Guide to Using Excel 2003 For Basic Statistical Applications To Accompany Business Statistics: A Decision Making Approach, 7th Ed. Chapter 3: Describing Data Using Numerical Measures By Groebner, Shannon, Fry, & Smith Prentice-Hall Publishing Company Copyright, 2008

Chapter 3 Excel 2003 Examples  Population Mean - Population Mean - Foster City Hotel  Mean, Median, Mode Standard Deviation- Mean, Median, Mode Standard Deviation- Stock Prices – US Companies More Examples

Chapter 3 Excel Examples (continued) ä Empirical Rule - Empirical Rule - Burger N’ Brew

Population Mean Foster City Hotel Issue: Determine the mean nightly revenue for the Foster City Hotel. Objective: Use Excel to calculate the population mean revenue Data File is FosterCity.xls

Open the Excel file called Foster.xls Population Mean – Foster City Hotel

Option 1 – Use the Excel Average function. Click the function wizard – Select Statistical category – Select Average Population Mean – Foster City Hotel

Specify data range - Click OK Population Mean – Foster City Hotel

Population Mean Population Mean – Foster City Hotel

Optional Method: Select Tools, then Data Analysis Population Mean – Foster City Hotel

Select Descriptive Statistics Population Mean – Foster City Hotel

Define Data Range and select options Population Mean – Foster City Hotel

Mean Revenue Population Mean – Foster City Hotel

To calculate means for all three variables

Population Mean – Foster City Hotel

Mean, Median, Mode, and Standard Deviation - Stock Prices Mean, Median, Mode, and Standard Deviation - Stock Prices Issue: Describe the distribution of stock prices for U.S. Companies Objective: Use Excel to develop histograms for the U.S. Companies’ stock prices and to compute the mean, median, mode and standard deviation for stock price. The data file is US Companies 2005.xls.

Open the data file called US Companies 2005.xls Data File contains 6,992 stocks. Last row is 6,993 Descriptive Statistics- Stock Prices

Constructing histograms was covered in Chapter 2 (See Capital Credit Union) Begin by developing thebins (upper limit of each class.) Descriptive Statistics- Stock Prices

Click on Tools > Data Analysis > Histogram. Descriptive Statistics- Stock Prices

Fill in data and bin ranges – check labels – location for output – check Chart Output Descriptive Statistics- Stock Prices

Review Steps in Chapter 2 to complete histogram Descriptive Statistics- Stock Prices

Completed Histogram for Stock Prices. Then compute mean, median and modes for stock price. Descriptive Statistics- Stock Prices

Select Tools – then select Data Analysis > Descriptive Statistics Descriptive Statistics- Stock Prices

Define Data Range and select options Descriptive Statistics- Stock Prices

Mean Median Mode Standard Deviation Descriptive Statistics- Stock Prices

Empirical Rule - Burger N’ Brew Issue: Analyze the Phoenix Burger Sales Distribution Objective: Use the Excel to compute graphs and numerical measures necessary for using the empirical rule to analyze sales at Burger N’ Brew Data file is BurgerNBrew.xls

Open the data file called BurgerNBrew.xls Data File contains sales for 365 days. Last row is 366. Empirical Rule – Burger N’ Brew

First, develop histogram – class width = 2. Form Bins (upper limit of each class) Refer to Example 2-6 for detailed steps in developing the histogram Empirical Rule – Burger N’ Brew

Click on Tools tab – then Data Analysis – then Histogram Empirical Rule – Burger N’ Brew

Define input range, bin range, output location – check Chart Output Empirical Rule – Burger N’ Brew

Excel default output – See Capital Credit Union example Chapter 2 for specific steps to enhance the histogram – close gaps, label, etc. Empirical Rule – Burger N’ Brew

Finished Histogram – Bell Shaped Distribution Empirical Rule – Burger N’ Brew

To compute numerical measures – Click Tools – Data Analysis – Descriptive Statistics Empirical Rule – Burger N’ Brew

Define data range, output location – request Summary Statistics Empirical Rule – Burger N’ Brew

Mean and Standard Deviation Empirical Rule: 68% within (1) % within (2) % within (3)3.13) Empirical Rule – Burger N’ Brew