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Extra info for Decision Modeling Using Excel, Course Notes, Spring

Example text

Returns #NAME! if the argument is text and the name is undefined. Returns #NUM! if mean is negative or zero. Returns #VALUE! if mean is a defined name of a cell and the cell is blank or contains text. RANDPOISSON Examples Cars arrive at a toll plaza with a mean rate of 3 cars per minute. The uncertain number of arrivals in a minute is =RANDPOISSON(3). The average value returned by repeated recalculation of RANDPOISSON(3) is 3. A bank teller requires an average of two minutes to serve a customer.

After verifying that the functions are working properly, you may want to substitute RiskSim's FAST... functions which have minimal error checking and therefore run faster. From the Edit menu choose Replace; in the Replace dialog box, type =RAND in the "Find What" edit box, type =FAST in the "Replace with" edit box, and click the Replace All button. xla. xla. xla using the saved path. xla isn't located at the same path), Excel displays a dialog box: "This document contains links. " Click No. , or other error code.

42 Continuous Uncertain Quantities Review Probability Density Functions and Cumulative Probability for Continuous Uncertain Quantities The total area under a probability density function equals one. A portion of the area under a density function is a probability. The height of a density function is not a probability. The simplest probability density function is the uniform density function. Case A: Uniform Density The number of units of a new product that will be sold is an uncertain quantity. What is the minimum quantity?

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