Week 10: Introduction to Excel – Statistical Application<br />
Why excel?<br />Why should I care about excel?<br />It helps with your university courses, especially if you’re doing finance where you’ll encounter it in 1613, 2624, Applied Corporate Finance, Options, Applied Corporate Finance etc.<br />But I have an awesome friend who knows excel and will do it all for me!<br />Well, that friend won’t be there forever, especially when you get an internship or a graduate job where knowing how to use excel will help you adapt quicker and give you a better chance at doing well.<br />I don’t plan to work in commerce!<br />Well then… WHAT ON EARTH ARE YOU DOING HERE?!?!<br />Now that we have that sorted, please go to the link below to download the excel spreadsheet with exercises and data for practice.<br />www.unswbsoc.com/media/Introduction to Excel - Application to Statistics.xlsx<br />http://myendlesssoliloquy.files.wordpress.com/2011/05/introduction-to-excel-application-to-statistics1.xlsx<br />
So what will we cover today?<br /><ul><li> Basic functions
The SUM function…<br /><ul><li>The sum function is one of the most commonly used functions</li></ul>= SUM (cell1, cell2, cell3, etc) or = SUM (range1, range2, range 3, etc)<br /><ul><li>= SUM (A1,A2,A3,A4) will add the numbers in cell A1, A2, A3 and A4
= SUM (A1:A4) will add the numbers in cells A1 to A4
You can also simple just add cells such as = D1 + C2 + B4
You can also sum for a multiple ranges, so if you have one set of data in one area and another </li></li></ul><li>The COUNT function…<br /><ul><li>The count function allows you to count either the amount of number cells of the number of non blank cells in a range.</li></ul>= COUNT (range1, range2, etc) or = COUNTA (range1, range2, etc)<br /><ul><li>= COUNT (A1:A25) will count the amount of numbers from cell A1 to A25
= COUNTA (A1:A25) will count the amount of non-blank cells from A1 to A25 (use this to count text)
Just like the sum function, you can count in multiple ranges
Using a combination of sum and count you can create an average by dividing the sum by the count</li></li></ul><li>The AVERAGE function…<br /><ul><li>The average function is used to average a set of numbers</li></ul>= AVERAGE (cell1, cell2, etc) or = AVERAGE (range1, range2, etc)<br /><ul><li>= AVERAGE (A1,B1,C1) will find the averages of the cells A1, B1 and C!
= AVERAGE (A1:A25) will find the average of the calls from A1 to A25
You can use multiple cells or ranges in the average function
Average is useful, however you can’t use logical functions and hence the sum and count functions are usually more useful for composing an average</li></li></ul><li>Logical Functions<br />
The IF function…<br /><ul><li>You use the IF function is you want a cell to display certain text or numbers given a certain function </li></ul>= IF (logical test, value if true [put text in “__”, value if false)<br /><ul><li>= IF (A1>0.5, “Pass”, “Fail”) Will check cell A1 and if the value is more than 0.5 the cell where you wrote the formula will show pass, otherwise it will show fail.
You can also expand the logical test with functions like AND, OR and NOT
= IF (AND(A1>0.5,A1<0.75,”Come see me”, “”) Will check cell A1 and if the value is larger than 0.5, but less than 0.75. If so it will display “Come see me”, otherwise it will just be left blank.
You can also imbed multiple IF functions up to 13 in total. Usually people will embed the extra IF function into the value if false part of the function
= IF (A1>0.5, IF (A1<0.75, “Come see me”, ”Good”),””) Will do the same as above, but you should notice that this is the same as the function above, but if A1 is larger than 0.5 but not less than 0.75 (ie. Larger than 0.75) then it will display good instead of come see me
You can also embed the IF function into the value if true part of your function. You would do this if there are multiple test that your value needs to satisfy</li></li></ul><li>The SUMIF and COUNTIF function…<br /><ul><li>The sumif function is used to add values only when they or and adjacent cell satisfies a certain</li></ul>= SUMIF (criteria check range, criteria, sum range)<br />= SUMIFS (criteria check range, criteria)<br /><ul><li>= SUMIF (A1:A25, “Correct”, B1:B25) will add the cells from B1 to B25 only when the adjacent cell in A1:A25 displays correct.
You can use multiple criteria in a sumif by using the AND and/or OR functions
The criteria range can be any row or column parallel to the sum range
The countif function is used to count values which satisfy a certain criteria</li></ul>= COUNTIF (count range, criteria)<br /><ul><li>= COUNTIF (A1:A25, Correct) Will count the amount of cells between A1 and A25 that display “correct”</li></li></ul><li>Statistical MethodsData Analysis<br />
The data analysis function built into excel, but there are also other simple things like sort and filter<br /><ul><li>Easiest way to do statistics, you get a summary of the data including mean, median and count
This is great when you just want a summary of the data
If you want to separate the statistics for the information, simply filter and sort the information into the sections you need and then simply perform statistical analysis on those individual sections</li></ul>Sort<br />Filter<br />
First you need to turn on the add-in by clicking on the first and then excel options <br />
Go to add-in and then choose excel add-ins then press go<br />
Choose analysis tool pack in the window that opens and then click ok<br />
Now that you have the addin you can start using data analysis in the data tab<br />
Select the data tab and then data analysis and descriptive statistics<br />
Fill in the input range, where the statistics will be output and whether you want summary statistics<br />
And now you can see the results in a table with the essential statistical measurements<br />