Answer:
P(X ≤ 5) = 0.84134
Step-by-step explanation:
This is a normal distribution problem with
μ = mean = 4 years
σ = standard deviation = 1 year
To find the probability that a terminal will last 5 years or less using excel, we follow these steps. P(X ≤ 5)
- Use an empty cell.
- Right click and go to “Insert Formula”.
- In the searchbox, type “Normdist” and click “Go.”
- Pick “NORMDIST” from the list and then click “OK” to open the Function Arguments window.
- Enter the data into the box. Type “5” in the X box, “4” in the Mean box, “1” in the Standard Deviation box and “true” in the cumulative box..
- Click “OK.”. This returns 0.84134474 in the cell you clicked in Step 1, which is the probability that a terminal will last 5 years or less using excel, we follow these steps. P(X ≤ 5).
P(X ≤ 5) = 0.84134
