Running Head: THE USE OF EXCEL IN THE STATISTICS 1

THE USE OF EXCEL IN THE STATISTICS

THE USE OF EXCEL IN THE STATISTICS 2

Abstract

In this paper, all I have talked about is the real estate sales data from the city Goodyear, Arizona

which is on Appendix A of page 754 of our textbook. Here, I have taken the first 50 data points

and calculated the mean, median, and standard deviation for the sales price. Also I have given

the reason why the data is necessary for any organization and how this data can be used to

benefit the other organization or the same one.

THE USE OF EXCEL IN THE STATISTICS 3

In the question, we are given the real estate sales price data from the city Goodyear,

Arizona. Here, we are asked to find out the mean, median and standard deviation for the sale

prices in order to find out the appropriate result by taking the first 50 data points. I have done it

below.

1. Mean: The sum of numbers divided by how many numbers there are is known as mean.

This is a statistical term but it is also commonly referred to as the average. We can deal

with a mean anytime when we have a set or group of numbers. For example, 5, 10, 15, 20

where, mean = 10+15+20 / 3 = 15.

Mathematically,

Mean=∑ of all number / Number of data

(Σ xi)
Or, x̅ =
n

11435.70
Or, x̅ =
50

∴ x̅ = $ 228.714

Therefore, the total mean for the sales price of the first 50 data from the real estate sales data

of the city Goodyear, Arizona is $228.714. Mathematically, I used the formula of mean to

calculate the average and I used the formula {=average (A2:A51)} in excel to calculate the mean

value.

2. Median: The median of the data set is the middle value when the values in the data set

are written in order from the least to greatest. In order to calculate the median, firstly the

data set must be arranged in order from the least to the greatest.
THE USE OF EXCEL IN THE STATISTICS 4

Mathematically,

n+1
Position of Median ¿( )t h
2

If n = 50, then

50+1
Position of Median ¿( )t h
2

Or, Position of Median is = 25.5th

216 +216.8
∴ Median= =216.4
2

I calculated the median by using its formula mathematically and I used the formula {=median

(A2:A51)} in excel in order to calculate the median.

3. Standard deviation: Standard deviation is the central tendency. It is another measure of

the variability and our goal for it is to get standard or the typical distance from the mean.

It is getting the average deviation from the mean. It is simply the square root of the

variance.

Symbolically,

109212.5002
Or, S =
√ 49

∴ S =47.2104
THE USE OF EXCEL IN THE STATISTICS 5

Therefore, the standard deviation of the real estate sales data from the city Goodyear, Arizona is

$47.2104. I used the formula {=VAR (A2:A51)} to calculate the variance and again I used the

formula {=SQRT (F6)} in excel, which gave me the value of the standard deviation.

By the use of excel, I also have calculated the other statistical information and I have shown it

below:

Other Statistical Information

Mean 228.714

Standard Error 6.67657

Median 216.4

Mode 209.3

Standard Deviation 47.2104

Sample Variance 2228.83

Range 205.4

Minimum 139.9

Maximum 345.3

Sum 11435.7

Count 50

I have also presented the frequency distribution table of the given real estate data:

x values Frequencies
130-170 2

170-210 21

210-250 12
THE USE OF EXCEL IN THE STATISTICS 6

250-290 9

290-330 5

330-370 1

Also I have presented the histogram which shows the sales price of the real estate.

Histogram showing sales price of real estate

25

20

15
Frequncies

10

0
130-170 170-210 210-250 250-290 290-330 330-370
Sales price

In order to make different tables and graphs, big data analysis is very helpful for us for finding

out the efficiency of any business or organization. To find the price of the different products and

services which they sell by making its description in brief on the basis of the statistical

information, they can use the data. It helps in the decision making process and those areas where

they need to focus on or which is needed to be developed. Because of the data, it will be really

helpful for the business or organization to make their annual report which provides the proper

management in the success of the business overall. It will be really helpful by use of the data to

their customers to know their goods quality and to create their image by acknowledging their

main values and their business missions. In this way, any data the company has can be

accomplished by them and it will be useful for them making the work better.
THE USE OF EXCEL IN THE STATISTICS 7

Conclusion

In this paper, all above I have talked about the many things which will be helpful for a company

to achieve their success by the help of the statistical data. I have calculated all the things that

have been asked by taking the first 50 data. I have presented the frequency distribution table as

well as the histogram. I have completed this assignment with the use of excel too.
THE USE OF EXCEL IN THE STATISTICS 8

References:

Lind, D., Marshal, W., & Wathena (2014). Foundations of Statistics. New York: NY: McGraw

Hill.