What is the STDEVPA Function?
The STDEVPA Function is categorized under Statistical functionsFunctionsThe STDEVPA Function is categorized under Statistical functions. It will calculate standard deviation that is based on entire population given as arguments. The function will ignore logical values and text. As a financial analyst, the STDEVPA Excel function can be used to calculate deviations in revenue. It will calculate standard deviation that is based on entire population given as arguments. The function will ignore logical values and text.
As a financial analystFinancial Analyst Job DescriptionSee a real Financial Analyst Job Description including all the skills, experience, and education required to be the successful candidate for the job. Perform financial forecasting, reporting, and operational metrics tracking, analyze financial data, create financial models, the STDEVPA function can be used to calculate deviations in revenue. Portfolio managers often use standard deviation to measure and keep track of their portfolios’ risk.
Formula
=STDEVPA(value1, value2,…)
The STDEVPA function uses the following arguments:
- Value1 (required argument) – It is the first number argument that corresponding to a population.
- Value2 (optional argument) – It is a number argument that corresponds to the population.
Few notes on the arguments
- The given arguments must provide at least two numeric values to the function.
- The arguments should be between 1 and 255 numeric values, arrays of values, or references to cells containing numbers. MS Excel 2007 or later versions allow us to enter up to 255 number arguments to the function. However, in Excel 2003, the function can only accept up to 30 number arguments.
- Arguments can either be numbers or names, arrays, or references that contain numbers.
- The STDEVPA function is used when we want to calculate the standard deviation for an entire population. If we are calculating the standard deviation of a sample, we need to use the STDEVA function or the STDEV function.
How to use the STDEVPA Function in Excel?
To understand the uses of the STDEVPA function, let us consider an example:
Example 1
Suppose we are given a record of the monthly sales figures of a business over the last three years, as shown below:
For standard deviation, the formula used is:
The equation used is:
Where:
- x takes on each value in the set
- x is the average (statistical mean) of the set of values
- n is the number of values
We get the result below:
Remember here, the STDEVPA function will count logical values while calculating the standard deviation. The STDEVP function, however, ignores them.
Things to remember about the STDEVPA Function
- For large sample sizes, STDEVA and STDEVPA return approximately equal values.
- If we do not want to include logical values and text representations of numbers in a reference as part of the calculation, use the STDEVP function.
Click here to download the sample Excel file
Additional resources
Thanks for reading CFI’s guide to important Excel functions! By taking the time to learn and master these functions, you’ll significantly speed up your financial analysis. To learn more, check out these additional resources:
- Excel Functions for FinanceExcel for FinanceThis Excel for Finance guide will teach the top 10 formulas and functions you must know to be a great financial analyst in Excel. This guide has examples, screenshots and step by step instructions. In the end, download the free Excel template that includes all the finance functions covered in the tutorial
- Advanced Excel Formulas Course
- Advanced Excel Formulas You Must KnowAdvanced Excel Formulas Must KnowThese advanced Excel formulas are critical to know and will take your financial analysis skills to the next level. Advanced Excel functions you must know. Learn the top 10 Excel formulas every world-class financial analyst uses on a regular basis. These skills will improve your spreadsheet work in any career
- Excel Shortcuts for PC and MacExcel Shortcuts PC MacExcel Shortcuts - List of the most important & common MS Excel shortcuts for PC & Mac users, finance, accounting professions. Keyboard shortcuts speed up your modeling skills and save time. Learn editing, formatting, navigation, ribbon, paste special, data manipulation, formula and cell editing, and other shortucts