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

T

tapaspanda

New Member
#1
#1
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.
 
K

katxt

Active Member
#2
#2
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?
 
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