Part 2. MM4XL Tools > 1. Strategic Tools > Risk Analyst > 4. Functions > 3. Distribution Functions > mmLOGISTIC(Mean, StDeviation)

Risk Analyst

mmLOGISTIC(Mean, StDeviation)

Example

=mmLOGISTIC(0, 1) can equal 1.72044909.

Application

This function describes many biological phenomena well, and it is often used to simulate population growth over time (with constantly decreasing growth values). It resembles very much the Normal distribution with the difference that mmLOGISTIC assigns higher probability to values in the tails of the distribution.

How to use

This function returns values more spread in the tails of the distribution. Say that we are modeling the response of demand to advertising investments. We estimate that next year sales could be in the range $1750 plus or minus $250, given that we invest the planned advertising budget. The formula below could help to estimate the expected demand levels:

=mmLOGISTIC(1750, 45)

Copy the formula above in 100 cells. You will find that the simulated values will be produced in the range 1500-2000 in accordance with the next year sales estimate.

Technical profile

Type Continuous distribution.
Syntax =mmLOGISTIC(Mean, StDeviation)
Domain  Monte Carlo Simulation Software: Management Process Risk Analysis
Mode Mean.
Parameters Mean = a
StDeviation = b > 0
Remarks If any argument is nonnumeric mmLOGISTIC returns the #VALUE! error value.
Relationships It is related to the Exponential variate with mean = 1.
It is related to the Extreme Value variate with Mode = 0 and StDeviation = 1.
It is related to the Pareto variate.
Graphs
mmLOGISTIC(0, 1) mmLOGISTIC(2, 10)
 Monte Carlo Simulation Software: Management Process Risk Analysis Monte Carlo Simulation Software: Management Process Risk Analysis
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