Statistical

CONFIDENCE.NORM Formula

CONFIDENCE.NORM is the modern version of CONFIDENCE, returning the margin of error for a confidence interval using the normal (z) distribution. It is identical to CONFIDENCE. Use it when the population standard deviation is known and the sample size is large enough for the normal approximation to apply.

Syntax

CONFIDENCE.NORM(alpha, standard_dev, size)
ParameterDescription
alpha Parameter of the CONFIDENCE.NORM function.
standard_dev Parameter of the CONFIDENCE.NORM function.
size Parameter of the CONFIDENCE.NORM function.
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Examples

Manufacturing tolerance

Formula
=CONFIDENCE.NORM(0.05, 0.3, 100)
Returns 0.059 — with 100 samples and known std dev of 0.3, the true mean is within 0.059 units of the sample mean (95% confidence).

Survey margin of error

Formula
=CONFIDENCE.NORM(0.05, 15, 1000)
Returns 0.93 — a poll of 1000 people with std dev 15 has a margin of error under 1 point at 95% confidence.

99% confidence

Formula
=CONFIDENCE.NORM(0.01, 5, 50)
Returns 1.82 — a wider margin than 95% confidence because higher confidence requires a larger interval.

Common Errors

#NUM!

Alpha not between 0 and 1, standard deviation not positive, or sample size less than 1.

#VALUE!

Non-numeric arguments.

Tips

Same as CONFIDENCE

CONFIDENCE.NORM and CONFIDENCE are identical. The .NORM suffix clarifies it uses the normal distribution.

For small samples, use CONFIDENCE.T

When sample size is small (under 30) and the population std dev is estimated from the sample, CONFIDENCE.T using the t-distribution is more appropriate.

Required sample size

Rearrange the formula to find how many samples you need: n = (z * sigma / desired_margin)^2. For 95% confidence, z is approximately 1.96.

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