Again, we can use Excel’s = BINOM.DIST([latex]x[/latex], [latex]n[/latex], [latex]p[/latex], cumulative) function:

• [latex]x[/latex] = number of ‘successes’
• [latex]n[/latex] = number of trials
• [latex]p[/latex] = probability of success
• cumulative = either TRUE (1) or FALSE (0) –

We will use cumulative = FALSE (0) for now and explain more on this in the next section.

A First Example Using Excel’s binom.dist (Video)

Let us revisit the same salesperson example from the previous section in the next example.

Example 25.1.1

Problem Setup: Again, let a salesperson call 10 clients in a day. Let the odds of the salesperson making a sale with any one of the clients be [latex]p[/latex]=0.3

Question: What is the probability of that 4 of her 10 calls in a day will result in sales? Use Excel to solve this problem.

Solution: Click here to download the Excel solutions. Also, see the video below:

Calculating Multiple Probabilities Using Excel (VIDEO)

Let us explore using Excel to calculate the probabilities for all possible outcomes in the Salesperson problem.

Example 25.1.2

Problem Setup: Again, let a salesperson call 10 clients in a day and 0.3 be the odds of the salesperson making a sale.

Question: What are the probabilities for the salesperson making any number of sales (between 0 and 10) in a day?

Solution: Click here to download the Excel solutions. Also, see the video below

Key Takeaways (EXERCISE)

Your Own Notes (EXERCISE)

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