Using Excel 2003 with Basic Business Statistics

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1 Using Excel 2003 with Basic Business Statistics Introduction Use this document if you plan to use Excel 2003 with Basic Business Statistics, 12th edition. Instructions specific to Excel 2003 are needed for the Excel Guides in Chapters 1, 2, 6, 7, 10, 11, 13, 14, 16, and 17 and in Appendices D, F and G. In addition, if you use any of the Visual Explorations exercises, select VisualExplorations procedure name instead of Add-ins VisualExplorations procedure name in step 1. For example, for the exercise at the end of Section 3.2 on page 110, select VisualExplorations Descriptive Statistics in step 1. Chapter 1 Excel Guide EG1.5 Printing Worksheets Use the Excel 2010 instructions. EG1.8 Entering Formulas into Worksheets To use the Excel Function Wizard, select Insert Function. Chapter 2 Excel Guide EG2.2 Organizing Categorical Data The Summary Table In-Depth Excel 2003 For data that need to be tallied, use the PivotTable feature to create a summary table. (For the case in which data have already been tallied, use the SUMMARY_SIMPLE worksheet of the Chapter 2 workbook as a model for creating a summary table.) For example, to create the Table 2.2 summary table, open to the DATA worksheet of the Bond Funds workbook. Select Data PivotTable and PivotChart Report. In the PivotTable Wizard Step 1 dialog box:

2 Using Excel 2003 with Basic Business Statistics Page 2 1. Click Microsoft Excel list or database as the data to analyze and PivotTable as the report type. 2. Click Next. In the Wizard Step 2 dialog box: 3. Enter I1:I185 as the Range and click Next. In the Wizard Step 3 dialog box: 4. Click New worksheet and then click Layout. In the Layout dialog box: 5. Drag the Risk label (on the right edge of the dialog box) and drop it in the ROW area. 6. Drag a second copy of the Risk label and drop it in the DATA area. (Note: The second label changes to Count of Risk to indicate that a count, or tally, of each risk category will be displayed in the DATA area.) 7. Click OK. Back in the Wizard Step 3 dialog box: 8. Click Options. In the PivotTable Options dialog box: 9. Check For empty cells, show and enter 0 as its value. Leave all other settings unchanged. 10. Click OK. Back in the Wizard Step 3 dialog box: 11. Click Finish to create the PivotTable. To add a column for the percentage frequency: 12. Enter Percentage in cell C4. Enter the formula = B5/B$8 in cell C5 and copy it down through row 7.

3 Using Excel 2003 with Basic Business Statistics Page Select cell range C5:E5, right-click, and select Format Cells in the shortcut menu. 14. In the Number tab of the Format Cells dialog box, select Percentage as the Category and click OK. 15. Adjust cell borders, if desired (See Appendix F). The Contingency Table PHStat2 After the procedure creates the PivotTable, rearrange the order of the No and Yes columns: 5. In Excel 2003, right-click the No label in cell B4, then select Order Move Right in the shortcut menu. In-Depth Excel 2003 For data that need to be tallied, use the PivotTable feature to create a contingency table. (For the case in which data have already been tallied, use the CONTINGENCY_SIMPLE worksheet of the Chapter 2 workbook as a model for creating a contingency table.) For example, to create the Table 2.3 contingency table, open to the DATA worksheet of the Bond Funds workbook. Select Data PivotTable and PivotChart Report. In the PivotTable Wizard Step 1 dialog box: 1. Click Microsoft Excel list or database as the source data and PivotTable as the report type. 2. Click Next. In the Wizard Step 2 dialog box: 3. Enter B1:D185 as the Range. (Although Type is in column B and Fees is in column D, Excel does not allow you to enter a range comprised of nonadjacent columns.) 4. Click Next.

4 Using Excel 2003 with Basic Business Statistics Page 4 In the Wizard Step 3 dialog box: 5. Click New worksheet and then click Layout. In the Layout dialog box: 6. Drag the Type label and drop it in the ROW area. 7. Drag a second copy of the Type label and drop it in the DATA area. (The label changes to Count of Type.) 8. Drag the Fees label and drop it in the COLUMN area. 9. Click OK. Back in the Wizard Step 3 dialog box: 10. Click Options. In the PivotTable Options dialog box: 11. Check Grand total for columns and Grand totals for rows. 12. Check For empty cells, show and enter 0 as its value. Leave all other settings unchanged. Back in the Wizard Step 3 dialog box: 13. Click Finish to create the PivotTable. In the PivotTable: 14. Right-click the No label in cell B4 and then select Order Move Right in the shortcut menu to make the No column appear to the right of the Yes column. EG2.4 Organizing Numerical Data The Ordered Array In-Depth Excel 2003 To create an ordered array, first select the data to be sorted. Then select Data Sort. In the Sort dialog box, select the column to sort from the Sort by drop-down list. Click the first Ascending option button and Header row. Then click OK to complete the sort.

5 Using Excel 2003 with Basic Business Statistics Page 5 The Frequency Distribution Analysis ToolPak In step 1, select Tools Data Analysis. EG2.5 Visualizing Categorical Data The Bar Chart and The Pie Chart In-Depth Excel 2003 Create charts from a summary table. For example, to create the Figure 2.6 bar chart or the Figure 2.8 pie chart, open to the SUMMARY_PIVOT worksheet of the Chapter 2 workbook. Click an empty cell outside the table to prevent Excel from automatically selecting a (wrong) chart type. Select Insert Chart and: In the Chart Wizard Step 1 dialog box: 1. Click the Standard Types tab. For a bar chart, click Bar as the Chart type and then click the first Chart sub-type choice, labeled Clustered Bar when selected. For a pie chart, click Pie as the Chart type and then click the first Chart sub-type choice, labeled Pie when selected. 2. Click Next. In the Chart Wizard Step 2 dialog box: 3. Click the Data Range tab and enter A4:B7 as the Data range. Click Columns if this option is visible 4. Click Next. In the Chart Wizard Step 3 dialog box: 5. Click the Titles tab and enter a Chart title. For a bar chart, enter appropriate values for the Category (X) axis and Value (Y) axis titles and use the formatting settings discussed in Appendix Section F.4 for the Axes, Gridlines, Legend, Data Labels, and Data Table tabs. For a pie chart, click the Legend tab and clear Show legend. Then click the Data

6 Using Excel 2003 with Basic Business Statistics Page 6 Labels tab and click Category name and Percentage. 6. Click Next. In the Chart Wizard Step 4 dialog box: 7. Click As new sheet and then click Finish to complete the chart. If you see a boxed label such as Count of Risk, right-click the boxed label and click Hide PivotChart Field Buttons from the shortcut menu. If the horizontal axis scale on the bar chart does not begin with 0, right-click the horizontal (value) axis and click Format Axis in the shortcut menu. In the Format Axis dialog box, click the Scale tab and in that tab, change the value in the Minimum box to 0, and click OK. The Pareto Chart In-Depth Excel 2003 Create a chart based on a modified summary table that was originally created using the instructions of Section EG2.3 to create a Pareto chart. To the original table, first sort the table in order of decreasing frequencies and then add a column for cumulative percentage. Use the sorted, modified table to create the Pareto chart. For example, to create the Figure 2.9 Pareto chart, open to the ATMTable worksheet of the ATM Transactions workbook. Begin by sorting the modified table by decreasing order of frequency: 1. Select row 11 (the Total row), right-click, and select Hide in the shortcut menu. (This prevents the Total row from getting sorted.) 2. Select Data Sort. In the Sort dialog box, select Frequency from the Sort by drop-down list, click the Sort by Descending option button, click Header row, and click OK. 3. Select rows 10 and 12 (there is no row 11), right-click, and select Unhide in the shortcut menu.

7 Using Excel 2003 with Basic Business Statistics Page 7 Next, use steps 4 through 6 of the In-Depth Excel 2007 instructions to add a column for cumulative percentage. Then, create the Pareto chart: 7. Select Insert Chart. In the Chart Wizard Step 1 dialog box: 8. Click the Custom Types tab. Click Built-in (near the bottom of the dialog box) and then click Line - Column on 2 Axes as the Chart type. 9. Click Next. In the Chart Wizard Step 2 dialog box: 10. Click the Data Range tab. Enter A3:A10,C3:D10 as the Data range. (Be sure to include the comma in the range you type.) 11. Click Columns and then click Next. In the Chart Wizard Step 3 dialog box: 12. Click the Titles tab. Enter a Chart title, Cause for the Category (X) axis title, and Percentage as the Value (Y) axis title. Use the formatting settings discussed in Appendix Section F.4 for the Axes, Gridlines, Legend, Data Labels, and Data Table tabs. 13. Click Next. In the Chart Wizard Step 4 dialog box: 14. Click As new sheet and then click Finish to complete the chart. Finally, set the maximum value of the primary and secondary (left and right) Y axes scales to 100%. For each Y axis: 15. Right-click the axis and click Format Axis in the shortcut menu. 16. In the Scale tab of the Format Axis dialog box, change the Maximum value to 1 and click OK.

8 Using Excel 2003 with Basic Business Statistics Page 8 When using a PivotTable as a summary table, replace steps 1 through 3, 7, and 10, with these instructions: 1. Select the cell containing the first frequency. 2. Select Data Sort. 3. In the Sort dialog box, click Descending and then click OK. 7. Select the cell range of the percentage and cumulative percentage columns. Then, select Insert Chart. 10. Click the Series tab. Enter the cell range of the categories, exclusive of the column heading cell, as a formula in the form =SheetName!CellRange for the Category (X) axis labels. The Side-by-Side Chart In-Depth Excel 2003 Create a chart based on a contingency table to create a side-by-side chart. For example, to create the Figure 2.10 side-by-side bar chart, open to the CONTINGENCY_PIVOT worksheet of the Chapter 2 workbook. Select a cell that is outside the contingency table. Select Insert Chart and: In the Chart Wizard Step 1 dialog box: 1. Click the Standard Types tab. Click Bar as the Chart type and then click the first Chart sub-type choice, labeled Clustered Bar when selected. 2. Click Next. In the Chart Wizard Step 2 dialog box: 3. Enter A4:C6 as the Data range. 4. Click Columns and then click Next. In the Chart Wizard Step 3 dialog box: 5. Click the Titles tab. Enter a Chart title, Fund Type for the Category (X) axis title, and

9 Using Excel 2003 with Basic Business Statistics Page 9 Percentage for the Value (Y) axis title. (Unlike what you might expect, Excel considers the horizontal axis to be the Value (Y ) axis and the vertical axis of this chart to be the Category (X ) axis.) Relocate the chart and use the formatting settings discussed in Appendix Section F.4 for the Axes, Gridlines, Data Labels, and Data Table tabs. Click the Legend tab and check Show legend. 6. Click Next. In the Chart Wizard Step 4 dialog box: 7. Click As new sheet and then click Finish to complete the chart. If field buttons appear on the chart, right-click any button and click Hide PivotChart Field Buttons in the shortcut menu. EG2.6 VISUALIZING NUMERICAL DATA The Histogram In-Depth Excel 2003 After using the In-Depth Excel instructions to create the necessary data, continue with the following. In each worksheet: 1. Select the cell range B3:B15 (the cell range of the frequencies). 2. Select Insert Chart and: In the Chart Wizard Step 1 dialog box: 3. Click the Standard Types tab. Click Column as the Chart type and then click the first Chart sub-type choice, labeled Clustered Column when selected. 4. Click Next. In the Chart Wizard Step 2 dialog box: 5. Click the Data Range tab. Click Columns.

10 Using Excel 2003 with Basic Business Statistics Page Click the Series tab. Enter the cell range formula in the form =SheetName!C4:C15 (where SheetName is the name of the current worksheet) as the Category (X) axis labels. 7. Click Next. In the Chart Wizard Step 3 dialog box: 8. Click the Titles tab. Enter a Chart title, 2008 Return as the Category (X) axis title, and Frequency as the Value (Y) axis title. Use the formatting settings discussed in Appendix Section F.4 for the Axes, Gridlines, Legend, Data Labels, and Data Table tabs. In the Chart Wizard Step 4 dialog box: 9. Click As new sheet and then click Finish to create a chart. In the chart, right-click inside a bar and click Format Data Series in the shortcut menu. In the Format Data Series dialog box, click the Options tab, set the Gap width to 0, and click OK. Analysis ToolPak To eliminate the gaps between bars: 1. Right-click inside one of the histogram bars and click Format Data Series in the shortcut menu that appears. 2. In Excel 2007, In the Series Options pane of the Format Data Series dialog box (partially shown below), move the Gap Width slider to No Gap and click Close. In Excel 2003, click the Options tab of the Format Data Series dialog box, change the value of Gap width to 0, and click OK. To change the histogram bin labels: 1. Enter the column heading Midpoints in cell C3 and enter '--- in cell C4 (the first bin has no midpoint). Starting in cell C5, enter the midpoints -7.5, -2.5, 2.5, 7.5, 12.5, 17.5, 22.5, 27.5, and 32.5, in column C. (The midpoints will serve as the new bin labels in step 3.)

11 Using Excel 2003 with Basic Business Statistics Page Right-click the chart background and click Select Data (Excel 2007) or Source Data (Excel 2003). 3. Click the Series tab in the Source Data dialog box and enter the cell range of the midpoints as a formula, in the form = SheetName!C4:C15 as the Category (X) axis labels and click OK. The Histogram: Follow-up To remove the extra bin, right-click the histogram background and click Source Data. In the Source Data dialog box, click the Series tab. Edit the cell range formulas for Values and Category (X) axis labels. For the example used in the previous section, change the starting cell for the Values cell range formula from B4 to B5 and change the starting cell for the Category (X) axis labels cell range formula from C4 to C5. The Percentage Polygon In-Depth Excel 2003 Create a chart based on a modified percentage distribution to create a percentage polygon. For example, to create the Figure 2.15 percentage polygons on page 43, open to the CPD_IG worksheet of the Bond Funds workbook. (This worksheet contains a frequency distribution for the intermediate government bond funds and includes columns for the percentages and cumulative percentages in column C and D.) Begin by using steps 1 through 4 of the In-Depth Excel 2007 instructions to modify the distribution. Then select Insert Chart and: In the Chart Wizard Step 1 dialog box: 1. Click the Standard Types tab and then click Line as the Chart type. Click the first choice in the second row of Chart sub-type choices, labeled Line with markers displayed at each data value when selected.

12 Using Excel 2003 with Basic Business Statistics Page Click Next. In the Chart Wizard Step 2 dialog box: 3. Click the Data Range tab. Enter C3:C15as the Data range and click Columns. 4. Click the Series tab. Enter the formula = "Intermed-iate Government" as the Name and enter the cell range formula = CPD_IG!E4:E15 for the Category (X) axis labels. 5. Click Next. In the Chart Wizard Step 3 dialog box: 6. Click the Titles tab. Enter a Chart title and 2008 Return as the Category (X) axis title. 7. Adjust chart formatting by using the instructions in Appendix Section C.7 on page 726 for the Axes, Grid-lines, Legend, Data Labels, and Data Table tabs. 8. Click Next. In the Chart Wizard Step 4 dialog box: 9. Click As new sheet and then click Finish to complete the chart. Back in the chart sheet: 10. Right-click the vertical axis and click Format Axis in the shortcut menu. 11. In the Format Axis dialog box, click the Number tab and select Percentage from the Category list. Enter 0 as the Decimal places and click OK. Figure 2.15 also contains the percentage polygon for the short-term corporate bond funds. To add this polygon to the chart just created, open to the CPD_STC worksheet. Repeat steps 1 through 4 of the In-Depth Excel 2007 instructions to modify this distribution. Then open to the chart sheet that contains the intermediate government polygon. Right-click the chart and click Chart Options in the shortcut menu. In the Chart Options dialog box, click the Legend tab, check Show legend, and click OK. Then select Chart Add Data. In the Add Data dialog box, enter

13 Using Excel 2003 with Basic Business Statistics Page 13 the cell range formula = CPD_STC!C4:C15 as the Range and click OK. If the Paste Special dialog box appears, click New series and Columns, clear all check boxes, and click OK. Rightclick the chart and select Source Data from the shortcut menu. Click the Series tab. Click the new series name in the Series box. Enter the formula ="Short Term Corporate" as the Name and click OK. The Cumulative Percentage Polygon (Ogive) In-Depth Excel 2003 Create a cumulative percentage polygon by modifying the In-Depth Excel 2003 instructions for creating a percentage polygon. For example, to create the Figure 2.17 cumulative percentage polygons on page 44, use the instructions for creating percentage polygons, but enter D3:D14 as the Data range in step 3 and enter the cell range formula = CPD_IG!A4:A14 for the Category (X) axis labels in step 4. Later, when adding the second polygon, enter the cell range formula = CPD_STC!D4:D14 as the Range in the Add Data dialog box. EG2.7 Visualizing Two Numerical Variables The Scatter Plot In-Depth Excel 2003 Create a chart from a worksheet in which the column for the X variable data is to the left of the column for the Y variable data to create a scatter plot. (If the worksheet is arranged Y then X, cut and paste the Y variable column to the right of the X variable column.) For example, to create the Figure 2.15 scatter plot, open to the DATA worksheet of the NBAValues workbook. Select the cell range B1:C31. Select Insert Chart and: In the Chart Wizard Step 1 dialog box: 1. Click the Standard Types tab and then click XY (Scatter) as the Chart type. Click the first Chart sub-type, labeled as Scatter.

14 Using Excel 2003 with Basic Business Statistics Page Click Next. In the Chart Wizard Step 2 dialog box: 3. Click Next. (Entries and selections in this dialog box are correct as is.) In the Chart Wizard Step 3 dialog box: 4. Click the Titles tab. Enter a Chart title, Revenues ($millions) as the Value (X) axis title, and Value ($millions) as the Value (Y) axis title. Adjust chart formatting by using the instructions in Appendix Section F.4 for the Axes, Gridlines, Legend, and Data Labels tabs. 5. Click Next. In the Chart Wizard Step 4 dialog box: 6. Click As new sheet and then click Finish to create the chart. With the workbook opened to the new chart sheet, select Chart Add Trendline. In the Add Trendline dialog box, click Linear and then click OK. The Time-Series Plot In-Depth Excel 2003 Create a chart from a worksheet in which the column for the time variable data appears to the immediate left of the column for the numerical variable data. (Use cut and paste to rearrange columns, if necessary.) For example, to create the Figure 2.16 time-series plot on page 00, open to the DATA worksheet of the MovieGross workbook. Select the cell range A1:B15 and then select Insert Chart and: In the Chart Wizard Step 1 dialog box: 1. Click the Standard Types tab and then click XY (Scatter) as the Chart type. Click the first Chart sub-type, labeled Scatter. Click the first Chart sub-type in the third row,

15 Using Excel 2003 with Basic Business Statistics Page 15 identified as Scatter with data points connected by lines. 2. Click Next. In the Chart Wizard Step 2 dialog box: 3. Click Next. (Entries and selections in this dialog box are correct as is.) In the Chart Wizard Step 3 dialog box: 4. Click the Titles tab. Enter a Chart title, Year as the Value (X) axis title, and Combined Gross ($millions) as the Value (Y) axis title. 5. Adjust the chart formatting by using the instructions in Appendix Section F.4 for the Axes, Gridlines, Legend, Data Labels, and Data Table tabs. In the Chart Wizard Step 4 dialog box: 6. Click As new sheet and then click Finish to complete the chart. EG2.7 Organizing Multidimensional Data Multidimensional Contingency Tables Use PivotTables to create multidimensional contingency tables. For example, to create the Figure 2.18 fund type, risk, and fees table, open to the DATA worksheet of the Bond Funds workbook and select Data PivotTable and PivotChart Report. In the PivotTable Wizard Step 1 dialog box: 1. Click Microsoft Excel list or database as the source data and PivotTable as the report type. 2. Click Next. In the Wizard Step 2 dialog box: 3. Enter B1:I185 as the Range. 4. Click Next.

16 Using Excel 2003 with Basic Business Statistics Page 16 In the Wizard Step 3 dialog box: 5. Click New worksheet and then click Layout. In the Layout dialog box: 6. Drag the Type label and drop it in the ROW area. 7. Drag the Risk label and drop it in the ROW area. 8. Drag the Fees label and drop it in the COLUMN area. 9.Drag a second copy of the Fees label and drop it in the DATA area. (The label changes to Count of Fees.) 10. Click OK. Back in the Wizard Step 3 dialog box: 10. Click Options. In the PivotTable Options dialog box: 11. Check Grand total for columns and Grand totals for rows. 12. Check For empty cells, show and enter 0 as its value. Leave all other settings unchanged. 13. Click OK Back in the Wizard Step 3 dialog box: 14. Click Finish to create the PivotTable. In the PivotTable: 15. Right-click the No label in cell C4 and then select Order Move Right in the shortcut menu to make the No column appear to the right of the Yes column. Adding Numerical Variables In-Depth Excel Add a numerical variable to a PivotTable by dragging a numerical variable label to the DATA area and deleting the Count of categorical variable label (by dragging the label

17 Using Excel 2003 with Basic Business Statistics Page 17 and dropping it anywhere outside the PivotTable frame. To display something other than the sum of the numerical variable, click the Sum of numerical variable and click Value Field Settings and make the appropriate entries in the Value Field Settings dialog box. For example, to create the Figure 2.21 PivotTable of fund type, risk, and fees, showing averages of the three-year return from the Figure 2.18 PivotTable, first create the Figure 2.18 PivotTable using steps 1 through 15 of the preceding section. Then continue with these steps: 1. Right-click the PivotTable and click PivotTable Wizard from the shortcut menu. 2. Click Layout (in the PivotTable and PivotChart Wizard- Step 3 of 3 dialog box). 3.Drag Count of Fees and drop it outside the PivotTable frame. 4. Drag Return 2009 and drop it in the DATA area. (This label changes to Sum of Return 2009.) 5. Double-click Sum of Return 2009 and in the PivotTable Field dialog box, select Average in the Summarize by list and then click OK. 6. Click OK (in the PivotTable and PivotChart Wizard- Layout dialog box). 7. Click Finish (in the PivotTable and PivotChart Wizard- Step 3 of 3 dialog box). To display the cell values as percentages, as was done in Figures 2.20 and 2.21, right-click one of the cells containing a count of Fees and then click Field Settings from the shortcut menu. In the PivotTable Field dialog box: 1. Click Options. 2. Select % of total from the Show data as list. 3. Click OK.

18 Using Excel 2003 with Basic Business Statistics Page 18 Chapter 6 Excel Guide EG6.3 Evaluating Normality Constructing the Normal Probability Plot In-Depth Excel 2003 Open to the completed worksheet that computes Z values. Select the cell range C1:D181. Select Insert Chart and: In the Chart Wizard Step 1 dialog box: 1. Click the Standard Types tab and then click XY (Scatter) as the Chart type. Click the first Chart sub-type, labeled Scatter. 2. Click Next. In the Chart Wizard Step 2 dialog box: 3. Click Next. (Entries and selections in this dialog box are correct as is.) In the Chart Wizard Step 3 dialog box: 4. Click the Titles tab. Enter a Chart title, Z Value as the Value (X) axis title, and Return 2008 as the Value (Y) axis title. Adjust chart formatting by using the instructions in Appendix Section F.4 for the Axes, Gridlines, Legend, and Data Labels tabs. 5. Click Next. In the Chart Wizard Step 4 dialog box: 6. Click As new sheet and then click Finish to create the chart. Chapter 7 Excel Guide EG7.1 Types of Sampling Methods Simple Random Samples In Excel 2003, RANDBETWEEN worksheet function requires that the Analysis ToolPak be

19 Using Excel 2003 with Basic Business Statistics Page 19 installed. Also in Excel 2003, you may see the =NAME? error message when you first open the COMPUTE worksheet, even if the Analysis ToolPak is installed. If you see this message, reenter all the column B formulas, starting with the formula in cell B4. Chapter 10 Excel Guide EG10.1 Comparing the Means of Two Independent Populations Pooled-Variance t Test for the Difference Between Two Means Analysis ToolPak Select Tools Data Analysis in step 1. t Test for the Difference Between Two Means Assuming Unequal Variances Analysis ToolPak Select Tools Data Analysis in step 1. EG10.2 Comparing the Means of Two Related Populations Paired t Test Analysis ToolPak Select Tools Data Analysis in step 1. EG10.4 F Test for the Ratio of Two Variances Analysis ToolPak Select Tools Data Analysis in step 1. Chapter 11 Excel Guide EG11.1 The Completely Randomized Design: One-Way Analysis of Variance One-Way ANOVA F Test for Differences Among More Than Two Means Analysis ToolPak Select Tools Data Analysis in step 1. EG11.2 The Randomized Block Design Analysis ToolPak Select Tools Data Analysis in step 1. EG11.3 The Factorial Design: Two-Way Analysis of Variance Analysis ToolPak Select Tools Data Analysis in step 1.

20 Using Excel 2003 with Basic Business Statistics Page 20 Visualizing Interaction Effects: The Cell Means Plot In-Depth Excel 2003 Replace steps 7 and 8 with the following 8 steps: 1. Select the cell range A1:E3. 2. Select Insert Chart. In the Chart Wizard Step 1 dialog box: 3. Click the Standard Types tab. Click Line from the Standard Types Chart Type box and select the first Chart sub-type in the second row, identified as Line with markers displayed at each value. 4. Click Next. In the Chart Wizard Step 2 dialog box: 5. Leave the entries as they are and click Next. In the Chart Wizard Step 3 dialog box: 6. Click the Titles tab. Enter a Chart title, Supplier as the Category (X) axis title, and Average Tensile Strength as the Value (Y) axis title. Use the formatting settings discussed in Appendix Section F.4 for the Axes, Gridlines, Data Labels, and Data Table tabs. 7. Click Next. In the Chart Wizard Step 4 dialog box: 8. Click As new sheet and then click Finish to create a chart. Chapter 13 Excel Guide EG13.2 Determining the Simple Linear Regression Equation In-Depth Excel 2003 To create a scatter plot that contains a prediction line and regression equation similar to Figure 13.5, first use the Section EG2.6 In-Depth Excel instructions for The

21 Using Excel 2003 with Basic Business Statistics Page 21 Scatter Plot to create a basic plot. Then open to the chart sheet containing that plot and use these steps 1 through 3: 1. Select Chart Add Trendline. In the Add Trendline dialog box: 2. Click the Type tab. In the Trend/Regression type gallery, click Linear. 3. Click the Options tab. Click Automatic. Check Display equation on chart and Display R-squared value on chart and then click OK. For other scatter plots, if the X axis does not appear at the bottom of the plot, right-click the Y axis and click Format Axis from the shortcut menu. In the Format Axis dialog box that appears, click the Scale tab and enter the value found in the Minimum box as the Value (X) axis Crosses at value. Then click OK. Chapter 14 Excel Guide EG14.1 Developing a Multiple Regression Model Interpreting the Regression Coefficients Analysis ToolPak Select Tools Data Analysis in step 1. Chapter 16 Excel Guide EG16.3 Smoothing an Annual Time Series Moving Averages To create the chart from scratch on its own chart sheet, open to the COMPUTE worksheet and: 1. Select the cell range A1:D20, the cell range of the time-series data and the moving averages.

22 Using Excel 2003 with Basic Business Statistics Page Select Insert Chart and: In the Chart Wizard Step 1 dialog box: 3. Click the Standard Types tab. Click XY (Scatter) as the Chart type and then click the first Chart sub-type choice in the third row, labeled Scatter with data points connected by lines when selected. 4. Click Next. In the Chart Wizard Step 2 dialog box: 5. Click Next. In the Chart Wizard Step 3 dialog box: 6. Click the Titles tab. Enter a Chart title, Year as the Value (X) axis title, and Revenues ($millions) as the Value (Y) axis title. Use the formatting settings discussed in Appendix Section F.4 for the Axes, Gridlines, Data Labels, and Data Table tabs. In the Chart Wizard Step 4 dialog box: 7. Click As new sheet and then click Finish to complete the chart. Exponential Smoothing In-Depth Excel 2003 To create the chart from scratch on its own chart sheet, open to the COMPUTE worksheet and select the cell range A1:D20. Continue with the previous sections steps 2 through 7 of the previous section Analysis ToolPak Select Tools Data Analysis in step 1. EG16.4 Least-Squares Trend Fitting and Forecasting To create an exponential trend plot for The Coca-Cola Company revenue replace steps with the following ten steps: 1. Select Insert Chart and:

23 Using Excel 2003 with Basic Business Statistics Page 23 In the Chart Wizard Step 1 dialog box: 2. Click the Standard Types tab and then click XY (Scatter) as the Chart type. Click the first Chart sub-type, labeled Scatter. 3. Click Next. In the Chart Wizard Step 2 dialog box: 4. Click Next. (Entries and selections in this dialog box are correct as is.) In the Chart Wizard Step 3 dialog box: 5. Click the Titles tab. Enter a Chart title, Coded Year as the Value (X) axis title, and Revenues ($millions) as the Value (Y) axis title. Adjust the chart formatting by using the instructions in Appendix Section F.4 for the Axes, Gridlines, and Data Labels tabs. 6. Click Next. In the Chart Wizard Step 4 dialog box: 7. Click As new sheet and then click Finish to create the chart. In the newly created chart sheet: 8. Right-click one of the predicted revenues data points (typically a reddish square) and select Format Data Series from the shortcut menu. 9. In the Format Data Series dialog box, click the Patterns tab and then click Automatic in the Line group and click None in the Marker group and then click OK. 10. Right-click the chart legend and click Clear from the shortcut menu to eliminate the unnecessary legend. Chapter 17 Excel Guide EG17.2 Control Chart for the Proportion: The p Chart In-Depth Excel 2003 Use these numbered instructions to create a p chart:

24 Using Excel 2003 with Basic Business Statistics Page 24 Select Insert Chart. In the Chart Wizard Step 1 dialog box: 1. Click the Standard Types tab and then click XY (Scatter) as the Chart type. Click the fourth Chart sub-type, labeled Scatter with data points connected by lines. 2. Click Next. In the Chart Wizard Step 2 dialog box: 3. Click Next. (Entries and selections in this dialog box are correct as is.) In the Chart Wizard Step 3 dialog box: 4. Click the Titles tab. Enter a Chart title, as well as a Value (X) axis title and a Value (Y) axis title. Adjust chart formatting by using the instructions in Appendix Section F.4 for the Axes, Gridlines, Legend, and Data Labels tabs. 5. Click Next. In the Chart Wizard Step 4 dialog box: 6. Click As new sheet and then click Finish to create the chart. At this point, a recognizable chart begins to take shape, but the control limit and center lines are improperly formatted and are not properly labeled. Use the following three sets of instructions to correct these formatting errors. To reformat each control limit line: 1. Right-click the control limit line and select Format Data Series from the shortcut menu. 2. In the Format Data Series dialog box, click the Patterns tab. In the Line group, select the first dashed line choice from the Style drop-down list and select the black color from the Color drop-down list. In the Marker group, click None. Click OK. To reformat the center line:

25 Using Excel 2003 with Basic Business Statistics Page Right-click the center line and select Format Data Series from the shortcut menu. 2. In the Format Data Series dialog box, click the Patterns tab. In the Line group, select a red color from the Color drop-down list. In the Marker group, click None. Click OK. To properly label a control limit or center line: 1. Select View Toolbars Drawing the Drawing toolbar. 2. Click the Text Box icon (see Figure EG17.3). 3. Starting slightly above and to the right of the line, drag the special cursor diagonally to form a new text box. 4. Enter the line label in the text box and then click on the chart background. EG17.4 Control Chart for an Area of Opportunity: The c Chart In-Depth Excel 2003 Use these numbered instructions to create a c chart: Select Insert Chart. In the Chart Wizard Step 1 dialog box: 1. Click the Standard Types tab and then click XY (Scatter) as the Chart type. Click the fourth Chart sub-type, labeled Scatter with data points connected by lines. 2. Click Next. In the Chart Wizard Step 2 dialog box: 3. Click Next. (Entries and selections in this dialog box are correct as is.) In the Chart Wizard Step 3 dialog box: 4. Click the Titles tab. Enter a Chart title, as well as a Value (X) axis title and a Value (Y) axis title. Adjust the chart formatting by using the instructions in Appendix Section F.4 for the Axes, Gridlines, Legend, and Data Labels tabs. 5. Click Next.

26 Using Excel 2003 with Basic Business Statistics Page 26 In the Chart Wizard Step 4 dialog box: 6. Click As new sheet and then click Finish to create the chart. At this point, a recognizable chart begins to take shape, but the control limit and center lines are improperly formatted and are not properly labeled. To correct these formatting errors, use the three sets of instructions given in the Section EG17.2 In-Depth Excel 2003 instructions. EG17.5 Control Charts for the Range and the Mean The R Chart and the X Chart In-Depth Excel 2003 Use these numbered instructions to create the charts: Select Insert Chart and: In the Chart Wizard Step 1 dialog box: 1. Click the Standard Types tab and then click XY (Scatter) as the Chart type. Click the fourth Chart sub-type, labeled Scatter with data points connected by lines. 2. Click Next. In the Chart Wizard Step 2 dialog box: 3. Click Next. (Entries and selections in this dialog box are correct as is.) In the Chart Wizard Step 3 dialog box: 4. Click the Titles tab. Enter a Chart title, as well as a Value (X) axis title and a Value (Y) axis title. Adjust the chart formatting by using the instructions in Appendix Section F.4 for the Axes, Gridlines, Legend, and Data Labels tabs. 5. Click Next. In the Chart Wizard Step 4 dialog box: 6. Click As new sheet and then click Finish to create the chart. At this point, a recognizable chart begins to take shape, but the control limit and center lines are

27 Using Excel 2003 with Basic Business Statistics Page 27 improperly formatted and are not properly labeled. To correct these formatting errors, use the three sets of instructions given in the Section EG17.2 In-Depth Excel 2003 instructions. Appendix D D.1 Checking for and Applying Excel Updates In Excel 2003, select Help Check for Updates to trigger the display of the same Web page. In Excel 2003, select Help About Microsoft Office Excel to display a dialog box that indicates the version number and updates already applied to Excel D.3 Configuring Excel for PHStat2 Usage To configure Excel 2003 security settings for PHStat2 usage, select Tools Macro Security. In the Security dialog box, click the Security Level tab, then click Medium, and then click OK. (If you set the Security Level to Very High or High you will prevent PHStat2 from opening. Do not set the Security Level to Low, which creates a security vulnerability in your copy of Excel.) Excel 2003 displays a simpler form of the Security Notice dialog box shown in Section D.3. In that simpler dialog box, click Enable Macros to enable PHStat2 to open and function. D.5 Checking for the Presence of the Analysis ToolPak To check for the presence of the Analysis ToolPak in Excel 2003, select Tools Add-Ins, and in the Add-Ins dialog box that appears, check Analysis ToolPak in the Add-Ins available list and click OK. If Analysis ToolPak does not appear in the list, rerun the Microsoft Office setup program to install this component.

28 Using Excel 2003 with Basic Business Statistics Page 28 Appendix F F.1 Enhancing Workbook Presentation Use Figure F.1_2003 with Table F.1 Shortcuts to Common Formatting Operations. There is no shortcut for the Format shortcut (#10 in Table F.1 on page 813). FIGURE F.1_2003 F.3 Verifying Formulas and Worksheets In Excel 2003, select Tools Formula Auditing Trace Precedents (or Trace Dependents). When you are finished, clear all trace arrows by selecting Tools Formula Auditing Remove All Arrows. F.4 Chart Formatting (for Excel 2003) Excel incorrectly formats the charts created by the In-Depth Excel 2003 instructions. Use the formatting adjustments in Table F.3_2003 to properly format charts you create. Before applying these adjustments, relocate the chart to its own chart sheet. To do so, right-click the chart background and click Location from the shortcut menu. In the Chart Location dialog box, click As new sheet, enter a name for the new chart sheet, and click OK. Use all of the adjustments in Table F.3_2003, unless a particular set of charting instructions tells you otherwise. To apply the adjustments, you must be open to the chart sheet containing the chart to be adjusted. Excel hides or disables chart formatting choices that do not apply to a particular chart type. Occasionally, when you open to a chart sheet, the chart is either too large to be fully seen or too small, surrounded by a chart frame mat that is too large. To adjust the size of the chart, select

29 Using Excel 2003 with Basic Business Statistics Page 29 View Zoom and in the Zoom dialog box click Fit selection and then click OK. TABLE F.3_2003 Excel 2003 Chart Formatting Adjustments Adjustment Remove chart background Notes Right-click the chart background and click Format Plot Area in the shortcut menu. In the dialog box that appears, click None in the Area group and click OK. Add chart and axis titles Right-click the chart background and click Chart Options in the shortcut menu. In the Chart Options dialog box, click the Titles tab and enter a Chart title and titles for the axes. Click OK to finish. Format axes and gridlines Right-click the chart background and click Chart Options in the shortcut menu. In the Chart Options dialog box, click the Axes tab, check the check boxes for both the (X) axis and (Y) axis and click Automatic under the (X) axis check box. Then, click the Gridlines tab and clear all check boxes. Click OK to finish. Turn off the chart legend, data labels, and data table Right-click the chart background and click Chart Options in the shortcut menu. In the Chart Options dialog box, click the Legend tab and clear Show legend. Then click the Data Labels tab and clear all check boxes. Then click the Data Table tab and clear all check boxes. Click OK to finish.

30 Using Excel 2003 with Basic Business Statistics Page 30 F.5 Creating Histograms for Discrete Probability Distributions (Excel 2003) You can create a histogram for a discrete probability distribution based on a discrete probabilities table. For example, to create a histogram based on the Figure 5.2 binomial probabilities worksheet, open to the COMPUTE worksheet of the Binomial workbook. Select the cell range B14: B18, the probabilities in the Binomial Probabilities Table, and: 1. Select Insert Chart. In the Chart Wizard Step 1 dialog box: 2. Click the Standard Types tab and then click Column as the Chart type. Click the first Chart sub-type choice, labeled Clustered Column. 3. Click Next. In the Chart Wizard Step 2 dialog box: 4. Click the Series tab. Enter = COMPUTE!A14 : A18 as the Category (X) axis labels. (This cell range must be entered as a formula, in the form = SheetName!CellRange.) 5. Click Next. In the Chart Wizard Step 3 dialog box: 6. Click the Titles tab. Enter a Chart title, X as the Category (X) axis title, and P(X) as the Value (Y) axis title. Adjust the chart formatting by using the instructions in Appendix Section F.4 for the Axes, Gridlines, Legend, Data Labels, and Data Table tabs. In the Chart Wizard Step 4 dialog box: 7. Click As new sheet and then click Finish to create a chart. In the chart, right-click inside a bar and select Format Data Series in the shortcut menu. In the Format Data Series dialog box, click the Options tab, set the Gap width to 0, and click OK.

31 Using Excel 2003 with Basic Business Statistics Page 31 Appendix G G.2 Microsoft Excel FAQs In Excel 2003, how can I specify the custom settings that you recommend? First, select Tools Customize. In the Customize dialog box, click the Options tab, check Always show full menus and then click Close. Next, select Tools Options. In the Options dialog box, click the Calculation tab and click Automatic. Click the Edit tab and verify that all check boxes except Fixed decimal, Provide feedback with Animation, and Enable automatic percent entry have been checked. Still in the Options dialog box, click the General tab. Clear R1C1 reference style, enter 3 as the number of Sheets in new workbook, select Arial and 10 (or Calibri and 11) from the Standard font and Size drop-down lists. Click OK to finish. How can I install the Analysis ToolPak? If using Excel 2003, you will need to check Choose advanced customization of applications in the Custom Setup screen.

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