F.INV.RT Function

This function uses the F probability distribution to determine the right-tailed inverse.

Author: Christy Grimste
Christy Grimste
Christy Grimste
Real Estate | Investment Property Sales

Christy currently works as a senior associate for EdR Trust, a publicly traded multi-family REIT. Prior to joining EdR Trust, Christy works for CBRE in investment property sales. Before completing her MBA and breaking into finance, Christy founded and education startup in which she actively pursued for seven years and works as an internal auditor for the U.S. Department of State and CIA.

Christy has a Bachelor of Arts from the University of Maryland and a Master of Business Administrations from the University of London.

Reviewed By: Elliot Meade
Elliot Meade
Elliot Meade
Private Equity | Investment Banking

Elliot currently works as a Private Equity Associate at Greenridge Investment Partners, a middle market fund based in Austin, TX. He was previously an Analyst in Piper Jaffray's Leveraged Finance group, working across all industry verticals on LBOs, acquisition financings, refinancings, and recapitalizations. Prior to Piper Jaffray, he spent 2 years at Citi in the Leveraged Finance Credit Portfolio group focused on origination and ongoing credit monitoring of outstanding loans and was also a member of the Columbia recruiting committee for the Investment Banking Division for incoming summer and full-time analysts.

Elliot has a Bachelor of Arts in Business Management from Columbia University.

Last Updated:November 19, 2023

What is the F.INV.RT Function?

The F.INV.RT function is an Excel function using the F probability distribution to determine the right-tailed inverse.

One similar function closely related to the returns is the F.INV distribution function. The formula used for both the F.INV.RT and F.INV contain the same components, and an inverse is determined.

The difference is the specific return of the right-tailed probability distribution.

Furthermore, if you wish to obtain more accurate results, the F.INV.RT function is not recommended when calculating a matrix. Other Excel functions may be more suitable for a larger dataset, but the F.INV.RT function specializes in the F probability distribution.

Throughout the remainder of the article, the formula, its component breakdown, and F.INV.RT example will be discussed. The F.INV.RT example will go into greater depth on how to utilize and navigate the computation.

Key Takeaways

  • The F.INV.RT calculates the right-tailed inverse of an F probability distribution.
  • The three required components of the F.INV.RT function is the probability, deg_freedom1, deg_freedom2.
  • Do not use the F.INV.RT to calculate the inverse of a matrix, as the function is not suitable for calculating the dataset.
  • The F.INV.RT requires that the inputs are numerical values.
  • You can navigate the function through Formula → Statistical → F.INV.RT.

F.INV.RT Function Formula

The calculation in determining the right-tailed inverse is as follows:

F.INV.RT(probability, deg_freedom1, deg_freedom2)

In breaking down the components of the F.INV.RT function, let’s determine the uses and importance of each variable.

First, the “probability” component is an important and required aspect of the F.INV function. This is because the data for the probability variable comes from the F probability distribution.

Second, the “deg_freedom1” considers the degree (deg) of freedom of the numerator associated with the F.INV function. The “deg_freedom1” is also a required aspect of the function.

Lastly, the “deg_freedom2” considers the degree of freedom of the denominator. Similar to the first two components, the “deg_freedom2” is a required part of the function as it is included in the overall computation of the inverse.

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Example Of F.INV.RT Function

In the example pictured, a probability distribution of 0.03 receives the following answer.

Data

With all required data inputted in the table above, the right-tailed inverse equals 7.080303608. As highlighted in cell C6, the F.INV.RT function is demonstrated to include datasets C2, C3, and C4.

As mentioned previously, the degrees of freedom represent the values of the function located on the numerator and denominator, which are also required factors for calculating an accurate inverse.

After entering all necessary data within the table of an Excel sheet, you can locate the function in two different ways. One way is to simply locate the desired cell that you would like to input the function’s returns.

In this example, the F.INV.RT function is located in the table categorized as “Right-tailed Inverse.”

Sheet

Then, type “=F.INV.RT,” and the function should appear promptly. Following that, you can now highlight the cells with the necessary data to include in the computation.

Excel

Another way to locate the F.INV.RT function is to follow the steps as directed in the instructions:

  • In the Excel sheet, locate the Formulas tab at the top bar. 
  • Click on More Functions.
  • In the dropdown bar, you will see six additional categories. Click on Statistics.
  • Another dropdown bar will appear with functions in alphabetical order. Simply scroll down and locate “F.INV.RT.”Function

If the right-tailed inverse returns a #NUM! or #VALUE!, consider the following scenarios that may cause an inaccurate result:

  • First, the probability component is not between zero and one.
  • The degree of freedom of the numerator and denominator is less than one.

Remember to input all datasets as numerical values to receive accurate results.

Reviewed and edited by Parul GuptaLinkedIn

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