T.INV Function

What is the TINV Excel Function?

The TINV Excel Function is categorized under Statistical functionsFunctionsList of the most important Excel functions for financial analysts. This cheat sheet covers 100s of functions that are critical to know as an Excel analyst. It will calculate the left-tailed student’s t-distribution. The student’s t-distribution is a continuous probability distribution that is frequently used in testing hypotheses on small sample data sets.

As a financial analystFinancial Analyst Job DescriptionThe financial analyst job description below gives a typical example of all the skills, education, and experience required to be hired for an analyst job at a bank, institution, or corporation. Perform financial forecasting, reporting, and operational metrics tracking, analyze financial data, create financial models, the T.INV function is used in portfolio risk analysis, particularly, the risk-return relationship of a portfolio. The function is often used when the sample size is smaller, i.e., when a portfolio is comprised of only 20 stocks or 5 asset classes.

TINV Formula

=T.INV(probability,deg_freedom)

The T.INV function uses the following arguments:

1. Probability (required argument) – This is the probability associated with the Student’s T Distribution.
2. Deg_freedom (required argument) – This is the number of degrees of freedom with which to characterize the distribution.

How to use the TINV Excel Function

To understand the uses of the T.INV function, let us consider a few examples:

Example 1

Suppose we are given the following data:

If we want to calculate the value of the function for a probability of 0.20, the formula to use is:

We get the result below:

So, the left-tailed inverse of the student’s t-distribution with a probability of 20% and 5 degrees of freedom is -0.920.

Example 2

Suppose we are given the following data:

If we want to calculate the value of the function for a probability of 0.80, the formula to use is:

We get the result below:

So, the left-tailed inverse of the student’s t-distribution with a probability of 80% and 10 degrees of freedom is 0.879.

Things to remember about the TINV Excel Function

1. #NUM! error – Occurs when:
   1. The given probability is less than or equal to zero or is greater than one.
   2. The given deg_freedom is less than 1.
2. #VALUE! error – Occurs when one or both of the supplied arguments are non-numeric.
3. If deg_freedom is not an integer, it is truncated.

Click here to download the sample Excel file

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 CFI resources:

• Excel Functions for FinanceExcel for FinanceThis Excel for Finance guide will teach the top 10 formulas and functions you must know to be a great financial analyst in Excel. This guide has examples, screenshots and step by step instructions. In the end, download the free Excel template that includes all the finance functions covered in the tutorial
• Advanced Excel Formulas Course
• Advanced Excel Formulas You Must KnowAdvanced Excel Formulas Must KnowThese advanced Excel formulas are critical to know and will take your financial analysis skills to the next level. Advanced Excel functions you must know. Learn the top 10 Excel formulas every world-class financial analyst uses on a regular basis. These skills will improve your spreadsheet work in any career
• Excel Shortcuts for PC and MacExcel Shortcuts PC MacExcel Shortcuts - List of the most important & common MS Excel shortcuts for PC & Mac users, finance, accounting professions. Keyboard shortcuts speed up your modeling skills and save time. Learn editing, formatting, navigation, ribbon, paste special, data manipulation, formula and cell editing, and other shortucts