Hugh B. answered 06/17/15
Tutor
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Statistical applications in Stata
Hi Ricardo,
If we assume that each person's success is an independent event and that the success rate is constant at 0.6 for each person, then this defines a binomial experiment. In a binomial experiment, the random variable X is the number of successes in N trials given a constant probability p of success.
Here, we want the probability that X > 3. The easiest way to find this probability is to compute the probability of its complement, i.e, the probability that that 3 or fewer people are successful, and that probability from 1. We can do that in Excel using the BINOM.DIST(number_s, trials, probability_s, cumulative) function in Excel, where the arguments to the function are number_s, which is the number of successes X we want to look at , 3 here, trials is the number of trials of the experiment, 8 here (one trial for each person), probability_s is the probability of success, 0.6 here, and cumulative is true if we want the cumulative distribution, which is the probability of X or fewer successes, and FALSE if we want the probability distribution (i.e., the probability of exactly X successes.
So in Excel paste the function
"=1-BINOM.DIST(3,8,0.6,TRUE)"
to obtain the answer 0.8263296. That is, the probability of 3 or fewer successes in 8 trials is 0.1736704, and since that event is the complement of more than 3 successes, the probability 0.8263296 = 1 - 0.1736704 is the answer.
Hope this helps, feel free to ask questions.
Kind regards,
Hugh