Overview

BestFit allows you to fit probability distributions to your data. Fitting is done when you have a set of collected data that you want describe using a theoretical distribution function. For example, you may have collected historical data on a product price and you might want to create a distribution of possible future prices that is based on this data.

BestFit may also be run with @RISK. When BestFit is running with @RISK, an @RISK – Model window is displayed that includes all BestFit menus and commands along with a Model tab that has information on the @RISK model in Excel.

To fit distributions to data using BestFit , there are five steps that you should consider:

1. Define Input Data
2. Specify Distributions to Fit
3. Run the Fit
4. Interpret the Results
5. Using the Results of a Fit

Each of these steps is discussed in this chapter.