How to Calculate Standard Normal Distribution The NORM.S.DIST Function is categorized under Excel Statistical functions. It will calculate the Standard Normal Distribution function for a given value. The NORM.S.DIST function can be used to determine the probability that a random variable that is standard normally distributed would be less than 0.5. In financial analysis, NORM.S.DIST…
What is Vega? Vega falls under the series of sensitivity measures called the Greeks. Vega is not a Greek letter; however, it is denoted by the Greek letter nu (ν). The Greeks are measures used to assess derivatives and are often referred to as risk measures, hedge parameters, or risk sensitivities. Vega measures an option’s…
Lognormal Distribution Excel Function The Lognormal Distribution Excel Function is categorized under Excel Statistical functions. It will calculate the cumulative lognormal distribution function at a given value of x. We can use the function to analyze data that‘s been logarithmically transformed. A variable x is log-normally distributed if its natural logarithm is normally distributed. In terms of…
What is the GAUSS Function? The GAUSS Function is categorized under Excel Statistical functions. It will return the probability that a member of a standard normal population will be between the mean and a specified number of standard deviations from the mean. In other words, GAUSS gives us a way to solve a specific case…
Sum of Squared Deviations in Excel The DEVSQ Function is categorized under Excel Statistical functions. It will calculate the sum of the squared deviations from the sample mean. The function, for example, can be used to find the variation in temperatures, blood pressure readings, etc. As a financial analyst, DEVSQ is useful in understanding the…
What is the STDEVPA Function? The STDEVPA Function is categorized under Excel Statistical functions. It will calculate the standard deviation that is based on the entire population given as arguments. The function will ignore logical values and text. As a financial analyst, the STDEVPA function can be used, for example, to calculate deviations in revenue….
What is the NORMDIST Function Excel Normal Distribution? The NORMDIST Function is categorized under Excel Statistical functions. It will return the normal distribution for a stated mean and standard distribution. That is, it will calculate the normal probability density function or the cumulative normal distribution function for a given set of parameters. To understand what…
Inverse Binomial Distribution in Excel The BINOM.INV Function is categorized under Excel Statistical functions. It will calculate the inverse Binomial Distribution in Excel. That is, for a given number of independent trials, the function will return the smallest value of x (the number of successes) for a specified Cumulative Binomial Distribution probability. For example, we can…
What is the T-TEST Function? The T.TEST Function is categorized under Excel Statistical functions. It will calculate the probability that is associated with a Student’s T-Test. The function is commonly used to test the probability of two samples that have underlying populations with the same mean. In financial analysis, suppose we wish to understand the…
What is the VDB Declining Balance Function? The VDB Function is an Excel Financial function that calculates the depreciation of an asset using the Double Declining Balance (DDB) method or some other method specified by the user. VDB is a short form of Variable Declining Balance. The Excel VDB function also allows us to specify a factor…
