Friday, December 14, 2012

How to Calculate Probability Using Excel


1.
Go to Start>Programs>Microsoft Office>Microsoft Excel. If Excel has been used recently, simply go to Start>Microsoft Excel.
2.
Create two columns, one entitled 'Numeric grades' and the other 'Probability of getting each grade.'
3.
List the grades from 50, 60, 70, 80, 90 and 100 in cells A2 to A7.
4.
List the probabilities associated with each grade from cells B2 to B7. List the numbers as follows: 0.05, 0.1, 0.4, 0.3, 0.1 and 0.05.
5.
Enter '=Prob(A2:A7,B2:B7,70,100)'. This formula for probability isolates the numeric range of numbers (A2:A7), the probability of getting each grade (B2:B7), the lower range for which the probability is needed (70) and the upper range for which the probability is needed (100). In short, the formula answers the question: What are the chances of someone getting a grade between 70 and 100?
6.
Click on the '%' icon to convert the answer (0.85) to a percentage. The resulting answer is 85%. There is an 85% chance that the grade will be between 70 and 100.

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