Question

when and why you use statistical functions in a Worksheet. Are statistics used in financial formulas? Are they used in research papers? Pick one of the statistical formulas available in Microsoft Excel 2013 and perform a web search to find its usefulness. Explain this formula

Answer 1

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When and why you use statistical functions in a worksheet

We use statistical formula to calculate p-value out of Z values, or vice versa. We also use them to conduct Z tests and t-tests within a worksheet. These are used to check whether population means or sample means are equal , or to test whether the sample comes from a certain population.

There are also used in research papers.

1 example from the Microsoft Excel 2013 is the use of measures of Wtendency i.e. Average(), Mean(), Mode(), and Median() formulae. The formula of AVERAGE is especially used for forecasting by the finance department to predict sales forecasts based on moving month averages, or exponential smoothning principles. For example: Forecast = a*X1 + (1-a)*X2 , where

X1 is defined as the Average of sales of past 1 week

X2 is defined as the Average of sales of past in 3 week before 1 week

a = degree of closeness to the more recent week' sales

Hence, the formula was used to calculate Average () of week' worth of sales.