Win 7 Ultimate
Office 2007

=IF(RAND()<0.5,"yes","no")

I'm trying to get my head round the formula above, but am unsure what part of it means. I know the formula as a whole means that if the randomly generated number is less than 50% then return "yes" & if it's more than 50% then return "no"

Where i'm lost is on:
(1) 50% of what? &

(2) When would I use this function? (that might be a 'piece of string' question)

I've just realised that if I put the formula into an otherwise blank worksheet, in a new workbook, it still generates a random list of yes's & no's (!?!)....so again......50% of what?


TIA