Probability functions: pdf, CDF and inverse CDF (FRM T2-1)

[Here is my XLS @ http://trtl.bz/2AgvfRo] A function is a viable probability function if it has a valid CDF (i.e., is bounded by zero and one) which is the integral of the probability density function (pdf). The inverse CDF (aka, quantile function) returns the quantile associated with a probability, q = F^(-1)(p), whereas the CDF returns the probability associated with a quantile: p = F(q). As mentioned, the =POISSON_INV(.) is not built into excel. Rather, it is available from the wonderful and free add-on published by Charles Zaiontz and available at http://www.real-statistics.com. Discuss this video here in our FRM forum: https://trtl.bz/2O7chQg.

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