The NORMSDIST function in Excel is a statistical tool that provides the cumulative distribution function for the standard normal distribution. This function is primarily used in statistical analysis, allowing users to understand how data points relate to the standard normal curve, which has a mean of 0 and a standard deviation of 1.

Syntax

NORMSDIST(z)

• z: The value for which you want the cumulative distribution. This can be any real number.

Example #1

=NORMSDIST(1.96)

Using this function will calculate the cumulative probability of a z-score of 1.96, which is approximately 0.975. This means that about 97.5% of the data falls below this z-score.

Example #2

=NORMSDIST(0)

This example evaluates the cumulative probability for a z-score of 0. The result will be 0.5, indicating that 50% of the data lies below this value in a standard normal distribution.

Example #3

=NORMSDIST(-1)

This function returns the cumulative probability for a z-score of -1, which is approximately 0.1587. This indicates that roughly 15.87% of the data is below this z-score.

Error handling

• VALUE!: This error occurs when the input for the z parameter is not a number. Ensure that you’re providing a valid numeric value.
• NUM!: This error arises if the provided z-value is too large or too small for the function to compute. Check to make sure that the z-value is within a reasonable range.

Conclusion

The NORMSDIST function is a powerful tool for performing statistical analysis within Excel, allowing users to compute the cumulative distribution for the standard normal distribution. By understanding its syntax and application, users can effectively analyze data trends and probabilities.