Margins of error allow data users to measure the range of uncertainty around a given estimate. The ACS sets this range at a standard of a 90% confidence level. In other words, looking at 5-year estimates (in orange) on the chart below, we can be 90% confident that the true percent of children under 6 with public health insurance in Cook County in 2019 lies within the range indicated (44.9–46.5%).
In addition, note that the margin of error is narrower for the 5-year data trend line (in orange), meaning one could have more confidence that the 5-year estimates reflect the result of a survey of the entire population. In general, the larger the sample size, the smaller the margin of error.
Why do margins of error matter? The margin of error can allow you to see if there’s enough evidence to conclude the estimates are statistically different from one another. In short, adding it to a chart can communicate the accuracy of the data.