Which Excel function is used to generate discrete uniform random values in Excel?

Enhance your skills with Monte Carlo Simulation in Business Risk Analysis. Study effectively with multiple-choice questions and detailed explanations. Prepare confidently for your exam!

Multiple Choice

Which Excel function is used to generate discrete uniform random values in Excel?

Explanation:
This question is about generating a discrete uniform random value across a finite set of integers. A discrete uniform distribution assigns equal probability to each integer in the range, so every value in that set is equally likely. RANDBETWEEN(1,5) fits this exactly: it returns one of the integers 1, 2, 3, 4, or 5, each with probability 1/5. The other options don’t produce a true discrete uniform set over the same range. RAND() gives a continuous value between 0 and 1, not discrete. NORM.INV(RAND(), mean, sd) transforms a uniform value into a normal distribution, which is not uniform. ROUND(RAND(),0) rounds a continuous 0–1 value to either 0 or 1, giving only two outcomes, not the full 1–5 range.

This question is about generating a discrete uniform random value across a finite set of integers. A discrete uniform distribution assigns equal probability to each integer in the range, so every value in that set is equally likely.

RANDBETWEEN(1,5) fits this exactly: it returns one of the integers 1, 2, 3, 4, or 5, each with probability 1/5. The other options don’t produce a true discrete uniform set over the same range. RAND() gives a continuous value between 0 and 1, not discrete. NORM.INV(RAND(), mean, sd) transforms a uniform value into a normal distribution, which is not uniform. ROUND(RAND(),0) rounds a continuous 0–1 value to either 0 or 1, giving only two outcomes, not the full 1–5 range.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy