Calculating Standard Deviation Thanks to The TI BA II Plus

CFA Level I
#1

Exemple :

Find the standard deviation with the following probability distribution :

P(Rx) Rx

0.1 -5%

0.3 -2%

0.5 10%

0.1 31%

Answer : 10.03

________________

First of all, I want to precise that I know that I have to use the DATA/STAT keys of the calculator.

However, I never get the right result when I do it…

Maybe someone can explain me how to do it with the calculator.

Thanks a lot.

Cheers

#2

It is easy in fact. For those who want to learn the technique :

=> DATA

X Y

-0.05 1

-0.02 3

0.01 5

0.31 1

And then you will have the good result for the standard deviation in STAT; 1-V mode.

Enjoy

#3

Oh I didn’t know about DATA/STAT function. Thanks man!

#4

Really? So you passed the level 1 calculating standard deviation by hand? You can save a lot of time with this technique.

#5

Everyone doing CFA should spend an hour or so watching a video or reading tutorials on how to maximize the benefits your calculator offers you. Look in my post history. I posted a link to a BAII Plus tutorial about 4-5 months ago specially aimed at the CFA program. Some really helpful stuff.

Good luck to you guys!

#6

here it is

http://www.screencast.com/t/MGVjMThiZ

#7

Perfect ! Thanks a lot ! I will watch it after the office.

#8

For using the BA II plus to caluculate standard deviation, I found this video to be very helpful: http://www.youtube.com/watch?v=-U86qjBxS_k

#9

Lol the STO and RCL functions saved my ass.

#10

Learn to use the 12c and RPN. That way you never have to bother with the STO and RCL buttons.

#11

Hi Palacio,

I would be glad to know how to use 12c and RPN but it looks really complicated. Is it really valuable for level 1 exam? And if so do you have please some easy tutorials for learning these technics?

Thanks

#12

*techniques

#13

Woah. I’m doing my Level 1 in June 1. So far, I’ve been calculating standard deviation, skewness and kurtosis by hand. You guys are telling me the calculator can do this? How many numbers will the exam ask us to calculate? 10 just like in the EOC? Or fewer like 4 or 5?

EDIT: Bruunnoo is right. Sorry. I shouldn’t have asked the amount of numbers.

#14

hei.so, so sorry but can’t answer, according to Ethics.

By the way, why this topic is classified in FRM section?

It is funny because I will study FRM (but I will not take the exam, it is just for taking a break before level 2) in january. smiley

So the Ti Ba II + Professional is also allowed for the FRM? Or there is a better calculator?

#15

Thanks for the link cleverCFA. I watched the tutorial and it has really helped me save a lot of time!

#16

thanks all

#17

CleverCFA please tell me there is an equivilent video for level II calculator techniques?

#18

Actually, Bruno, the above sequence gave me a slightly off answer than the one provided by the post that is before you (10.03). I found that instead of entering the percentages in decimal like you did, you should enter them in percentages (e.g. 3% punched in calculator as 3 and not as 0.03, etc.). Thought I’d share!

#19

Can you use HP12c to calculate this? I tried searching for it before but from what i remember there wasn’t a way…

#20

How do u calculate mean absolute deviation? Can u use the calculator