Generating lognormal distribution

[imohamed]

Hi,
I need to generate lognormal distribution of a product price. Assuming the mean of the price is 40 and the std dev is 25, how do I use the built in function in excel eg, loginv and lognormdist to generate the lognormal distribution.

Thanks.

 

[c_m]

Hello and Welcom to the board.
do you need density function or cumulative function?

 

[c_m]

Assuming that B1= 40 (mean) and B2 = 25 (standard deviation)

A5 = 0.001
A6 = A5 + $A$5 
and drag this formula down to A1003
B5 = =LOGINV(A5,LN($B$1)-0.5*(LN(($B$2/$B$1)^2+1)),SQRT(LN(($B$2/$B$1)^2+1)))
and drag this formula down to B1003
C5 = =EXP(-((LN(B5)-(LN($B$1)-0.5*LN(($B$2/$B$1)^2+1)))^2)/(2*LN(($B$2/$B$1)^2+1)))/B5/SQRT(LN(($B$2/$B$1)^2+1))/SQRT(2*PI())
and drag this formula down to C1003

Plot column B and C for probability density function
Plot column B and A for cumulative function

 

[c_m]

Note that Column A is supposed to be the uniform random number generator. I have used fixed values of random number with a step value of 0.001 so that you can plot the values easily.