Discrete Probability Distributions

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5 Discrete Probability Distributions 5-3 Binomial Probability Distributions 5-5 Poisson Probability Distributions

52 Chapter 5: Discrete Probability Distributions 5-3 Binomial Probability Distributions Example 2, page 213 Using the BINOM.DIST Function to Find the Probability That a Randomly Selected Adult Knows What Twitter Is Example 2 tells you that there is a 0.85 probability that a randomly selected adult knows what Twitter is. You are asked to use the binomial probability formula to ind the probability of getting exactly three adults who know what Twitter is when ive adults are randomly selected. You will use Excel s BINOM.DIST function to ind the answer. 1. At the top of the screen, click FORMULAS. Then click Insert Function. 2. Select the Statistical category. Select the BINOM.DIST function. Click OK. 3. Complete the dialog box as shown at the top of the next page. A description of the entries is given immediately after the dialog box.

5-3 Binomial Probability Distributions 53 Number_s: The number of successes in trials for this example is 3. Trials: The total number of independent trials is the number of random selections. For this example, the number of random selections is 5. Probability_s: The probability of success on each trial is.85. Cumulative: Enter TRUE if you would like the cumulative distribution. Enter FALSE if you would like the mass probability, which, for this example, is the probability that there are exactly three successes. For this problem, enter FALSE. 4. Click OK. The function returns a probability of 0.1382. 5. If you would like to display the probability of all outcomes (i.e., zero to ive adults who know what Twitter is), irst enter 0 to 5 in column A as shown below. Then click in cell B1 where the probability of obtaining zero adults will be placed. 6. At the top of the screen, click FORMULAS. Then click Insert Function. 7. Select the Statistical category. Select the BINOM.DIST function. Click OK. 8. Complete the dialog box as shown at the top of the next page. Instead of entering 0 for the number of successes in trials, you enter A1, the cell address of zero.

54 Chapter 5: Discrete Probability Distributions 9. Click OK. The function returns a probability of 7.59375E-05. 10. Copy the contents of cell B1 to B2:B6. The probability distribution obtained by using Excel s BINOM.DIST function is displayed below. Example 4, page 215 Using the BINOM.DIST Function to Find the Probability That a Randomly Selected Adult Believes in the Devil Example 4 states that, according to the results of a recent poll, 60% of adults believe in the devil. If ive adults are randomly selected, part b of Example 4 asks you to ind the probability that at least two believe in the devil. You will be using Excel s BINOM.DIST function to obtain the mass and cumulative probabilities associated with P(0) to P(5). 1. Begin by entering 0 to 5 in column A as shown at the top of the next page. Then click in cell B1 where the probability of randomly selecting exactly zero adults who believe in the devil will be placed.

5-3 Binomial Probability Distributions 55 2. At the top of the screen, click FORMULAS. Then click Insert Function. 3. Select the Statistical category. Select the BINOM.DIST function. Click OK. 4. Complete the dialog box as shown at the below. A description of the entries immediately follows the dialog box. Number_s: The number of successes in trials for this probability distribution is 0 to 5. You are irst inding P(0). Rather than entering 0, you enter A1, the cell address of 0. You enter the cell address rather than the actual number of successes because this will enable you to copy the function to obtain the probabilities associated with the other outcomes. Trials: The total number of independent trials is the number of random selections. For this example, the number of random selections is 5. Probability_s: The probability of success on each trial is.60. Cumulative: Enter FALSE to obtain the probability associated with obtaining exactly zero adults who believe in the devil. 5. Click OK. The function returns a probability of 0.0102. 6. Copy the contents of cell B1 to B2:B6. These are the mass probabilities. 7. You will next obtain the cumulative probabilities. Click in cell C1 where the probability of randomly selecting at least 0 adults who believe in the devil will be placed. 8. Repeat steps 2 and 3 shown above. Complete the dialog box as shown in step 4 except enter TRUE instead of FALSE in the Cumulative window. 9. Click OK. Copy the contents of cell C1 to C2:C6.

56 Chapter 5: Discrete Probability Distributions The output from Excel s BINOM.DIST function is displayed below. To obtain P(at least 2 believe in the devil), you can add the probabilities of obtaining exactly 2, 3, 4, or 5 successes: P(2) + P(3) + P(4) + P(5) = 0.9130. You can obtain the same result by subtracting the cumulative probability, P(At least 1 believe in the devil) from 1: 1 0.08704= 0.9130. 5-5 Poisson Probability Distributions Example 1, page 229 Using the POISSON.DIST Function to Find the Probability of x Atlantic Hurricanes in a Randomly Selected Year Part b of Example 1 asks you to ind the probability of zero, two, and nine hurricanes in a randomly selected year. Based on data from the University of Maryland Department of Geography and Environmental Systems, you are able to calculate the mean number of hurricanes per year, µ= 530 = 100 5.3. You will use Excel s POISSON.DIST function to ind the solution to the problem. We will start with P(0). 1. At the top of the screen, click FORMULAS. Then click Insert Function. 2. Select the Statistical category. Select the POISSON.DIST function. Click OK. 3. Complete the dialog box as shown at the top of the next page. A description of the entries immediately follows the dialog box.

5-5 Poisson Probability Distributions 57 X: X is the number of events. For this example, the number of events is 0 hurricanes. Mean: Mean is the mean of the Poisson distribution. For this example, µ = 5.3. Cumulative: If you want the cumulative Poisson probability, you enter TRUE. If you want the mass Poisson probability, you enter FALSE. For this problem, enter FALSE. 4. Click OK. The function returns 0.00499. 5. To obtain P(2) and P(9), repeat steps 1-3 entering 2 and then 9 for X in the dialog box. The POISSON.DIST function returns 0.0701 and 0.0454, respectively.