Microsoft Office Tutorials and References
In Depth Information
Using NORM. DIST and POISSON. DIST to Determine Probabilities
The second argument is the mean of the Poisson distribution to use.
This too must be an integer value greater than 0.
The third argument is TRUE if you want the cumulative probability and
FALSE if you want the noncumulative probability.
Figure 11-11:
A
cumulative Poisson
distribution
with a
mean of 20.
For example, suppose that you’re the manager of a factory that makes brake
shoes. Your district manager has announced an incentive: You’ll receive a
bonus for each day that the number of defective shoes is less than 20. How
many days a month will you meet this goal, knowing that the average number
of defective brake shoes is 25 per day? Here are the steps to follow:
1. In a new worksheet, enter the average number of defects per day (25)
in a cell.
If desired, enter an adjacent label to identify the cell.
2. In the cell below, type =POISSON.DIST( to start the function entry.
3. Enter the value 20.
4. Enter a comma ( ,).
5. Click the cell where you entered the average defects per day, or enter
its cell address.
6. Enter a comma ( ,).
7. Enter TRUE) .
8. Press Enter to complete the formula.
9. If desired, enter a label in an adjacent cell to identify this as the
probability of 20 or fewer defects.
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