Calculate Binomial Distribution in Excel
The BINOM.DIST function is categorized under Statistical functionsFunctionsThe BINOM.DIST function is categorized under Statistical functions. It will calculate the binomial distribution probability for the number of successes from a specified number of trials. Binomial distribution Excel is a statistical measure that is frequently used to indicate the probability of a specific and will calculate the binomial distribution probability for the number of successes from a specified number of trials. This binomial distribution Excel guide will show you have to use the function step by step.
The binomial distribution is a statistical measure that is frequently used to indicate the probability of a specific number of successes occurring from a specific number of independent trials. The two forms used are:
- The Probability Mass Function – Calculates the probability of there being exactly x successes from n independent trials
- The Cumulative Distribution Function – Calculates the probability of there being at most x successes from in independent trials
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Introduced in Excel 2010, BINOM.DIST function is an updated version of the BINOMDIST function.
Formula
=BINOM.DIST(number_s,trials,probability_s,cumulative)
The BINOM.DIST uses the following arguments:
- Number_s (required argument) – It is the number of successes in trials.
- Trials (required argument) – It is the number of independent trials. It must be greater than or equal to 0.
- Probability_s (required argument) – It is the probability of success in each trial.
- Cumulative (required argument) – It is a logical value that determines the form of the function. It can either be:
- TRUE – Uses the cumulative distribution function.
- FALSE – Uses the probability mass function.
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How to use the BINOM.DIST Function in Excel?
To understand the uses of the BINOM.DIST function, let us consider an example:
Example
Suppose we are given the following data:
The formula for calculating binomial distribution using cumulative distribution function is shown below:
We get the result below:
The formula for calculating binomial distribution using probability mass function is shown below:
We get the result below:
Few notes about the BINOM.DIST function
- The BINOM.DIST function will truncate all numerical values to Integer.
- #VALUE! error – Occurs when any of the arguments provided is non-numeric.
- #NUM! error – Occurs when:
- The given probability is less than zero or greater than 1.
- The given number_s is less than zero or greater than the trials.
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Additional resources
Thanks for reading CFI’s guide to binomial distribution Excel! By taking the time to learn and master these functions, you’ll significantly speed up your financial analysis. To learn more, check out these additional resources:
- Excel Functions for FinanceExcel for FinanceThis Excel for Finance guide will teach the top 10 formulas and functions you must know to be a great financial analyst in Excel. This guide has examples, screenshots and step by step instructions. In the end, download the free Excel template that includes all the finance functions covered in the tutorial
- Advanced Excel Formulas Course
- Advanced Excel Formulas You Must KnowAdvanced Excel Formulas Must KnowThese advanced Excel formulas are critical to know and will take your financial analysis skills to the next level. Advanced Excel functions you must know. Learn the top 10 Excel formulas every world-class financial analyst uses on a regular basis. These skills will improve your spreadsheet work in any career
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