NORM.INV
The NORM.INV function calculates the inverse of the standard normal cumulative distribution. It is used to find the value that corresponds to a specified probability in a standard normal distribution. This function is helpful in statistics and data analysis.
Syntax 🔗
=NORM.INV(probability, mean, standard_dev)
probability | The probability for which you want to find the corresponding value in the standard normal distribution. |
mean | The arithmetic mean of the distribution. |
standard_dev | The standard deviation of the distribution. |
About NORM.INV 🔗
Use the NORM.INV function in Excel to find the value associated with a specific probability in a normal distribution. This function helps you calculate the inverse of the standard normal cumulative distribution. By providing the probability, mean, and standard deviation of your distribution, you can quickly determine the corresponding value on the normal curve. This is useful for statistical analysis and data modeling, allowing you to make informed decisions based on your data.
Examples 🔗
To find the value corresponding to a probability of 0.95 in a standard normal distribution (mean = 0, standard deviation = 1), use the formula: =NORM.INV(0.95, 0, 1). This will give you the value for a 95% probability.
If you have a normal distribution with a mean of 10 and a standard deviation of 2, and you want to find the value for a probability of 0.80, use: =NORM.INV(0.80, 10, 2). This will provide the value for an 80% probability in this distribution.
Notes 🔗
Make sure the probability you provide is between 0 and 1 when using the NORM.INV function. By default, it assumes a standard normal distribution with a mean of 0 and a standard deviation of 1, unless you specify otherwise.
Questions 🔗
The NORM.INV function considers a standard normal distribution with a mean of 0 and a standard deviation of 1, whereas the NORM.S.INV function is used for non-standard normal distributions where the mean and standard deviation are provided by the user.
Can the NORM.INV function be used in financial analysis?Yes, the NORM.INV function is commonly employed in financial analysis, particularly in risk assessment and probability modeling scenarios. It aids in determining values associated with specific probabilities in normal distributions, facilitating decision-making processes.
What should be considered when inputting the mean and standard deviation in the NORM.INV function?When specifying the mean and standard deviation, ensure they accurately reflect the characteristics of the distribution under consideration. Incorrect inputs may lead to erroneous results, impacting the accuracy of the probability calculations.
Is it necessary to provide the mean and standard deviation in the NORM.INV function?Yes, it is essential to include the mean and standard deviation parameters when using the NORM.INV function. These values are crucial for determining the inverse of the standard normal cumulative distribution accurately.