Microsoft® Excel Data Analysis and Business Modeling

Chapter 54. The Binomial and Hypergeometric Random Variables

• What is the binomial random variable?

• How do we use the BINOMDIST function to compute binomial probabilities?

• Assume that equal numbers of people prefer Coke to Pepsi and Pepsi to Coke. We ask 100 people whether they prefer Coke to Pepsi. We’re interested in the probability that exactly 60 people prefer Coke to Pepsi and the probability that between 40 and 60 people (inclusive) prefer Coke to Pepsi.

• Three percent of all elevator rails we produce are considered defective. Suppose we 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 determine whether each sampled rail is defective. ...