A number of statistical measures are used when undertaking data analysis. The means, medians, standard deviations, and standard errors are only a few examples. These metrics assist in determining the real nature of the data.
If you deal with lots of statistical data then you would be interested in finding easy ways to calculate standard error in Excel as well as other important statistical values.
In this post, I will demonstrate two methods that you can use to calculate the Standard Error in Microsoft Excel.
The two methods for calculating standard error in Excel that will be taught in this tutorial are:
- the use of a formula
- the use of a Data Analytics Tool Pack
What is standard error?
When interacting with actual statistics, it is not always practical to use data from the full population. As a result, we normally operate with random samples drawn from the population.
The standard error of a sample indicates how close its mean is to the genuine population mean.
In other terms, a sample’s standard error is its standard deviation from the population mean.
This allows you to determine how well your sample’s mean represents the genuine population. It also aids in determining the degree of dispersion or variance between your various data samples.
The formula for standard deviation is seen below.
How to Use the Data Analysis Toolpak to Calculate Standard Error In Excel
If you don’t want to input complex calculations, there is a simpler approach to determine not just the Standard error, but almost all of the statistical metrics you would require to assess your sample data.
You will need to install the Data Analysis Toolpak for this. This package provides access to a wide range of statistical functions, including correlation, z-test, and t-test functions.
After installing the package, you may use the program whenever you need to examine data without having to re-install it.
The Data Analysis Toolpak is available to use and comes with your Excel program, but it does not display on your usual toolbar for simplicity. It must be activated before it can be placed on your toolbar.
The activation procedure is straightforward. To install and activate your Data Analysis Toolpak, simply follow these steps:
- Click the File tab, then Options. This will bring up the Options box.
Click “Add-ins” on the left sidebar from here.
- Select Analysis ToolPak from the list of Add-ins.
- Click the ‘Go’ button at the bottom of the window, directly next to Manage: Add-ins.
- Check the box next to Analysis ToolPak and then click OK.
Your Data Analysis Toolpak will be included in your Excel Toolbar as a result of this. When you select the ‘Data’ tab in Excel, you should see a tool called “Data Analysis” at the far right of the Data toolbar (under the ‘Analysis’ group).
How to calculate standard error in Excel using data analysis toolpak
Let’s use the dataset below as an example.
- To calculate your Standard Error and other Statistical indicators, perform the following steps:
- Under the Data tab, select the Data Analysis tool. The Analysis Tools dialog box will be shown as a result.
- Click OK after selecting “Descriptive Statistics” from the list on the left of the dialog box.
- In the “Input Range” box, enter the position of the range of cells containing your sample data. You may also drag and choose the range of cells that you require. You can choose data from all columns if you have data for more than one sample placed in neighboring columns. You will receive results for each column separately.
- Check the “Labels in first row” box if your data has column headings.
- Choose where you want your results to appear. It is safer to choose “New Worksheet.” This ensures that the facts are shown on a freshly generated worksheet while not interfering with any data on your current worksheet.
- Check the box next to “Summary Statistics” and then click OK.
All of your analytical metrics will be shown in a new worksheet as a result of this.
These metrics will also provide the Standard Error for the sample data you’ve chosen. If you chose several data sets in different columns, you will receive analytics for each column individually.
How to Use a Formula to Determine the Standard Error in Excel
Sadly, unlike with the Standard Deviation, there is no built-in method in Excel to compute the Standard Error, at least not at the time of writing this lesson.
You might, however, use the above method to quickly and efficiently determine the standard error. Here are the steps you must take:
- Click in the cell where you wish the Standard Error to display, then on the formula bar next to the fx symbol directly below your toolbar.
- In the formula bar, enter the symbol ‘=’. And use this syntax: =STDEV(
- Drag and drop the range of cells that make up your sample data. This will include the range’s position in your calculation. So, if your sample data is in cells B2 through B15, the formula bar will show: =STDEV(B2:B15).
- Close the bracket that contains the STDEV formula. You have so far used the STDEV function to calculate the standard deviation of your sample data.
- Next, we’ll divide this Standard deviation by the square root of the sample size. So let us proceed with our formula. After the closing brackets of the STDEV formula, click on the formula bar and add a ‘/’ sign to indicate that you wish to split the STDEV function result. So far, your formula is as follows: =STDEV(B2:B15)/
- The SQRT formula is used to calculate the square root of an integer. So, after that, enter SQRT(. Your formula bar will now display the following formula: =STDEV(B2:B15)/SQRT(
- Finally, you need to know the sample size. You must use the COUNT function for this. So, following what you already have in your formula bar, put COUNT. Drag and choose the range of cells from your sample data once more, then close the bracket for the COUNT formula. This will provide you the number of cells in the range you’ve chosen.
- Close the bracket as well for the SQRT function. As a result, your final formula should look like this: =STDEV(B2:B15)/SQRT(COUNT(B2:B15)) There are two closing braces at the end, as you can see. The first is for the COUNT function, and the second is for the SQRT function.
- That’s all! When you hit the return key on your keyboard, you’ll get your sample’s Standard Error!
If your samples are in neighboring columns (as seen in the above image), all you have to do is drag the fill handle (found at the bottom left corner of your computed cell) to the right.
This will duplicate the same formula to all of the other cells on the right, and you will receive standard errors for each of your samples!