The following table shows common confidence levels and their corresponding z*-values.

Confide z*–
nce value
Level80% 1.28
85% 1.44
90% 1.64
95% 1.96
98% 2.33
99% 2.58

NORMDIST(x,mean,standard_dev,cumulative)

The NORMDIST function uses the following arguments:

1. X (required argument) – It the value for which we wish to calculate the distribution.
2. Mean (required argument) – It is the arithmetic mean of the distribution.
3. Standard_dev (required argument) – It is the standard deviation of the distribution.
4. Cumulative (required argument) – It is a logical value. It specifies the type of distribution to be used: TRUE (Cum

NORMINV(probability,mean,standard_dev)

The NORMINV formula uses the following arguments:

1. Probability (required argument) – It is the probability corresponding to the normal distribution. It is the value a
2. Mean (required argument) – It is the arithmetic mean of the distribution.
3. Standard_dev (required argument) – It is the standard deviation of the distribution.

CONFIDENCE(alpha,standard_dev,size)

The CONFIDENCE function uses the following arguments:

1. Alpha (required argument) – It is the significance level used to compute the confidence level. The significance le
2. Standard_dev (required argument) – It is the standard deviation for the data range.
3. Size (required argument) – It is the sample size.

BINOM.DIST(number_s,trials,probability_s,cumulative)

The BINOM.DIST uses the following arguments:

1. Number_s (required argument) – It is the number of successes in trials.
2. Trials (required argument) – It is the number of independent trials. It must be greater than or equal to 0.
3. Probability_s (required argument) – It is the probability of success in each trial.
4. Cumulative (required argument) – It is a logical value that determines the form of the function. It can either be:
1. TRUE – Uses the cumulative distribution function.
2. FALSE – Uses the probability mass function.
 BINOM.INV(trials,probability_s,alpha)

The BINOM.INV function uses the following arguments:

1. Trials (required argument) – It is the number of Bernoulli trials. That is, it is the number of independent trials tha
2. Probability_s (required argument) – It is the probability of success in a single trial.
3. Alpha (required argument) – It is the probability of Cumulative Binomial distribution. It should be between 0 and

Chi Square Test Excel Function

The CHISQ.DIST Function is categorized under Statistical functions. It will return the chi-square distribution. The distribution is g
In financial analysis, the function can be useful in finding out the variations in an individual’s assumptions. For example, we are
The CHISQ.DIST function was introduced in MS Excel 2010 and hence is unavailable in earlier versions.

The CHISQ.DIST uses the following arguments:

1. X (required argument) – It is the value at which the chi-square distribution is to be evaluated. It should be greate
2. Deg_freedom (required argument) – It is the number of degrees of freedom. It must be an integer between 1 an
3. Cumulative (required argument) – It is a logical value that determines the form of the function. It can either be

The syntax
of the
function is:
CHITEST( actual_range, expected_range )
Where the
function
arguments
are:
actual_range - An array of observed frequencies.
expected_ran- An array of expected frequencies (must have the same dimension as the actual_range array).
ing z*-values.

stribution to be used: TRUE (Cumulative Normal Distribution Function) and FALSE (Normal Probability Density Function).

mal distribution. It is the value at which we want to evaluate the inverse function.

fidence level. The significance level is equal to 1– confidence level. So, a significance level of 0.05 is equal to a 95% confidence level.

reater than or equal to 0.

of the function. It can either be:

number of independent trials that are to be done. Excel will truncate the value to an integer if we provide it in decimal.

ution. It should be between 0 and 1.

re distribution. The distribution is generally used for studying the variation in percentage across samples. This guide will break down the Chi Square Test
assumptions. For example, we are into manufacturing of jeans. We manufacture jeans of two colors only – black and blue. If we want to find out the pro
n earlier versions.

be evaluated. It should be greater than or equal to zero.

must be an integer between 1 and 1010.
of the function. It can either be TRUE (use the cumulative distribution function) or FALSE (will use the probability density function).

al_range array).
ty Function).

a 95% confidence level.

will break down the Chi Square Test Excel function in detail.
blue. If we want to find out the proportion of blue jeans sold in proportion to the total number of jeans manufactured, we can use Chi Square in Excel t

bility density function).

ed, we can use Chi Square in Excel to find out.