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I want to show you how you can use the hp 10b2 plus financial calculator to do some statistical analysis so over here i happen to have an excel spreadsheet and i happen to have some some data in for x and y i’ve actually done the computations in excel so that we can check our answers here with the hp calculator so we have five pairs of data x and y 8 and 52 15

And 61 etc so if we want to put those into our financial calculator we do it this way well the first thing we want to do is clear our memory i’m going to clear everything so i’m going to hit this down arrow key and right here is clear all so i’ve cleared everything so i want to put in the first pair of numbers 8 and 52 so the way you do this is you put it in as

Eight input 52 and then you hit this button here sigma plus so that’s the first observation the second observation you do exactly the same thing 15 input and 61. and then we’re going to hit this sigma plus so that’s the second pair third pair 17 and um input and 85 the fourth pair 22 input and 92 and the final pair 28 input and 98. okay so now you

Have some data you have five pairs of data in here let’s see if we can’t find the means the standard deviation and actually the the um this is the sample standard deviation this would be the the actual or population standard deviation sigma so the way to do that is if you hit this down arrow key underneath the 7 it says x bar comma y bar and so the first number

Is the mean of x and if you want to get the mean of y you’re going to hit the swap key so that down arrow key and underneath the k is swap so we get 18 and 77.6 the standard deviation which is under the eight key so we’re going to hit the downshift and eight and we get 7.52 and again we can swap to see the the standard deviation of y 20.06 and if this happened

To be a population you could get the population variance and the difference or population standard deviation the difference is is this one’s divided by the variance is divided by n minus 1 before you take the square root this is simply divided by n and let’s try that one and we get 6.72 and again we can swap and get 17.94 so it did all of these calculations for

Us but you have pairs of data when you have pairs of data you sometimes are interested in running a regression now i don’t know that the a financial calculator is the most efficient way to run a regression but what are we interested in computing when we do a regression you know the intercept term and the slope coefficient so the way you’re going to do that is

Let’s see here so the down arrow key and underneath the 6 it says x bar w and b and what you do is you need to swap this and you get the slope coefficient i’m sorry you get the intercept term of 33 if you would like the slope coefficient again the down shift arrow key number five and then you have to swap this and you get 2.48 so that’s the slope coefficient

So you can see that you know the financial calculator can do some statistical analysis for you um you know fairly basic you probably wouldn’t want to do a regression that had you know 30 40 50 terms here you’d be much better off doing it in excel or doing it in some statistics program but if you happen to have a test in stats and you have to compute some means

Some variances maybe a simple regression here this is a pretty good way to do it

Transcribed from video

Statistics on the HP bII+ financial calculator By Ronald Moy Ph.D. CFA CFP