All language subtitles for 01 - Calculate simple probabilities

- [Instructor] One thing you can do in Microsoft Excel

when analyzing business scenarios

is calculate the probability that something will happen.

In this movie,

I will give you a quick review

of how to calculate simple probabilities.

In this table,

I have a description of an outcome

and then, also, the probabilities and odds

that it will or will not happen.

To start, if you want to know the probability

of rolling a three on a six-sided die,

so in other words, you have one chance out of six,

then you would divide one by six to get 16.67% of success.

You can also think of that outcome in terms of odds,

where you have five ways not to roll a three,

one way to do it,

so your odds are 5:1 against.

In the alternative,

let's say that you don't want to roll a three

on a six-sided die.

So one, two, four, five, or six would be good.

A three would not.

In that case, you have five out of six chances

of succeeding, that is, not rolling a three.

So the probability of success is 83.33%.

And you can also think of that in terms of odds

as 5:1 in your favor.

Calculating simple probabilities is fairly straightforward,

and you can create simple Excel formulas in your worksheets

to calculate those odds if need be.