Microsoft Excel 2013: Data Analysis and Business Modeling

Chapter 67. The binomial, hypergeometric, and negative binomial random variables

Questions answered in this chapter:

• What is a binomial random variable?

• How can I use the BINOM.DIST function to compute binomial probabilities?

• If equal numbers of people prefer Coke to Pepsi and Pepsi to Coke and I ask 100 people whether they prefer Coke to Pepsi, what is the probability that exactly 60 people prefer Coke to Pepsi and the probability that between 40 and 60 people prefer Coke to Pepsi?

• Of all the elevator rails my company produces, 3 percent are considered defective. We are about to ship a batch of 10,000 elevator rails to a customer. To determine whether the batch is acceptable, the customer will randomly choose a sample of 100 rails and check whether ...