From the course: Learning Excel: Data Analysis
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Calculate compound probabilities - Microsoft Excel Tutorial
From the course: Learning Excel: Data Analysis
Calculate compound probabilities
In the last video we calculated simple probabilities by asking questions like how likely is an order to be returned? But in business we often need to answer more specific questions. For example, how likely is an order to be returned and linked to a complaint? This is a compound probability because we're combining more than one condition. Let's calculate some examples. We'll use the same data set that you're already familiar with. To calculate any probability from this data we'll use the same basic structure, the number of matching orders divided by the total number of orders. So first let's calculate the total number of orders using COUNTA. And again we're going to count the order ID column. This gives us the total number of records in the table. And let's do something different here, we'll name this cell total orders and now we can use that as the denominator in our probability formulas. Let's start with an AND question. What is the probability that an order was returned and had a…
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