Question

What is the difference between the NORM.DIST and the NORM.INV functions on Excel?

Select one:

One is used with z-scores and the other is used with actual data values

One is used when you want the area to the left of a data value and the other is used when you want the area to the right of a data value

One is used when you want to find a probability and the other is used when you want to find a data value

There is no difference because they can be used interchangeably

When you use TRUE in the four NORM functions we have used in this chapter, a probability (whether it is a given piece of information or the answer) always represents which of these?

Select one:

The area to the right of a particular point

The area to the left of a particular point

The total amount of area under the entire curve

Either the area to the left of a particular point or the area to the right of a particular point, depending on the other values you use in the function

Answer 1

The Excel NORM. INV function calculates the data value by finding the inverse of the Cumulative Normal Distribution Function for a supplied value of probability, and a supplied distribution mean & standard deviation. NORM. DIST function returns the normal distribution probability for the specified mean and standard deviation.

One is used when you want to find a probability and the other is used when you want to find a data value

When we use TRUE in the four NORM functions, it will return the probability that the value will be less than or equal to given value.

The area to the left of a particular point