# LOGNORMDIST

The LOGNORMDIST function calculates the probability density function of a log-normal distribution for a given value. It is useful in statistics and finance for modeling data that is skewed and follows a log-normal pattern.

## Syntax

=LOGNORMDIST(`x`

, `mean`

, `standard_dev`

)

`x` | The value at which to evaluate the log-normal distribution. |

`mean` | The mean of the natural logarithm of the dataset. |

`standard_dev` | The standard deviation of the natural logarithm of the dataset. |

## About LOGNORMDIST

When dealing with data that exhibits a skewed and asymmetric pattern, the LOGNORMDIST function in Excel comes to the rescue. By analyzing a log-normal distribution, this function aids in understanding the likelihood of certain values occurring within the dataset. It is particularly beneficial for statistical analysis and financial modeling where data follows a log-normal distribution trend. On visualizing the log-normal curve, one can discern the probabilities associated with different data points and make informed decisions based on the distribution's characteristics.

## Examples

Suppose you have a dataset with a mean of 2.5 and a standard deviation of 0.8. You want to find the probability density function at value 2.0. The LOGNORMDIST formula would be: =LOGNORMDIST(2.0, 2.5, 0.8) This will return the probability density at 2.0 for the given log-normal distribution parameters.

Consider a financial scenario where an investment follows a log-normal distribution with a mean of 6% and a standard deviation of 1.5%. You wish to calculate the likelihood of getting a return of 8%. The LOGNORMDIST formula would be: =LOGNORMDIST(8, 6, 1.5) This will provide the probability of achieving an 8% return based on the log-normal distribution parameters.

## Questions

**What does the LOGNORMDIST function output represent?**

The output of the LOGNORMDIST function represents the probability density value at the specified input 'x' for the given log-normal distribution defined by the mean and standard deviation parameters.

**In what scenarios is the LOGNORMDIST function commonly used?**

The LOGNORMDIST function is frequently used in statistical analysis, financial modeling, risk assessment, and data analysis contexts where the data exhibits a log-normal distribution. It aids in determining the probability of certain values occurring within the dataset.

**Can the LOGNORMDIST function be utilized for non-log-normal data?**

The LOGNORMDIST function is specifically designed for log-normal distributions. It may not provide accurate results when applied to datasets that do not exhibit a log-normal pattern.

## Related functions

NORM.DIST

NORM.INV

LOGNORM.INV

NORM.S.DIST

NORM.S.INV

NORM.DIST.RT