Google Data Analytics Professional Certification Practice Test

What term defines the maximum amount that sample results are expected to differ from those of the actual population?

1. Margin of error

2. Standard deviation

3. Variance

4. Confidence level

The correct answer is: Margin of error

The term that defines the maximum amount that sample results are expected to differ from those of the actual population is indeed the margin of error. This concept is critical in statistics, especially when making inferences about a population based on a sample. The margin of error provides a range within which we can expect the true population parameter to lie, given the results from the sample. When conducting surveys or experiments, the margin of error accounts for sampling variability and helps quantify the uncertainty inherent in the estimation process. It allows researchers to express the degree of confidence in their estimates by indicating how much the sample data could deviate from the actual population values. This is particularly important in fields like data analytics, where accurate representation and understanding of the population are necessary for sound decision-making. The other terms, while they relate to statistics, serve different purposes. Standard deviation measures the dispersion of data points in a sample, variance quantifies that dispersion in squared units, and the confidence level indicates the probability that the margin of error contains the true population parameter. Each of these concepts plays a role in statistical analysis but does not directly define the difference between sample results and population parameters like the margin of error does.