Advanced Excel Functions Tutorial
Advanced Excel Functions Tutorial
Audience
This tutorial is intended for people who use Excel but are intimidated by the concept of
formulas and functions.
Prerequisites
This tutorial assumes your familiarity with basic fomulas for calculations in Excel.
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Advanced Excel Functions
Table of Contents
About the Tutorial ............................................................................................................................................ i
Audience ........................................................................................................................................................... i
Prerequisites ..................................................................................................................................................... i
Copyright & Disclaimer ..................................................................................................................................... i
Table of Contents ............................................................................................................................................ ii
COMPATIBILITY FUNCTIONS........................................................................................................ 1
3. BETAINV Function.................................................................................................................................. 6
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Compatibility Functions
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1. COMPATIBILITY FUNCTIONS – OVERVIEW Advanced Excel Functions
In Excel 2010 or later, the functions listed in this category were replaced with new functions
that provide improved accuracy and have names that reflect their usage better. The new
functions can be found in Statistical functions and Math and trigonometry functions. If
backward compatibility is not required, you should start using the new functions.
You can still use these earlier versions of functions for compatibility with earlier versions of
Excel. If you are using Excel 2007, you will find these functions in the Statistical or Math &
Trig categories on the Formulas tab.
Compatibility Functions
The following table lists all the Compatibility functions-
1 BETADIST
Returns the cumulative beta probability density function
2 BETAINV
Returns the inverse of the cumulative beta probability density function
3 BINOMDIST
Returns the individual term binomial distribution probability
CEILING
4 Rounds a number to the nearest integer or to the nearest multiple of
significance
5 CHIDIST
Returns the one-tailed probability of the chi-squared distribution
CHIINV
6 Returns the inverse of the one-tailed probability of the chi-squared
distribution
7 CHITEST
Returns the test for independence
8 CONFIDENCE
Returns the confidence interval for a population mean
9 COVAR
Returns covariance, the average of the products of paired deviations
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CRITBINOM
10 Returns the smallest value for which the cumulative binomial distribution is
less than or equal to a criterion value
11 EXPONDIST
Returns the exponential distribution
12 FDIST
Returns the F probability distribution
13 FINV
Returns the inverse of the F probability distribution
14 FLOOR
Rounds a number down, toward 0
15 FTEST
Returns the result of an F-Test
16 GAMMADIST
Returns the gamma distribution
17 GAMMAINV
Returns the inverse of the gamma cumulative distribution
18 HYPGEOMDIST
Returns the hypergeometric distribution
19 LOGINV
Returns the inverse of the lognormal distribution
20 LOGNORMDIST
Returns the cumulative lognormal distribution
21 MODE
Returns the most common value in a data set
22 NEGBINOMDIST
Returns the negative binomial distribution
23 NORMDIST
Returns the normal cumulative distribution
24 NORMINV
Returns the inverse of the normal cumulative distribution
25 NORMSDIST
Returns the standard normal cumulative distribution
26 NORMSINV
Returns the inverse of the standard normal cumulative distribution
27 PERCENTILE
Returns the kth percentile of values in a range
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28 PERCENTRANK
Returns the percentage rank of a value in a data set
29 POISSON
Returns the Poisson distribution
30 QUARTILE
Returns the quartile of a data set
31 RANK
Returns the rank of a number in a list of numbers
STDEV
32 Estimates standard deviation based on a sample, ignoring text and logical
values
STDEVP
33 Calculates standard deviation based on the entire population, ignoring text
and logical values
34 TDIST
Returns the student’s t-distribution
35 TINV
Returns the inverse of the student’s t-distribution
36 TTEST
Returns the probability associated with a student’s t-Test
37 VAR
Estimates variance based on a sample, ignoring logical values and text
VARP
38 Calculates variance based on the entire population, ignoring logical values
and text
39 WEIBULL
Returns the Weibull distribution
40 ZTEST
Returns the two-tailed P-value of a z-test
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2. BETADIST FUNCTION Advanced Excel Functions
The BETADIST function replaces the BETA.DIST function from Excel 2010.
Description
This function returns the cumulative beta probability density function. The beta distribution is
commonly used to study variation in the percentage of something across samples.
Syntax
BETADIST(x,alpha,beta,[A],[B])
Arguments
Required
Argument Description
/Optional
The value between A and B at which to evaluate the
X Required
function.
Alpha A parameter of the distribution. Required
Beta A parameter of the distribution. Required
A A lower bound to the interval of x. Optional
B An upper bound to the interval of x. Optional
Notes
If any argument is nonnumeric, BETADIST returns the #VALUE! error value.
If you omit values for A and B, BETADIST uses the standard cumulative beta
distribution, so that A = 0 and B = 1
Example
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3. BETAINV FUNCTION Advanced Excel Functions
The BETAINV function replaces the BETA.INV function from Excel 2010.
Description
The function returns the inverse of the cumulative beta probability density function for a
specified beta distribution. i.e.
The beta distribution can be used in project planning to model probable completion times
given an expected completion time and variability.
Syntax
BETAINV (probability,alpha,beta,[A],[B])
Arguments
Required
Argument Description
/Optional
Probability A probability associated with the beta distribution. Required
Alpha A parameter of the distribution. Required
Beta A parameter the distribution. Required
A A lower bound to the interval of x. Optional
B An upper bound to the interval of x. Optional
Notes
If you omit values for A and B, BETAINV uses the standard cumulative beta
distribution, so that A = 0 and B = 1
Given a value for probability, BETAINV seeks that value x such that BETADIST(x,
alpha, beta, A, B) = probability. Hence, precision of BETAINV depends on precision of
BETADIST
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Example
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4. BINOMDIST FUNCTION Advanced Excel Functions
The BINOMDIST function replaces the BINOM.DIST function from Excel 2010.
Description
The function returns the individual term binomial distribution probability. Use BINOMDIST in
problems with a fixed number of tests or trials, when the outcomes of any trial are only
success or failure, when trials are independent, and when the probability of success is
constant throughout the experiment.
Syntax
BINOMDIST (number_s,trials,probability_s,cumulative)
Arguments
Required
Argument Description
/Optional
Number_s The number of successes in trials. Required
Notes
Number_s and trials are truncated to integers.
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If number_s < 0 or number_s > trials, BINOMDIST returns the #NUM! error value.
If probability_s < 0 or probability_s > 1, BINOMDIST returns the #NUM! error value.
Where is COMBIN(n,x).
Example
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5. CEILING FUNCTION Advanced Excel Functions
Description
The CEILING function returns a number rounded up, away from zero, to the nearest multiple
of significance.
Syntax
CEILING (number, significance)
Arguments
Argument Description Required
/Optional
Number The value you want to round. Required
Notes
Regardless of the sign of number, a value is rounded up when adjusted away from
zero. If the number is an exact multiple of significance, no rounding occurs.
If the number is negative, and significance is negative, the value is rounded down,
away from zero.
If the number is negative, and significance is positive, the value is rounded up towards
zero.
Applicability
Excel 2007, Excel 2010, Excel 2013, Excel 2016.
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Example
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6. CHIDIST FUNCTION Advanced Excel Functions
The CHIDIST function replaces the CHISQ.DIST.RT function from Excel 2010.
Description
The function returns the right-tailed probability of the chi-squared distribution. The χ2
distribution is associated with a χ2 test. Use the χ2 test to compare the observed and the
expected values. By comparing the observed results with the expected ones, you can decide
whether your original hypothesis is valid.
Syntax
CHIDIST(x,deg_freedom)
Arguments
Argument Description Required
/Optional
X The value at which you want to evaluate the Required
distribution.
Deg_freedom The number of degrees of freedom. Required
Notes
CHIDIST is calculated as CHIDIST = P(X>x), where X is a χ 2 random variable.
If deg_freedom is not an integer, it is truncated.
If either argument is nonnumeric, CHIDIST returns the #VALUE! error value.
If x is negative, CHIDIST returns the #NUM! error value.
If deg_freedom < 1 or deg_freedom > 10^10, CHIDIST returns the #NUM! error
value.
Example
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7. CHIINV FUNCTION Advanced Excel Functions
Description
The function returns the inverse of the right-tailed probability of the chi-squared distribution.
Use this function to compare the observed results with the expected ones in order to decide
whether your original hypothesis is valid.
Syntax
CHIINV (probability,deg_freedom)
Arguments
Argument Description Required
/Optional
Probability A probability associated with the chi-squared Required
distribution.
Deg_freedom The number of degrees of freedom. Required
Notes
If deg_freedom is not an integer, it is truncated.
If probability < 0 or probability > 1, CHIINV returns the #NUM! error value.
Given a value for probability, CHIINV seeks value x such that CHIDIST(x,
deg_freedom) = probability. Hence, precision of CHIINV depends on precision of
CHIDIST. CHIINV uses an iterative search technique. If the search has not converged
after 100 iterations, the function returns the #N/A error value.
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Example
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8. CHITEST FUNCTION Advanced Excel Functions
Description
The function returns the test for independence. CHITEST returns the value from the chi-
squared (χ2) distribution for the statistic and the appropriate degrees of freedom. You can
use χ2 tests to determine whether hypothesized results are verified by an experiment.
Syntax
HITEST (actual_range,expected_range)
Arguments
Required
Argument Description
/Optional
The range of data that contains observations to test
Actual_range Required
against expected values.
The range of data that contains the ratio of the
Expected_range product of row totals and column totals to the grand Required
total.
Notes
The χ2 test first calculates a χ2 statistic using the formula-
Where-
Aij = actual frequency in the i-th row, j-th column
Eij = expected frequency in the i-th row, j-th column
r = number of rows
c = number of columns
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CHITEST returns the probability that a value of the χ 2 statistic at least as high as the
value calculated by the above formula could have happened by chance under the
assumption of independence. In computing this probability, CHITEST uses the χ 2
distribution with an appropriate number of degrees of freedom, df. If r > 1 and c > 1,
then df = (r - 1)(c - 1). If r = 1 and c > 1, then df = c - 1 or if r > 1 and c = 1, then
df = r - 1. (r = c= 1) is not allowed and #N/A is returned.
If actual_range and expected_range have a different number of data points, CHITEST
returns the #N/A error value.
Use of CHITEST is most appropriate when the values of Eij are not too small. Some
statisticians suggest that each Eij should be greater than or equal to 5.
Example
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9. CONFIDENCE FUNCTION Advanced Excel Functions
Description
The CONFIDENCE function returns the confidence interval for a population mean, using a
normal distribution.
The confidence interval is a range of values. Your sample mean, x, is at the center of this
range and the range is x ± CONFIDENCE. For any population mean μ0, in this range, the
probability of obtaining a sample mean further from μ0 than x is greater than alpha.
For any population mean, μ0, not in this range, the probability of obtaining a sample mean
further from μ0 than x is less than alpha.
In other words, assume that we use x, standard_dev, and size to construct a two-tailed test
at significance level alpha of the hypothesis that the population mean is μ0. Then we will not
reject that hypothesis if μ0 is in the confidence interval and will reject that hypothesis if μ 0 is
not in the confidence interval.
The confidence interval does not allow us to infer that there is probability 1 – alpha that our
next package will take a delivery time that is in the confidence interval.
Syntax
CONFIDENCE (alpha,standard_dev,size)
Arguments
Required
Argument Description
/Optional
The significance level used to compute the
confidence level.
The confidence level equals
Alpha Required
00*(1 - alpha)%, or in other words,
an alpha of 0.05 indicates a 95 percent confidence
level.
The population standard deviation for the data
Standard_dev Required
range and is assumed to be known.
Size The sample size. Required
Notes
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If we assume Alpha equals 0.05, we need to calculate the area under the standard
normal curve that equals (1 - alpha), or 95 percent. This value is ± 1.96. The
confidence interval is therefore-
Example
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10. COVAR FUNCTION Advanced Excel Functions
The COVAR function in Excel 2013 replaces the COVARIANCE.P function in Excel 2010.
Description
The function returns covariance, the average of the products of deviations for each data point
pair in two data sets. Use covariance to determine the relationship between two data sets.
Syntax
COVAR (array1, array2)
Arguments
Argument Description Required
/Optional
Array1 The first cell range of integers. Required
Array2 The second cell range of integers. Required
Notes
Covariance is given by-
Where are the sample means of AVERAGE (array1) and AVERAGE (array2),
and n is the sample size.
The arguments must be either numbers, names, arrays, or references that contain
numbers.
The values of an array or reference argument containing text, logical values, or empty
cells are ignored. However, cells with the value zero are included.
If array1 and array2 have different numbers of data points, COVAR returns the #N/A
error value.
If either of the arrays, array1 or array2 is empty, COVAR returns the #DIV/0! error
value.
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