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One important feature of Excel is the fact that you can use functions as arguments to other functions. For instance, consider the following formula, which calculates the confidence interval for a population mean:
In this instance, there are two functions used—CONFIDENCE and STDEVP—and they are said to be nested. This means only that the latter function is used as an argument for the former. When this formula is calculated, Excel calculates the result of the STDEVP function, and then uses the result in the calculation of the CONFIDENCE function.
How you use functions within your formulas, and how they are nested, is entirely up to you.
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