INTRODUCTION TO THE

DATA ANALYSIS ADD-IN

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 dataDescriptive 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

The User controls which add-ins are available at start-up

Can also turn add-ins off and on as needed.

BUTTON [Excel Options] {Add-Ins}

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

CSCO

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

Data Analysis

Pledges

Histograms

A Histogram is a type of chart used to display information about a data setEssentially, 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 rangeExcel 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 forIt 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.

BinFrequenc

y0 0

100 12200 6300 2400 0500 1600 0700 0800 1900 0

1000 5More 0

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

0 260.1 420.2 310.3 100.4 6

More 0

01020304050

-0.3 -0.2 -0.1 0 0.1 0.2 0.3 0.4 More

Freq

uency

CSCO

Histogram

Histogram Formatting

Histograms usually do not have gaps between the bars, in order to better show the “shape” (distribution) of the dataSelect 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

SymmetricHas 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 PeaksHas 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

Advanced ExerciseData AnalysisPledges Analysis