Input Margin of Error as a Relative Value or "Absolute" Quantity?

[colin morse]

Hello,

 

Typically I have conceived of margin of error in relative terms (i.e., as a percent of the true value) . For example, imagine a study that attempts to estimate the time it takes to receive a disability placard. Suppose the sample yields a point estimate of 10 days as the mean time to receipt of the placard. Further suppose that the 95% Confidence interval is 9-11 days. One could either describe the margin or error as +/- 1 day or +/- 10% (1/10 = .1).

 

When using the Java Applet to estimate sample size for the CI of a Mean, do we input margin of error in terms of the measurement unit (1 day) or in relative terms (.1)? 

 

Can anyone clarify this for me?

 

Thank you,

 

Colin

[Lenth, Russell V]

Yes, it is in absolute terms. I think that is the more common interpretation -- but maybe I'm wrong.

Russ

Russell V. Lenth  -  Professor Emeritus
Department of Statistics and Actuarial Science   
The University of Iowa  -  Iowa City, IA 52242  USA   
Voice (319)335-0712 (Dept. office)  -  FAX (319)335-3017

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[colin morse]

 Thank you Dr. Lenth.