FISHER is an Excel formula that returns the Fisher transformation of a given value. The Fisher transformation is used to convert a non-normal distribution to a normal distribution, making it easier to analyze using statistical methods that assume normality. This formula is commonly used in finance and economics to analyze stock returns and other financial data.
The syntax for the FISHER formula is:
Where x is the value you want to transform.
Example 1: If you have a set of stock returns that are not normally distributed, you can use the FISHER formula to transform them into a normal distribution. For example, if you have a return of 10%, you can use the formula =FISHER(0.1) to get a transformed value of 0.1003.
Example 2: You can also use the FISHER formula to calculate the correlation coefficient between two sets of data. For example, if you have two sets of data in cells A1:A10 and B1:B10, you can use the formula =FISHER(CORREL(A1:A10,B1:B10)) to get the Fisher transformation of the correlation coefficient.
FISHER Tips & Tricks
- The FISHER formula is most commonly used in conjunction with other statistical formulas, such as CORREL and TTEST.
- The FISHER formula can only be used with continuous data.
- The FISHER formula assumes that the data is normally distributed after transformation.
Common Mistakes When Using FISHER
- Forgetting to close the parentheses after the value you want to transform.
- Using the FISHER formula with non-continuous data.
- Assuming that the transformed data is normally distributed without checking.
Why Isn’t My FISHER Working?
If your FISHER formula is not working, it could be due to a number of reasons:
- You may have forgotten to close the parentheses after the value you want to transform.
- You may be using the FISHER formula with non-continuous data.
- Your data may not be suitable for transformation using the FISHER formula.
FISHER: Related Formulae
- CORREL: Calculates the correlation coefficient between two sets of data.
- TTEST: Calculates the probability that two sets of data are different.
- STDEV: Calculates the standard deviation of a set of data.
- MEAN: Calculates the mean of a set of data.
- NORMDIST: Calculates the probability of a value occurring in a normal distribution.