Basic Statistics

[arceaf]

Hi,


I am using statistics to develop a finacial model on excel.


I have created a table that lists returns of a security over a given period of time. I have used formulas to calculate the mean and standard dev of the returns.


Right now, I am using the norm.inv function =norm.inv(.05, Standard Dev, Mean) to come up with the minimum return @ a 95% confidence.


Now, I want to come up with the MAX return at 95% confidence, but don't know which formula I should use:


Should I use:


NORM.INV(0.95,Mean,Standard dev)
or
NORM.DIST(0.05,Mean,Standard dev,TRUE)


I really appreciate the help!

 

[jkpieterse]

AFAIK the 95% interval for a normally distributed dataset is simply:

Min:
Average - 2 * StDev
Max:
Average + 2 * StDev