How is a random value for a uniform distribution generated in Excel?

How is a random value for a uniform distribution generated in Excel?

• A. Using the formula: Part cost per unit = 80 + 20 x RAND()
• B. Using the formula: Part cost per unit = 80 + 20 x RAND
• C. Using the formula: Part cost per unit = NORM.INV(RAND(), mean, standard deviation)
• D. Using the formula: Part cost per unit = RANDBETWEEN(0,1)

Answer: (D)

Uniform distribution means every possible outcome has the same chance. In Excel, you can get a uniform draw in two forms. If you want a continuous uniform value in a range, you’d typically use RAND() (which gives a number between 0 and 1) and then scale it, for example 80 + 20 * RAND() to get a value between 80 and 100. To get a simple discrete uniform draw over two outcomes, you use RANDBETWEEN(0,1), which returns either 0 or 1 with equal probability. This is a straightforward discrete uniform example. The other approaches either transform a uniform value into a normal distribution (not uniform), or rely on a valid range-based scaling that yields a continuous uniform result, or use syntax that isn’t valid Excel.

Uniform distribution means every possible outcome has the same chance. In Excel, you can get a uniform draw in two forms. If you want a continuous uniform value in a range, you’d typically use RAND() (which gives a number between 0 and 1) and then scale it, for example 80 + 20 * RAND() to get a value between 80 and 100. To get a simple discrete uniform draw over two outcomes, you use RANDBETWEEN(0,1), which returns either 0 or 1 with equal probability. This is a straightforward discrete uniform example.

The other approaches either transform a uniform value into a normal distribution (not uniform), or rely on a valid range-based scaling that yields a continuous uniform result, or use syntax that isn’t valid Excel.