Excel's =RAND() function produces random numbers that are uniformly distributed from 0 to 1. What is the probability that the random number exceeds .75?
A)75 percent
B)50 percent
C)25 percent

Question

Quizplus · Accepted Answer

Since the random number is uniformly distributed from 0 to 1, the probability of it being greater than 0.75 is the same as the area under the probability density function f(x) = 1 from 0.75 to 1. The area under this portion of the density function is 0.25 or 25%. Therefore, the probability that the random number exceeds 0.75 is 25%.

Excel's =RAND() Function Produces Random Numbers That Are Uniformly Distributed