Microsoft Office Tutorials and References
In Depth Information
3.1.6 Using Excel’s TINV Function to Find the Conﬁdence
Objective : To use the TINV function in Excel to ﬁnd the
When you use Excel, the formulas for ﬁnding the conﬁdence interval are:
Þ s
Lower limit
: ¼
X
TINV
ð
1
0
95
n
1
e
: ð
no spaces between these symbols
Þ
(3.3)
:
;
:
1 Þ s
Upper limit
: ¼
X
þ
TINV
ð 1 0 : 95 ;
n
e
: ð no spaces between these symbols Þ
(3.4)
:
Note that the “* symbol ” in this formula tells Excel to use the multiplication step
in the formula, and it stands for “times” in the way we talk about multiplication.
You will recall from Chapter 1 that n stands for the sample size, and so n
1
stands for the sample size minus one.
You will also recall from Chapter 1 that the standard error of the mean, s.e.,
equals the STDEV divided by the square root of the sample size, n (See Section 1.3 ).
Let’s try a sample problem using Excel to ﬁnd the 95% conﬁdence interval about
the mean for a problem.
Let’s suppose that General Motors wanted to claim that its Chevy Impala
achieves 28 miles per gallon (mpg) on the highway. Let’s call 28 mpg the “refer-
ence value” for this car.
Suppose that you work for Ford Motor Co. and that you want to check this claim
to see is it holds up based on some research evidence. You decide to collect some
data and to use a two-side 95% conﬁdence interval about the mean to test your
results:
3.1.7 Using Excel to ﬁnd the 95 Percent Conﬁdence Interval for a
Car’s mpg Claim
Objective : To analyze the data using a two-side 95% conﬁdence