mytest > help > Part 2. MM4XL Tools > 1. Strategic Tools > Risk Analyst > 4. Functions > 3. Distribution Functions > mmBETAGEN(Scale, Shape, [Optional: Lower], [Optional: Upper])

Risk Analyst

mmBETAGEN(Scale, Shape, [Optional: Lower], [Optional: Upper])

Example

=mmBETAGEN(2, 2, -2, 2) can equal 0.765094757

Application

This function is used to determine the probability of an event given a number of trials and successful events. This distribution works like mmBETA with the difference that it allows you to define a Lower and Upper boundary. It is often used in the absence of data.

How to use

It returns the probability of an event occurring. It helps when we need an estimate of the probability that, for instance, the next client will buy. Replacing the mmBETA shown previously with the formula below we can estimate the probability of the next purchase occurring, exactly as we would do with mmBETA(16, 85):
=mmBETA(16, 85, 0, 1)

Changing the Lower and Upper bound to a larger and smaller value respectively, would shrink the range of values the function would draw from. For instance, the formula below draws random numbers from the 50% and 90% percentile interval of the mmBETA(16,85) distribution:

=mmBETAGEN(16, 85, 0.5, 0.9)

The formula accounts also for the rare event of zero purchases out of 100 calls. Copy the formula above in 100 cells. You will find that the minimum and maximum values will score in a range >50% and <90%. If we were modeling the outcome of a direct marketing campaign, we could use the mmBETAGEN function to determine the number of incoming clients by time unit, for instance one day, according to the incoming calls. Again, this function is often used in the absence of data.

Technical profile

Type Continuous distribution.
Syntax =mmBETAGEN(Scale, Shape, [Optional: Lower], [Optional: Upper])
Domain  Monte Carlo Simulation Software: Management Process Risk Analysis
Mode  Monte Carlo Simulation Software: Management Process Risk Analysis
If Scale = 1 and Shape = 1 then the mode is Not defined
If NOT (Scale >= 1 And Shape >= 1) or
NOT (Scale < 1 And Shape >= 1) or
NOT (Scale >= 1 And Shape < 1)
then the mode is Bimodal at Lower and Upper
Parameters scale= v > 0
shape= w > 0
Lower, optional = lower bound
Upper, optional = upper bound
Remarks If any argument is nonnumeric mmBETAGEN returns the #VALUE! error value.
If Scale is less or equal to 0 or Shape is less or equal to 0 mmBETAGEN returns the #NUM! error value.
Relationships It is related to the Binomial, Gamma and to the Normal variates.
Graphs
mmBETAGEN(2, 2, -2, 2) mmBETAGEN(4, 4, -4, 4)
 Monte Carlo Simulation Software: Management Process Risk Analysis  Monte Carlo Simulation Software: Management Process Risk Analysis
Lifetime license:

Price: euro

Vote this tool
We proudly serve
Your vote
vote1 vote2 vote3 vote4 vote5
Email:
Gender:
M
F
Age:
Position:
Department:
Comment: