June 21, 2012

Objectives

Enable the Data Analysis Add-In Quickly calculate descriptive statistics using the Data Analysis Add-In

Create a histogram using the Data Analysis Add-In

Data Analysis Add-In

Microsoft Excel comes with several tools that can expand its ability to perform certain types of analysis One of these tools is the
Data Analysis Add-In

Other great add-ins, such as the:

Solver add-in and Conditional Sum wizard

What is the Data Analysis Add-In

It provides easy to use tools to quickly generate a variety of statistics for a set of data
Descriptive Statistics Histograms and Pareto Charts Regressions Analysis of Variance (ANOVA)

Begin Using Add-Ins

Add-ins

are called such because they are not normally active in a default installation of Excel User controls which add-ins are available at start-up also turn add-ins off and on as needed. [Excel Options] {Add-Ins}

The

Can

BUTTON

Begin Using Add-Ins

Click on the Office Button

Click Excel Options

Click Add-Ins in the list on the left side of the window.
The Add-In list shows which add-ins are

activated, and which ones are available

At the bottom of the window, make sure the Manage drop down displays Excel Add-Ins

Begin Using Add-Ins

Click the Go button

The Add-Ins window appears.

Click the check box for:
Analysis ToolPak

Click the OK button OPEN A WORKBOOK

Go to the Data tab Analysis group and click on the Data Analysis button

Data Analysis Options

Descriptive Statistics

Using the Descriptive Statistics tool can quickly generate a set of values that can help describe the data set Summarizes the data set using a variety of statistical functions

Descriptive Statistics

Some of the values returned by the Descriptive Statistics tool:

Range Min Max Range Sum Count

Mean (Average) Median (middle value from a list of data) Mode (Most Often value) Sample Variance Sample Standard Deviation

Descriptive Statistics

Open a Workbook to process Open the Data Analysis window Select the Descriptive Statistics option in the list Click the OK button The Descriptive Statistics dialog box opens

Descriptive Statistics

Select the Input Range (the data you want descriptive statistics generated for) Select whether the data is grouped in columns or rows Select if there are labels in the first row or column

Descriptive Statistics

Select the Output Range (where you want the data to be placed)
USUALLY in the NEW WORKSHEET PLY

Click the Summary statistics check box Click the OK button

Descriptive Statistics
Pledges Data Analysis

CSCO Mean Standard Error Median Mode Standard Deviation Sample Variance Kurtosis Skewness Range 0.055572635 0.010701017 0.050069587 0.051428571 0.122010367 0.01488653 -0.319515017 0.10465029 0.541492015

Histograms

A Histogram is a type of chart used to display information about a data set

Essentially, a bar graph applied to numerical data

Shows how many data points fall within various ranges of values Also shows the shape of the data how it is distributed

Creating Histograms

Determine the range of values to use also called a bin range

Excel can create bin ranges for you, but they

are often meaningless bin ranges

Take the range of values of the data, and divide into 8 to 15 equally spaced categories
Create a bin range list in your worksheet

Creating Histograms

Click the Data Analysis button to start the Data Analysis Add-In (Data tab Analysis group) Select Histogram from the Analysis Tools list, and click OK The Histogram dialog box opens

Creating Histograms

Select your input range, which is the range of data you are creating the histogram for
It is a good idea to include a

label with the data, so the x-axis of the chart is labeled with something meaningful

Select the bin range you created. This is a 2 column frequency table.

Frequency 0 0 100 12 200 6 300 2 400 0 500 1 600 0 700 0 800 1 900 0 1000 5 More 0

Bin

Creating Histograms
Click the Labels check box, if your data and bin range includes labels (again, a good idea) Select where you want the histogram to be displayed (Usually NEW WORKSHEET PLY) Make sure you Click the Chart output check box, otherwise the actual histogram chart will not be generated Click the OK button

Creating Histograms
CSCO Frequency -0.3 0 -0.2 2 -0.1 13 0 26 0.1 42 0.2 31 0.3 10 0.4 6 More 0

Histogram
50 40 30 20 10 0 -0.3 -0.2 -0.1 0 0.1 CSCO 0.2 0.3 0.4 More

Frequency

Histogram Formatting

Histograms usually do not have gaps between the bars, in order to better show the shape (distribution) of the data
Select the data markers (single-click one of

the bars)
Go to the Chart Tools Layout tab

Current Selection group

Click on the Format Selection button Change the Gap Width to zero

Histogram Shape

The size of the bars generally indicates variability of the data Higher bars means less variability
More data fits into fewer bins

Lower bars means more variability

More data is distributed across the bin range

Histogram Shapes

The shape of most histograms will fall into one of four categories:
Symmetric Positively Skewed (skewed right) Negatively Skewed (skewed left) Multiple Peaks

Histogram Shapes

Symmetric
Has a single peak in the middle The bars on either side of the peak bar are

roughly the same size

Looks like a standard bell curve

Histogram Shapes

Positively Skewed (skewed right)

Has a single peak The values of the data set extend much

further to the right of the peak than the left

The chart tails off to the right (data is

grouped mostly to the left side of the chart)

Histogram Shapes

Negatively Skewed (skewed left)

Has a single peak The values of the data set extend much

further to the left of the peak than the right

The chart tails off to the left (data is grouped

mostly to the right side of the chart)

Histogram Shapes

Multiple Peaks
Has more than one peak in the chart Generally indicates that data from two or

more sources is being graphed together

Chart has a U-shape

Exercise

Use the Data Analysis Add-In to:

Generate a set of descriptive statistics Create a histogram chart

Pledges Analysis

Data Analysis

Advanced Exercise