<

Improve company productivity with a Business Account.Sign Up

x

Building Probability Models in Excel Part 4: Discrete Random Variables

Posted on
6,463 Points
464 Views
Last Modified:
Experience Level: Beginner
5:06
The viewer will learn how to use the =DISCRINV command to create a discrete random variable, use this command to model a set of probabilities and outcomes in a Monte Carlo simulation, and learn how to find the standard deviation of a set of probabilities and outcomes with the =STDEVPR command.

Video Steps

1. Discrete Random Variables: Type in the set of outcomes and corresponding probabilities in cells A2:B6

2. Enter =SUM(B2:B6) into cell B7

3. Enter =DISCRINV(RAND(),A2:A6,B2:B6) into cell B9 and label “Profit”

4. Enter =B9 into cell B14

5. Select cells A14:B213

6. Click Tools > SimTools > Simulation Table

7. Enter =AVERAGE(B14:B213) into cell B11 and label “Mean”

8. Enter =STDEV(B14:B213) into cell B12 and label “StDev”

9. Enter =STDEVPR(A2:A6,B2:B6) into cell C12

0
Comment
Author:Toby Reaper
0 Comments

Featured Post

Free Tool: Path Explorer

An intuitive utility to help find the CSS path to UI elements on a webpage. These paths are used frequently in a variety of front-end development and QA automation tasks.

One of a set of tools we're offering as a way of saying thank you for being a part of the community.

Join & Write a Comment

Usually, rounding is performed by some power of 10 - to thousands, hundreds, tens, or integer - or to one, two, or more decimals. But rounding can also be done to a power of two, say, 16 or 64, or 1/32 or 1/1024, even for extreme values.
With the functions here, you can parse, convert, and format back and forth between feet and inches and fractions and decimal inches - for normal as well as extreme values and with extreme precision.

Keep in touch with Experts Exchange

Tech news and trends delivered to your inbox every month