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F.INV.RT Function

Calculates the inverse of the (right-tailed) F probability distribution

What is the F.INV.RT Function?

The F.INV.RT Function is a Statistical functions, that calculates the inverse of the (right-tailed) F probability distribution.

As a financial analyst, this function is useful in understanding the variability in two data sets. For example, we can use F.INV.RT if we wish to analyze the income diversity between two regions where a company sells its products.

F.INV.RT is an updated version of the previous FINV function that is still available on earlier versions of MS Excel.

 

Formula

=F.INV.RT(probability, deg_freedom1, deg_freedom2)

 

The F.INV.RT function uses the following arguments:

  1. Probability (required argument) – It is the probability at which we evaluate the inverse Cumulative F Distribution. The value is between 0 and 1.
  2. Deg_freedom1 (required argument) – It is an integer specifying the numerator degrees of freedom.
  3. Deg_freedom2 (required argument) – It is an integer specifying the denominator degrees of freedom.

 

If p = F.DIST.RT(x,…), then F.INV.RT(p,…) = x. Here, we need to remember that the Excel F.INV function is the inverse of the cumulative form of the Excel F.DIST function.

That is, if:

F.DIST(x, deg_freedom1, deg_freedom2, True) = probability

Then,

F.INV(probability, deg_freedom1, deg_freedom2) = x

 

How to use the F.INV.RT Function in Excel?

To understand the uses of the F.INV.RT function, let’s consider an example:

 

Worked Step-by-Step Example

Suppose we are given the following data:

  • The probability associated with the F cumulative distribution: 04
  • Numerator degree of freedom: 4
  • Denominator degree of freedom: 2

 

To find out the inverse of the F probability distribution using the F.INV.RT function, we will use the following formula:

 

F.INV.RT Function 

 

We get the result below:

  F.INV.RT Function - Example

 

Things to remember about the F.INV.RT Function

  1. If either deg_freedom1 or deg_freedom2 is a decimal number, it is truncated to integers by MS Excel.
  2. #NUM! error – Occurs if either:
    • The probability that is provided is less than or equal to 0 or greater than 1; or
    • The arguments deg_freedom1 or deg_freedom2 is less than 1.
  3. #VALUE! error – Occurs when any of the arguments provided are non-numeric.
  4. The function was introduced in MS Excel 2010 and is available in subsequent versions.
  5. INV.RT seeks that value x such that F.DIST.RT(x, deg_freedom1, deg_freedom2) = probability. So, the precision of F.INV.RT depends on the precision of F.DIST.RT. F.INV.RT uses an iterative search technique. If the search fails to converge after 64 iterations, the function returns the #N/A error value.

Click here to download the sample Excel file

For more information on the function check out its documentation on Excel support website.

Additional resources

Thanks for reading CFI’s guide to important Excel functions! By taking the time to learn and master these functions, you’ll significantly speed up your financial analysis. To learn more, check out these additional resources:

  • Excel Functions for Finance
  • Advanced Excel Formulas Course
  • Advanced Excel Formulas You Must Know
  • Excel Shortcuts for PC and Mac

Free Excel Tutorial

To master the art of Excel, check out CFI’s FREE Excel Crash Course, which teaches you how to become an Excel power user.  Learn the most important formulas, functions, and shortcuts to become confident in your financial analysis.

 

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