Which of the following actions does NOT help reduce the margin of error in an interval estimate of p?

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Prepare for the UCF QMB3200 Final Exam with targeted flashcards and multiple-choice questions. Each question is designed to enhance your understanding, with hints and detailed explanations provided. Get exam-ready now!

Using a larger planning value of p does not contribute to reducing the margin of error in an interval estimate of p. The margin of error is influenced significantly by the sample size and the variability of the data, rather than the chosen planning value for p, which is often an estimate or a guessed value based on prior knowledge or assumptions.

When you select a larger planning value of p, it may actually increase the margin of error because the formula for the margin of error incorporates variability, which can be influenced by the value of p chosen for calculations. Typically, a value of p that is closer to 0.5 maximizes variability in the sampling distribution and leads to a larger margin of error. Therefore, it is essential to use a value of p that is representative of the actual proportion you are estimating.

On the other hand, increasing the sample size directly affects the margin of error by making the estimate more precise; a larger sample provides more information and reduces uncertainty. Increasing the confidence level is related to the width of the confidence interval, not a direct reduction of margin of error, but it does require a larger critical value which can widen the interval. Lastly, decreasing the sample standard deviation lowers the variability within your data, which also reduces the margin of