Excel’s NORM.INV function calculates the inverse of the normal cumulative distribution for a specified mean and standard deviation. Given a probability, this function returns the corresponding value from the normal distribution. For instance, if one inputs a probability of 0.95, a mean of 0, and a standard deviation of 1, the function returns the value below which 95% of the distribution lies.
This functionality is fundamental in various statistical analyses, including risk assessment, hypothesis testing, and confidence interval determination. Its origins are rooted in the broader application of normal distribution principles, a cornerstone of statistical modeling. Understanding and utilizing this function allows for the estimation of values based on probabilistic scenarios, enabling informed decision-making across diverse fields.
