Question

What is a NON-NEGATIVEversus UNRESTRICTED DISTRIBUTION, give an example?

What does the COMMAND RAND()provide in Excel?

What does the COMMAND RANDBETWEEN()provide in Excel?

What kind of distribution dose min+(rand()*(max-min)) provide in Excel?

What does norminv(rand(),100,5) provide in Excel?

What is the FLAWof averages and how would you avoid the issues of making decisions based on averages, or point estimates.       

Answer 1

1.

A non-negative distribution will strictly give us a positive value of the variable while as unrestricted distribution can generate all possible real numbers including positive, negative, and zero. For example, if we take the distribution of any product, that will be a non-negative distribution.

2.

Random numbers following uniform distribution between the range [0, 1].

3.

=RANDBETWEEN(X, Y) gives us random numbers following uniform distribution between the range [X, Y].

4.

Unifrom distribution

5.

=NORMINV(rand(), 100, 5) gives us random numbers following distribution of X where X ~ Normal(mean=100, sd=5)