Exponential Probability Distributions With Microsoft Excel

Search:

Exponential Probability Distributions With Microsoft Excel

Exponential Probability Distributions using the EXPONDIST Function

To describe the time it takes to complete a task, you use the exponential probability distribution,

For example, you can describe the time between arrivals of vehicles in a drive-through or the time required to load a crate of goods. Product lifetimes also often follow an exponential probability distribution.

For example, if the average lifetime of a part in a machine is 15 years, you can find the probability that the part will last less than a certain number of years, more than a certain number of years, or between numbers of years.

The EXPONDIST function uses the following syntax:

=EXPONDIST (x, lambda, cumulative)

where lambda is the inverse of the mean and cumulative allows you to tell Excel whether you want the cumulative probability or the probability of exactly that value. For example, if you want to find the probability that a part with a mean lifetime of 12 years lasts less than 6 years, enter the function as follows:

=EXPONDIST(6,1/12,TRUE)

The function returns the value 0.3935.

F Probability Distributions using the FDIST, FINV and FTEST Functions

If you want to compare the variances of two normal populations using data collected from two independent random samples of size N1and N2 of these populations, it results in an F distribution with N1-1 degrees of freedom and N 2-1 degrees of freedom. (Note: The more degrees of freedom, the less the skew.)

If you know a value and want to find the probability in the F distribution, you use the FDIST function. The FDIST function uses the following syntax:

=FDIST(x, degrees of freedom 1,degrees of freedom 2)

If you know the probability and want to find a value for the F distribution, you use the FINV

function. The FINV function uses the following syntax:

=FINV (probability, degrees of freedom 1, degrees of freedom 2)

The F-test finds the one-tailed probability that the variances in two data sets are not significantly different. For example, scientists use the F-test to compare pairs of data obtained from particular laboratories, analysts, or methods to determine whether one batch is significantly more precise than the other. The FTEST function uses the following syntax:

=FTEST (array 1, array 2)

Article Source: http://articlenexus.com

Seattle accountant and author Stephen L. Nelson wrote the MBA's Guide to Microsoft Excel, from which this short article is adapted. Nelson also writes and edits downloadable do-it-yourself business incorporation kits that entrepreneurs and investors can use for setting up a Incorporating in Oklahoma or a Incorporating in Oregon.

Please Rate this Article

Not yet Rated

Click the XML Icon Above to Receive Accounting Articles Via RSS!

Additional Articles From - Home | Accounting

	Print This Article
	Add To Favorites
	Email to Friends
	Ezine Ready

Submit Articles
Member Login
Top Authors
Most Popular Articles
Submission Guidelines
Ezine Notifications
Article RSS Feeds

(Your 160x160 ad here)
Only $50 a month-click here

Everything you need for your website and home business.
	Adsense Site Builder
	Adsense Analyzer Software
	Clip Art
	Domain Names
	Header Graphics
	Internet Business Info
	Photo Art
	SEO Software
	Web Hosting $4.95/mo
	Website Templates
	Web Site Promotion Tools
AdvancedWebsiteTools.com

Link Exchange
Blog by WordPress
Privacy Policy
Terms of Service
About Us
Contact Us
Banner Advertisements

Have you Victimized by a Business or the Government? File your consumer complaints or business complaints at BusinessReporter.net!

Structured Settlement?
Free information to help you learn more about structured settlements, your rights, and how to select the best company for you.

Affordable Discount Dental Plans
Choose from over 30 top-quality national and regional discount dental plans. Save 10% to 60% on most dental procedures

Hair Loss Remedies

Remove Bad Credit
Legally Erase Bad Credit and Improve Your Credit Rating
with Self Help Credit Repair
Do It Yourself Credit Repair

Free Diabetic Supplies

Antique Radios | Ham Radios