Business Statistics

198 Business Statistics

Figure 6.5

Minitab output for

Example 6.1

6.4.4  Using MS Excel for Binomial Probability Computation in Example 6.2

There are two methods of computing binomial probabilities by using MS Excel. First, after placing the

entire series of xs in the excel sheet, the binomial probability for x = 0 can be calculated by inserting

the formula “= BINOMDIST (0, 30, 0.1, False)” and then pressing Enter. The binomial probability

of obtaining 0 unemployed workers in a sample of 30 is computed as 0.042391. Similarly, we can

calculate the probabilities of getting one, two, and three unemployed workers in a random sample of

30. The ...