LOGNORM.INV
The LOGNORM.INV function returns the inverse of the lognormal cumulative distribution for a specified mean and standard deviation. It is used to analyze data that has been logarithmically transformed. This function can help in assessing probabilities in log-normal distributions.
Syntax 🔗
=LOGNORM.INV(probability, mean, standard_dev)
probability | The probability for which you want to find the inverse of the standard normal cumulative distribution. |
mean | The mean or average of the data set. |
standard_dev | The standard deviation of the data set. |
About LOGNORM.INV 🔗
Use the LOGNORM.INV function in Excel to find the inverse of the standard normal cumulative distribution. This function is useful when you have data with a known mean and standard deviation, and you need to determine the input value for a given probability under a lognormal distribution. It's applicable for probability calculations in fields like finance and engineering.
Examples 🔗
Suppose you have a dataset with a mean of 10 and a standard deviation of 2. You want to find the inverse of the standard normal cumulative distribution for a probability of 0.75. The formula would be: =NORM.INV(0.75, 10, 2)
Imagine you are conducting a financial analysis and you know that the mean return on an investment is 8% with a standard deviation of 3%. You wish to determine the point where the probability of achieving returns higher than 15% is 0.10. The NORM.INV formula to use is: =NORM.INV(0.90, 0.08, 0.03)
Notes 🔗
Ensure you input valid values for the probability, mean, and standard deviation when using the LOGNORM.INV function. This function assumes a lognormal distribution for the data you provide.
Questions 🔗
The LOGNORM.INV function calculates the inverse of the standard normal cumulative distribution for a specific mean and standard deviation. It allows you to find the input value that corresponds to a given probability under a lognormal distribution model.
What is the significance of the mean and standard deviation in the LOGNORM.INV function?The mean and standard deviation specified in the LOGNORM.INV function represent the average and variability of the dataset for which you are determining the inverse standard normal cumulative distribution. These parameters help define the shape and characteristics of the lognormal distribution.
Can the LOGNORM.INV function be used for non-lognormal distributions?No, the LOGNORM.INV function is specifically designed for lognormal distributions. It may not provide accurate results if applied to datasets that do not follow a lognormal distribution pattern.