Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Guide to Using Excel 2007 or 2010 For Basic Statistical Applications To Accompany Business Statistics: A Decision Making Approach, 7th Ed. Chapter 5: Discrete Probability Distributions By Groebner, Shannon, Fry, & Smith Prentice-Hall Publishing Company Copyright, 2008 Chapter 5 Excel Examples Binomial Mean Catalog Sales Poisson Distribution – Heritage Tile More Examples Binomial MeanCatalog Sales Issue: People who order items from catalogs can return the items for a refund. Historical return rate for one catalog has been 11 percent. Is this rate still valid? Objective: Use Excel 2007 or 2010 to compute binomial probabilities based on a sample of 300 purchases. Binomial Mean – Catalog Sales Situation: • Sample Size is n=300 • p = .11 • Mean = np = 300(.11) = 33 • 44 returns were observed • P(X > 44) = 1 – P(X < 43) • Find P(X < 43) = ? Binomial Mean – Catalog Sales •Select Formulas tab •Select More Functions •Select Statistical •Select BINOMDIST Binomial Mean – Catalog Sales Enter values: Note: •True = cumulative probability. •False = exact probability Binomial Probability Result Poisson Distribution Heritage Title Issue: The distribution for the number of defects per tile made by Heritage Tile is Poisson distributed with a mean of 3 defects per tile. The manager is worried about the high variability Objective: Use Excel 2007 or 2010 to generate the Poisson distribution and histogram to visually see spread in the distribution of possible defects. Poisson Distribution – Heritage Tile Enter values zero through 10 Poisson Distribution – Heritage Tile Select Formulas, More Functions, Statistical and POISSON Poisson Distribution – Heritage Tile Enter: a1, 3, false Poisson Distribution – Heritage Tile Notice that I had pre-selected Cell B1. When I pressed enter the Poisson Probability was loaded into that cell. Simply copy and paste Cell B1 into cells B2 : B11 Poisson Distribution – Heritage Tile •Select the Insert tab •Select Column •Select the chart type that you want Poisson Distribution – Heritage Tile Format the chart as per Chapter 2 Creating A Binomial Table Issue: The binomial tables in this text contain specific probabilities for certain values of n and p. You may need to have more extensive tables. Objective: Use Excel 2007 or 2010 to generate the Binomial table for n = 25 and p value of .01 to .50 in increments of .01 Creating A Binomial Table •Sample size in Cell B1 •p-values in Row 2 •x-values in Column B Creating A Binomial Table P(x =0) = .777821 for n = 25, p = .01 Notice the use of absolute cell referencing – this allows you to copy the function across and down to complete this section of the binomial table Creating A Binomial Table Copy the contents (formula) of Cell C3 over the entire table Creating A Binomial Table Clear all Cells with a value of Zero Creating A Binomial Table Repeat for the next set of values for p: 0.11, 0.12 … 0.20 Simply change the contents of Row 2. Continue this for all possible values of p. For different sample sizes (n) change Cell B1 and Row B Creating A Poisson Table Issue: The Poisson tables in this text contain specific probabilities for certain values of λt . You may need to have more extensive tables. Objective: Use Excel 2007 or 2010 to generate the Poisson Table table for λt = 6.0 to 7.0 in increments of .10 Creating A Poisson Table λt values in row 2 Values of x in column A Creating A Poisson Table P(x = 0) for λt = 6.0 equals .00248 Notice the use of absolute cell referencing this allows you to copy the function across and down to complete this section of the binomial table Creating A Poisson Table Continue this process for other λt values as desired. As λt increases, the possible values for x will have to increase.