BETAINV

• How to use BETAINV formula?
• Examples of using BETAINV formula
• BETAINV formula not working?
• Similar formulas to BETAINV

Usage

Use the BETAINV formula with the syntax shown below, it has 3 required parameters and 2 optional parameters:

=BETAINV(probability, alpha, beta, lower_bound, upper_bound)

1. probability (required):
   The probability value for which to evaluate the inverse of the cumulative distribution function.
2. alpha (required):
   The first shape parameter of the beta distribution.
3. beta (required):
   The second shape parameter of the beta distribution.
4. lower_bound (optional):
   An optional lower bound of the distribution, default is 0.
5. upper_bound (optional):
   An optional upper bound of the distribution, default is 1.

Examples

Estimate the probability of success for a given number of trials

Suppose you conduct an experiment in which a coin is flipped 10 times and it lands heads up 6 times. You can use the BETAINV function to calculate the probability of getting 6 or fewer heads in 10 flips, given that the coin is fair. This can be useful in determining whether the coin is actually fair or not.

Estimate the probability of a stock price increase

Suppose you are analyzing the daily returns of a stock and want to estimate the probability of the stock price increasing by at least 5% in the next month. You can use the BETAINV function to estimate the shape of the distribution and calculate the corresponding probability.

Calculate the expected value of a beta distribution

The expected value of a beta distribution is given by the formula alpha / (alpha + beta). You can use the BETAINV function to estimate the shape parameters of the distribution and then calculate the expected value.

Common Mistakes

Incorrect probability value

One of the most common mistakes when using the BETAINV formula is to provide a probability value that is not between 0 and 1. This can result in unexpected results or errors. To correct this mistake, ensure that the probability value is between 0 and 1.

Switched alpha and beta values

Another common mistake is to switch the order of the alpha and beta values. This can result in incorrect calculations. To correct this mistake, ensure that the alpha value is provided before the beta value.

Incorrect order of bounds

It is important to provide the lower bound value before the upper bound value in the BETAINV formula. Switching the order of these values can result in incorrect calculations. To correct this mistake, ensure that the lower bound value is provided before the upper bound value.

Related Formulas

The following functions are similar to BETAINV or are often used with it in a formula:

• BETADIST

  The BETADIST formula returns the cumulative beta distribution function. It is commonly used in statistical analysis to model events that result in outcomes between two bounds. The distribution is defined by the beta function, which is a continuous probability distribution with support from 0 to 1. The function can be used to determine the probability of a random variable falling between two values.

• BINOM.DIST

  The BINOM.DIST function returns the probability of a certain number of successes in a fixed number of trials given a probability of success in each trial. It is most commonly used in statistical analysis and hypothesis testing. The function can calculate either the probability mass function (PMF) or the cumulative distribution function (CDF) depending on the value of the cumulative parameter.

• NORMINV

  The NORMINV function returns the inverse of the normal cumulative distribution for a specified value, mean, and standard deviation. It is commonly used in statistics to find the value at which a given percentage of observations lie below that value.

Learn More

You can learn more about the BETAINV Google Sheets function on Google Support.