mytest > help > Part 2. MM4XL Tools > 1. Strategic Tools > Risk Analyst > 4. Functions > 3. Distribution Functions > mmDISCRETE(InputRange, Probabilities)

Risk Analyst

mmDISCRETE(InputRange, Probabilities)

Example

=mmDISCRETE({5\10\20},{30%\20%\50%}) is equal to 5 in roughly 30% of the cases, to 10 in roughly 20% of the cases, and to 20 in roughly 50% of the cases.

This is an array function that is entered with Ctrl+Shift+Enter. It can also be entered by selecting a range on sheet as in the following formula.

Application

This function is used to simulate the occurrence of the given number of events only. For instance, it could be the lights of a semaphore, the winners of a horse race, which counter will host the next client, or any other process that returns a limited number of events only.

How to use

Say we are modeling the sales of a product line made up of three items: reference A, B, and C. Last month sales in volume were 28% for product A, 42%, for product B, and 30% for product C. The price of the items is 108.50, 66.30, and 29.80 respectively, as shown in the following picture.

 Monte Carlo Simulation Software: Management Process Risk Analysis
The formula below may be used to simulate the next sales value among the three options in the picture above according to their probability of occurrence:
=mmDISCRETE(B2:B4, C2:C4)

Copy the formula above in 200 cells. You will find that the values returned correspond to one of the three prices in the table above. About 30% of the values relate to product A (price 108.50), about 40% to product B, and the remainder to product C.

Technical profile

Type Discrete, custom distribution.
Syntax =mmDISCRETE(InputRange, Probabilities)
Domain  Monte Carlo Simulation Software: Management Process Risk Analysis.
Mode InputRange item for which the Probability is the greatest.
Parameters Arrays entered as range on sheet or as values directly in the formula.
Remarks If any argument is nonnumeric mmDISCRETE returns the #VALUE! error value.
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