Lesson 4 Statistics

Statistics
Lesson 4
Business Analytics Applications/Tools
Analytics Using Spreadsheets
A Business Analytics tool, at its most basic, should be able to display data in tabular
form and enhance presentations with charts, graphs, and other visual elements.
To this end, a simple Spreadsheet application, like Microsoft Excel, can do the job. It is
bare bones and lacks some of the user-friendly features and automation found in
dedicated Business Analytics tools, but offers other benefits:
1. Due to its ubiquity (Excel in particular), it can be expected to be present in
almost any corporate environment.
2. Even if it is a little “simplistic” compared to dedicated tools, it is very robust. Good
reports can be achieved with a bit of time and effort.
3. Familiarity with it will help facilitate easier communication with the IT Team when
more complex data is needed.
4. Dedicated Business Analytics Tools usually have a feature to export their data
and/or results into Excel, so that they can be subject to other analyses or offer
interoperability between tools, or if the intended recipient has no access to the
dedicated tools.
Spreadsheet Basics –
Workbooks and Worksheets
The main file of a Spreadsheet Application is known as the
Workbook. When an “Excel File” is mentioned, it is referring to
the workbook. A workbook can contain multiple Worksheets.
These are individual “tabs” within the workbook that allows for
multiple analyses in any one given file.
Spreadsheet Basics – Formulas and Cells Spreadsheets work
simply by encoding data in individual cells, then processing said
data using formulas
Measures of Central Tendency
-Central tendency (or measure of central tendency) is a central or typical value for
a probability distribution.
-It may also be called a center or location of the distribution. Colloquially,
measures of central tendency are often called averages.
Measures of -It is “the statistical measure that identifies a single value as representative of an
entire distribution.”
Central -It aims to provide an accurate description of the entire data. It is the single value
that is most typical/representative of the collected data.
Tendency
The most common measures of central tendency are the arithmetic
mean, the median, and the mode. A middle tendency can be
calculated for either a finite set of values or for a theoretical
distribution, such as the normal distribution. Occasionally authors use
central tendency to denote "the tendency of quantitative data to
cluster around some central value."
1. Mean
The Arithmetic Mean is the sum of all measurements
divided by the number of observations. In other words,
this simply an “average” of the data. Calculating the
mean is very simple. You just add up all of the values and
divide by the number of observations in your dataset
2. Median - the middle value that separates the
higher half from the lower half of the data set.
The median and the mode are the only
measures of central tendency that can be used
for ordinal data, in which values are ranked
relative to each other but are not measured
absolutely.
This is the “midpoint” of our data set
3. Mode - the most frequent value in the data set.
This is the only central tendency measure that
can be used with nominal data, which have
purely qualitative category assignments.
For Mode, note that the function cannot resolve

ties (that is, multiple items that appear the same
amount of times as each other). The data
returned will be the first item it detects to have
the most instances. There are ways to resolve
ties, but most will involve multiple functions and
array formulas, which is out of the scope of this
discussion.
Whether you’re using the
mean, median, or mode, the
central tendency is only one
characteristic of a distribution.
Measures of Dispersion
The central tendency of a distribution is

typically contrasted with its dispersion or
variability; dispersion and central tendency
are the often-characterized properties of
distributions. Analysis may judge whether
data has a strong or a weak central tendency
based on its dispersion. Dispersion (also
called variability, scatter, or spread) is the
extent to which a distribution is stretched or
squeezed.
Measures of Dispersion
 1. Range
 The difference between the smallest and largest data point in the
set.
 For implementation in Microsoft Excel, there is no one function
that will return the Range of values for a given data set, so we
use MAX() to get the largest data point and MIN() to get the
smallest data point and their difference will become the range.
 2. Mean Absolute Deviation

 The average of the absolute deviations from a central
point. It is a summary statistic of statistical dispersion
or variability.
 3. Variance
 The average of the squared differences from
the Mean.
 4. Standard Deviation
 squareroot of variance is the standard deviation , a
measure of how spread-out numbers are

Lesson 4 Statistics

Uploaded by

Copyright:

Available Formats

Lesson 4 Statistics

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Lesson 4 Statistics

Uploaded by

Copyright:

Available Formats

Statistics

For Mode, note that the function cannot resolve

The central tendency of a distribution is

 2. Mean Absolute Deviation

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.