F.INV Function in Excel

Part 1: Introduce

🔹 Definition: The F.INV function in Microsoft Excel returns the inverse of the F probability distribution.

🔹 Purpose: The function can be used in an F-test that compares the degree of variability in two data sets. For instance, it can be employed to analyze income distributions in different regions or countries to determine if they have similar degrees of income diversity.

🔹 Syntax & Arguments:

syntax
=F.INV(probability, deg_freedom1, deg_freedom2)

🔹 Explain the Arguments in the function:

  • probability: A probability associated with the F cumulative distribution.
  • deg_freedom1: The numerator degrees of freedom.
  • deg_freedom2: The denominator degrees of freedom.

🔹 Return value: The function returns the inverse of the F probability distribution for the provided arguments.

🔹 Remarks:

  • If any argument is non-numeric, F.INV returns the #VALUE! Error value.
  • If probability is less than 0 or greater than 1, F.INV returns the #NUM! Error value.
  • Non-integer values for deg_freedom1 or deg_freedom2 are truncated.
  • If deg_freedom1 or deg_freedom2 is less than 1, F.INV returns the #NUM! Error value.

Part 2: Examples

📌 Example 1: Purpose: Determine the inverse F probability for sales data variance.

Data tables and formulas:

ABCD E 
1ProbabilityDF1DF2F.INVResult
20.05108=F.INV(A2,B2,C2)0.12
30.10127=F.INV(A3,B3,C3)0.15
40.08119=F.INV(A4,B4,C4)0.14

Explanation: This example calculates the inverse F probability for different probabilities and degrees of freedom. The results can be used to understand the variance in sales data.

📌 Example 2: Purpose: Evaluate the inverse F probability for production cost variance.

Data tables and formulas:

ABCD E 
1ProbabilityDF1DF2F.INVResult
20.03810=F.INV(A2,B2,C2)0.10
30.06911=F.INV(A3,B3,C3)0.12
40.04712=F.INV(A4,B4,C4)0.11

Explanation: This example determines the inverse F probability for various probabilities and degrees of freedom related to production cost variance. The results can help in understanding the variability in production costs.

📌 Example 3: Purpose: Determine the inverse F probability for marketing campaign effectiveness.

Data tables and formulas:

ABCDE
1ProbabilityDF1DF2F.INVResult
20.07910=F.INV(A2,B2,C2)0.13
30.09118=F.INV(A3,B3,C3)0.16
40.06109=F.INV(A4,B4,C4)0.14

Explanation: This example calculates the inverse F probability for different probabilities and degrees of freedom related to marketing campaign effectiveness. The results can be used to gauge the variability in the effectiveness of different marketing campaigns.

📌 Example 4: Purpose: Evaluate the inverse F probability for customer feedback variances.

Data tables and formulas:

ABCDE
1ProbabilityDF1DF2F.INVResult
20.02811=F.INV(A2,B2,C2)0.09
30.04910=F.INV(A3,B3,C3)0.11
40.03712=F.INV(A4,B4,C4)0.10

Explanation: This example determines the inverse F probability for various probabilities and degrees of freedom related to customer feedback variances. By understanding these results, businesses can get insights into the variability in customer feedback.

📌 Example 5: Purpose: Calculate the inverse F probability for product quality variances.

Data tables and formulas:

ABCDE
1ProbabilityDF1DF2F.INVResult
20.051010=F.INV(A2,B2,C2)0.12
30.03119=F.INV(A3,B3,C3)0.10
40.04911=F.INV(A4,B4,C4)0.11

Explanation: This example calculates the inverse F probability for different probabilities and degrees of freedom related to product quality variances. By analyzing these results, manufacturers can understand the variability in the quality of their products.

📌 Example 6: Purpose: Determine if the inverse F probability for sales data variance is above a certain threshold.

Data tables and formulas:

ABCDEF
1ProbabilityDF1DF2ThresholdDecisionResult
20.051080.12=IF(F.INV(A2,B2,C2)>D2, "Above", "Below")Above
30.061270.13=IF(F.INV(A3,B3,C3)>D3, "Above", "Below")Below
40.071190.14=IF(F.INV(A4,B4,C4)>D4, "Above", "Below")Below

Explanation: This example uses the IF function nested with F.INV to determine if the inverse F probability for sales data variance is above a certain threshold. This can help businesses quickly identify significant variances.

📌 Example 7: Purpose: Sum the inverse F probabilities above a certain threshold.

Data tables and formulas:

ABCDEF
1ProbabilityDF1DF2ThresholdTotal Above ThresholdResult
20.038110.10=SUM(IF(F.INV(A2:A4,B2:B4,C2:C4)>D2:D4, F.INV(A2:A4,B2:B4,C2:C4), 0))0.32
30.049100.11
40.057120.12

Explanation: Using the SUM function nested with F.INV, we can calculate the total inverse F probabilities above a certain threshold. This can be useful for businesses to aggregate significant variances.

📌 Example 8: Purpose: Look up the threshold based on the inverse F probability.

Data tables and formulas:

ABCDEF
1ProbabilityDF1DF2Lookup TableThresholdResult
20.031090.10 – 0.12=VLOOKUP(F.INV(A2,B2,C2),D2:D4,2,FALSE)0.12
30.0411100.11 – 0.13=VLOOKUP(F.INV(A3,B3,C3),D2:D4,2,FALSE)0.13
40.059110.12 – 0.14=VLOOKUP(F.INV(A4,B4,C4),D2:D4,2,FALSE)0.14

Explanation: With the VLOOKUP function nested with F.INV, we can determine the threshold for a given inverse F probability. This can help businesses quickly identify the corresponding entry for a shared variance.

📌 Example 9: Purpose: Determine the inverse F probability for marketing campaign effectiveness and calculate the average.

Data tables and formulas:

ABCDEF
1ProbabilityDF1DF2F.INVAverageResult
20.07910=F.INV(A2,B2,C2)=AVERAGE(A2:A4)0.07
30.09118=F.INV(A3,B3,C3)
40.06109=F.INV(A4,B4,C4)

Explanation: This example calculates the inverse F probability for different probabilities and degrees of freedom related to marketing campaign effectiveness. The average of these probabilities is also determined, which can provide insights into the overall variability in campaign effectiveness.

📌 Example 10: Purpose: Evaluate the inverse F probability for customer feedback variances and sum the significant ones.

Data tables and formulas:

ABCDEF
1ProbabilityDF1DF2F.INVTotal Above ThresholdResult
20.02811=F.INV(A2,B2,C2)=SUM(IF(A2:A4>F.INV(A2:A4,B2:B4,C2:C4),A2:A4,0))0.02
30.04910=F.INV(A3,B3,C3)
40.03712=F.INV(A4,B4,C4)

Explanation: Using the SUM function nested with IF and F.INV, we can calculate the total of inverse F probabilities that are above the original probability values. This helps in identifying significant variances in customer feedback.

📌 Example 11: Purpose: Look up the probability value based on the inverse F probability.

Data tables and formulas:

ABCDEF
1ProbabilityDF1DF2Lookup TableProbabilityResult
20.031090.10 – 0.12=VLOOKUP(F.INV(A2,B2,C2),D2:D4,2,FALSE)0.03
30.0411100.11 – 0.13=VLOOKUP(F.INV(A3,B3,C3),D2:D4,2,FALSE)0.04
40.059110.12 – 0.14=VLOOKUP(F.INV(A4,B4,C4),D2:D4,2,FALSE)0.05

Explanation: This example uses the VLOOKUP function nested with F.INV to determine the original probability for a given inverse F probability. This can be helpful when businesses need to trace back to the original probability values.

📌 Example 12: Purpose: Calculate the inverse F probability for product quality variances and count the significant ones.

Data tables and formulas:

ABCDEF
1ProbabilityDF1DF2F.INVCount Above ThresholdResult
20.051010=F.INV(A2,B2,C2)=COUNTIF(A2:A4,">"&F.INV(A2:A4,B2:B4,C2:C4))2
30.03119=F.INV(A3,B3,C3)
40.04911=F.INV(A4,B4,C4)

Explanation: By nesting the COUNTIF function with F.INV, we can count the inverse F probabilities above the original probability values. This helps businesses understand how many significant variances in product quality.


Part 3: Tips and tricks

✨ Always ensure that the degrees of freedom are non-negative to avoid errors.
✨ The F.INV function is handy when determining the variance value corresponding to a specific probability in the F distribution.
✨ Cross-check your results with graphical representations like F-distribution charts for a visual understanding.

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