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Policy analysis - Assignment Example

Summary

The command “=NORM.INV(RAND(),9,16)” generates random numbers from a Normal distribution with a mean of 9 and standard deviation of 16 as a result of the function RAND() with the numbers lying between 0 and 1 hence referred to as a Uniform distribution. Having obtained…

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Subject: Macro & Microeconomics
Type: Assignment
Level: College
Pages: 1 (250 words)
Downloads: 2
Author: freemanmiller

Extract of sample "Policy analysis"

Policy Analysis s Affiliation Policy Analysis The command “=NORM.INV(RAND 9,16)” generates random numbers from a Normal distribution with a mean of 9 and standard deviation of 16 as a result of the function RAND() with the numbers lying between 0 and 1 hence referred to as a Uniform distribution. Having obtained generated random numbers, we obtain the probability of yearly stock returns by dividing the random numbers by the total which is 120. To obtain yearly returns, we multiply the probability with the investment which is $7,500 to obtain the total at the end of the first year and do the same for the second and third year respectively.

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