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Finding Poisson Probabilities-Excel quiz

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  • What is the purpose of the =POISSON.DIST function in Excel?
    It is used to calculate Poisson probabilities for a given number of occurrences and mean rate.
  • What are the three arguments required by the =POISSON.DIST function?
    The three arguments are x (number of occurrences), mean (lambda), and cumulative (TRUE or FALSE).
  • What does setting the cumulative argument to FALSE in =POISSON.DIST do?
    It finds the probability that x is exactly equal to a specific value.
  • What does setting the cumulative argument to TRUE in =POISSON.DIST do?
    It calculates the probability that x is less than or equal to a specific value.
  • How do you find the probability that x is greater than a value using =POISSON.DIST?
    Use the complement rule: 1 minus the cumulative probability (1 βˆ’ P(X ≀ x)).
  • In the example, what is the mean rate (lambda) for the online retailer?
    The mean rate (lambda) is 15 orders per hour.
  • How would you write the Excel formula to find the probability that exactly 21 orders are placed?
    Use =POISSON.DIST(21, 15, FALSE).
  • How would you write the Excel formula to find the probability that no more than 21 orders are placed?
    Use =POISSON.DIST(21, 15, TRUE).
  • Why is the order of arguments important in =POISSON.DIST?
    Because Excel expects the arguments in a specific order: x, mean, cumulative.
  • What is the approximate probability that exactly 21 orders are placed when lambda is 15?
    It is approximately 0.03, or 3%.
  • What is the approximate probability that no more than 21 orders are placed when lambda is 15?
    It is approximately 0.95, or 95%.
  • What is the approximate probability that more than 21 orders are placed when lambda is 15?
    It is approximately 0.05, or 5%.
  • How do you use Excel to subtract one cell's value from 1?
    Type =1 minus the cell reference, such as =1-E18.
  • Why do the probabilities P(X ≀ 21) and P(X > 21) add up to 1?
    Because they are complements, representing all possible outcomes.
  • What should you always include at the start of an Excel formula?
    You should always start with an equal sign (=) to indicate a calculation.