Excel Weibull Distribution
The WEIBULL.DIST function is categorized under Statistical functions. It will return the Weibull distribution for a supplied set of parameters. This guide to Excel Weibull distribution will how you have to use it step-by-step.
As a financial analyst, the function is useful in reliability analysis. For example, we can use the Excel Weibull distribution formula to measure the mean time of failure of an equipment in the production process. For example, we can understand “How many failures will we occur in the next quarter, six months, and year for an equipment? What will it cost? What is the best corrective action to reduce the risk and losses?”
Introduced in MS Excel 2010, the WEIBULL.DIST function is the updated version of the WEIBULL function.
The WEIBULL.DIST function uses the following arguments:
- X (required argument) – It is the value at which the function is to be calculated. It must be greater than or equal to zero.
- Alpha (required argument) – It is a parameter to the distribution. It is the Shape parameter to the distribution. It must be greater than 0.
- Beta (required argument) – It is the scale parameter to the distribution and it must be greater than 0.
- Cumulative (required argument) – It is a logical argument denoting the type of distribution to be used, which can either be TRUE (Weibull Cumulative Distribution Function) or FALSE (Weibull Probability Density Function).
The Weibull Probability Density Function is given by the equation:
Where x is the independent variable, α is the shape parameter, and β is the scale parameter.
The Weibull Cumulative Distribution Function is:
To learn more, launch our free Excel crash course now!
How to use Excel WEIBULL DIST Function in Excel?
To understand the uses of the WEIBULL.DIST function, let us consider a few examples:
Suppose we are given the following data:
The formula to be used for Weibull Cumulative Distribution Function is:
We get the result below:
The formula to be used for Weibull Probability Density Function is:
We get the result below:
Few notes about the WEIBULL.DIST Function
- #VALUE! error – Occurs when x, alpha, or beta values provided are non-numeric.
- #NUM! error – Occurs when:
- When the given value of x is less than 0; or
- When the given value of alpha or beta argument is less than or equal to 0.
Free Excel Course
To keep learning about Excel functions and developing your skills, check our Free Excel Crash Course! Learn how to create more sophisticated financial analysis and modeling to become a successful financial analyst.
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: