Buzz
Delve into the intricacies of leveraging NORMINV - Excel's function for inverting cumulative distribution.
Description: The NORMINV function returns the inverse of the cumulative distribution with specified standard deviation and mean. NORMINV function utilizes iterative search technique, returning #N/A if search exceeds 100 iterations.
Syntax: NORMINV(probability,mean,standard_dev).
In which:
- probability: The probability corresponding to the standard distribution, a required parameter.
- mean: The mean value of the distribution, a required parameter.
- standard_dev: The standard deviation of the distribution, a required parameter.
Note:
- The parameters in the NORMINV function must be numeric, otherwise the function returns the #VALUE! error.
- The probability value must be in the range: 0< probability < 1, otherwise the function returns the #NUM! error.
- The standard_dev value must be greater than 0, otherwise the function returns the #NUM! error.
- When mean = 0 and standard_dev = 1 => the distribution becomes standardized and the value of NORMINV for the distribution = the value of NORMSINV for the distribution.
Example:
Calculate the inverse value of the standard cumulative distribution with the following parameters:
In the cell where you want to calculate the value, enter the following formula: =NORMINV(C14,C15,C16).
Press Enter to get the result:
In the case where the NORMINV function has mean = 0 and standard_dev = 1 => the value of the NORMINV function is:
This value is equal to the value of the NORMSINV function with the same corresponding probability:
So when the NORMINV function has mean = 0 and standard_dev = 1, the value is equal to the value of the NORMSINV function.
Here's a detailed guide on using the NORMINV function in statistical probability. Hope it helps you out!
Wishing you all the best of success!
