Buzz
This article provides a detailed guide on the NORMDIST function - a function that returns the standard normal distribution in Excel.
Description: This function returns the standard normal distribution in Excel with specified standard deviation and mean value. It is used for hypothesis testing purposes.
Syntax: NORMDIST(x,mean,standard_dev,cumulative).
Key Parameters:
- x: Value to determine the distribution, a mandatory parameter.
- mean: Arithmetic mean value of the distribution, a mandatory parameter.
- standard_dev: Standard deviation of the distribution, a mandatory parameter.
- cumulative: Logical value of the function, a mandatory parameter. It can take the following values:
+ If the function is TRUE => cumulative distribution function.
+ If the function is FALSE => probability mass function.
Note:
- Equation of the function (with cumulative= False) is:
- If the mean or standard deviation is not numeric => the function returns the error #VALUE!.
- If mean = 0 and standard deviation =1, cumulative = True => the function returns the standard normal distribution NORMSDIST.
- If the standard deviation is less than 0 => The function returns the value #NUM!.
- When the cumulative value = TRUE => the distribution applies from negative infinity to the value x.
Example:
Calculate the distribution of the value 92.
Scenario 1: Cumulative value is TRUE
Enter the formula in the cell where you want to calculate: =NORMDIST(D6,D7,D8,TRUE).
Press Enter to get the result:
Scenario 2: Cumulative value is FALSE
Enter the formula in the cell where you want to calculate: =NORMDIST(D6,D7,D8, FALSE).
Press Enter to see the result:
TH3: If the standard deviation = 1 and the mean = 0, cumulative = True => NORMDIST(92)= NORMSDIST(92).
- Value of the NORMDIST function at 92:
- Value of the NORMSDIST function at 92:
Given a standard deviation of 1 and a mean of 0, with cumulative set to true, NORMSDIST equals the value of NORMDIST.
This presents an in-depth look into the NORMDIST function and the unique scenario between NORMSDIST and NORMDIST functions. Hopefully, it proves to be a useful tool for you.
Wishing you every success!
