LOGINV

The LOGINV function calculates the inverse of the log-normal cumulative distribution function for a specified probability and parameters, useful in statistical analysis and modeling where log-normal distributions are prevalent.

Syntax

=LOGINV(Probability, Mean, Standard_dev)

Probability The probability for which you want to find the inverse log-normal value.
Mean The mean of the logarithm of the distribution.
Standard_dev The standard deviation of the logarithm of the distribution.

About LOGINV

As you delve into the realm of statistical analysis or predictive modeling and encounter scenarios where log-normal distributions play a central role, the LOGINV function in Excel emerges as a valuable tool for deriving the inverse log-normal value with precision and ease. This function aids in determining the original variable value corresponding to a given probability within a log-normal distribution, allowing for insightful decision-making and nuanced analysis in diverse fields such as finance, risk assessment, and probability modeling. By inputting the probability alongside the mean and standard deviation of the log of the distribution, LOGINV swiftly computes the inverse value, providing a deeper understanding of the underlying log-normal data structure and facilitating informed interpretations of probabilistic outcomes.

Examples

Suppose you are analyzing data with a log-normal distribution having a mean of 2 and a standard deviation of 0.5. You want to find the value corresponding to a probability of 0.8. The LOGINV formula would be: =LOGINV(0.8, 2, 0.5)

Consider a scenario where you are modeling financial risk using log-normal distributions. If the mean of the logarithm of the distribution is 1.2 and the standard deviation is 0.6, and you wish to determine the variable value for a probability of 0.6, the LOGINV formula would be: =LOGINV(0.6, 1.2, 0.6)

Questions

How does the LOGINV function function in Excel?

The LOGINV function in Excel operates by computing the inverse of the log-normal cumulative distribution function based on the specified probability, mean, and standard deviation parameters. It assists in determining the original variable value associated with a given probability within a log-normal distribution.

Can LOGINV be used to analyze non-log-normal distributions?

LOGINV is specifically designed for log-normal distributions and is optimized to provide the inverse log-normal value. While it may not yield accurate results outside this context, there are alternative functions in Excel tailored for analyzing various probability distributions.

What insights can be gained from using the LOGINV function in statistical analysis?

By leveraging the LOGINV function in statistical analysis, analysts and researchers can gain a deeper understanding of log-normal distributions by determining the original variable values corresponding to specific probabilities. This aids in exploring the characteristics and probabilistic outcomes associated with log-normal data structures.

Related functions

LOGNORM.DIST
NORM.INV
NORM.S.INV
NORMDIST