Noise in EEG and MEG measurements leads to inaccurate localizations of
the sources. A confidence volume is used to describe the amount of lo
calization error. Previous methods to estimate the confidence volume p
roved insufficient. Thus a new procedure was introduced and compared w
ith previous ones. As one procedure, Monte Carlo simulations (MCS) wer
e performed. The confidence volume was also estimated using two method
s with different assumptions about a linear transfer function between
source location and the distribution of the potential. One method used
variable (LVM) and the other fixed dipole orientations (LFM). Finally
, the confidence volume was estimated through a procedure in which the
re was no linearization of the transfer function. This procedure scans
the confidence volume by varying the dipole location in multiple dire
ctions. Confidence volumes were calculated for simulated distributions
of the electrical potential and for experimental data including somat
osensory evoked responses to stimulation of lower lip, thumb, and litt
le finger. Results from simulated data indicated that confidence volum
es calculated with the MCS method were largest, and those calculated w
ith the LFM method were smallest. For dipole locations close to the br
ain surface, the confidence volume was smaller than for a central deep
er source. An increase in electrode density resulted in smaller confid
ence volumes. When the noise was correlated, only the method using the
MCS produced acceptable results. Since the noise in experimental data
is highly correlated, only the MCS method would appear to be useful i
n estimating the size of the confidence volume of the dipole locations
. Thus, using real data with the MCS method, we easily distinguished s
eparate and distinct representations of the thumb, little finger, and
lower lip in the somatosensory cortex (SI). It was concluded that adeq
uate estimation of confidence volumes is useful for localizing neural
activity. On a practical level, this information can be used prior to
an experiment for determining the conditions necessary to distinguish
between different dipole sources, including the required signal to noi
se ratio and the minimum electrode density.