A polling organization announces that the proportion of American voters who favor congressional term limits is 64 percent, with 95% confidence and margin of error of 3 percent. This means that

We are 95% confident that the proportion of American voters who favor congressional term limits is 64 percent with a difference of 3% for small sample size.

Step-by-step explanation:

95 % confidence means that we are 95 % confident that the the proportion of American voters who favor congressional term limits is 64 percent.

95 % confidence  means that of all the sample about 95 %  values are within in the given range.

And only 5% sample are not included in the given parameter.

Margin of error is the amount of miscalculation or difference in change of circumstances from the obtained data.

3% margin of error usually occurs when the data size is small.

As the data size increases the margin of error decreases.

So this statement tells us that we are 95% confident that the proportion of American voters who favor congressional term limits is 64 percent with a difference of 3% for small sample size.

Margin of error= z *σ/√n→

This indicates that as the sample size decreases the margin of error increases and vice versa.