How can a GPS receiver know the estimated error?

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I would like to plot a circle of possible error on the map in a GPS app.

From http://en.wikipedia.org/wiki/Dilution_of_precision_(GPS), we can see that GDOP is equal to "delta of output location" over "delta of measured data". How can we know the "delta of measured data" in order to calculate "delta of output location"?

If it is not possible, how do the receivers plot the circle of possible error on the map?



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