Business Statistics

196    Business Statistics

6.4.2  Using MS Excel for Binomial Probability Computation in Example 6.1

In Example 6.1, computation was very simple and could be done manually very easily. In a few cases,

like computing the probability of getting 140 heads in 350 trials, the computation would be cumber-

some. MS Excel can be used very easily to solve this problem. For the sake of understanding the

functioning of MS Excel, we can use Example 6.1. The probability of getting three heads in two trials

can be calculated in MS Excel in the following manner.

Click f

x

to open the Insert Function dialog box (Figure 6.2). From Select a category, select

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