Excel Functions
How do we find Expected Value in Excel?
Multiply the Distribution occurrence by the probability for that occurrence!
What function gives the probability of occurrence?
P = X/T, where X is the number if ways the event occurs & T is the total number of possible outcomes!
What type of variable (Discrete or Continuous) am I?
Number of Facebook likes on a post
Discrete!
What type of distribution is Bell-shaped & Symmetrical?
Normal Distribution
What is a faster way to find Expected Value?
(Hint*: its a formula, not a manual multiplication)
SUMPRODUCT
True or False, the following statement is a simple event:
"The first ball being red"
True! A simple event is described by a single characteristic!
What type of distribution shows us how many times an event is likely to happen in a specified period of time?
Poisson Distribution
What is the 68-95-99.7 rule?
The range of standard deviations from the mean that most normally distributed data falls into. 68% is with one SD of the mean, 95% is within two and 99.7% falls within three SD's of the mean
Standard Deviation of the Distribution is the square of what?
(Hint*: We can find it with multiplication or SUMPRODUCT function)
The Square Root of the Variance! Which can be found either through multiplication of occurrences by probabilities or through the SUMPRODUCT function
What do we call each possible outcome of a variable?
We refer to these as "events"
What type of variable (Discrete or Continuous) am I?
Volts of Electricity
Continuous!
If all possible outcomes have an equal chance of happening, what type of distribution am I?
I am Uniform Distribution!
What Excel function returns the probability of a specific number of successes or the probability of at most a specific number of successes in a given number of trials?
BINOMN.DIST
Is the statement below an example of a priori probability, empirical probability, or subjective probability:
There will be at least one magnitude 4 earthquake next year.
Empirical! The statement depends on observed data
What type of distribution is best for finding the probability of pinpointing one of multiple different outcomes under a set of given circumstances?
Binomial Distribution
What two Excel functions can we use to calculate probabilities related to binomial distributions?
BINOM.DIST & BINOM.INV
What Excel function returns the smallest value of successes for a given cumulative probability of a binomial distribution?
BINOM.INV
Is the statement below an example of a priori probability, empirical probability, or subjective probability:
The spinning compass will rest pointing North
Because the statement is based on prior knowledge of an involved process, this is a priori statement!
A fair coin is tossed 5 times. The probability of exactly 3 heads is?
5/16! The quotient of number of favorable outcomes (5) over possible outcomes (16), in reduced factor form!
What is another name for the Z-Table?
Standard Normal Table!