Data Analysis With MS Excel
Data Analysis With MS Excel
Introduction
Data Analysis is mostly about exploring data. In general people have this idea that it’s all about
building Machine learning models and predictive stuff. But actually it’s really about the working
with the data. The best thing that one can do with data is just understand what they have and
start asking questions and just start exploring and from the results or observations one can make
incredible like ,for businesses and organizations, help them drive improvements and address the
problems are trying to solve.
The first step in the whole process of Data analysis is ‘Getting the Data’. Data comes in all sorts of
shapes and sizes and all different places. It could be a simple as files; some text files, or some
documents or increasingly commonly if you working in a large organization, data is more likely to
be in somewhere like a database. So one needs to go and get it out from there. Now-a-days we
live in a connected world, where there are devices running, that are emitting data all the time, in
real time. One have got sensors, and this so-called Internet of things is out there. So one have all
this data from all these types of places.
Once the data is gathered, the next requirement is of some sort of tool to go and manipulate
that data, work with that data, clean up and then start to analyse that data. And that tool might
be something that is very commonly used like MS Excel, which is a really powerful tool that a lot
of people use to Analyse data Or maybe it’s a bit more specialized; like writing some R code or
Python or something like that and then manipulating the data in that language. The crucial step
is really understanding the kinds of questions one need to ask and how to think about data in
hand.
Using the proper Data Analysis technique and tool, the operations head can perform an analysis
for every item produced on each machine. Also the data about the defects can be obtained and
then analysed for questions like ‘number of defects for each plant / machine / per day etc’. Thus
through Data Analysis businesses can optimize their Supply-Chain Process and do a predication
of Demand- Supply Chain.
1. Data Analysis
Now we understand that Data Analytics can be coined as a process of observing the data in order
to draw meaningful and logical insight into the data and the information / trend contained in
that data. With the trends and the information gained, the organizations can then make a better
decisions. The process of Data Analytics can be classified into four types.
Descriptive Analytics explains what has already happened and it is the simplest form of Data
Analytics. During the process of Descriptive Analytics data is sliced into smaller chunks and then
appropriate information about, what has already happened, from those data chunks is extracted.
For instance, for a Banking Client’s data, using descriptive analytics one can find answers to
following types of queries:
In order to understand ‘Why something’ has happened from the data gathered one can use
Diagnostic Analytics. This type of analytics digs deeper in to the data to identify the real cause.
Predictive Analytics, as the name suggest is for making predications based on the trends
identified in the Data. This type of Analytics uses different Statistical, Data modelling and Data
mining techniques to study, observe and identify trends in the data gathered. Based on these
trends, Business Analyst and Data scientist can make forecast for the future time. This type of
analytics is of major use while defining the Business Strategies, Objectives and Processes for the
specific time periods.
· Customer Analytics : Through Customer Analytics, the organizations gains the insight about
customers and thereby help then make decisions about the customers offers / discounts etc.,.
· Risk Analytics: Risk analysis makes attempts to predict the indecisions of the forthcoming
business atmosphere. The results obtained through Risk Analytics that assists in evaluating
the probability of project’s success.
· Financial Analytics: is of greater use for Financial Executives. It provides various options to
address financial related business queries and also to predict and device financial strategies.
. Performance Analytics: is conduct to optimize the day to day operations. It aids in planning
daily operations, budgeting for short period, making strategies for meeting the SLA’s and also to
improve the overall operational performance.
1. Cost
2. Ease of Use
3. Learning
MS excel is installed and accessible on almost all the Windows based computers so one need not
to put in or invest in any other software for their basic Data analysis requirements. With minimum
or almost negligible learning period, a novice in Data analysis can utilize MS excel for analytical
purpose as easily as any other Windows based program.
2.2 Formatting and Conditional Formatting
In order to make Data ready and accessible for analysis, Formatting and conditional Formatting
features of excel are used.
2.2.1 Formatting
With appropriate formatting techniques in place user is able to present the data more effectively
and efficiently to the audience. Using Formatting users can add patterns or trends to the data.
Patterns or trends can be implemented either by colors or Icons or formulas etc.
Cells of Microsoft Excel spreadsheet can be formatted manually by selecting fonts, font color,
font size, background colors, and borders. In addition, excel provides several predefined table
styles for formatting the tables automatically.
Conditional formatting enables users to apply formatting patterns on particular cells of excel
spreadsheet, satisfying the specified condition/s.
Through Conditional formatting, data can be visualized in such a manner which makes complex
data easy to understand and relevant information can be highlighted, using colors, Bars, Icons
etc.,
Data Bars: The horizontal bars which are added to cells, making it look like a Bar Graph
Color Scales: Changes the color of cells based on the value of cell. Each color scale uses a two-
or three-color gradient.
Icon Sets: Icon are added to the cells based on its value.
Logical functions provided by Excel, assesses specific cell or cells for the specified criteria and
then return a Boolean Value either True or False. Various Logical functions supported by Excel are
Boolean Operator Functions: AND, OR, XOR, NOT
Excel LOOKUP functions are used when it is required to look into a single row or column and find
a value from the same position in a second row or column i.e., these functions returns the value
from a specified range of cells , either a Colum or a Row OR from an Array. There are two forms
of Excel Lookup Functions. These are:
Vector Form: searches one column or a row. It 'looks up' for a value in a data vector
which is a 1-dimensional list of data and then returns corresponding value from a second
data vector. In case the function is not able to find an exact lookup value, it returns the
closest value below the lookup value.
Array Form: A collection of values in the form of rows and columns is defined as an
Array. This functions 'looks up' for a supplied value in the first column or row of a
supplied data array which is a 2-dimensional table of data. It returns the corresponding
value from the last column or row of the array. One Prerequisite for using the Array Form
is that Data must be sorted.
Microsoft recommends using the VLOOKUP and HLOOKUP functions instead of using
Array form of the Lookup functions.
VLOOKUP: performs a vertical Lookup and searches for the supplied data in the current
worksheet. It is used to look for data in a table or a range by row.
HLOOKUP: performs a Horizontal Look up and searches for the value in first or top row
of a table or an array of values. It returns a value in the same column from the specified
row in the table or array.
INDEX: function utilizes and index to pick a value from a reference or array. This
function returns a reference to a cell (or cells) for requested rows and columns.
OFFSET: This function is used to return a reference offset from a given reference range.
MATCH: This function looks for specified value in an array of cells and then returns the
relative location of that element.
2.3.3 Statistical Functions
MS Excel offers a wide range of Statistical Functions that can accomplish majority of Statistical
calculations ranging from basic mean, median & mode to complex statistical distribution and
probability tests like Anova, CHITEST etc., Major Statistical functions of Excel are listed below:
MIN: returns the minimum value from a list of provided data readings
MAX: returns the maximum value from a list of provided data readings
SUMIFS: calculates the sum of the range of selected cells based on the defined
criteria
COUNTIFS: returns the number of cells among the range of cells provided meeting
the defined criteria.
PERCENTILE: calculates and returns the K'th percentile of data readings provided,
where K is in the range 0 - 1 (both inclusive)
STDEV: calculates the standard deviation for the given dataset or values
representing population sample
MODE: finds the Mode or most frequently occurring value in the given dataset.
COVAR: Finds the Covariance for the given set of values or dataset
Pivot tables were earlier referred as Crosstab. It’s believed that building a Pivot table is very
complex and time consuming task but it a myth. Rather, if the data is well organized then it’s
a minute job to create a pivot table. Characteristics of Pivot tables are listed below:
To analyse a dataset using Pivot table, user needs to simply drag and drop the relevant data in
the appropriate cells. The tool itself re arrange the data enabling the user to play around with the
summarized or reorganized data to discover and identify data trends and patterns. During data
analysis following features offered by excel pivot tables are of great help:
Grouping: groups the data according to the Header values. Any field which is added in to
the Pivot table either as row or column is can be grouped using the Grouping option. By
default, the numeric values, including date and time fields, are grouped by pivot table
Filters: While doing an analysis on a large data it is often required to narrow down the
data based on field values to bring out trends in the data. This can be effectively achieved
using the Filters feature of the Pivot table.
Slicers: Slicers are just another form of filtering Slicers provided set of buttons based on
data values of the field selected for slicer. There are no drop downs in this case. Slicers
can be defined for any type of field in the pivot table
Custom Calculation: Very often there is requirement to change the way field values are
displayed. For instance, instead of showing the sum or count of the numeric value it is
required to display the numeric data in the form of percentages. This can be achieved
using the Custom Calculation feature offered by Pivot table.
Calculated Field: In case there is a requirement to do some runtime calculation using the
Pivot tables fields then calculated fields are used. These type of fields allows to write
custom formulas in the Pivot table using already present fields in Pivot table.
While analysing large data sets there is often a situation where some pieces data is missing. In
such cases, to continue with the data analysis process, it becomes mandatory to fill in the values
for the missing data. The What-If analysis tools of Excel comes handy in these situations.
The process of changing the values in excel worksheet cells to observe the changes in the
formulas outcome is termed as What-if analysis. With this feature it is possible to play around
and experiment with the incomplete datasets also.
Goal Seek: It is used to obtain the results when the starting values are not known. As the name
suggest, it tries to find out the goal from the end results. For instance, if the sum of two numbers
are provided as 10 and one number is 6 then what the second number is? This can be solved
using Goal Seek. In the large volume of data where the data readings are missing then Goal Seek
is used to fill up the values with more complex logic
Scenario Manager: This tool enable users to create different circumstances with different set of
data values and then switch between them. It allows to change 32 variables concurrently thus
enabling to examine the outcomes for different input values at the same time.
Data Tables: Data Table in excel is a tool for doing a comparative analysis of the available values.
Using data tables possible outcomes are determined by taking a set of input values. Instead of
creating different situations as with Scenario manager, different output values for a formulae for
different inputs is determined by making use of data tables.
Solver: Solver is used to find out the optimal solution for a formula according to the defined
constraints and specifications. Constraints in Solver tools plays a crucial role. They confine the
boundaries for the resources that helps solver to determine a feasible and optimal solution.
One of the component of data analytics is Statistical Analysis which includes collection and
examination of data sample of a population. It’s a discipline of science in which large data is
collected, studied, explored and manipulated to identify the hidden trends and patterns. In the
end results are presented in such a manner that the end user can easily understand the findings
about the data.
Data collection
Data Exploration
Data Modelling
Study of the Data Model
Deductions from the data Model
The objective of Statistical Analysis is to identify and discover the Trends and patterns in
the Data.
Excel is a widely used software package to implement the statistical concepts and
perform the calculations accordingly. It can:
Statistical Analysis in excel can be performed using the Data Analysis command. In case data
Analysis command is not available then it needs to be enabled by loading the Analysis Toolpack
addin in excel.
Major types of Statistical operations or calculations that can be performed using the Data
analysis command in excel are as follows:
Moving Average: is used for forecasting purposes by creating a series of Averages for different
subsets of the dataset provided.
ANOVA: is a statistical method which observes and reports the variance by comparing the
Means of different groups of data. ANOVA stands for Analysis Of Variance. This method allows to
test the Null Hypothesis for more than two groups also.
COVARIANCE: is a method which determines the relationship or behaviour between two random
variables say X and Y. If Y increases with X then covariance is positive and both variables show
similar behaviour. If Y decreases with X then covariance is negative and both variables show
opposite behaviour.
CORRELATION: is a measure of extent to which two or more variables vary together. Correlation
coefficient vary between -1 to +1. Correlation Coefficient of value +1 indicates perfect correlation
and a value of -1 indicates perfect negative correlation. A value of 0 indicates no correlation
between the variables
Regression: is most widely used statistical method and is used to define the relationship strength
between on dependent variable (denoted as Y) and series of series of changing variables knows
as independent variables.
3. Conclusion
Undoubtedly MS excel is a tool which can cover and serve almost all the perspectives of Data
analysis and due to this it has become a by default choice for a first step towards the world of
Data Analysis. Though excel has almost everything to offer for Data crunching and analysis still
there are some limitations of this package like:
· Many useful functions or tests are still not available in Excel and its Analysis Tools,
Even, with the above mentioned shortcomings, excel is the preferred tool for Data analysis for
many users. Also if someone is an experience user in the field of Data Analytics still MS Excel
offers something new to learn