Part 2. MM4XL Tools > 1. Strategic Tools > Risk Analyst > 4. Functions > 3. Distribution Functions > mmHYPERGEO(Sample, Defects, BatchSize)

Risk Analyst

mmHYPERGEO(Sample, Defects, BatchSize)


=mmHYPERGEO(3, 3, 6) can equal 2.


This function describes the number of defects in a sample, which is a concept applied mainly to quality analysis. When the BatchSize, or population, is 10 times or less the size of the Sample the number of Defects in a lot can be estimated with mmHYPERGEO.

How to use

This function returns the number of expected defects in a sample of a given size according to the number of defects expected in the whole batch. This helps, for instance, to estimate the number of defective computers in lot of 5000 units. Say that 1% defects in a batch is the limit within we accept incoming goods. The formula below estimates the number of expected defectives in a batch of 5000 using an inspection sample of 100 units:

Say we run a telemarketing call center, and we need to estimate the number of telephone lines needed to complete the action within a given timeframe. From past experience we know the conversion rate from call to purchase is 0.65%. The formula below could help to estimate how many calls before we have a successful one, which is a good hint to estimate the overall result of the action:

=mmHYPERGEO(100, 50, 5000)

Copy the formula above in 100 cells. You will find that about 35% of the simulated values will be zeros and 45% of the values will exhibit 1 defect in a sample of 100 units. In about 25% of the simulations we will find a sample with 2 or more defects.

Technical profile

Type Discrete distribution.
Syntax =mmHYPERGEO(Sample, Defects, BatchSize)
Domain RndNum >= 0, an integer.
Mode Undefined.
Parameters Sample > 1
Defects > 1
BatchSize > Sample
Remarks It is characterized by a lack of memory like mmEXPON.
If Trials is nonnumeric mmHYPERGEO returns the #VALUE! error value.
Relationships It approximates the Poisson variate as the parameters tend to infinity.
It can be approximated by the Binomial variate.
mmHYPERGEO(3, 3, 6) mmHYPERGEO(30, 30, 60)
 Monte Carlo Simulation Software: Management Process Risk Analysis  Monte Carlo Simulation Software: Management Process Risk Analysis
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