Question

Use the data for the components of the S&P 500 index here to answer this question.

"Volume" is the number of shares of the stock that had been exchanged on the trading day at the time the data were downloaded.  What is the standard error of "Volume"?

Answer 1

Basically, Stand​erd Error of anything is basically Standered Deviation of the measure.

Here, Standered Error of Volume means Standered Deviation of Volume of stocks exchanged.

It is computed as follows,

1. Calculate the average (mean) volume for the number of periods or observations.

2. Determine each period's deviation (Todays Volume - Mean Volume).

3. Square each period's deviation.(Square of term computed in 2)

4. Sum the squared deviations.(Sum over period)

5. Divide this sum by the number of observations.(total Period)

6. The standard deviation is then equal to the square root of that number.(Take Suqare root)