The LOGINV function in Excel is a powerful statistical tool that calculates the inverse of the lognormal cumulative distribution function for a specified mean and standard deviation. It is particularly useful for handling data that follows a lognormal distribution, which is common in various fields such as finance and environmental studies.

Syntax

LOGINV(probability, mean, standard_dev)

• probability: The probability at which you want to evaluate the function, must be between 0 and 1.
• mean: The mean of the logarithm of the distribution.
• standard_dev: The standard deviation of the logarithm of the distribution.

Example #1

LOGINV(0.5, 0, 1)

This formula calculates the value at the median (50th percentile) of a lognormal distribution with a mean of 0 and a standard deviation of 1. The result is approximately 1.6487.

Example #2

LOGINV(0.95, 2, 0.5)

With this function, you determine the value below which 95% of the data falls, using a mean of 2 and standard deviation of 0.5. The result is approximately 5.0427.

Example #3

LOGINV(0.9, 1, 0.3)

This example computes the output for 90% of a lognormal distribution with a mean of 1 and a standard deviation of 0.3, resulting in approximately 2.0493.

Error handling

• NUM!: This error occurs if the probability argument is less than or equal to 0, or it exceeds 1.
• VALUE!: This error appears if any of the arguments mean or standard_dev are not numeric values.

Conclusion

In summary, the LOGINV function is an essential component for analyzing and interpreting data that follows a lognormal distribution pattern. By understanding its syntax and application, users can effectively implement this statistical tool in various analytical scenarios and make informed decisions based on the results.