how to use excel to generate random samples from distributon

mathew5502

New Member
Joined
Feb 22, 2005
Messages
1
Hi, im at uni studying accounting and finance and am having trouble
using excel to generate random samples from distributions. Can anyone help? I have no idea wot im doing really.

:cry:
 

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VLOOKUP to Left?
Use =VLOOKUP(A2,CHOOSE({1,2},$Z$1:$Z$99,$Y$1:$Y$99),2,False) to lookup Y values to left of Z values.

tusharm

MrExcel MVP
Joined
May 28, 2002
Messages
11,028
Any continuous random variable can be generated with function-inverse (uniform random variable). While true, that's a bit abstract, so maybe an example or two.

Suppose you want to generate a normally distributed r.v. with mean 4 and std.dev. 2. Then, use =NORMINV(RAND(), 4, 2)

Similarly, to generate values from a log normal distribution, use LOGINV(RAND(),mean,stdev).
 

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