Using Excel to simulate standard random normal variable - Free Educational videos for Students in K-12

Using Excel to simulate standard random normal variable - By Bionic Turtle

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DESCRIPTION:

We commonly model asset returns under the idea they are normally distributed. In this tutorial, I explain how we can do this with the following Excel function: = NORMSINV((RAND()). The 'S' indicates a standard normal distribution; by definition, 'standard' refers to a distribution with zero mean and one (1.0) standard deviation. Alternatively, we can use =NORMINV(RAND(),0,1) to achieve the same effect. Then I use this random variable for a very simple Monte Carlo Sim: to simulate a stock price

OVERVIEW:

Using Excel to simulate standard random normal variable is a free educational video by Bionic Turtle.It helps students in grades 9,10,11,12 practice the following standards HSS.ID.A.1,HSS.ID.A.4,.

This page not only allows students and teachers view Using Excel to simulate standard random normal variable but also find engaging Sample Questions, Apps, Pins, Worksheets, Books related to the following topics.

1. HSS.ID.A.1 : Represent data with plots on the real number line (dot plots, histograms, and box plots)..

2. HSS.ID.A.4 : Use the mean and standard deviation of a data set to fit it to a normal distribution and to estimate population percentages. Recognize that there are data sets for which such a procedure is not appropriate. Use calculators, spreadsheets, and tables to estimate areas under the normal curve..