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generating lognormal and powerlaw distributions in excel

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    generating lognormal and powerlaw distributions in excel

    Hi everyone,

    First time poster, but long time lurker. I am working on a project that requires that I generate a series of randomly generated distributions. I have done a normal distribution with a mean of 45 and a SD of 3.33 by using the following code:
    =(NORM.INV(RAND(),45,3.33)

    I am now trying to do a lognormal distribution. When I do simply =lognorm.inv(45, 3.33), I get some terrifically large numbers that are functionally unusable. I suspect that I am not scaling my mean and SD correctly. Does anyone have any insights into how I could generate this distribution correctly? Since the distribution needs to be skewed by definition, I assume that the SD needs to change, but I am not quite sure.

    Lastly, I am hoping to generate a power law distribution as well. From what I know, Excel does not have a built in function to do this. Does anyone know the formula to obtain such a distribution?

    Thanks for your help here.

    Bye,

    H

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    Re: generating lognormal and powerlaw distributions in excel

    I think you are missing one crucial argument in Lognorm.inv function.

    Syntax =Lognorm.inv(probablility, mean, standard_dev)
    All 3 arguments/parameters are required.
    So looks like you are missing probability.

    Read below for details.
    https://support.office.com/en-us/art...1-E151B2D4F600

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    Re: generating lognormal and powerlaw distributions in excel

    Ok, that is good to know. Thanks, CK76. I suppose my follow on question would be how do I determine the probably associated with the log-normal distribution. That part eludes me.

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    Re: generating lognormal and powerlaw distributions in excel

    I'm not statistician.

    But have a read of article below. It will show you how each variables are related.
    Ex: LOGNORMDIST(x, μ, σ) = NORMDIST(LN(x), μ, σ, TRUE)
    Then LOGNORM.INV(p, μ, σ) = x where x is such LOGNORMDIST(x, μ, σ) = p

    http://www.real-statistics.com/norma...-distribution/

    Edit: Also read through comments in the link. Looks like pretty close to what you are looking for.
    Last edited by CK76; 05-02-2017 at 05:28 PM.

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    Re: generating lognormal and powerlaw distributions in excel

    Thanks again for the link, CK76.

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