Business Analytics with Excel

Analytics with Excel

 Learning Objectives

By the end of this lesson, you will be able to:

Explain histograms and how to create them in Excel

Use the Solver add-in for linear problems

Apply Goal Seek to get the desired result

Use Scenario Manager to compare and create different scenarios

Utilize Data Table to analyze results for different input values

 A Day in the Life of Business Analyst

Your organization’s logistic data is stored in different Excel sheets and contains information on different
modes, routes, and costs involved.

Using this, the organization wants you to check the costs involved and optimize the costs for logistics.

This lesson will help you understand how to use data statistics and study the different ways to optimize
linear problems using Toolpak and Scenario manager.
What-If Analysis
 What-If Analysis

The What-if analysis feature allows you to manipulate data with ease.
 What-If Analysis: Tools

Excel offers various What-If Analysis tools.

Goal Seek Data Table Scenario Manager Solver

 What-If Analysis: Scenario

If one needs to take out a loan, they can calculate the terms of the loan using What-If Analysis tools.
 What-If Analysis: Tools

Goal Seek
It evaluates the payment formula and calculates the amount to be paid. It can
also use the amount to be paid to calculate the payment formula.

Data Table
It does a comparative analysis of the available data. It also shows the results in the
table without changing the original formula's references.
 What-If Analysis: Tools

Scenario Manager
It substitutes input values for multiple cells. It can also be used to view the results
of different input values at the same time.

Solver
It can be used to find an optimal solution for a formula in one cell by adjusting the
values in other cells according to the specifications.
Assisted Practice: Install Analysis ToolPak

Problem statement:

Demonstrate how to Install Analysis ToolPak in Excel.

Assisted Practice Guidelines

Steps to follow:

Step 1: Open the Excel file

Step 2: Install ToolPak
Assisted Practice: Install Analysis ToolPak

Problem statement:

Demonstrate how to solve a problem using the What-If Analysis tool, Goal Seek
Assisted Practice Guidelines

Steps to follow:

Step 1: Open the Excel file

Step 2: Use Goal Seek
Assisted Practice: Install Analysis ToolPak

Problem statement:

Demonstrate how to compare scenarios using the What-If Analysis tool, Scenario Manager
Assisted Practice Guidelines

Steps to follow:

Step 1: Open the Excel file

Step 2: Use Scenario Manager
Line Graph, Bar Graph, and Pie Chart
 Line Graph

Line graphs are used to visualize data patterns over a period.

Source: fool.com
 Bar Graph

Bar graphs are used to represent the numeric distribution of categorical data.

Bar Chart

Utensils

Books

Clothes

Food

0 2 4 Delhi 6 Mumbai 8
Goa 10 12 14
 Pie Chart

Pie charts are used to show the distribution of values of the total values.

Money

Mobile Advertising Articles Newspaper Radio

Scatter Plot
 Scatter Plot

Scatter plots are used to show two numerical values in a single graph. The x- and y-axes are a
set of numerical values.
Y-Values
4.5

3.5

2.5

1.5

0.5

0
0 0.5 1 1.5 2 2.5 3 3.5 4

The intersections signify each occurrence of data and are represented by dots.
Histogram
 Histogram

The Normality of data, which is A histogram is a graphical

needed for most statistical representation of the
calculations, can be checked using distribution of a single
a histogram. variable.
 Histogram: Scenario

This dataset includes information on each employee's resolved calls and the duration of each call.
 Histogram: Class Intervals

A class interval refers to the size of each class into which a range of variables is divided.
 Histogram: Class Intervals

To check the number of calls answered in each time interval, the minutes bin will be the class interval.
Assisted Practice: Create Histogram

Problem statement:

Demonstrate how to create a Histogram in Excel.

Assisted Practice Guidelines

Steps to follow:

Step 1: Open the Excel file

Step 2: Create histogram
Solver Add-in
 Solver Add-in: Introduction

In Excel, Solver Add-in is used to solve complex linear and non-linear problems.

Linear Non-Linear
Assisted Practice: Solve linear problem using Solver Add-in

Problem statement:

Demonstrate ow to solve linear problems using Solver Add-in.

Assisted Practice Guidelines

Steps to follow:

Step 1: Open the Excel file

Step 2: Optimization problem
Data Tables
Data Tables: Introduction

Data tables take sets of input values and determine

possible results.

By creating a data table, one can try out different

values for formulas instead of creating two different
scenarios.
Assisted Practice: Create Data Tables

Problem statement:

Demonstrate how to create data tables

Assisted Practice Guidelines

Steps to follow:

Step 1: Open the Excel file

Step 2: Creating data table with Excel
Descriptive Statistics
Descriptive Statistics: Introduction

Descriptive statistics is a data analysis tool that produces a summary

of the key statistics for a dataset.

It provides statistical information such as sample variance, mean,

and standard deviation for the data in a few clicks.
Assisted Practice: Create Descriptive Statistics

Problem statement:

Demonstrate how to create descriptive statistics for a given dataset

Assisted Practice Guidelines

Steps to follow:

Step 1: Open the Excel file

Step 2: Create descriptive statistics
 Key Takeaways

A histogram is a graphical representation of the distribution of a

single variable.

The solver finds an optimal solution for a formula.

Goal seek can be used to start with the desired result and calculate
the input value that gives a result.

The Scenario Manager helps view the results of different input

values at the same time.

Data tables can be used to perform a comparative analysis of the

available data.
Knowledge Check
Knowledge
Check
In the given histogram, which class interval has the highest frequency?
1

a. 0–3

b. 4–7

c. 8 – 11

d. >15
 Knowledge
Check
In the given histogram, which class interval has the highest frequency?
1

a. 0–3

b. 4–7

c. 8 – 11

d. >15

The correct answer is d

The class interval “> 15” has the highest frequency.

Knowledge
Check Match the descriptions on the left with functions in the right column for the given
2 Excel Features.

a. Goal Seek a. Provides statistical information

b. Data Tables b. Works backward from a desired result

c. Solver Add-in c. Performs comparative analysis of data

d. Descriptive Statistics d. Finds an optimal solution for a formula

 Knowledge
Check Match the descriptions on the left with functions in the right column for the given
2 Excel Features.

a. Goal Seek a. Provides statistical information

b. Data Tables b. Works backward from a desired result

c. Solver Add-in c. Performs comparative analysis of data

d. Descriptive Statistics d. Finds an optimal solution for a formula

The correct answer is a-b, b-c, c-d, d-a

Goal Seek works backward from the desired result. Data Tables perform a comparative analysis of the data.
Solver Add-in finds an optimal solution for a formula. Descriptive Statistics provides statistical information.
Knowledge
Check
While solving problems using Solver Add-in, constraints play a critical role.
3

a. True

b. False

Which of the following tools offers high

concurrency to execute 1000 queries
per day?
 Knowledge
Check
While solving problems using Solver Add-in, constraints play a critical role.
3

a. True

b. False

The correct answer is a

While solving problems using Solver Add-in, constraints play a critical role. Constraints are defined limitations on
resources that allow Solver to find a feasible solution.
Knowledge
Check
Which of the following is NOT a What-If Analysis Tool in Excel?
4

a. Goal Seek

b. Scenario Manager

c. Macros

d. Data Tables
 Knowledge
Check
Which of the following is NOT a What-If Analysis Tool in Excel?
4

a. Goal Seek

b. Scenario Manager

c. Macros

d. Data Tables

The correct answer is c

Macros are not a What-If Analysis Tool in Excel.

Knowledge
Check
Under the Data tab, where will be the command Scenario Manager?
5

a.

b.

c.

d.
 Knowledge
Check
Under the Data tab, where will be the command Scenario Manager?
5

a.

b.

c.

d.

The correct answer is Under What-if Analysis Tab

The command Scenario Manager will be found under the what-if Analysis Tab.
Knowledge
Check
Which of the following is NOT required while solving a Goal Seek problem?
6

a. A set cell that contains a formula

b. The scenario name

c. The value to be reached

d. A changing cell that contains an initial value

 Knowledge
Check
Which of the following is NOT required while solving a Goal Seek problem?
6

a. A set cell that contains a formula

b. The scenario name

c. The value to be reached

d. A changing cell that contains an initial value

The correct answer is b

The scenario name is not required while solving a Goal Seek problem.