DEVSQ Function
Calculates the sum of the squared deviations from the sample mean
Calculates the sum of the squared deviations from the sample mean
The DEVSQ Function is categorized under Statistical functions. It will calculate the sum of the squared deviations from the sample mean. The function, for example, can be used to find the variation in temperatures, blood pressure readings, etc.
As a financial analyst, DEVSQ is useful in understanding the variance in daily stock values that can signify market instability and higher risks for investors.
When we take the square root of the sum of squares, we get the standard deviation, an even more useful number. The variance and standard deviation functions deal with negative deviations by squaring deviations before they are averaged. DEVSQ calculates the sum of the squared deviations from the mean, without dividing by N or by N-1.
=DEVSQ(number1, [number2], …)
The DEVSQ function uses the following arguments:
The arguments can be between 1 to 255. However, in Excel 2003, the DEVSQ function can only accept up to 30 number arguments. We can use a single array or a reference to an array instead of arguments separated by commas.
The equation for the sum of squared deviations is:
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To understand the uses of the DEVSQ function, let us consider an example:
Suppose we are given the following data:
The formula to use for calculating the sum of the squared deviations is:
We get the result below:
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