Any excel function to calculate the product of probability density and number of outcomes?

tapaspanda

New Member
Hi, I am new to this forum. I am trying to find out a way to calculate the product of probability density and number outcomes. Let me explain this bit more clearly. I am looking at the level of interest rate. Let say that the expected interest rate in one year is 0.9%. The standard deviation of expected interest rate in one year is 0.5%. The expected interest rate is a continuous function because interest rate can be 0.912683% or 0.8213568%. I am trying to find out how to calculate the product of interest rate and the probability of interest rate at some level. Let's say I am trying to calculate the product of all interest rates below 0.75% and the probability of those interest rates? I am not sure of there is an excel function to calculate this.
Thank you in advance.

katxt

Active Member
The question doesn't quite make sense to me yet. The probability of some particular interest rate, say 0.473% exactly, is zero
Does "all interest rates" mean all of a set that you have collected or all possible interest rates from 0.75% to -infinity?

katxt

Active Member
Are you perhaps looking for a weighted mean where the weights are proportional to the heights of the given normal curve?