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Chap6 Excel
Chap6 Excel
* x0 is the upper limit on x. The function returns the probability that x is less than x0 .
* Mean = The population mean.
* Standard dev = The population standard deviation.
* Use TRUE for the cumulative probability: P (x < x0 ).
* This function returns P (x < x0 ).
• Finding x or z values:
If x is a normally distributed random variable, you use the NORMINV function to find the x-score with a
given cumulative probability.
Usage: NORM.INV(Probability, Mean, Standard dev).
This allows you to avoid converting the z-score to an x-score at the end.
If you are dealing with the standard normal distribution (z-scores) remember to let the Mean = 0, and
the Standard Deviation = 1.
This is extra handy when your table does not have the probability you seek. For example if you seek P75
then the area to the left is 0.75. The closest value INSIDE the z-table is 0.7486, and the corresponding
z-value is 0.67. We can do better with
NORM.INV(0.75, 0, 1) = 0.6745