BA 356 Upper Iowa University Standard Deviation and Variance Worksheet

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Oevnanwnpxfba

Business Finance

BA 356

Upper Iowa University

BA

Description

Looking for someone to answer the follow:


1.Explain variance and standard deviation. What do these terms describe about data? Show an example of variance and standard deviation using Excel and post the worksheet here. Evaluate the worksheet of another student.

Please attach your Excel worksheet to your discussion. Student must use Excel to provide their data with variance/standard deviation calculations. Use any data set in our textbook but provide your own Excel functions/calculations for all total type fields.

2.Consider some of the financial decisions you have made in your life that resulted in a bad or good outcome. Share one of each with the class. Why was each decision good or bad? How could we better evaluate these decisions using calculations already covered in our course readings?

3.In your own words, please describe and explain regression to someone with no financial background. Why would we need to calculate regression? Please provide an example using data from an example in your book BUT use Excel to build the regression tables using the Data tab and Data Analysis ribbon. Review the worksheet of at least one other students and provide corrections if necessary.

VIP*** - Students MUST attach a copy of an Excel Worksheet where they have calculated regression using Excel's Data Analysis to get full credit for their initial post.

4. Describe the various forecasting methods. What are the steps needed to develop a forecast? Explain how you could use Excel to help develop a forecast. Provide an example of an Excel forecast for a three year period on any one income statement or balance sheet account.

Please attach your Excel worksheet to your discussion. Student must use Excel to provide their forecast. Use one of the methods described in our textbook and use Excel functions/calculations for all total type fields.

5.Take a tour of the Internet and locate a MRP system that has not already been shared with the class. Tell us how this system can help alleviate one of the inventory problems identified in the chapter this week. Does your MRP system help with JIT as well? If so how? What kinds of calculations are needed in MRP and JIT?

6.Prepare a 500 word summary on the similarities and differences between minimization and maximization problems using LP. Post this by class day 2 and then discuss with the class.

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Explanation & Answer

Attached.

Standard Deviation and Variance
Name
Institution
Course Code

Standard Deviation and Variance
Standard deviation and variance can be described as measurements or concepts applied in
both Mathematics and Statistics and other financial areas related to accounting as well as
investments. In assessing investments, volatility is key; thus, both come into play to help analysts
to achieve the right decisions. Therefore, their importance cannot be underestimated in real life,
and understanding and interpretation are important. Their calculation is based on data means.
The mean of sets of data. Standard deviation and variance are closely associated with different
concepts altogether.
Standard deviation
This is a special statistic that describes the spread from the mean of data sets. Standard
deviation is the square root of variance. The more the data is spread further from the mean, the
higher the resultant deviation and the closer is the data from the mean, the lower the deviation.
To evaluate the standard deviation, we find the total of the data sets then divide by n (count of
the data sets). Next, we evaluate the variance (data point less the mean) in each of the given data
sets. Thereafter, we evaluate the square root of the squared difference over n-1 for samples.
Variance
Variance can be defined as a squared difference's average. Variances serve to give the
mean degree that every point of a data set is different from the average. This squaring the
measurements units and it need be known that squaring is done to factor in outliers more than
those sets of data near the mean. If this squaring is not done the difference both under and above
would end up cancelling out resulting in zero.

Calculating standard deviation and variance using excel.
Excel tool has in built functions to help us in their calculation. For the standard deviation
of the sample,we use the formula =STEDV (number 1,[number 2]) andthat of the entire
population =STEDVP(number 1,[number 2]). Similarly, for the Variance of sample we use the
formula=VAR(number 1,[number 2]) and that of the entire population = VARP(number
1,[number 2]). The bottom line is that variance has no unit and tend to give little information
about data. It is rarely used as opposed to standard deviation that is practically useful.


Units of Cars Sold
2
5
7
11
14
27
28
28
36
42
46
50
50
53
55
66
67
75
80
87
90
90
94
96
4
15
16
29
35
60
60
62
64
74
81
95
96
3
7
32
56
57
76

STDEV
STDEVP

30.0782479 standard deviation of sample
29.7264434 Standard deviation of population

Units of Cars Sold
2
5
7
11
14
27
28
28
36
42
46
50
50
53
55
66
67
75
80
87
90
90
94
96
4
15
16
29
35
60
60
62
64
74
81
95
96
3
7
32
56
57
76

VAR
VARP

904.700997 Variance of sample
883.661439 Variance of population

Attached.

Name
Institution
Date

Evaluating personal decision making
The purchase of stock...


Anonymous
Awesome! Made my life easier.

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