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I am Basan Shrestha from Kathmandu, Nepal. I use the term 'BASAN' as 'Balancing Actions for Sustainable Agriculture and Natural Resources'. I am a Design, Monitoring & Evaluation professional. I hold 1) MSc in Regional and Rural Development Planning, Asian Institute of Technology, Thailand, 2002; 2) MSc in Statistics, Tribhuvan University (TU), Kathmandu, Nepal, 1995; and 3) MA in Sociology, TU, 1997. I have more than 10 years of professional experience in socio-economic research, monitoring and documentation on agricultural and natural resource management. I had worked in Lumle Agricultural Research Centre, western Nepal from Nov. 1997 to Dec. 2000; CARE Nepal, mid-western Nepal from Mar. 2003 to June 2006 and WTLCP in far-western Nepal from June 2006 to Jan. 2011, Training Institute for Technical Instruction (TITI) from July to Sep 2011, UN Women Nepal from Sep to Dec 2011 and Mercy Corps Nepal from 24 Jan 2012 to 14 August 2016 and CAMRIS International in Nepal commencing 1 February 2017. I have published articles to my credit.

Sunday, July 15, 2018

Multicategory Discrete Probability Distribution of Sampling With Replacement and Excel Software, Statistical Note 24

Roll an unbiased die twice, note which face turns up each time a die is rolled. Calculate the probability distribution of a face with number one.

Counting the total and favorable numbers of outcomes constituting the specified number of objects sampled with replacement from the finite population is important to calculate the probability of favorable events. Excel software is commonly available in the desktop or the laptop and is an important means to calculate the discrete probability distribution of samples drawn with replacement. I take an example from my Statistical Note 19, and will show how calculate the multicategory discrete probability distribution with replacement using Excel function. Refer to that note for conceptual clarity on using the tree diagram and formula to calculate the Multinomial probability distribution.

EXCEL Software

EXCEL software does not have an inbuilt function to calculate Multinomial probability. Three inbuilt EXCEL functions are used to calculate the Multinomial probability.  They are  - POWER, MULTINOMIAL and PRODUCT functions.

First, I will prepare the dataset for an outcome constituting one face with nominal number one (A) and another face with nominal number two (B) in two rolls of a dice. Each face of a dice has an equal chance of one divided by six (0.1666) as shown in Diagram 1. It is the case of group two outcomes discussed under Formula section in the Statistical Note 19.

















Diagram 1: Dataset showing the number of face in two rolls of dice and the probability of each face in a roll

Referring to the Multinomial distribution formula, the POWER function is used for each probability of a face powered by number of times that face occurs in two rolls of a dice as shown in Diagram 2. The POWER function has two fields  - ‘Number’ and ‘Power’. In Diagram 2, ‘Number’ takes the value as the base number as shown in Diagram 2. The Power value calculated in the cell B14  has taken the value from the cell ‘B8’. ‘Power’ is the exponent to which the base number is raised. It has taken the value from the cell ‘B2’.  Likewise, the POWER function is applied to all remaining values from B3 to B13, and placed in the cells B15 to B19.











Diagram 2: Application of POWER Function in Excel

The MULTINOMIAL function is applied to calculate the Multinomial coefficient in the Multinomial distribution formula.  The MULTINOMIAL Function has at least two fields ‘Number1’ and ‘Number2’ as shown in Diagram 3. These field are used to indicate the number of faces with nominal numbers in two rolls of a dice in this example. They took the values from B2 to B7 as indicated in the function argument box and formula bar, and resulted in the value 2.












Diagram 3: Application of MULTINOMIAL Function in Excel

The PRODUCT function is applied to calculate the product of a series of numbers. The function has several fields – ‘Number1’, ‘Number2’. The first will take a series of values from cells B14 to B19 on probabilities power by number of faces with nominal numbers in two rolls of a dice as shown in Diagram 4. The second field takes the value from the Multinomial coefficient calculated in cell B20. The PRODUCT function gives the probability of an outcome, an occurrence of a face with nominal number one and another face with nominal number two in two rolls of a dice. This value is equal to 0.05555 shown in function argument box in Diagram 4. 











Diagram 4: Application of PRODUCT Function in Excel

This probability of an outcome, an occurrence of a face with nominal number one and another face with nominal number two in two rolls of a dice is equal to P(0,1,1,0,0,0) discussed under Group Two outcomes under Formula section of the Statistical Note 19.

Similar process is followed to calculate the probability of each group of outcomes. Finally, adding the probability of each group of outcomes will give the Multinomial probability distribution.

Discussion in this note and my former Statistical Note 19 indicates that both manual and auto calculations produce the same values and are useful to calculate the multi-category discrete probability distribution with replacement. Conceptual understanding is a backbone and automatization is efficient. Thus, both are important knowledge and skill sets.

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