Excel 2007: Business Statistics

Introduction

• Analyze your data effectively
• What you should know before starting

1. Foundational Concepts of Data Analysis

• Calculate mean and median values
• Measure maximums, minimums, and other data characteristics
• Analyze data using variance and standard deviation
• Introduce the central limit theorem
• Analyze a population using data samples
• Identify and minimize sources of error
• Challenge: Summarize and analyze business data
• Solution: Summarize and analyze business data

2. Visualizing Data

• Group data using histograms
• Identify relationships using XY scatter charts
• Visualize data using logarithmic scales
• Add trendlines to charts
• Forecast future results
• Calculate running averages
• Challenge: Summarize operational data visually
• Solution: Summarize operational data visually

3. Testing a Hypothesis

• Formulate a hypothesis
• Interpret the results of your analysis
• Consider the limits of hypothesis testing
• Challenge: Formulate and test a hypothesis
• Solution: Formulate and test a hypothesis

4. Utilizing Data Distributions

• Use the normal distribution
• Use a uniform distribution
• Use the exponential distribution
• Use the Poisson distribution
• Use the binomial distribution
• Challenge: Model operational data using distributions
• Solution: Model operational data using distributions

5. Measuring Covariance and Correlation

• Visualize what covariance means
• Calculate covariance between two columns of data
• Calculate covariance among multiple pairs of columns
• Visualize what correlation means
• Calculate the correlation between two columns of data
• Calculate correlation among multiple pairs of columns
• Challenge: Calculate correlations between columns of data
• Solution: Calculate correlations between columns of data

6. Calculating Probabilities, Combinations, and Permutations

• Calculate simple probabilities
• Calculate compound probabilities
• Calculate expected value
• Calculate permutations without duplication
• Calculate permutations with duplication
• Calculate combinations without duplication
• Calculate combinations with duplication
• Challenge: Calculate the expected value of a business scenario
• Solution: Calculate the expected value of a business scenario

7. Performing Bayesian Analysis

• Introduce Bayesian analysis
• Analyze a sample problem: Kahneman’s Cabs
• Create a classification matrix
• Calculate Bayesian probabilities in Excel
• Challenge: Perform a Bayesian analysis
• Solution: Perform a Bayesian analysis

Conclusion

• Additional resources