Question

There are several ways to describe data like the Histogram; what is the Histogram? Discuss how to use Excel to produce Histogram and what can you use it for?

What is descriptive statistics? How can you use descriptive statistics through Analysis Tool Pack add-in in Excel? Discuss how to use Descriptive Statistics to produce measures of center or dispersion? Can these be sued to support decision making? How?

Answer 1

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A histogram is a display of statistical information that uses rectangles to show the frequencies of the data in successive numerical intervals of equal size. The independent variable is plotted along the horizontal axis and the dependent variable is plotted along the verticle axis. It was first introduced by Karl Pearson. In the histogram, a rectangle is erected over the bin with height proportional to the study. The bins are usually specified as consecutive, nonoverlapping intervals of a variable.

Use Excel to produce Histogram-

1. On the Data tab, in the Analysis group, click the data analysis button.

2. In the data analysis dialog, select histogram and click okay.

3. In the Histogram dialog window. Do the following.

a.) Specify the Input range and the Bin range.

To do this, you can place the cursor in the box, and then simply select the corresponding range on your worksheet using the mouse. Alternatively, you can click the Collapse Dialog button, select the range on the sheet, and then click the Collapse Dialog button again to return to the Histogram dialog box.

b) Select the Output options.

To place the histogram on the same sheet, click the Output Range, and then enter the upper-left cell of the output table.

To paste the output table and histogram in a new sheet or a new workbook, select New Worksheet Ply or New Workbook, respectively.

Finally, choose any of the additional options:

• To present data in the output table in descending order of frequency, select the Pareto (sorted histogram) box.
• To include a cumulative percentage line in your Excel histogram chart, select the Cumulative Percentage box.
• To create an embedded histogram chart, select the Chart Output box.

4. And now, click OK, and review the output table and histogram graph.

For using Descriptive statistics tool pack, click On the Data tab, in the Analysis group, click the data analysis button. In the data analysis dialog, select descriptive statistics and click okay. And then select the input and output range, click on the dispersion and then click okay. Yes, descriptive statistics like mean, the variance can be used in decision making. They can tell us about the monthly average cell, variation in sell in different seasons. So the seller can manage his/her stock accordingly.