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Statistical function
LOGNORM.DIST
Returns the lognormal distribution.
Rarely usedDifficulty 1500 · AdvancedUsage rank #401 of 520
When to use it
The lognormal distribution: LN(x) is normal with the given mean and sd. Prices, incomes, and anything that grows by percentages tend to be lognormal.
The shape of it
- Syntax
=LOGNORM.DIST(x, mean, standard_dev, cumulative)
Worked examples
Cumulative
=LOGNORM.DIST(4,3.5,1.2,TRUE) → 0.0390836
Probability of a value at or below 4.
Density
=LOGNORM.DIST(4,3.5,1.2,FALSE) → 0.0176176
Density at 4.
Median
=LOGNORM.DIST(1,0,1,TRUE) → 0.5
With mean 0, the median is 1.
Worth knowing
- Mean and sd are of LN(x), not of x itself.
- Option pricing assumes lognormal prices.
- LOGNORM.INV for percentiles.
Where it goes wrong
- #NUM! for x of 0 or less, or a non-positive sd.
- Passing the mean of x rather than of LN(x) is the usual mistake.
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