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LOGNORMDIST

The LOGNORMDIST function in Google Sheets is a statistical tool that calculates the value of the log-normal cumulative distribution for a specified value, mean, and standard deviation. This function is useful in various applications such as finance, economics, and risk analysis.

Function Syntax and Parameters

Syntax: LOGNORMDIST(x, mean, standard_deviation)

Parameters:

  • x: The value for which the log-normal cumulative distribution is calculated.
  • mean: The mean of the distribution.
  • standard_deviation: The standard deviation of the distribution.

Step-by-Step Tutorial

To use the LOGNORMDIST function, follow these steps:

  1. Enter the function and its arguments:
    • Example: =LOGNORMDIST(A2, B2, C2)
    • Explanation: Assumes the value to calculate the log-normal cumulative distribution is in cell A2, the mean is in cell B2, and the standard deviation is in cell C2.

Use Cases and Scenarios

The LOGNORMDIST function is commonly used in the following scenarios:

  1. Financial Modeling: Estimate the probability of a stock price exceeding a certain value based on its log-normal distribution.
  2. Risk Analysis: Determine the likelihood of an event occurring based on its log-normal distribution.
  3. Economics: Calculate the likelihood of income or wealth distribution based on a log-normal model.

Related Functions

  • NORMDIST: Calculates the value of the normal cumulative distribution.
  • LOGNORM.INV: Calculates the inverse of the log-normal cumulative distribution.

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