The inverse transform method is simply a way to create a random variable that is characterized by a SPECIFICALLY desired distribution (it can be any distribution, parametric or empirical). For example, =NORM.S.INV(RAND()) transform a random uniform into a random standard normal. The "inverse" reverse to an inverse cumulative distribution function; aka, inverse CDF.
David's XLS: http://trtl.bz/yt-120217-inverse-transform
David's XLS: http://trtl.bz/yt-120217-inverse-transform
