Calculate the standard deviation of a ratio between two random variables using the delta method
This calculator estimates the standard deviation (and coefficient of variation) of the ratio of two random variables X/Y using the delta method, across a range of possible correlations between X and Y.
| Correlation (ρ) | Mean of X/Y | SD of X/Y |
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This application uses the delta method to approximate the standard deviation of the ratio X/Y. The delta method is a technique for estimating the variance of a function of random variables using Taylor series expansion.
Where ρ is the correlation coefficient between X and Y. This formula allows us to estimate the standard deviation by considering the means, standard deviations, and correlation between the variables.