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In my last blog post I covered how to create the Student’s t distribution in Excel, and that post can be read here:- https://tracyrenee61.medium.com/how-to-create-students-t-distribution-in-excel-4bec9dbbfd6b
In this post I intend to discuss how to create an exponential distribution in Excel.
The exponential distribution was first recognised by the French mathematician Abraham de Moivre in his work on probabilities associated with discretely generated random variables. The mathematical relation between exponential distribution and coin tossing was further developed by the French mathematician Emile Borel in 1909.
The exponential distribution is a probability distribution that is used to model the time we must wait until a certain event occurs.
The exponential distribution can answer questions like:-
- When will a customer enter a shop?
- How long will a laptop work before it breaks down?
- How long will a battery work before it dies?
- How long do we have to wait for a volcanic eruption in a certain area?
The formula for the exponential function is:-
In order to create an exponential distribution, it is necessary to input random variables in cell A3…
