Excel - CONFIDENCE Function



CONFIDENCE Function

The CONFIDENCE function is part of Excels Statistical function category. It utilizes the normal distribution to retrieve the confidence interval representing the specific ranges for a large population mean. For example, it is used to identify football players' age ranges that fall under 21-year-old groups, predict product sales, help in customer review surveys, and identify hospitals' patient satisfaction scores.

CONFIDENCE.NORM and CONFIDENCE.T are the two variants of the Confidence function in Excel.

Compatibility

This advanced Excel function is compatible with the following versions of MS-Excel −

  • Excel for Microsoft 365
  • Excel for Microsoft 365 for Mac
  • Excel for the web
  • Excel 2021
  • Excel 2021 for Mac
  • Excel 2019
  • Excel 2019 for Mac
  • Excel 2016
  • Excel 2013

Syntax

The syntax of CONFIDENCE function is as follows −

CONFIDENCE (alpha,standard_dev,size)

Arguments

You can use the following arguments with the CONFIDENCE function −

Argument Description Required / Optional
Alpha The significance level and the confidence level are correlated terms. If you set the Alpha to 0.05 which specifies a 95% confidence level. Required
Standard_dev It specifies the standard deviation for the specific sample. Required
Size It specifies the sample size for the given population. Required

Notes

  • Mathematically, Confidence Level = 100*(1 - Alpha)% . For example, if the Confidence level equals 90%, then the Alpha parametric value becomes 0.1.
  • The Excel CONFIDENCE function retrieves the #VALUE! Error for the non-numeric arguments.
  • Either Alpha is negative and equal to zero, or the Alpha value is greater than zero, and then the CONFIDENCE function retrieves the #NUM! Error.
  • Either Standard_dev is negative or equal to zero, CONFIDENCE receives the #NUM!.
  • If the Size is less than one, then the Confidence function receives the #NUM! Error.
  • The sample size would truncate if the size was not defined in the integer.

Examples of CONFIDENCE Function

Practice the following examples to learn the use of the CONFIDENCE function in Excel.

Example 1

Consider the sample dataset where numeric values of the population Standard Deviation, Alpha, and Sample Size are written in the cell range B4:B6. Enter the formula =CONFIDENCE(C5,C4, C6) in the C7 cell and press Enter to obtain the Confidence interval.

Excel CONFIDENCE Function 1

Excel CONFIDENCE Function 2

Example 2

The Excel CONFIDENCE function retrieves the #VALUE! Error for the non-numeric arguments.

Solution

Lets suppose the Alpha contains the text value. You may rewrite the text Henry in the C5 cell and enter the expression =CONFIDENCE(C5,C4, C6) in the C7 cell and press Enter. As you can see in this example, the #VALUE! Error obtained while executing this expression.

Excel CONFIDENCE Function 3

Excel CONFIDENCE Function 4

Example 3

Either Alpha is negative and equal to zero, or the Alpha value is greater than zero, and then the CONFIDENCE function retrieves the #NUM! Error.

Solution

The alpha parameter value must lie between 0 and 1; otherwise, a #NUM error may occur. You may enter the formula =CONFIDENCE(8,25,90) in the B10 cell and press Enter. As you know, the first argument denoted Alpha, set to 8 number.

Excel CONFIDENCE Function 5

Excel CONFIDENCE Function 6

Example 4

Either Standard_dev is negative or equal to zero, CONFIDENCE receives the #NUM!.

Solution

You can enter the formula =CONFIDENCE(-0.05,-12, 9) in the C7 cell and press the Enter tab.

Excel CONFIDENCE Function 7

Excel CONFIDENCE Function 8

Example 5

If the sample size is less than one, then the Confidence function receives the #NUM! error.

Solution

If you specify the third argument, Sample size, in the negative form, the Confidence function will generate the #NUM! error. You may enter the formula =CONFIDENCE(0.05, 85,-9) in the B10 cell and press the Enter tab.

Excel CONFIDENCE Function 9

Excel CONFIDENCE Function 10

Note − Make sure that all the given arguments inside the Confidence function should not be in a negative form.

Example 6

The sample size would truncate if the size was not defined in the integer.

Solution

Suppose you write the formula =CONFIDENCE(0.05,85,9.5) in the B10 cell. Here, the sample size of 9.5 is in decimal form and is truncated to number 9. You may press the Enter after writing the formula.

Excel CONFIDENCE Function 11

Excel CONFIDENCE Function 12
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