
In this article
GAMMA.DIST models waiting times and amounts that are always positive and skewed, like claim sizes or repair times.
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Syntax
=GAMMA.DIST(x, alpha, beta, cumulative)
| Argument | What it means |
|---|---|
x |
Value |
alpha |
Shape |
beta |
Scale |
cumulative |
TRUE for probability |
Examples
Example 1
=ROUND(GAMMA.DIST(A2,B2,C2,TRUE),4)
Result: 0.7127. See the worked example table below for more cases.
GAMMA.DIST in practice
Where you will use it
- Insurance claim sizes
- Time until k events happen
- Rainfall amounts
Worked example
| x | alpha | beta | Formula | Result |
|---|---|---|---|---|
| 10 | 2 | 4 | =ROUND(GAMMA.DIST(A2,B2,C2,TRUE),4) | 0.7127 |
| 5 | 2 | 4 | =ROUND(GAMMA.DIST(A3,B3,C3,TRUE),4) | 0.3554 |
| 20 | 3 | 5 | =ROUND(GAMMA.DIST(A4,B4,C4,TRUE),4) | 0.7619 |
Results calculated in Excel.
Mistakes people make
| Mistake | What to do instead |
|---|---|
| Negative x | #NUM! |
| Rate vs scale | beta is the scale (1/rate) |
Related functions
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