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Topic: Business
Number of pages / Number of words: 2 / 503
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To be precise, we should have used n

n??2COVAR(X; Y ) to adjust for losing

2 degrees of freedom in calculating the sample means of X and Y . For the purpose of

this course, however, we ignore this issue and simply use COVAR() to calculate covari-

ances. (Note that Excel functions VAR(X) and STDEV(X) have already adjusted for


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(Note that Excel functions VAR(X) and STDEV(X) have already adjusted for

unbiasedness. Hence, you will get slightly di_erent results for Excel function VAR(X)

and COVAR(X;X). Either one is _ne for this course.)

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