MS Excel and Google Sheets offer a comprehensive set of functions for financial analysis, data operations, and mathematical calculations. One such function, the GAUSS function, calculates the proportion of values below a given z-value in a standard normal distribution. Specifically, it measures the area from negative infinity to z, subtracting the central 50% area. This function is particularly vital in statistical analysis. Below, you will find details on how to use the GAUSS function and some practical examples.

Function Syntax and Usage

The general syntax of the GAUSS function is as follows:

GAUSS(z)

Here, the parameter z represents the number of standard deviations from the mean (µ) of the normal distribution, calculated using the formula z = (X-μ)/σ.

• z: The standard deviation value used to determine the segment of the normal distribution curve under consideration.

Example Applications

We will explore two different scenarios to illustrate the use of the GAUSS function:

Example 1: Score Distribution Analysis

A teacher aims to interpret a student’s exam score according to a standard normal distribution to understand the student”s performance relative to the class.

• Score: 85
• Class average (μ): 78
• Standard deviation (σ): 10

z = (85 - 78) / 10 = 0.7

Applying this z-value to the GAUSS function:

GAUSS(0.7)

The resulting value provides a percentage indicating how this student”s exam score ranks relative to the rest of the class.

Example 2: Financial Risk Assessment

Investors might wish to understand how much of a return position lies outside a specific segment when the return of an investment reaches a certain z-score.

• Return: 12%
• Average return: 8%
• Standard deviation: 4%

z = (12 - 8) / 4 = 1

In this scenario, the GAUSS function calculates:

GAUSS(1)

This calculation helps to show the segment of the distribution that is above the average return, providing a clearer assessment of investment risk.

As demonstrated in these examples, the GAUSS function is useful for making practical decisions in various fields or analyzing data. In each case, the results facilitate a more comprehensible interpretation of data.

Daha fazla bilgi: https://support.microsoft.com/tr-tr/office/gauss-işlevi-069f1b4e-7dee-4d6a-a71f-4b69044a6b33