What is a Confidence Level?
- Research Topics:
- Data Analysis | Data Quality | Quantitative Research
- Content Type:
- Glossary
Confidence Level Definition
The degree to which results obtained from a study or survey are reliable.
Confidence level is the degree to which results obtained from a study or survey are reliable. It indicates the probability that the findings in question are representative of the entire target population, rather than being a result of chance. In other words, confidence levels are crucial in ensuring the accuracy of research findings. Higher confidence level implies a narrower margin of error, thus making the results more reliable and actionable. Confidence levels usually are represented as percentages and are closely linked to the margin of error. Common confidence levels include 95 percent and 99 percent.
Who relies on confidence levels?
Measuring confidence levels permits marketing professionals, researchers and decision makers to determine the validity of data, allowing them to make decisions based on the level of confidence in the results. Businesses, other industries and government bodies use confidence levels to gauge the reliability of research insights before moving ahead with strategies.
Why should I care about confidence levels?
Confidence levels are vital in market research because they directly impact the credibility and reliability of research finding. A higher confidence level provides greater confidence that the results are accurate and represent the entire population.