Confidence Levels

C

Craig

Perhaps this is more of a logic question rather than an
Excel question but I am using Excel. Any other ideas on
how to analyze the information would be helpful.

We were allotted money and we are confident we will be
able to collect it at different confidence levels. I
multiplied the allotted amount by the confidence level of
collecting the money to obtain, what I think is, a
weighted average.

If our numbers are correct, does it make sense we should
anticipate collecting $475? I realize we most likely will
be able to collect all or none of each individual amount.


Allotted Confidence Level Weighted Average
$100.00 100% $100
$200.00 100% $200
$100.00 50% $50
$500.00 25% $125
 
L

LCC

What you got is the EXPECTED VALUE.
This value is just an AVERAGE over many trials (say you
repeat this collection everyday), but not necessary
correct for a PARTICULAR trial.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top