: A. The percentage of ALL households that own a bicycle is plausibly between 32% and 40%.

The margin describes the uncertainty about the population percentage.

Why the other answers are wrong

B. Exactly 36% of all households own a bicycle.
36% is the sample's figure; the population value is uncertain.
C. Between 32% and 40% of the 500 sampled households own a bicycle.
The sample's own percentage is known exactly: 36%.
D. 4% of households own a bicycle.
4 points is the margin, not a percentage of owners.

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