Simulation assignments and random numbers

Throughout the term you will be asked to do several simulation assignments. To do those assignments you must generate random numbers in Excel. For example, using the Randbetween function.

Each time Excel calculates the spreadsheet the random numbers change, so it may be frustrating to generate statistics based on those numbers. For example if you calculate the mean of the numbers you get a slightly different result each time you try it.

To avoid this problem I suggest that after you generate the random numbers the first time, copy them (i.e., highlight them, right click and choose copy) and then paste them to another part of the spreadsheet by using the PASTE SPECIAL option. In that option, choose "values" and then "ok."

If anyone has a better way of doing this please let me know (for extra credit, of course).

I made a video demonstrating this. It can be found in YouTube.

There are 7 parts to this assignment. Please label them in your WORD DOC report (NOT EXCEL file) to me as Part 1, Part 2, etc.

Part 1:

Using Excel’s Randbetween(0,9) function, generate 200 samples of five random numbers between 0 and 9, calculate the mean of each sample. Show me the list of the 200 means. Typically, they should look like: 4.8, 3.6, 4.4, 6.0, etc.

Part 2:

Using Excel, calculate the overall mean of the 200 sample means (the average of the averages). This should be around 4.5.

Part 3:

Using Excel, calculate the standard error of the mean (SEM) (i.e. the standard deviation of the 200 sample means). We established in the previous simulation that the population average is 4.5 and the standard deviation of the population is 2.87.

Part 4:

Using Excel, make the histogram of the 200 sample means (sampling distribution of the mean) (use interval size 1, i.e., 0-1, 1-2, 2-3, …8-9). According to the Central Limit Theorem a bell shaped curve should appear. Show me this graph.

Part 5:

Discuss the intuitive logic of the Central Limit Theorem. Discuss the implications of part 4 in this context. (My videos might help here.)

Part 6:

Use 2 methods to find P ( \[\overline{x}\] >6.3), (with n=5 as in Parts 1-4): First the z-method of chapter 7 and then by simply counting how many of your 200 \[\overline{x}\] were above 6.3.

Part 7:

Discuss the standard error of the mean. (Explain clearly the reasons why there is an "n" in the bottom of the formula; my video might help here as well.)

Price: $14.48

Solution: The downloadable solution consists of 9 pages, 548 words and 4 charts.
Deliverable: Word Document