How to Use Excel For Data Analysis
Introduction - Excel, which is merely used for saving data and preparing graphs and charts, has much more utility than an average person would know. It is a powerful tool for evaluating statistics and analyzing the statistical data. If you haven't yet discovered the power of excel, it is time to explore this unknown world. Its features will amaze you.
Excel is a computer program that has spreadsheets for calculations and data analysis. The uses of excel are many and only if you enter this world of spreadsheets will you realize its value. There are several ways in which excel supports collation of data. It further helps in analyzing the collated data. Once you have the numbers handy, you can run macros to perform various activities with the click of a mouse. Here, we intend to throw light on the graphical use of excel for data analysis.
• Convert the regular charts into Shewhart control charts. Yes you can convert the simple excel charts into a Shewhart control chart in a flash. The data series has to be manipulated and set with upper and lower limits and a centerline.
• Pareto analysis - This famous method of analyzing data is best calculated in excel. All you need is complete information in a tabular format. Pareto analysis is the concept that 80% of the problems occur due to 20% causes. So, if you study the 20% cause, you can improve the business performance by 80%. It is also helpful in creating histograms.
• You can improve the capabilities of excel by installing some add-ons. Analysis Tool Pak is one such tool that can be used to enhance the features of excel. However, it is not a part of excel but you can install it by clicking on Tools > Add-Ins > Analysis Tool Pack.
• Running macros is another outstanding feature of excel. It reduces your work by half since repetitive activity can be performed at the click of a mouse. So, if you wish to run an end of the day report then this feature may be a boon for you.