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CH 01
CH 01
CH 01
Business statistics provides the tools through which such data are collected, analyzed, summarized, and
presented to facilitate the decision-making process, and business statistics plays an important role in the
ongoing saga of decision making within the dynamic world of business. Excel provides many of the
required graphic and statistical analysis functions required to help make informed business decisions. This
manual will provide the necessary step-by-step instructions required to solve the types of problems detailed
in the text.
Versions of Excel
The examples in this book were written using Excel 2013 with notes about changes in Excel 2010. For
those using Excel 2010, skip to section 1.6.
Prior Knowledge
It is not necessary to have any prior knowledge of Excel to use this book. However, it is helpful to practice
some of the program’s basic functions outlined in the next section before advancing to statistical analysis.
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When you open Excel 2013, the screen will look like the one below, giving you a choice of templates,
opening a blank worksheet, or certain types of reports or formats for analysis.
When you open Excel 2013, you can select a blank worksheet as part of a workbook. Initially, one
worksheet is available to you but you can create an unlimited number (limited only by your computer
memory) of additional sheets by clicking on the button at the lower left of the worksheet to the right
of the tab for Sheet1 . You can insert, move, or delete worksheets as needed. The figure
below is a screenshot of a Microsoft Excel 2013 worksheet.
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The outer window is the Excel program window. The inside window is the workbook. In this case, both
windows have been maximized. The worksheet tabs are shown at the bottom of the workbook. Each sheet
is selected by clicking on its tab. The worksheets can be renamed and reorganized within a given workbook
or between other open workbooks.
Worksheet data is displayed in cells, which can be identified by the row and column that intersect at that
point, for example, the first cell is named A1 and is located at the intersection of column A and row 1. There
are 1,048,576 rows and 16,384 columns in a single worksheet. The rows are numbered on the left and the
columns are labeled at the top. The columns start with A and increase alphabetically to Z, starting over with
AA, AB, AC and continuing up through IV. Cell data is also referenced by the specific sheet that the data
is input for instances where data or formulas are shared among worksheets.
Data is entered into a cell by selecting a cell address by left clicking on it with the mouse or by moving to
that location using the arrow keys. Information can be typed directly into a particular cell or in the Formula
Bar above the actual worksheet. Three types of information can be entered into a cell: labels, values, and
formulas. The length of a cell’s content can be quite long, however, the information may not be displayed
in the cell if it is too long or if the column is not widened. A column width is 255 characters, which is also
the maximum number of characters in a header or footer. The total number of characters that a cell can
contain is 32,767.
Worksheet themes are available to change some of the colors used in the worksheet, ribbon bar, menus,
etc. Select the Page Layout tab and Themes, Colors, Fonts, or Effects to make changes.
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Formula Bar
Row Labels
Active Sheet
Sheet Tabs
Scroll Bars
Worksheet
Scroll Buttons
If you are unsure about what a menu choice means, you can pause the cursor over any choice to see a
definition. The one shown is for the PivotTable choice.
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In addition to the pull-down menu options, there are keyboard equivalent controls and right-click menu
options. Often, there is more than one way to accomplish a task. Use whatever method is easiest for your
own working style.
You can collapse or maximize the Ribbon in order to maximize your work space. Click on the arrow on the
upper-right corner of the Ribbon to collapse. Click again to maximize.
The Quick Access Toolbar is located above the Ribbon. It gives you access to common commands
no matter which tab you have selected. You can also access a customization toolbar from the Quick
Access Toolbar giving you the following options to be placed or removed from the toolbar.
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There are several menu options on the left that allow you to access recent documents and additional
capabilities.
The Cancel X and the Accept check mark appear only when information is being input or edited into a
cell.
named to reflect its contents. A new worksheet can be inserted by clicking on + icon to the right of the sheet
tabs.
Some of the more common tools and commands for Excel 2013:
Analysis button appears to give you quick access to many useful features and allows you to preview
the data before you apply them.
For example, if selecting columns of data, the quick analysis choices would be to format the
data, create a chart or table, etc.
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You can print one copy of your current worksheet by selecting File Print. Printing options include
printing the entire workbook or only selected sheets, printing selected or highlighted section(s) in your
workbook. You can also print only certain pages and change the number of copies printed. Select for more
options.
Options can be selected for adjusting page, margins, headers/footers, and the worksheet orientation.
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An extensive help system is provided with Excel. You can access help by clicking on the ? button in the
menu bar.
If you are using Excel 2013, you can skip over the Excel 2010 following sections and proceed
to section 1.10 on Entering Data.
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When you open Excel, a new file opens with a series of blank worksheets organized into a workbook.
Initially, three worksheets are available to you but you can create an unlimited number of additional sheets
limited only by your computer memory. You can insert, move, or delete worksheets as needed. The figure
below is a screenshot of a Microsoft Excel 2010 worksheet.
The outer window is the Excel program window. The inside window is the workbook. In this case, both
windows have been maximized. The worksheet tabs are shown at the bottom of the workbook. Each sheet
is selected by clicking on its tab. The worksheets can be renamed and reorganized within a given
workbook or between other open workbooks.
Worksheet data is displayed in cells, which can be identified by the row and column that intersect at that
point, for example, the first cell is named A1 and is located at the intersection of column A and row 1.
There are 65,536 rows and 256 columns in a single worksheet. The rows are numbered on the left and the
columns are labeled at the top. The columns start with A and increase alphabetically to Z, starting over
with AA, AB, AC and continuing up through IV. Cell data is also referenced by the specific sheet that the
data is input for instances where data or formulas are shared among worksheets.
Data is entered into a cell by selecting a cell address by left clicking on it with the mouse or by moving to
that location using the arrow keys. Information can be typed directly into a particular cell or in the Formula
Bar above the actual worksheet. Three types of information can be entered into a cell: labels, values, and
formulas. The length of a cell’s content can be quite long, however, the information may not be displayed
in the cell if it is too long or if the column is not widened. The maximum column width is 255 characters.
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Row Labels
Active Sheet
Sheet Tabs Page Layout Zoom Control
Scroll Bars
Worksheet
Scroll Buttons
Excel Menus
Excel menus are organized by tabs with menu headings that you can click on to see submenu choices in a
horizontal format called a Ribbon. If a menu choice in the Ribbon reveals an arrow, place the cursor on
that line to view the remaining items in that menu choice.
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If you are unsure about what a menu choice means, you can pause the cursor over any choice to see a
definition. The one shown is for the PivotTable choice.
In addition to the pull-down menu options, there are keyboard equivalent controls and right-click menu
options. Often, there is more than one way to accomplish a task. Use whatever method is easiest for your
own working style.
You can minimize or maximize the Ribbon in order to maximize your work space. Click on the arrow on
the upper-right corner of the Ribbon to minimize. Click again to maximize.
The Quick Access Toolbar is located above the Ribbon. It gives you access to common commands
no matter which tab you have selected. You can also access a customization toolbar from the Quick
Access Toolbar giving you the following options to be placed or removed from the toolbar.
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There are several menu options on the left that allow you to access recent documents and additional
capabilities.
The Cancel X and the Accept check mark appear only when information is being input or edited into a
cell.
Sheet Tabs
Each worksheet has a tab located at the bottom of the worksheet. Clicking on the individual tab activates
that sheet. More than one sheet can be activated by selecting the first sheet, holding the Control Key down
and then selecting another sheet(s). You can click and drag a sheet tab to move the sheet to another location
in the worksheet order. By right clicking on the sheet tab and selecting Rename, the worksheet can be
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named to reflect its contents. A new worksheet can be inserted by clicking on the icon to the right of the
sheet tabs.
You can print one copy of your current worksheet by selecting File Print. Printing options include
printing the entire workbook or only selected sheets, printing selected or highlighted section(s) in your
workbook. You can also print only certain pages and change the number of copies printed. Select for more
options.
Options can be selected for adjusting page, margins, headers/footers, and the worksheet orientation.
Chapter 1 1-15
An extensive help system is provided with Excel. You can access help by clicking on the ? button in the
menu bar.
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When a new workbook opens, cell A1 automatically becomes the active cell, with a dark outline
surrounding the cell. Click with the mouse or move with the arrow keys to activate a different cell. When
data is input, you can press the Enter key on the keyboard or click on the Enter box to finalize the cell
entry.
You can enter several types of data into a worksheet cell: text, numbers, and formulas are the most
common. Before you begin, you must select the cell in which you want to enter the information.
Cell Contents
Each cell can contain its own text, formatting, comments, formulas, and functions.
Text
Cells can contain text consisting of letters, numbers, or special characters. The text is by default
left aligned in the cell. This can be changed through the toolbar or menu if desired. The number
of characters displayed and printed in a cell depends on the width of the column. If the cells to
the right are empty and remain empty, you can enter a long label, up to a maximum of 255
characters.
Formatting
Cells can contain formatting attributes that change the way text or numbers are displayed.
Comments
Cells can contain comments by the creator or multiple reviewers.
Numbers
Formulas
Formulas are mathematical expressions that can use values or formulas in other cells to calculate new
values. Formulas can include numbers, cell locations, ranges, functions, and labels. Once the formula is
entered and accepted, the result will be displayed in the cell and the equation will be displayed in the formula
bar.
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To create a formula, the computer must recognize that you are entering a formula. An “=” sign is placed
before the formula so that the computer can identify that there is a formula in the cell. Cell locations are
used in formulas to give your worksheet more flexibility.
Functions
Functions are special formulas to perform more complex operations. They are pre-programmed equations
in Excel designed to save time and efficiency. Functions can be used for arithmetic, statistical, scientific,
or investment calculations. The most common functions are the SUM, AVG, MAX, and MIN, but there are
dozens of functions available for your use. You can input a function by typing it directly into a cell or by
accessing the Formula Palette or Function Wizard for assistance.
An example of a function is the calculation of a mean or average of a data set. The function is input into
the cell where you want the answer. All functions start with “=” as other formulas. The average formula is
of the form “=AVERAGE (A2:A25)” where the range in parenthesis represents the data range that you
want to find the average of, that you select manually by dragging with the mouse. The function name is not
case sensitive.
Editing
There are several ways to modify or edit the information in a cell. For data that has not yet been entered
after typing, you can use the backspace or delete key to modify the contents. You can also press the ESC
key to cancel the entire operation or click on the X box in the Formula Bar.
Once data has been entered into a cell, you can double-click on the cell and move the cursor I-beam to
allow editing. You can also activate the cell and edit the data in the Formula Bar.
upper, or leftmost cell location, a colon, and the last cell on the bottom or the right of the range. Ranges
are selected to change the formatting of a worksheet or to calculate formulas.
A block of
cells (D2:F6)
A single cell
A row of cells (G9)
(A10:E10)
To insert a column, click on the column heading, right click and select Insert.. To insert more than one
column, click and drag on the column headings (click and drag in the center of the column heading button
or you could resize the column) and repeat the steps.
To delete one or more columns, click on one or more of the column headings, right click and select Cut or
Delete from the menu. The entire column is deleted, not just the information in that row.
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Moving Information
You can move any information in your worksheet from one section to another on the same sheet or to a
different sheet, or even to a different workbook or another application.
If you want to Cut and Paste information, select the range of information that you want to move and under
the Home tab select the Cut button in the ribbon. Select the cell that represents the upper left cell in
the new location and click the Paste button in the toolbar. You should be aware that certain types of
formulas or functions might not behave the way you want when moved.
If you want to copy selected information instead of moving it, select the range of information that you want
to copy and under the Home tab select the Copy button in the toolbar. Select the cell that represents
the upper left cell of the new location area and click the Paste button in the toolbar. You should be
aware that certain types of formulas or functions might not behave the way you want when moved.
If you want to drag and drop individual cells or a range of cells from one location to another, select the
range of information that you want to move and then place the mouse pointer on the edge of the cell or
range until you see an arrow-shaped pointer. At that spot, you can click and drag a range of data to
another location.
Filling
If you want to fill in a range of cells with a specific number or a series of numbers, type and enter the data
to be repeated. Select the cell(s) to be copied and then move the cursor to the lower right of the cell until
the mouse pointer turns to a cross hair. Drag in whatever direction you want to copy the information. If an
extended series is desired, type the first two numbers or time increments in the series, then select those
two cells and drag down the lower right crosshair until the series is completed.
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Formatting a Worksheet
You can change the appearance of individual cells or a range of cells. For example, you can enhance the
text by changing the font size, change the look of a number to display a certain number of decimal places
or a % or $, or add color to the worksheet. Select the cell(s) to be formatted and then select the desired
options from the formatting buttons in the ribbon under the Home tab.
You can access a number of commands by right-clicking on cells you want to format. A dialog box will
appear with commands that also appear on the ribbon.
The width of one or more columns can be adjusted by clicking and dragging on the line between the column
heading that you are adjusting and the next column. You will see an adjust symbol on that line. Drag to the
right to widen. The column is adjusted when you let go of the mouse button. Alternatively, you can double-
click on that same line for a “best fit” option for the entire column. The column can also be adjusted by
right clicking on one or more of the column headings and selecting Column Width from the menu.
The height of one of more rows can be adjusted by clicking and dragging on the
line between the row heading that you are adjusting and the next row. You will see an adjust symbol for
the mouse on that line. Drag to increase the height. The row is adjusted when you let go of the mouse
button. The row can also be adjusted by right clicking on one or more of the row headings and selecting
Row Height from the menu.
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Number Formatting
The number format determines how the numbers appear on a worksheet, both on the screen and when
printed. The numbers are formatted with a General type format by default. You can choose from a variety
of formats by selecting the cells to change and click on the desired format in the ribbon under the Home
tab. The format command does not change or round off the number; it only changes the appearance of the
number. You can also right click in the cell(s) that you want to change and select Format Cells. The dialog
box will allow multiple changes to the format.
Changing Fonts
You can change the look of your worksheet by changing the font type and font size. Row height and column
widths are automatically adjusted to accommodate font changes unless you have previously set the row to
a specific height.
Select the range of cells that you want to change, right click and select Format Cells and select the Font
tab from the menu. You can also use the formatting buttons in the toolbar.
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1.11 Using Excel’s Statistical Tools – Both Excel 2010 and Excel 2013
Now you can bring up the Analysis ToolPak feature at any time by going to the Data tab at the top of the
Excel worksheet and clicking on Data Analysis.
Many of the built-in Excel statistical analysis tools are detailed where appropriate in the exercises in the
following chapters. The Excel statistical tools are useful for basic statistical analysis. However, the
drawbacks include lack of basic help with using statistical methods, non-intuitive output, and some
procedures and tests missing as well as errors in more advanced analysis. Overall, however, it is a very
powerful and useful program for business and spreadsheet related applications.
3. In the Excel options dialog box, click on Add-Ins next to the bottom of the left menu. A screen of add-
ins will appear.
4. Click on Go… at the bottom of the page.
5. In the dialog box Add Ins, check the Browse… box and OK. Find the Kaddstat file on your computer,
select it and it should show up in the addin dialog box.