1. 1 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. Chapter 8 Statistical Functions by Mary Anne Poatsy, Keith Mulbery, Eric Cameron, Jason Davidson, Rebecca Lawson, Linda Lau, Jerri Williams

2. Use conditional math and statistical functions Calculate relative standing with statistical functions Measure central tendency Load the Analysis ToolPak Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 2

3. Perform analysis using the Analysis ToolPak Perform analysis of variance (ANOVA) Calculate COVARIANCE Create a histogram Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 3

4. Statistical functions— perform calculations on the range specified in the arguments – SUM – AVERAGE – COUNT Conditional statistical functions— perform calculations based on a condition – SUMIF – AVERAGEIF – COUNTIF 4 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

5. SUMIF—similar to SUM function – Calculates a sum of values in a range only for data meeting a specific condition – Has three arguments: range, criteria, and sum_range – Example: =SUMIF(C2:C13,“high school”,D2:D13) 5 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

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7. AVERAGEIF—similar to AVERAGE function – Calculates the average of cells in a range only for data meeting a specific condition – Has three arguments: range, criteria, and average_range – Example: =AVERAGEIF(C2:C13,“high school”,D2:D13) 7 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

8. COUNTIF—similar to COUNT function – Calculates the number of cells in a range only for data meeting a specific condition – Has two arguments: range and criteria – Example: =COUNTIF(C2:C13,“high school”) 8 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

9. Statistical functions (suffixed with an S) perform calculations based on multiple conditions – SUMIFS =SUMIFS(sum_range,criteria_range1,criteria1,criteria_ range2,criteria2, …) – AVERAGEIFS =AVERAGEIFS(average_range,criteria_range1,criteria1, criteria_range2,criteria2, …) – COUNTIFS =COUNTIFS(criteria_range1,criteria1,criteria_range2, criteria2, …) 9 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

10. RANK.EQ—identifies a value’s rank within a list of values RANK.AVG—identifies the rank of a value but assigns an average rank when identical values exist Both have two required arguments and one optional one: =RANK.EQ(number,ref,[order]) =RANK.AVG(number,ref,[order]) 10 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

11. PERCENTRANK.INC—displays a value’s rank as a percentile of the range of data in a dataset PERCENTRANK.EXC—returns a value’s rank as a percent excluding 0 and 1 Both have two required arguments and one optional one: =PERCENTRANK.INC(array,x,[significance]) =PERCENTRANK.EXC(array,x,[significance]) 11 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

12. 12 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

13. Quartile—value used to divide a range of numbers into four equal groups QUARTILE.INC—identifies the value at a specific quartile for a dataset QUARTILE.EXC—returns the value at a specific quartile excluding quartiles 0 and 4 =QUARTILE.INC(array,quart) =QUARTILE.EXC(array,quart) 13 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

14. 14 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

15. Percentile—value used to divide a range of numbers into 100 equal groups PERCENTILE.INC—identifies the percentile of a specified value within a list of values PERCENTRANK.EXC—returns a value’s rank as a percent excluding 0 and 1 =PERCENTILE.INC(array,k) =PERCENTILE.EXC(array,k) 15 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

16. 16 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

17. Population—dataset containing all the data to be evaluated Sample—smaller, more manageable segment of the population Variance—measure of a dataset’s dispersion Standard deviation—measure of how far the data sample is distributed around the mean 17 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

18. Sample functions: =STDEV.S(number1,number2) =VAR.S(number1,number2) Population functions: =STDEV.P(number1,number2) =VAR.P(number1,number2) 18 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

19. 19 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

20. CORREL—helps determine the strength of a relationship between two variables – =CORREL(Array1,Array2) FREQUENCY—determines the frequency distribution of a dataset – =FREQUENCY(Data_array,Bins_array) 20 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

21. 21 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

22. Analysis ToolPak offers 19 statistical tools Analysis ToolPak versus the corresponding function: – ToolPak generates a report – Function equivalent only returns values 22 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

23. ANOVA—statistical hypothesis test to determine if samples of data were taken from the same population ANOVA report—created using Analysis ToolPak Single-factor—most commonly used ANOVA option 23 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

24. 24 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

25. 25 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

26. Covariance—measure of how two sets of data vary simultaneously – Population: COVARIANCE.P – Sample: COVARIANCE.S 26 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

27. 27 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

28. Histogram—visual display of tabulated frequencies – Requires bins to tabulate the data and returns a frequency distribution table Analysis ToolPak can be used to create 28 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

29. 29 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

30. 30 Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall.

31. Excel has several conditional math and statistical functions Excel functions can be used to determine relative standing Excel functions can be used to measure central tendencies Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 31

32. Excel’s Analysis ToolPak contains a wide variety of analysis tools Some of the ToolPak tools include: – ANOVA – COVARIANCE – Generation of histograms Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 32

33. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 33

34. Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 34 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.