Binomial Distributions
An Introduction to Excel’s BINOM.DIST()
Learning Objectives
Understand and use Excel’s BINOM.DIST() function.
Again, we can use Excel’s = BINOM.DIST(, , , cumulative) function:
- = number of ‘successes’
- = number of trials
- = 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.
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 =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:
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: An Introduction to Excel’s BINOM.DIST()
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