Generating Normally distributed Random Numbers without decimal in excel - excel

I am trying to get random numbers that are normally distributed with a mean of 20 and standard deviation of 2 for a sample size of 225 in Excel but I am getting numbers with decimals ( like 17.5642 , 16.337).
if I round it off, normal distribution cant be achieved. Please help me to get round figures that are normally distributed too....I used the Excel FORMULA "* =NORMINV(RAND(),20,2) *" for generating those numbers. Please suggest to get round figures.

As #circular-ruin has observed, what you are asking for strictly speaking doesn't make sense.
But -- perhaps you can run the Central Limit Theorem backwards. CLT is often used to approximate discrete distributions by normal distributions. You can use it to approximate a normal distribution by a discrete distribution.
If X is binomial with parameters p and n, then it is a standard result that the mean of X is np and the variance of X is np(1-p). Elementary algebra yields that such an X has mean 20 and variance 4 (hence standard deviation 2) if and only if n = 25 and p = 0.8. Thus -- if you simulate a bin(25,0.8) random variable you will get integer values which will be approximately N(20,4). This seems a little more principled then simulating N(20,4) directly and then just rounding. It still isn't normal -- but you really need to drop that requirement if you want your values to be integers.
To simulate a bin(25,0.8) random variable in Excel, just use the formula
=BINOM.INV(25,0.8,RAND())
with just 225 observations the results would probably pass a Chi-squared goodness of fit test for N(20,4) (though the right tail would be under-represented).

Related

(in excel) randomly generating a power law distribution

I am trying to simulate a number of different distribution types for a project using Excel. Right now, I have generated a normal distribution with a mean of 35 and a standard deviation of 3.33. So far so good.
I would like to also generate some other distribution types.
One I have tried is a lognormal. To get that, I am using the following code:
=(LOGNORM.INV(RAND(),LN(45^2/SQRT(45^2+3.33^2)),SQRT(LN((45^2+3.33^2)/4.5^2))
It produces some output, but I would welcome anyone's input on the syntax.
What I really want to try to do is a power law distribution. From what I can tell, Excel does not have a built-in function to randomly generate this data. Does anyone know of a way to do it, besides switching software packages?
Thanks for any help you can provide.
E
For the (type I) Pareto distribution, if the parameters are a min value xm and an exponent alpha then the cdf is given by
p = 1 - (xm/x)^alpha
This gives the probability, p, that the random variable takes on a value which is <= x. This is easy to invert, so you can use inverse sampling to generate random variables which follow that distribution:
x = xm/(1-p)^(1/alpha) = xm*(1-p)^(-1/alpha)
If p is uniform over [0,1] then so is 1-p, so in the above you can just use RAND() to simulate 1/p. Thus, in Excel if you wanted to e.g. simulate a type-1 Pareto distribution with xm = 2 and alpha = 3, you would use the formula:
= 2 * RAND()^(-1/3)
If you are going to be doing this sort of thing a lot with different distributions, you might want to consider using R, which can be called directly from Excel using the REXcel add-in. R has a very large number of built-in distributions that it can directly sample from (and it also uses a better underlying random number generator than Excel does).

standard error of addition, subtraction, multiplication and ratio

Let's say, I have two random variables,x and y, both of them have n observations. I've used a forecasting method to estimate xn+1 and yn+1, and I also got the standard error for both xn+1 and yn+1. So my question is that what the formula would be if I want to know the standard error of xn+1 + yn+1, xn+1 - yn+1, (xn+1)*(yn+1) and (xn+1)/(yn+1), so that I can calculate the prediction interval for the 4 combinations. Any thought would be much appreciated. Thanks.
Well, the general topic you need to look at is called "change of variables" in mathematical statistics.
The density function for a sum of random variables is the convolution of the individual densities (but only if the variables are independent). Likewise for the difference. In special cases, that convolution is easy to find. For example, for Gaussian variables the density of the sum is also a Gaussian.
For product and quotient, there aren't any simple results, except in special cases. For those, you might as well compute the result directly, maybe by sampling or other numerical methods.
If your variables x and y are not independent, that complicates the situation. But even then, I think sampling is straightforward.

Computing generalized mean for extreme values of p

How do I compute the generalized mean for extreme values of p (very close to 0, or very large) with reasonable computational error?
As per your link, the limit for p going to 0 is the geometric mean, for which bounds are derived.
The limit for p going to infinity is the maximum.
I have been struggling with the same problem. Here is how I handled this:
Let gmean_p(x1,...,xn) be the generalized mean where p is real but not 0, and x1, ..xn nonnegative. For M>0, we have gmean_p(x1,...,xn) = M*gmean_p(x1/M,...,xn/M) of which the latter form can be exploited to reduce the computational error. For large p, I use M=max(x1,...,xn) and for p close to 0, I use M=mean(x1,..xn). In case M=0, just add a small positive constant to it. This did the job for me.
I suspect if you're interested in very large or small values of p, it may be best to do some form of algebraic manipulation of the generalized-mean formula before putting in numerical values.
For example, in the small-p limit, one can show that the generalized mean tends to the n'th root of the product x_1*x_2*...x_n. The higher order terms in p involve sums and products of log(x_i), which should also be relatively numerically stable to compute. In fact, I believe the first-order expansion in p has a simple relationship to the variance of log(x_i):
If one applies this formula to a set of 100 random numbers drawn uniformly from the range [0.2, 2], one gets a trend like this:
which here shows the asymptotic formula becoming pretty accurate for p less than about 0.3, and the simple formula only failing when p is less than about 1e-10.
The case of large p, is dominated by that x_i which has the largest magnitude (lets call that index i_max). One can rearrange the generalized mean formula to take the following form, which has less pathological behaviour for large p:
If this is applied (using standard numpy routines including numpy.log1p) to another 100 uniformly distributed samples over [0.2, 2.0], one finds that the rearranged formula agrees essentially exactly with the simple formula, but remains valid for much larger values of p for which the simple formula overflows when computing powers of x_i.
(Note that the left-hand plot has the blue curve for the simple formula shifted up by 0.1 so that one can see where it ends due to overflows. For p less than about 1000, the two curves would otherwise be indistinguishable.)
I think the answer here should be to use a recursive solution. In the same way that mean(1,2,3,4)=mean(mean(1,2),mean(3,4)), you can do this kind of recursion for generalized means. What this buys you is that you won't need to do as many sums of really large numbers and you decrease the likelihood of creating an overflow. Also, the other danger when working with floating point numbers is when adding numbers of very different magnitudes (or subtracting numbers of very similar magnitudes). So to avoid these kinds of rounding errors it might help to sort your data before you try and calculate the generalized mean.
Here's a hunch:
First convert all your numbers into a representation in base p. Now to raise to a power of 1/p or p, you just have to shift them --- so you can very easily do all powers without losing precision.
Work out your mean in base p, then convert the result back to base two.
If that doesn't work, an even less practical hunch:
Try working out the discrete Fourier transform, and relating that to the discrete Fourier transform of the input vector.

Non-Uniform Random Number Generator Implementation?

I need a random number generator that picks numbers over a specified range with a programmable mean.
For example, I need to pick numbers between 2 and 14 and I need the average of the random numbers to be 5.
I use random number generators a lot. Usually I just need a uniform distribution.
I don't even know what to call this type of distribution.
Thank you for any assistance or insight you can provide.
You might be able to use a binomial distribution, if you're happy with the shape of that distribution. Set n=12 and p=0.25. This will give you a value between 0 and 12 with a mean of 3. Just add 2 to each result to get the range and mean you are looking for.
Edit: As for implementation, you can probably find a library for your chosen language that supports non-uniform distributions (I've written one myself for Java).
A binomial distribution can be approximated fairly easily using a uniform RNG. Simply perform n trials and record the number of successes. So if you have n=10 and p=0.5, it's just like flipping a coin 10 times in a row and counting the number of heads. For p=0.25 just generate uniformly-distributed values between 0 and 3 and only count zeros as successes.
If you want a more efficient implementation, there is a clever algorithm hidden away in the exercises of volume 2 of Knuth's The Art of Computer Programming.
You haven't said what distribution you are after. Regarding your specific example, a function which produced a uniform distribution between 2 and 8 would satisfy your requirements, strictly as you have written them :)
If you want a non-uniform distribution of the random number, then you might have to implement some sort of mapping, e.g:
// returns a number between 0..5 with a custom distribution
int MyCustomDistribution()
{
int r = rand(100); // random number between 0..100
if (r < 10) return 1;
if (r < 30) return 2;
if (r < 42) return 3;
...
}
Based on the Wikipedia sub-article about non-uniform generators, it would seem you want to apply the output of a uniform pseudorandom number generator to an area distribution that meets the desired mean.
You can create a non-uniform PRNG from a uniform one. This makes sense, as you can imagine taking a uniform PRNG that returns 0,1,2 and create a new, non-uniform PRNG by returning 0 for values 0,1 and 1 for the value 2.
There is more to it if you want specific characteristics on the distribution of your new, non-uniform PRNG. This is covered on the Wikipedia page on PRNGs, and the Ziggurat algorithm is specifically mentioned.
With those clues you should be able to search up some code.
My first idea would be:
generate numbers in the range 0..1
scale to the range -9..9 ( x-0.5; x*18)
shift range by 5 -> -4 .. 14 (add 5)
truncate the range to 2..14 (discard numbers < 2)
that should give you numbers in the range you want.
You need a distributed / weighted random number generator. Here's a reference to get you started.
Assign all numbers equal probabilities,
while currentAverage not equal to intendedAverage (whithin possible margin)
pickedNumber = pick one of the possible numbers (at random, uniform probability, if you pick intendedAverage pick again)
if (pickedNumber is greater than intendedAverage and currentAverage<intendedAverage) or (pickedNumber is less than intendedAverage and currentAverage>intendedAverage)
increase pickedNumber's probability by delta at the expense of all others, conserving sum=100%
else
decrease pickedNumber's probability by delta to the benefit of all others, conserving sum=100%
end if
delta=0.98*delta (the rate of decrease of delta should probably be experimented with)
end while

Probability of selecting an element from a set

The expected probability of randomly selecting an element from a set of n elements is P=1.0/n .
Suppose I check P using an unbiased method sufficiently many times. What is the distribution type of P? It is clear that P is not normally distributed, since cannot be negative. Thus, may I correctly assume that P is gamma distributed? And if yes, what are the parameters of this distribution?
Histogram of probabilities of selecting an element from 100-element set for 1000 times is shown here.
Is there any way to convert this to a standard distribution
Now supposed that the observed probability of selecting the given element was P* (P* != P). How can I estimate whether the bias is statistically significant?
EDIT: This is not a homework. I'm doing a hobby project and I need this piece of statistics for it. I've done my last homework ~10 years ago:-)
With repetitions, your distribution will be binomial. So let X be the number of times you select some fixed object, with M total selections
P{ X = x } = ( M choose x ) * (1/N)^x * (N-1/N)^(M-x)
You may find this difficult to compute for large N. It turns out that for sufficiently large N, this actually converges to a normal distribution with probability 1 (Central Limit theorem).
In case P{X=x} will be given by a normal distribution. The mean will be M/N and the variance will be M * (1/N) * ( N-1) / N.
This is a clear binomial distribution with p=1/(number of elements) and n=(number of trials).
To test whether the observed result differs significantly from the expected result, you can do the binomial test.
The dice examples on the two Wikipedia pages should give you some good guidance on how to formulate your problem. In your 100-element, 1000 trial example, that would be like rolling a 100-sided die 1000 times.
As others have noted, you want the Binomial distribution. Your question seems to imply an interest in a continuous approximation to it, though. It can actually be approximated by the normal distribution, and also by the Poisson distribution.
Is your distribution a discrete uniform distribution?

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