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Excel Formulas

The document provides a comprehensive guide on using Excel for various calculations and statistical analyses, including functions for sum, average, and standard deviation. It covers advanced topics such as measures of dispersion, correlation, and hypothesis testing, along with practical Excel formulas for each. Additionally, it outlines the structure of basic, intermediate, and advanced-level tests for Excel proficiency.

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3 views

Excel Formulas

The document provides a comprehensive guide on using Excel for various calculations and statistical analyses, including functions for sum, average, and standard deviation. It covers advanced topics such as measures of dispersion, correlation, and hypothesis testing, along with practical Excel formulas for each. Additionally, it outlines the structure of basic, intermediate, and advanced-level tests for Excel proficiency.

Uploaded by

km2kptzjqk
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

Sum
=SUM(A1:B2)

2. Subtraction
= A1-B2

3. Displaying pound sign


Select cells, right click, format cells, currency

4. Monthly balances
Total monthly income - total monthly expenses
For the second month, = (total monthly income - total monthly expenses)+previous monthly balance

5. OK or Overdrawn // Positive or negative income


IF function, formulas, insert functions, IF
Logical test = any value or expression that can be evaluated to TRUE or FALSE
=IF(A1>=0, “OK”, “Overdrawn”)
This means that if cell A1 is larger than 0, it is okay, if it is lower than 0, then it is overdrawn/negative

6. Average
=Average(range)
To find the average of several numbers

7. Locking a cell
=B2*$A$1

Histograms in Excel
Have x and y axis data → drag and select all the data and labels
Insert → Insert statistic chart → histograms

Scatterplots in Excel
Place data in Excel → drag over selected data → insert → scatter

Correlation of scatterplots
=CORREL(range) → to test strength

Time series plot in Excel


Select data values only → insert → line chart → input years by right clicking chart → select data →
on the select data window → edit horizontal (category) axis labels → edit → select x years data
Average = an attempt to calculate a single number that can be used to represent the entire data set
as a typical or central value
- Mean, mode median are ways to calculate averages

Mean = the sum of all values divided by the number of values // computed by summing all the data
values and dividing the sum by the number of items
Mean in Excel =AVERAGE(range)

Median = middle point when the data is sorted in ascending order, if there isn't a middle number,
the mean of the two closest numbers are taken
Median in Excel = MEDIAN(range)

Mode = most frequently occurring value in a data set


Mode in Excel =MODE(range)

● Lookups(VLookups, HLookups, IndexMatch)


● Pivot Tables
● IF Functions (IF, CountIf, SumIf, etc)
● Charts
● Alt Shortcuts

1. Measures of Dispersion
Measures of central tendencies/measure of central location may not be sufficient to fully describe a
data set, the difference is the level of variability around the mean.

If the mean is our measure of central tendency (symmetrical) then use → variance and standard
deviation
If the median is out measure of central tendency (skewed) then use → percentiles, quartiles and
interquartile range

Variance
Population variance in Excel =VAR.P(range)
Sample variance in Excel =VAR.S(range)

Standard Deviation
Problem with variance is that its in the unit squared → which is
a problem if the unit is $ or pounds, therefore, for a better
measure of variability, square root of variance = standard
deviation
- Population standard deviation σ = root of population
variance
- Sample standard deviation s = root of sample variance
Standard deviation in Excel
=STDEV.P(range) for population
=STDEV.S(range) for sample

Percentiles and Quartiles


Percentiles = value that a certain percentage of observations are less than
- The median is 50% → data is split in half
- 25th, 50th and 75th cuts the data into quartiles/quarters
- 3rd quartile - 1st quartile = inter quartile range // Q3 - Q1 = inter-quartile range → finds the
middle 50% of data

Percentiles in Excel
=PERCENTILES.INC(range, p) → if you want 75th percentile, p=0.75

Quartiles in Excel
=QUARTILE.INC(range, q) →if you want quartile 1, q = 1

For the inter-quartile range


=QUARTILE.INC(range, 3) - =QUARTILE.INC(range, 1)

To find the mean, mode, median, standard deviation, variance, range, min, max & sum
In Excel data analysis → descriptive statistics → input and select data → tick labels in first row →
output range click on a blank cell → tick summary statistics → ok

Statistical measure of association / relationship


To find the strength of the relationship, use pearson’s product moment correlation coefficient
Correlation in Excel
=CORREL(range 1, range 2)

A basic-level test , which will include simple data input, basic calculations and
knowing how to create a drop-down list within a worksheet;

An intermediate-level test , which will introduce questions about functions and

specific formatting for a spreadsheet;

An advanced-level test , which requires intricate knowledge of pivot tables,

conditional formatting and charts.

Combinations = finds the number of outcomes if we select r objects from a set N objects

Combinations in Excel =FACT(10)/FACT(3)*FACT(7)) or =COMBIN(10, 3)

Permutations = finds number of outcomes if we select r objects from a set N objects, but the order
of selection is important
Permutations in Excel =PERMUT(8,3)

Calculating probabilities for a normal distribution


Probability for a normal distribution in Excel =NORM.DIST(a, b, c, d)
a= value you wish to calculate
b= mean of the distribution
c= standard deviation of the distribution
d= 1 for cumulative probability, 0 for the height of curve

Calculative percentiles for Normal Distribution


Percentiles for Normal Distribution in Excel
=NORM.INV(a, b, c)
a= cumulative probability for which you require the percentile
b=mean
c=standard deviation

5th percentile = 0.05 for a → IF YOU WANT TOP 5% IT IS =1-NORM.INV(0.05, b, c)


Standardizing Normal Values
If X is a normal random variable → X~N(μ, σ)
Standard normal /Z = normal distribution with mean 0 and standard deviation 1 → Z~N(0, 1)
Transform X to Z scale by
x −μ
Z=
σ
Standardizing in Excel
=STANDARDIZE(x, mean, standard deviation)
To be able to drag down the excel sheet, =STANDARDIZE(x, mean $A$1, standard deviation $B$2)
Point estimate of the population standard deviation in Excel
=STDEV.S(range of numbers)
Xi = total sum of sample
X bar = average of x

2. Sampling Distribution of the sample mean X̅


- The problem: the sample mean x bar may over or under estimate the population mean μ
- Sampling error = X̅ - μ

This test statistic has a t distribution with n-1 degrees of freedom


Where μ0 = borderline value between null and alternative hypotheses (hypothesized mean value)
We use
=T.DIST
Function to find the p-value

Finding the p-value in excel for hypothesis test for a population mean
= T.DIST( t, df, 1 ) if we want left tail
= T.DIST.RT( t, df ) if we want right tail
= T.DIST.2T( t, df ) if we want two tail

Rejection rule: p-value approach


Reject H0 if p-value ≤ α significance level
Finding the p-value in Excel for a test for a proportion
P value in Excel
One-tailed, lower tail: =norm.s.dist
One-tailed, upper tail: =1-norm.s.dist
Two-tailed: =2*(1-norm.s.dist)

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