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LOGNORM.DIST

The LOGNORM.DIST function in Google Sheets is a statistical function used to calculate the probability density function or cumulative distribution function of the log-normal distribution. It is commonly used in finance, economics, and risk analysis. Learn how to use this function effectively with our comprehensive guide.

Function Syntax and Parameters

Syntax: LOGNORM.DIST(x, mean, standard_deviation)

Parameters:

  • x: The numeric value at which to evaluate the function.
  • mean: The mean of the logarithmic distribution.
  • standard_deviation: The standard deviation of the logarithmic distribution.

Step-by-Step Tutorial

  1. Calculating the probability density function (PDF):

    • Example: =LOGNORM.DIST(2, 1, 0.5, FALSE) will return the probability density at x=2, mean=1, standard deviation=0.5.
    • Result: The result will vary depending on the values provided.

  2. Calculating the cumulative distribution function (CDF):

    • Example: =LOGNORM.DIST(2, 1, 0.5, TRUE) will return the cumulative probability up to x=2, mean=1, standard deviation=0.5.
    • Result: The result will vary depending on the values provided.

Use Cases and Scenarios

  1. Finance: Analyzing stock returns or asset prices.
  2. Risk Analysis: Modeling random variables with a log-normal distribution.
  3. Economics: Modeling income distribution or price elasticity.

Related Functions

  • NORM.DIST: Calculate the probability density function or cumulative distribution function of the normal distribution.
  • EXP: Calculate the exponential value of a number.

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