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Standard Deviation

  1. #1
    Registered User
    Join Date
    06-28-2010
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    Poland
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    Excel 2003
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    1

    Standard Deviation

    Guys,
    May I ask you to have a look into the formula that is supposed to calculate Standard deviation.

    The formula for SD should be:
    sqrt(sum(P - SimpleMoving Average)^2) / Count)
    where in the spreadsheet is actually:
    sqrt(sum(squared P)/count - SimpleMovingAverage^2)

    Please see cell I13 --> SQRT((1/10)*SUM(E4:E13)-C15*C15) How come the result is the same as in P23 ???? I am trying to understand "SUM(E4:E13)-C15*C15"

    How come the results match???

    Thank you for your kind help
    Attached Files Attached Files

  2. #2
    Forum Moderator zbor's Avatar
    Join Date
    02-10-2009
    Location
    Croatia
    MS-Off Ver
    365 ProPlus
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    15,602

    Re: Standard Deviation

    Isn't formula for standard deviation:

    SQRT((1/(10-1))*SUM(E4:E13)-C15*C15)

    or N - 1 in other words

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