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STATISTICAL FUNCTIONS IN EXCEL

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30, Dec 2017

STATISTICAL FUNCTIONS IN EXCEL

People usually have love-hate relationship with statistics. When you get your formulas right you are in love with it and when your answers go wrong, your feelings take the opposite route. But when you are working on statistics in Excel, things are simpler and less complicated. So today, we bring to you the most used statistical functions of Excel.

There are different ways, one can use, excel’s statistical functions, let us look at them

  • Statistical functions help in analyzing the data by providing insights about its characteristics such as average, variability, and distribution.
  • It helps in summarizing large datasets into meaningful metrics, this makes it easier to understand and interpret the information.
  • Based on data trends and patterns, these functions help in informed decision-making with the application of statistical measures like averages, standard deviations, and correlations.
  • The quality control aspect is maintained by identifying outliers, detecting trends, and assessing the consistency of data.
  • With the help of historical data, statistical functions help in creating forecasts and predictions, which ultimately helps in planning and decision-making.
  • The best point about its application is that it helps you to compare different datasets and bring out their similarities, differences, and relationships.
  • The ultimate advantage is its conjunction with Excel’s charting tool, it helps to create visual representations of data, which enhances understanding and communication for the stakeholders involved.
 

Want to know more: Click here!

  We believe that Excel’s statistical functions provide all the tools required for any financial staff member to study, analyze, and interpret data. ultimately assisting in improved decision-making and comprehension of underlying patterns and trends. financial modeling course in india

Let’s go through some of the commonly used statistical functions:

1. AVERAGE

The average function simply adds up all those numbers and then divides the total by how many numbers there are. It gives you a typical or central value of your data.
  • Syntax AVERAGE(number1, [number2], …)
  • Description: Calculates the arithmetic mean (average) of a range of numbers.
  • Example =AVERAGE(A1:A10) will return the average of numbers in cells A1 through A10.

2. STDEV

This function measures how spread out your numbers are from the average. If the numbers are all close together, the standard deviation is small. If they are more spread out, the standard deviation is larger.
  • Syntax STDEV(number1, [number2], …)
  • Description: Calculates the standard deviation, a measure of the amount of variation or dispersion in a set of values.
  • Example =STDEV(B1:B10) will return the standard deviation of numbers in cells B1 through B10.

3. COUNT

In Excel, it counts how many cells in a range have numbers in them.
  • Syntax: COUNT(value1, [value2], …)
  • Description: Counts the number of cells in a range that contain numbers.
  • Example: =COUNT(C1:C10) will count the number of non-empty cells in the range C1 through C10.

4. MAX

If you have a bunch of numbers, the MAX function tells you which one is the biggest.
  • Syntax MAX(number1, [number2], …)
  • Description: Returns the largest value in a set of values.
  • Example =MAX(D1:D10) will return the maximum value from cells D1 through D10.

5. MIN

On the other hand, MIN does the opposite of MAX. It tells you which number is the smallest in your group.
  • Syntax MIN(number1, [number2], …)
  • Description: Returns the smallest value in a set of values.
  • Example =MIN(E1:E10) will return the minimum value from cells E1 through E10.

6. SUM

Similar to COUNT, but instead of just counting the numbers, SUM adds them all up.
  • Syntax SUM(number1, [number2], …)
  • Description: Adds up all the numbers in a range.
  • Example =SUM(F1:F10) will add all the numbers in cells F1 through F10.

7. MEDIAN

It’s the number that splits your data into two equal halves.
  • Syntax MEDIAN(number1, [number2], …)
  • Description: Returns the median, which is the middle value in a set of numbers.
  • Example =MEDIAN(G1:G10) will return the median of numbers in cells G1 through G10.

8. MODE

If you have a list of numbers, the mode is simply the number that appears most frequently.
  • Syntax MODE(number1, [number2], …)
  • Description: Returns the most frequently occurring value in a range of values.
  • Example =MODE(H1:H10) will return the mode of numbers in cells H1 through H10.

9. CORREL

This function tells you how closely related two sets of numbers are to each other.
  • Syntax: CORREL(array1, array2)
  • Description: Calculates the correlation coefficient between two sets of data.
  • Example =CORREL(I1:I10, J1:J10) will return the correlation coefficient between the values in cells I1 through I10 and J1 through J10.

10. VAR

It calculates the variance which is a measure of the dispersion of a set of values around their mean.
  • Syntax VAR(number1, [number2], …)
  • Description: Calculates the variance, a measure of the dispersion of a set of values around their mean.
  • Example =VAR(K1:K10) will return the variance of numbers in cells K1 through K10.

Did you find this blog post helpful? Let us know in the comments!

But that’s not all—we’re excited to introduce EduPristine’s financial modeling course, a must-do program for all aspiring finance professionals.

Wondering how Excel is used in the Financial Modeling course?

Financial modeling is essential for understanding and analyzing a business’s fundamentals, which supports decision-making. Normally built in Excel these models allow for elaborate examination and forecasting of business scenarios. This helps in offering valuable insights for informed decision making. financial modeling courses online

Here’s why EduPristine should be your go-to for training

Here is why EduPristine should be your go-to partner for your training needs:
  • Industry Recognition:Our course is co-certified with BSE Institute and it provides you with valuable industry recognition.
  • Proven Success: With over 15 years of success we have trained more than 70,000 students and delivered over 6 million hours of training.
  • Expert Faculty:Learn from qualified instructors with 15 years of expertise in financial concepts.
  • Commitment to Success: Beyond mastering Excel, our course includes Power BI training, a crucial skill in today’s data-driven world. Plus you’ll get mentorship, career support, soft skills training, and 7-day support.
  • Flexible Learning Options: Choose from in-person classes in Mumbai and Delhi or live virtual sessions at convenient times, making it easy to fit learning into your schedule.
 

Want to know more: Click here!

  So, why wait? Take the first step towards a successful career in finance with EduPristine’s financial modeling course in India. If you find this article helpful, consider sharing it with your friends and colleagues.
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