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5_1_Operations_Analytics(1) (1)

The document discusses the advantages of using Microsoft Excel for marketing and business analytics, highlighting its flexibility in data manipulation and modeling. It covers essential Excel functions, referencing types, and advanced features like VLOOKUP, INDEX + MATCH, and data visualization techniques including dashboards, charts, and conditional formatting. Additionally, it explains concepts like Pareto analysis, frequency distributions, and correlation measures to analyze data effectively.

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shreyasri057
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7 views

5_1_Operations_Analytics(1) (1)

The document discusses the advantages of using Microsoft Excel for marketing and business analytics, highlighting its flexibility in data manipulation and modeling. It covers essential Excel functions, referencing types, and advanced features like VLOOKUP, INDEX + MATCH, and data visualization techniques including dashboards, charts, and conditional formatting. Additionally, it explains concepts like Pareto analysis, frequency distributions, and correlation measures to analyze data effectively.

Uploaded by

shreyasri057
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Why Microsoft Excel?

Many commercial software packages can be used for Marketing or Business


Analytics.
Spreadsheet software, such as Microsoft Excel, is widely available and used
across all areas of business.
Spreadsheets provide a flexible modeling environment for manipulating data and
developing and solving models.
Basic Excel Functions
=MIN(range)
=MAX(range)
=SUM(range)
=AVERAGE(range)
=COUNT(range)
=COUNTIF(range,criteria)
Excel has other useful COUNT-type functions: COUNTA counts the number of nonblank cells in a
range, and COUNTBLANK counts the number of blank cells in a range. In addition,
COUNTIFS(range1, criterion1, range2, criterion2,… range_n, criterion_n) finds the number of cells
within multiple ranges that meet specific criteria for each range.
Relative and Absolute References
Cell references can be relative or absolute. Using a dollar sign before a row and/or column label
creates an absolute reference.
Relative references: A2, C5, D10
Absolute references: $A$2, $C5, D$10
Using a $ sign before a row label (for example, B$4) keeps the reference fixed to row 4 but allows the
column reference to change if the formula is copied to another cell.
Using a $ sign before a column label (for example, $B4) keeps the reference to column B fixed but
allows the row reference to change.
Using a $ sign before both the row and column labels (for example, $B$4) keeps the reference to cell
B4 fixed no matter where the formula is copied.
Using the VLOOKUP Function

=VLOOKUP(10007, $A$4:$H$475,3) returns the payment type Credit.


=VLOOKUP(10007, $A$4:$H$475,4) returns the transaction code 80103311
Using INDEX + MATCH
The formula in cell I8 is:
=INDEX(A4:F15,MATCH(I5,A4:A15,FALSE),MATCH(I6,B3:F3,FALSE)+1)
The MATCH functions are used as arguments in the INDEX function to identify the row and column
numbers in the table based on the month and product name. The INDEX function then retrieves the
value in the corresponding row and column.
Dashboards
A dashboard is a visual representation of a set of key business measures. It is derived
from the analogy of an automobile’s control panel, which displays speed, gasoline level,
temperature, and so on.
Dashboards provide important summaries of key business information to help manage a business
process or function.
Creating a Column Chart
Highlight the range C3:K6, which includes the headings and data for each category. Click on the Column
Chart button and then on the first chart type in the list (a clustered column chart).

Highlighted Cells
Pie Charts
A pie chart displays this by partitioning a circle into pie-shaped areas showing the
relative proportion.

A Pie Chart for Census Data


Scatter Charts
Scatter charts show the relationship between two variables. To construct a scatter chart,
we need observations that consist of pairs of variables.

A Scatter Chart for Real Estate Data


Data Visualization through Conditional Formatting
Data bars display colored bars that are scaled to the magnitude of the data values
(similar to a bar chart) but placed directly within the cells of a range.
Highlight the data in each column, click the Conditional Formatting button in the Styles group within
the Home tab, select Data Bars, and choose the fill option and color.
Color scales shade cells based on their numerical value using a color palette.
Color-coding of quantitative data is commonly called a heatmap.
Icon sets provide similar information using various symbols such as arrows or stoplight
colors.
Sparklines
Sparklines are graphics that summarize a row or column of data in a single
cell.
Excel has three types of sparklines: line, column, and win/loss.
Line sparklines are clearly useful for time-series data
Column sparklines are more appropriate for categorical data.
Win-loss sparklines are useful for data that move up or down over time.
Pareto Analysis
 An Italian economist, Vilfredo Pareto, observed in 1906 that a large proportion of the
wealth in Italy was owned by a small proportion of the people.
Similarly, businesses often find that a large proportion of sales come from a small
percentage of customers, a large percentage of quality defects stems from just a couple
of sources, or a large percentage of inventory value corresponds to a small percentage
of items
 A Pareto analysis involves sorting data and calculating cumulative proportions.
Applying the Pareto Principle
Sort by

75% of the bicycle inventory value comes from 40% (9/24) of items.
Frequency Distributions for Categorical Data
A frequency distribution is a table that shows the number of
observations in each of several nonoverlapping groups.

Categorical variables naturally define the groups in a frequency distribution.

To construct a frequency distribution, we need only count the number of


observations that appear in each category.

This can be done using the Excel COUNTIF function.


Constructing a Relative Frequency Distribution for Items in the
Purchase Orders Database
First, sum the frequencies to find the total number (note that the sum of the
frequencies must be the same as the total number of observations, n).
Then divide the frequency of each category by this value.
Excel Histogram Tool

A graphical depiction of a frequency distribution for numerical data in the form of a


column chart is called a histogram.
Frequency distributions and histograms can be created using the Analysis Toolpak in
Excel.
Click the Data Analysis tools button in the Analysis group under the Data tab in the Excel menu bar and
select Histogram from the list.
Measures of Association: Correlation
Correlation is a measure of the linear relationship between two variables, X and Y, which does not
depend on the units of measurement.
Correlation is measured by the correlation coefficient, also known as the Pearson product moment
correlation coefficient.
Correlation coefficient for a population:

Correlation coefficient for a sample:

The correlation coefficient is scaled between -1 and 1.


Excel function: =CORREL(array1,array2)
Examples of Correlation
Using the Correlation Tool
Colleges and Universities data

Moderate negative correlation between acceptance rate and graduation rate, indicating that
schools with lower acceptance rates have higher graduation rates.
Acceptance rate is also negatively correlated with the median SAT and Top 10% HS, suggesting
that schools with lower acceptance rates have higher student profiles.
The correlations with Expenditures/Student suggest that schools with higher student profiles
spend more money per student.

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