Once you know the average and standard deviation of a dataset, you can estimate how likely it is that you’ll see values in a given range.
- [Narrator] Once you know the average…and standard deviation of a dataset,…you can estimate how likely it is…that you will see values in a given range.…For example, you would know…that you are only likely to see values…only one standard deviation above the mean 16% of the time.…No estimate is perfect, but they can give you an idea…of how likely a given value is to occur.…In this movie, I will demonstrate…how to calculate the likelihood of a given value…or less occurring or a given value or more occurring.…
My sample file is normal_03_03…and you can find it in the chapter three folder…of your exercise files collection.…The scenario I'm working with here…looks at contract labor expenses,…and over the years I've found that we have had a mean,…monthly, of 250,000 dollars…with a standard deviation of 86,000 dollars…as our specific hiring needs go up and down.…So the question is how likely is it…that we will spend at 275,000 dollars or less…in a given month.…
To create this calculation,…I need to use the NORM.DIST function.…
- Designing a scenario-planning exercise
- Estimating scenario plausibility and outcomes
- Establishing parameter value ranges
- Calculating the standard deviation of a dataset
- Indicating the probability of a scenario value occurring
- Walking through a scenario presentation
- Performing retrospective analysis using a PivotTable
- Changing PivotTable summary operations
Skill Level Intermediate
Excel 2016: Business Process Analysiswith Curt Frye1h 25m Intermediate
Excel 2016: Power Query (Get & Transform)with Oz du Soleil1h 49m Intermediate
1. Introducing the Art of Scenario Planning
2. Manage Scenarios in Excel
3. Establish Parameter Value Ranges
4. Present Scenarios Using PivotTables
Next steps1m 16s
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