In Excel, the RAND function generates random numbers between 0 and 1 compute the expectation and...

In Excel, the RAND function generates random numbers between 0 and 1

compute the expectation and Standard deviation.

Hints

a = 0 , b = 1

P(x1<= X <= x2) = F(x2) - F(x1)

Expert Solution

I assume you are telling about generating multiple random numbers between 0 and 1 and calculating mean and standard deviation of them.

For that,in A1 cell, write '=RAND()' so that it generates a random number between 0 and 1. Now, you have to go to the right lower corner of the cell where the cursor will change itself to a '+' sign. Now, drag the cursor downwards to get as many number of random numbers you want. Suppose, you want 10000 random numbers. So, drag the cursor till A10000.

Now to get mean and standard deviation, go to some other cell and there you write =AVERAGE(A1:A10000) to get the expectation.

To get the standard deviation, go to another cell and write =STDEV.S(A1:A10000) to get the standard deviation. Note that, as it is a sample from Uniform(0,1) random variable of size 10000, we consider the standard deviation to be calculated from this sample and hence we have written STDEV.S

orchestra answered 1 year ago

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