CONFIDENCE.T

The CONFIDENCE.T function calculates the confidence interval for a Student's t-distribution. It is commonly used in statistics to estimate the range within which the true population parameter is likely to fall.

Syntax

=CONFIDENCE.T(alpha, standard_dev, size)

alpha The significance level used to compute the confidence level. It represents the probability that the true value lies within the confidence interval.
standard_dev The standard deviation of the population.
size The sample size used to estimate the population parameter.

About CONFIDENCE.T

When you need to gauge the range of uncertainty surrounding a sample mean and desire a reliable method for ascertaining the confidence interval, look to CONFIDENCE.T in Excel. This function serves as a valuable tool in statistical analysis, offering a means to estimate the likely interval within which the true population parameter resides. Whether delving into research, surveys, or hypothesis testing, CONFIDENCE.T equips you with a vital statistical measure paramount to informed decision-making and analysis of data.

Examples

Suppose you have a sample of 100 observations with a standard deviation of 10. You want to calculate the 95% confidence interval for the population mean. The CONFIDENCE.T formula would be:

=CONFIDENCE.T(0.05, 10, 100)

This will return the margin of error for the confidence interval at the 95% confidence level.

Questions

How does the CONFIDENCE.T function assist in statistical analysis?

The CONFIDENCE.T function aids in statistical analysis by providing a means to estimate the confidence interval for the population parameter, offering insights into the likely range within which the true parameter lies with a specified level of confidence.

What is the significance of the alpha argument in the CONFIDENCE.T function?

The alpha argument in the CONFIDENCE.T function represents the significance level used to compute the confidence level. It denotes the probability that the true value falls within the confidence interval. A common choice is 0.05, indicating a 95% confidence level.

Can CONFIDENCE.T be used for small sample sizes?

Yes, CONFIDENCE.T can be used for small sample sizes. However, smaller sample sizes may result in wider confidence intervals, reflecting the greater uncertainty in estimating the population parameter.

How is the confidence level determined in the CONFIDENCE.T function?

The confidence level is determined by 1 - alpha. For example, if alpha is 0.05, the confidence level is 95%, indicating the level of confidence in the resulting interval estimate.

Related functions

CONFIDENCE.NORM
CONFIDENCE.T.INV
NORM.S.INV
T.INV