To understand the uses of the NEGBINOM.DIST function, let us consider an example: Example – Negative Binomial Distribution Formula To learn more, launch our free Excel crash course now! How to use the Negative Binomial Distribution Formula in Excel? It can either be TRUE (uses the cumulative distribution function) or FALSE (use the probability mass function). Cumulative (optional argument) – This specifies the type of negative binomial distribution formula to be calculated.Probability_s (required argument) – This is the probability of successes in one trial.
Number_s (required argument) – The required number of successes.Number_f (required argument) – This is the number of failures that are encountered before number_s successes.The NEGBINOM.DIST function uses the following arguments:
In financial analysis, the NEGBINOM.DIST function can be useful for finding out the probability of getting x return from a stock or portfolio before getting a negative return. The Cumulative Distribution Function – This calculates the probability of there being at most “f” failures before “s” successes.The Probability Mass Function – This calculates the probability of there being exactly “f” failures before “s” successes.The two types of the function that are used are as follows: NEGBINOM.DIST will calculate the probability of a given number of failures occurring before a fixed number of successes.
This guide will break down the Excel negative binomial distribution formula.įor the negative binomial distribution, we will fix the number of successes but use a variable number of trials. It determines the probability mass function or the cumulative distribution function for a negative binomial distribution.įor example, using the function, we can find out the probability that when a coin is tossed, we will get 10 heads before we get 12 tails.
It will calculate the negative binomial distribution probability. The NEGBINOM.DIST Function is categorized under Excel Statistical functions. Updated JanuNegative Binomial Distribution Formula