BPDM

Super Simple Statistics and Visualizations with Excel

Moutaz Haddara

Competence:
You should be able use different types of end-user tools

Today: Excel (most widely used BI tool according to Watson, 2009)

Spreadsheets are popular partly because it contains many features, it is easy
to integrate with other tools, and because the user recognize the utility
(Sharda et al, 2014. Read more on pp. 434-436).
 Various mathematical & statistical concepts
Sum
Average
Median
Min / max
Correlation
Standard Deviation
Graphic representation of the data
Bar Charts
Heat maps
Pivot Charts

SUM

Sum of values in an array of

numbers.

We will use the Superstore

Dataset
Formula can also be
=SUM(R:R)
It automatically ignores text in
the array
 Average

• It is the arithmetic mean, and is calculated by adding a group of

numbers and then dividing by the count of those numbers.

• For example, the average of 2, 3, 3, 5, 7, and 10, is 30 divided by

6, which is 5.

AVG

AVG of values in an
array of numbers.

Formula can also be

=AVERAGE(R:R)
Median
The middle number of a group of numbers. Half the

numbers have values that are greater than the median,

and half the numbers have values that are less than the

median.

For example, the median of 2, 3, 3, 5, 7, and 10 is 4.

Median
The median provide a stronger basis for generalization

Median: The value of the middle number in a rank-ordered distribution.

Sales figures (in one hundred thousand) per weekday for an imaginary store:

1, 1, 2,3, 4, 15, 20 Median: 3 (The average: 6.5)

If the median is between two values, the average of these two.
Sales figures (in millions) per month for a plan shopping:

1, 2, 2, 2, 3, 3, 5, 5, 6, 7, 10, 19 -> Median: 4 (The average: 5.4)

 MEDIAN

MED of values in
an array of
numbers.

Formula can also

be
=MEDIAN(R2:R9
995)

Min / Max

Minimum and maximum

occurrence (extremes) In a set
of values (Array).
MAX (SALES) Min (SALES)
 Correlation

A number between -1 and +1 expressing how strong is a correlation between two

variables.
A correlation of 1 indicates that there is Very Strong +Ve correlation, i.e. when one
variable increases, so does the other linear, while a correlation of -1 means that
when one variable increases, the other decreases.

Correlation

1- Open the Correlation Dataset.

Your sheet should look like this!
Correlation- Energy (Oil) Company
The Oil Company dataset comprised of the following attributes:

• Insulation: This is a density rating, ranging from one to ten, indicating the thickness of each home’s insulation. A home with a

density rating of one is poorly insulated, while a home with a density of ten has excellent insulation.

• Temperature: This is the average outdoor ambient temperature at each home for the most recent year, measure in degree

Fahrenheit.

• Heating_Oil: This is the total number of units of heating oil purchased by the owner of each home in the most recent year.

• Num_Occupants: This is the total number of occupants living in each home.

• Avg_Age: This is the average age of those occupants.

• Home_Size: This is a rating, on a scale of one to eight, of the home’s overall size. The higher the number, the larger the home.

Correlation

2- Add the Analysis Toolpak from TOOLS-> Excel Add-ins.

If you cant find it, visist https://support.office.com/en-

us/article/load-the-analysis-toolpak-in-excel-6a63e598-cd6d-

42e3-9317-6b40ba1a66b4
Correlation

3- Select the Analysis ToolPak

Correlation

4- Save the file and Restart Excel

Correlation
5- Click the Data tab

and then click on

Data Analysis.

6- Choose

Correlation

Correlation
7- Choose the range.

8- Check Labels in

first Row.

9- Choose new

worksheet and name

it Correlation.
Correlation

Results!

Correlation Matrix

Correlation

NB. Excel has a built-in Correlation

(CORREL) function but works with only 2

variables (Arrays) at a time!

 Correlation doesn’t mean Causality!

Creating formula

Text
Graphic representation of the data

BarChart (= Graph) shows the frequency.

Heat maps Visualizes value using predefined colors.

Bar chart, pie chart and graph were introduced

on late 1700s. Visualizes data revealing
patterns (The Economist, 2013).
Visualization in Excel- Heat Map

Visualization in Excel- Heat map

Visualization in Excel- Heat map

Heat Map- Other Examples

Bar Charts

A bar chart is a graph that shows horizontal bars with the axis values for the

bars displayed on the bottom of the graph.

It is a graphical object used to represent the data in your Excel spreadsheet.

You can use a bar chart when:

• You want to compare values across categories.

• The category text is long and difficult to display in a column chart.

• You want to show duration in a graph.

Bar Charts

1- Open the chart_examples2018 File

2- Select all columns in Products Sheet

Bar Charts
3- From the insert tab choose 2D Bar (Clustered)

Bar Charts
Bar Charts- Column Chart

1- Select all columns in Sales Sheet

Bar Charts- Column Chart

2- Choose Clustered Column chart

 Bar Charts- Column Chart

Excel Tips- Data Preparation Joining two columns

Open the Customers Sheet

Excel Tips- Data Preparation Joining two columns

Write this formula

Excel Tips- Data Preparation Joining two columns with space in between
 Pivot Tables
Pivot tables are one of Excel's most powerful features. A pivot table
allows you to extract the significance from a large, detailed data set.

Pivot Tables

Our data set consists of 213 records and 6 fields. Order ID, Product, Category,
Amount, Date and Country.
Pivot Tables
Open the Fruits & Vegetables sheet
1. Click any single cell inside the data set..
2. On the Insert tab, in the Tables group, click PivotTable.

Pivot Tables
The following dialog box appears. Excel automatically selects the data
for you. The default location for a new pivot table is New Worksheet.
3. Click OK.
 Pivot Tables

Drag fields
The PivotTable Fields pane appears. To get the total
amount exported of each product, drag the following
fields to the different areas.
1. Product field to the Rows area.
2. Amount field to the Values area.
3. Country field to the Filters area.

Pivot Tables
As you can see, Bananas are our main export product with highest sales.
Pivot Tables
Sorting
1. Click any cell inside the Sum of Amount column.
2. Right click and click on Sort, Sort Largest to Smallest.

Pivot Tables
Sorting
Results
 Pivot Tables

You can now check the sales amount per

country through the use of filters!

Note: you can use the standard filter (triangle next to Row
Labels) to only show the amounts of specific products.

Pivot Tables

You can now check the sales amount per

country through the use of filters!

Note: you can use the standard filter (triangle next to Row
Labels) to only show the amounts of specific products.
 Pivot Tables
Changing calculations
By default, Excel summarizes your data by either
summing or counting the items.
To change the type of calculation that you want to
use, execute the following steps.
1. Click any cell inside the Sum of Amount column.
2. Right click and click on Value Field Settings.

Pivot Tables
Changing calculations
By default, Excel summarizes your data by either
summing or counting the items.
To change the type of calculation that you want to
use, execute the following steps.
1. Click any cell inside the Sum of Amount column.
2. Right click and click on Value Field Settings.
 Pivot Tables
Changing calculations
3. Choose the type of calculation you want to
use.
For example, click Count.

Pivot Tables
Changing calculations
Result. 16 out of the 28 orders to France were 'Apple' orders.
2D Pivot Tables
If you drag a field to the Rows area and Columns area, you can create a two-dimensional pivot
table. First, Insert a Pivot Table again.. Next, to get the total amount exported to each country, of
each product, drag the following fields to the different areas.

1. Country field to the Rows area.

2. Product field to the Columns area.

3. Amount field to the Values area.

4. Category field to the Filters area.

2D Pivot Tables
Results!
2D Pivot Tables

Filter- Choose United

States data only!

Pivot Chart
Let’s create a Pivot Chart.
1- Click on any cell in the table.
2- Click on PivotChart icon in the Insert Tab
Pivot Chart
Results!

Pie Chart
Let’s change the Bar Chart to a Pie Chart
1- Right click on the chart and choose Change Chart Type -à Pie chart
Pie Chart
Let’s change the Bar Chart to a Pie Chart
1- Right click on the chart and choose Change Chart Type -à Pie chart
2- Choose 2D Pie Chart

Pie Chart
Result!
Pie Chart
3- Right click on the chart and choose «Select Data»

4- Click on «Switch Row/Column». Should appear like the photo on the right!
Pie Chart
Pie Chart

Results!

References

The Economist "Winds of changement" july 6th-12th 2013 pp. 73-74

Sharda, R., The part, D., & Turban, E. (2014). Business Intelligence and Analytics. Systems

for Decision Support (10th ed.): Pearson.

Watson, HJ (2009). tutorial: Business Intelligence - Past, Present, and Future.

Communications of the AIS, 25(1) Article 39.

Moutaz Haddara
[email protected]