Excel - NORMDIST Function



NORMDIST Function

The Excel NORMDIST function retrieves the normal distribution, providing X, Mean, Standard deviation, and Cumulative values. This function has a wide range of applications in the stock market, financial management, and statistics. The bell curve can be used to visualize the normal distributed data.

For instance, it takes 45 minutes to reach to the badminton academy every day, with a 9-minute standard deviation. If the time it takes to get to a badminton match follows a normal distribution, you may calculate the time percentage that requires an arrival time of between 45 and 55 minutes.

The NORMDIST function replaces the NORM.DIST function in Excel 2010.

Compatibility

This advanced excel function is compatible with the following versions of MS-Excel −

  • Excel for Microsoft 365
  • Excel for Microsoft 365 for Mac
  • Excel for the web
  • Excel 2021
  • Excel 2021 for Mac
  • Excel 2019
  • Excel 2019 for Mac
  • Excel 2016

Syntax

The syntax of NORMDIST function is as follows −

NORMDIST(x,mean,standard_dev,cumulative)

Arguments

You can use the following arguments with the NORMDIST function −

Argument Description Required / Optional
X It specifies the numeric value when the distribution is required. Required
Mean It specifies the arithmetic mean, which contains only numeric values. Required
Standard_dev It specifies the standard deviation whose value contains a numeric value. Required
Cumulative

It specifies a logical value whose value can be either True or False

The NORMDIST function receives the cumulative distribution function if its value is TRUE. Otherwise, NORMDIST retrieves the probability mass function.

Required

Points to Remember

  • If mean or standard_dev is other than a numeric value, then the NORMDIST function retrieves the #VALUE!
  • If mean = 0, standard_dev = 1, and cumulative = TRUE, the NORMDIST function will retrieve the standard normal distribution,
  • If standard_dev is either equal to 0 or negative, the NORMDIST receives the #NUM! Error.
  • The expression is the integral of the provided expression from negative infinity to x whenever cumulative = TRUE.

Examples of NORMDIST Function

Practice the following examples to learn the use of the NORMDIST function in Excel.

Example 1

Assume the sample dataset, with the parameters X, Mean, Standard Deviation, and Cumulative provided in the range C3:C6. In the C7 cell, enter the formula =NORMDIST(C3,C4,C5,C6) and press the Enter tab to get the resultant value of 0.5419.

Excel NORMDIST Function 1

Excel NORMDIST Function 2

Example 2

If mean or standard_dev is other than a numeric value, then the NORMDIST function retrieves the #VALUE!

Solution

In the C4 cell, the Mean value is Ronak, non-numeric. Enter the formula =NORMDIST(C3,C4,C5,C6) in the C7 cell.

Excel NORMDIST Function 3

Once you press the Enter tab, the #VALUE! error is obtained as the mean value is in text format, which is not allowable.

Excel NORMDIST Function 4

Example 3

If mean = 0, standard_dev = 1, and cumulative = TRUE, the NORMDIST function will retrieve the standard normal distribution.

Solution

First, you can set the Mean, Standard Deviation, and Cumulative values to 0, 1, and True in the range C4:C6, as shown in the screenshot. Enter the formula =NORMDIST(C3,C4,C5,C6) in the C7 cell.

Excel NORMDIST Function 5

Now, press the Enter tab to get the accurate result.

Excel NORMDIST Function 6

So, how does it behave like a Standard Normal Distribution?

You need to use the NORM.S.DIST function in the C8 cell to cross-check the behavior of the NORMAL distribution function. Enter the formula =NORM.S.DIST(C3, TRUE) in the C9 cell.

Excel NORMDIST Function 7

Press the Enter key. Here, you can notice that the values of the NORM.S.DIST function and NORMDIST function are the same if the value of mean equals 0, standard deviation equals 1, and cumulative is True.

Excel NORMDIST Function 8

Example 4

If standard_dev is either equal to 0 or negative, the NORMDIST receives the #NUM! Error.

Solution

You may enter the formula =NORMDIST(C3,C4,C5,C6) in the C2 cell and press the Enter tab. Therefore, the NORMDIST function will create the error value # NUM! as the standard_dev value remains less than or equal to 0.

Excel NORMDIST Function 9

Excel NORMDIST Function 10
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