Recently, I was working on some finance distribution issues. One of the things we decided to do was look at fund allocation from other environments through the lens of our deviation from industry standards. To make a long story short, we quickly realized that we needed to test for standard deviation and chose to use a chi-squared test, just like we were taught to do back in Stat 101. E is the expected frequency, O is a frequency and N is the number of cells.
Cross-discipline nerdery.