NORMINV
The NORMINV function returns the inverse of the normal cumulative distribution for a specified probability. It's useful in statistics and finance for finding a value associated with a given probability in a normal distribution.
Syntax 🔗
=NORMINV(Probability
, Mean
, Standard deviation
)
Probability | The probability for which you want to find the corresponding value in the normal distribution. |
Mean | The arithmetic mean of the distribution. |
Standard deviation | The standard deviation of the distribution. |
About NORMINV 🔗
Use the NORMINV function in Excel to find the value associated with a specific probability in a standard normal distribution. This function is helpful for statistical analyses, risk assessments, or any situation involving normal distributions. To use NORMINV, input the desired probability along with the mean and standard deviation of the distribution. The function will calculate the corresponding value, providing insights into the distribution's characteristics and supporting decision-making in statistical models and financial projections.
Examples 🔗
Suppose you have a standard normal distribution with a mean of 50 and a standard deviation of 10. You want to find the value associated with a probability of 0.75. The NORMINV formula would be: =NORMINV(0.75, 50, 10). This will return the value in the distribution corresponding to the probability of 0.75.
Consider a scenario with a mean of 0 and a standard deviation of 1. You aim to determine the value corresponding to a probability of 0.05. The NORMINV formula would be: =NORMINV(0.05, 0, 1). This calculation reveals the value in the standard normal distribution for the probability of 0.05.
Notes 🔗
Use the NORMINV function to find the inverse of the normal cumulative distribution for a specified mean and standard deviation. If you omit the mean and standard deviation parameters, the function defaults to a mean of 0 and a standard deviation of 1. Adjust these inputs to match the characteristics of your data.
Questions 🔗
The NORMINV function calculates the value associated with a probability in a standard normal distribution using the inverse of the cumulative distribution function for the normal distribution. It essentially finds the outcome that corresponds to the specified probability based on the mean and standard deviation provided.
Can the NORMINV function work with non-standard normal distributions?No, the NORMINV function is designed to operate on standard normal distributions with a mean of 0 and a standard deviation of 1. If working with non-standard distributions, make sure to adjust the mean and standard deviation parameters accordingly before using NORMINV.
What happens if I omit the mean and standard deviation parameters in the NORMINV function?If you omit the mean and standard deviation parameters in the NORMINV function, Excel will assume a standard normal distribution with a mean of 0 and a standard deviation of 1 by default. Make sure to specify the mean and standard deviation values if your distribution deviates from these standard parameters.