00:01
So to perform the simulation that we're looking for here, the appropriate thing to do is to use excel's random number generation function.
00:17
Random number generation tool.
00:24
So i'll bring up excel now.
00:27
So here we have my empty spreadsheet.
00:31
So we'll go to the data tab in the top ribbon.
00:34
Go to data analysis.
00:35
We want to select random number generation right between moving average and rank and percentile so we click on that get okay now the number of variables here would simply be one we have one variable the number of random numbers is going to be 5 ,000 so we have 5 ,000 different numbers that we are going to be generating here we know that the distribution should be normal so we select the normal distribution option where we have have that our mean value is going to be 4 .81 percent.
01:11
So we'll just say 4 .81.
01:13
Or actually, we'll do it this way.
01:15
So we have mean value of 0 .0481, the standard deviation of 0 .0448, where what i'll do is generate the numbers and then multiply that by 5 ,000 to estimate the mean balance, or not by 5 ,000, by 30 ,000.
01:34
So i hit ok...