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In my last post I discussed how to create an exponential distribution and test it, and that post can be read here:- https://medium.com/@tracyrenee61/create-an-exponential-distribution-and-test-it-with-python-in-excel-cea9011e0816
In this post I intend to describe how to create a beta distribution and perform hypothesis tests on it using Python in Excel.
The beta distribution is a family of continuous probability distributions defined on the interval of (0,1) in terms of two positive parameters, denoted as alpha and beta, that appear as exponents of the variable and its complement to 1 respectively and control the distribution.
The beta distribution in its present form was first introduced by the British mathematician and statistician Karl Pearson in 1901. It is a continuous probability distribution often used to model the uncertainty about the probability of success of an experiment.
The beta distribution can be used to analyse probabilistic experiments, called Bernoulli experiments, that have only two possible outcomes, being:-
- Success, with probability X
- Failure, with probability 1-X
The formula for the beta distribution is:-
