T.INV.2T Function
Calculates the two-tailed Student's T-Distribution
Calculates the two-tailed Student's T-Distribution
The T.INV.2T Function is categorized under Statistical functions. It will calculate the two-tailed Student’s T-Distribution. The Student’s T-Distribution is a continuous probability distribution that is frequently used for testing hypotheses on small sample data sets.
In financial analysis, T.INV.2T is often used in examining the risk-return relationship of a portfolio. The T.INV.2T function is the updated version of the TINV function.
=T.INV.2T(probability,deg_freedom)
The T.INV.2T function uses the following arguments:
To understand the uses of the T.INV.2T function, let’s consider a few examples:
Suppose we are given the following data:
If we want to calculate the value of the function for a probability of 0.5, the formula to use will be:
We get the result below:
So, the T-value of the Student’s T-distribution for the data above is 0.727.
If we wish to calculate a one-tailed t-value that will be returned by replacing probability with 2*probability. Suppose we are given the following data:
For a probability of 0.8 and a degree of freedom of 10, the two-tailed value is calculated using the formula below:
We get the result below:
The above value is a two-tailed value. The one-tailed value for the same probability and degrees of freedom can be calculated as shown below:
We get the following result:
Click here to download the sample Excel file
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:
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.
Launch CFI’s Free Excel Course now to take your career to the next level and move up the ladder!