Microsoft Office Tutorials and References
In Depth Information
Exhibit 3.6 Keying-in the NPV function in a cell
3) Finally, there are numerous commercially available add-ins: functional programs
that can be loaded into Excel that permit many forms of sophisticated analysis.
For example, Solver, an add-in that is used in constrained optimization.
Although it is impossible to cover every available aspect of data analysis that is
contained in Excel in this chapter, we will focus on techniques that are useful to the
average entry-level user, particularly those discussed in (1) above. Once you have
mastered these techniques, you will ﬁnd yourself quite capable of exploring many
others on you own. The advanced techniques will require that you have access to a
good advanced statistics and/or data analysis reference.
3.4 Data Analysis for Two Data Sets
Let us begin by examining the Data Analysis tool in the Analysis group. These
tools (regression, correlation, descriptive statistics, etc.) are statistical procedures
that answer questions about the relationship between multiple data series , or provide
techniques for summarizing characteristics of a single data set.
A series , as the name implies, is a series of data points that are collected and
ordered in a speciﬁc manner. The ordering can be chronological or according
to some other treatment : a characteristic under which the data is collected. For
example, a treatment could represent customer exposure to high levels of media
advertising. These tools are useful in prediction or for the description of data. To
access Data Analysis , you must ﬁrst enable the Analysis ToolPak box by open-
ing the Excel Options found in the Ofﬁce Button (round button on extreme left).
Exhibit 3.7 shows this operation. In Exhibit 3.8, the arrow indicates where the menu