Samudranesia.id – Excel standard deviation formula is used to find out how much standard deviation the data has. So by only having data in varying amounts, the standard deviation can be obtained easily and there is no need to use a formula that is too complicated.
So far, the standard deviation is used as a standard to determine whether the data has good quality or not. The standard deviation can also be used in the stock or business world to find out whether there is a big or small opportunity.
The formula used for the standard deviation of the standard is quite complicated to run. That’s why some people often have difficulty calculating the standard deviation correctly. Moreover, it involves several functions such as roots and exponents.
What is Standard Deviation and its Formula
In the world of statistics, deviation is often used as an indicator in conducting data analysis. This standard deviation is used to find out how close or the relationship is between the values and the samples that have been taken previously.
By knowing this standard deviation, it can be determined whether the data is really good or not. Furthermore, this standard deviation can also be used to carry out the calculation or decision-making process.
That’s why this calculation of the standard deviation usually has several types. In the world of statistics and also in the banking world, it is widely used to determine whether a product or investment object is reliable or even detrimental.
Excel Standard Deviation Formula
If you want to calculate the standard deviation in Microsoft Excel, you must know the standard deviation formula in Excel first. The formula or formulas that are usually used are:
=STDEV.S(data range)
This means that to perform data calculations, you only need to take advantage of the data range from beginning to end. No matter how much data will be used, the calculation process will also be simple.
Let’s say there are 100 data from cell A1 to cell A100. This data varies with different values. To perform the calculation of the standard deviation then one only needs to use the formula below.
=STDEV.S(A1:A100)
With the above formula, the standard deviation can be directly obtained and the result is accurate. Even a fairly long decimal will appear.
If you want to know more concise results, you can do the manufacturing process up to how many numbers are behind the comma. By doing this the results can be more concise and the results will still be accurate.
Standard Deviation Function
Standard deviation has several functions that can be used in various needs. The following are some of the functions of the standard deviation that are often used by the public.
1. Statistical Data Collection
The first function that is owned by the standard deviation is to find out how big the error is in a data sampling. Sampling of data, especially in large numbers of people, cannot be done arbitrarily because it must be representative.
Because you have to take a representative sample, the chances of making mistakes or the ratio of deviations will be large. For example, there are larger data or smaller data so this standard deviation must be searched first.
If you manage to find the standard deviation well, you will know approximately how much deviation ratio the data will have. So, if one reads the data, one will know roughly how much the average represents a group or community.
2. Tools for Investment
When making an investment someone will relate to a large amount of funds in a company and also shares. In addition, there will be such a thing as the volatility of a business so that it can be determined whether it will be profitable or not.
That’s why in a business this volatility is very important because to find it requires a standard deviation. One must know approximately how big the standard deviation of the business object is to analyze whether the business has potential or not.
If the business does have very high potential. Then they can immediately use it to provide substantial capital. Or if the business is unprofitable it can be withdrawn.
3. Stock Analysis
The standard deviation calculated by using Microsoft or manually can also be used to perform stock analysis. By doing this analysis, one can easily make the process of buying or selling the stock.
If they decide to sell, the profits will be great. Meanwhile, if they decide to buy, the opportunity for the stock to increase in the future is also great. That’s why this deviation analysis must be done very well.
Buying shares cannot be done arbitrarily because of the need for analysis, especially on fundamental analysis. Usually this part will be used to find the standard deviation.
4. Knowing Mutual Fund Performance
Next is to know the performance of mutual funds. Knowing the performance of a mutual fund will make it easier for someone to do various types of analysis. So they can determine whether or not to buy the mutual fund.
Moreover, currently mutual funds do have a greater advantage. The advantage obtained is that the opportunity to experience losses is very small so that one can be safer when investing.
Type of Standard Deviation in Excel
In Microsoft Excel, it turns out that there is not only one type of standard deviation or deviation that can be seen later. Here are several types of Excel standard deviation formulas that can be used.
- STDEV, is the basic formula used to calculate the standard deviation by ignoring the logical functions and also the text in the cell.
- STDEVP, usually used to calculate the standard deviation of data in the population more easily and precisely.
- STDEVA, is used to calculate the standard deviation which includes the logical value as well as the text in it.
By using some of the formulas above, you can immediately carry out the process of calculating a more accurate standard deviation according to your needs. This means that there will be alternatives to carry out the data calculation process because the data also varies.
The most important thing when going to the process of sending data is to pay attention to the type of data to be entered. If the data entered is not too much the possibility of experiencing errors will be low. Otherwise, the chances are great.
Perform the process of calculating the standard deviation using an automatic method. Furthermore, to find out whether it is true or not, you can use the manual method to carry out the comparison process.
Excel’s standard deviation formula is very simple because there is no need to enter some data manually such as calculating the average to doing the root of the process. It is enough to just provide the data and use a formula that is already standardized, the value of the standard deviation can be obtained.
Although the standard deviation can be obtained more easily by using the formula discussed above. It’s good to always pay attention to the data entered and the writing of the formula. How to pay attention to it then the opportunity to make mistakes will be very small.
