Microsoft Excel allows users to enter numerical and financial data into spreadsheets and perform statistical analysis on that data. It contains many built-in statistical formulas that can be easily applied by selecting the formula type, choosing the specific formula, and configuring it with cell references to the data. However, Excel does not support some more advanced statistical methods like multiple comparison tests, nonparametric tests, or principal components analysis. The Analysis ToolPak add-in expands Excel's statistical analysis capabilities.

2.  Microsoft Excel is a versatile program
for handling a variety of data formats.
Numerical and financial data is
commonly entered into Excel, which
allows entries to be organized in rows
and columns.

3.  Excel provides an array of formulas for
analyzing this data once it is entered.
Statistical formulas are particularly
common in Excel, and the program
has many built-in functions for
constructing common calculations. It
is possible to create statistical formulas
quickly and easily in Excel.

4.  1. Open Excel. Add numerical data to
the spreadsheet, or load a completed
spreadsheet.
 2. Click in an empty cell where you
wish to place a statistical formula. Any
cell can analyze data from any other
group of cells. The formulas do not
need to be in close proximity to the
data.

5.  3. Click the "fx" button on the Excel
toolbar. This button appears in front of
the long white formula bar unique to
Excel. A pop-up window will appear
after you click the button.
 4. Click the drop-down menu labeled
"Select a category" in the pop-up window.
Choose the "Statistical" category. The
function list below this menu will change to
reflect all the built-in Excel functions that
may be used in statistical formulas.

6.  5. Choose a statistical function. Common
statistical formulas employed by Excel
users include "Average," "Median" and
"Count." However, there are more
complicated functions available for
advanced statisticians. As you click on
each function in the list, a summary of
that function appears at the bottom of
the window to explain the function's
purpose and how it is used. Click the
"OK" button once you have selected the
desired function.

7.  6. Configure the statistical formula using the
formula input box that appears after the
function is selected. For example, for the
"Median" function, two number fields
appear. For most Excel functions, you can
enter a number, a cell reference pointing
to that number, or a cell range. For
"Median," enter a separate number in each
field, or click in a field then click on the
spreadsheet to enter a particular cell's
contents. Drag over a range of numbered
cells on the spreadsheet to quickly include
a collection of data in the formula.

8.  7. Press the "OK" button. The statistical
formula is created and the results
display in the selected cell.

9. Many statistical methods are not available in
Excel.
Commonly-used statistics and methods NOT
available within Excel include:
 * Boxplots
 * p-values for the correlation coefficient
 * Spearman’s and Kendall’s rank correlation
coefficients
 * 2-way ANOVA with unequal sample sizes
(unbalanced data)

10.  * Multiple comparison tests (post-hoc
tests following ANOVA)
 * p-values for two-way ANOVA
 * Levene’s test for equal variance
 * Nonparametric tests, including rank-sum
and Kruskal-Wallis
 * Scatterplot arrays or brushing
 * Principal components or other
multivariate methods

11.  * GLM (generalized linear models)
 * Survival analysis methods
 * Regression diagnostics, such as
Mallow’s Cp and PRESS
 (it does compute adjusted r-squared)
 * Durbin-Watson test for serial correlation
 * LOESS smooths
http://www.practicalstats.com/xlsstats/excelstats.html

12.  If you need to develop complex statistical or
engineering analyses, you can save steps and
time by using the Analysis ToolPak. You provide
the data and parameters for each analysis, and
the tool uses the appropriate statistical or
engineering macro functions to calculate and
display the results in an output table. Some tools
generate charts in addition to output tables.
 The Analysis ToolPak includes the tools described
below. To access these tools, click Data Analysis
in the Analysis group on the Data tab. If the Data
Analysis command is not available, you need to
load the Analysis ToolPak add-in program.

13. For a description of each tool, click on a
tool name in the following list.
 Anova
 Correlation
 Covariance
 Descriptive Statistics
 Exponential Smoothing
 F-Test Two-Sample for Variances