mytest > help > Part 2. MM4XL Tools > 1. Strategic Tools > Risk Analyst > 4. Functions > 3. Distribution Functions > mmTRI(Lower, ModalValue, Upper)

Risk Analyst

mmTRI(Lower, ModalValue, Upper)

Example

=mmTRI(-2, 0, 3) can equal 1.538490851.

Application

This is one of the most commonly used distributions. It models events for which the distribution is unknown and thought to be asymmetric; for example, it could be the cost of a project, the time to complete a task, or the price of a good.

mmTRI is a very simple and self-explanatory distribution without theoretical justification. It is useful in many situations where a simple and intuitive understanding, as well as flexibility, is of great importance.

How to use

Say we are modeling the long-term profitability of a new product and we need an estimate of our market share. We assume that future market share will be in the range 20%-70% with the most likely value being 40%. The formula below helps to model this instance:

=mmTRI(0.2, 0.4, 0.7)

Copy the formula above in 100 cells. You will find that it produces values in the range 20%-70% and the most likely value (or the average, if the mode cannot be computed) will be around the desired 40%.

Technical profile

Type Continuous distribution.
Syntax =mmTRI(Lower, ModalValue, Upper)
Domain Lower <= RndNum <= Upper
Mode ModalValue.
Parameters ModalValue = the mode
Lower = lower limit
Upper = upper limit
Remarks If any argument is nonnumeric mmTRI returns the #VALUE! error value.
If Lower >= Upper OR Lower > ModalValue returns the #VALUE! error value.
Relationships None.
Graphs
mmTRI(-2, 0, 3) mmTRI(10, 30, 100)
 Monte Carlo Simulation Software: Management Process Risk Analysis  Monte Carlo Simulation Software: Management Process Risk Analysis
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