In the modern data-driven business world, we have sophisticated software dedicatedly working towards “Statistical Analysis.” Amidst all these modern, technologically advanced excel software is not a bad tool to do your statistical analysis of the data. We can do all kinds of statistical analysis using excel, but you should be an advanced excel user. In this article, we will show you some of the basic to intermediate level statistics calculations using Excel.
How to use Excel Statistical Functions?
#1: Find Average Sale per Month
The average rate or average trend is what the decision-makers look at when they want to make some crucial and quick decisions. So finding the average sales, cost, and profit per month is the common task everybody does.
For example, look at the below data of monthly sales value, cost value, and profit value columns in excel.
So, by finding the average per month from the whole year, we can actually find what exactly per month numbers.
By using the AVERAGE function, we can find the average values from 12 months, and it boils down to per month on an average.
- Open the AVERAGE function in the B14 cell.
- Select the values from B2 to B13.
- The average value for sales is
- Copy and paste the cell B14 to the other two cells as well to get the average cost and profit. The average value for the cost is
- The average value for the profit is
So, on an average per month, the sale value is USD 25,563, Cost Value is USD 24,550, and Profit Value is USD 1,013.
#2: Find Cumulative Total
Finding the cumulative total is another set of calculations in excel statistics. Cumulative is nothing but adding together all the previous month’s numbers together to find what the current total for the period.
- For example, look at the below 6 months sales numbers.
- Open SUM function in C2 cells.
- Select the cell B2 cell and make the range reference.
From the range of cells, make the first part of the cell reference B2 as an absolute reference by pressing the F4 key.
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- Close the bracket and hit the enter key.
- Drag and drop the formula to below one cell.
Now we have got the first two months’ cumulative total, i.e., at the end of the first two months, revenue was $ 53,835. Drag and drop the formula to other remaining cells.
From this cumulative, we can actually find in which month there was a less revenue increase.
#3: Find Percentage Share
Out of twelve months, you may have got USD 1 Lakh revenue, but maybe in one month, you must have achieved the majority of the revenue, and finding the percentage share of the month actually helps us to find the percentage share of the particular month.
For example, look at the below data of the monthly revenue.
To find the percentage share first, we need to find what the overall 12 months total is, so by applying the SUM function in excel, find the overall sales value.
To find the % Share of each month, the formula can be used as follows.
To apply the formula as B2 / B14.
The % share for Jan month is
Copy and paste the C2 cell to the below cells as well.
Apply the “Percentage” format to convert the value to percentage values.
So, from the above % Share, we can clearly identify “Jun” month has the highest contribution to overall sales v, value, i.e., 11.33% and “May” month has the lowest contribution to overall sales value, i.e., 5.35%.
#4: ANOVA Test
Analysis of Variance (ANOVA) is the statistical tool in excel used to find the best available alternative from the lot. For an example, if you are introducing a new four different kind of food to the market and you had given a sample of each food to get the opinion from the public and from the opinion score given by the public by running the ANOVA test, we can choose the best from the lot.
ANOVA is a data analysis tool available to excel under the DATA tab. By default, it is not available. You need to enable it.
Below are the scores of three students from 6 different subjects.
Click on the “Data Analysis” option under the “Data” tab. It will open up below the “Data Analysis” tab.
Scroll up and choose “Anova: Single Factor.”
Choose “Input Range” as B1 to D7 and checked in labels in the first row.
Select the Output Range as any of the cells in the same worksheet.
We will have an “ANOVA” analysis-ready.
Things to Remember
- All the basic and intermediate statistical analysis possible in excel.
- We have formulas under the category of “Statistical” formulas.
- If you are from a statistics background, then it is easy to do some of the fancy and important statistical analyses like “TTEST, ZTEST, and Descriptive Statistics,” etc. in excel.
This has been a guide to statistics in excel. Here we discuss how to use excel statistical functions along with practical examples and a downloadable excel template. You may learn more about excel from the following articles –