8. excel data analysis

7/31/2019 8. Excel Data Analysis

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1Prof. Nivedita Roy, IBS-Gurgaon


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What-if analysis

One of the most powerful features of Excel is theautomatic recalculation of formulas when any of thesource data changes.

You can use this feature to perform What-if analysis.

Using What-if analysis, you can change one set of dataand see how the changes are reflected in another set ofdata.

This helps in decision-making.

For example, the cost of a product includes the cost of rawmaterials, wages of workers and other miscellaneousexpenses. Thus, you can relate the cost with the variablesusing a formula .



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Contd.

If you want to determine the change in the cost when

any of the components of the total cost changes, you

can do so by changing the value of the variable.

The new value of the total cost can be immediatelyseen in the cell containing the formula for calculating

total cost.

Note the changes in the cost figures for some of the

products and the corresponding change in the Total

Cost figure.



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Goal Seek in Excel

When you use the Goal Seek command, Excel changes the

value in one cell until the value in a second cell reaches anumber that you desire.

For instance, if you had a spreadsheet that calculated farmprofit from a variety of inputs, including cow numbers,expenses, milk yield, and milk price, you might use goal

seek to define your break-even milk price. You would tell the computer to change milk price until

Profit was zero (break-even), and you would do that usingTool, Goal Seek.

To use Goal Seek, go to the Tools command. If Goal seek is not an option, you must first go to Add-ins

(also under Tools), and select Goal Seek.

Once Goal Seek is loaded, choose it under Tools.



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Contd.

In Goal Seek there will be three boxes to fill in.1. The first says "Set cell." Enter the cell address (or click

on the cell) of the cell whose value you want to fix or setto a specific number (i.e. Profit cell). This cell mustcontain a formula or function. Otherwise it will not be

linked to the cell you will be changing to obtain zeroprofit.

2. The second says "To value." Enter the appropriate valueyou wish to see in that "Set" cell (i.e. 0 if you want theProfit to come out zero).

3. The third says "By changing cell." Enter or click on thecell you want Goal Seek to change to obtain the zeroprofit. (i.e. milk price). This cell must not be a formula orfunction. Then click "okay."



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Troubleshooting a Goal Seek

Make sure the "Set Cell" cell is a formula or function orcell reference.

Make sure you have set that sell to a reasonable number.

Make sure the "By Changing Cell" cell is a number orblank, and not a formula, function or cell reference like=C5.

Make sure there is a link by formulas between the twocells you entered in the Goal Seek. However complicated

the link might be, they must be related for the Set cell tobe changed by the Change cell.

Finally, make sure your formula in the "Set Cell" cell iscorrect (as well as all others).



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Database capability

Every organisation works towards maintaining data of variouskinds like employee details, purchase details, sales details etc.

The purpose of sorting and maintaining data is to retrieve it

later for day-to-day transactions and management planning.

The data which is collected from the source is the raw data.

Various operations can be carried out with the data, like,

sorting, searching and totalling.

This is processed and manipulated to be transformed as

information.

The most important database feature of Excel is to store,

manage and analyse data



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Creating a Database

On a blank worksheet, label the cells in row 1 with the field

names you want to use. Example, Lastname, Firstname,Address, Phone Number. (These field names can bemodified later)

Field Name Guidelines Use letter not numbers as field names

Give each field a different name Format the field names so that they stand out with a distinct font,

format, border or shading.

Click cell A1 and choose Data and Form. A form pops up with data entry boxes for each field you

have created. Enter the data for each field. Use the Tab key to move from

field to field. Press Enter when you are finished entering theinformation for that record. The record information will beentered on the Excel worksheet.



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Adding/Deleting a Record

You can add a new record using the Data Form, or simplytype new entries directly on the Excel worksheet.

When you delete a record using the data form you cannot

undo your deletion. If you delete a record on the worksheet you can press the

Undo button to get your record back.

Finding a Record

When you click the Criteria button on the Data Form theform becomes a search tool.

You can search for a particular record by entering thelastname, for example and pressing Enter on the keyboard



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Adding/Deleting/Modifying Fields

The ease with which you can modify fields is one of the strongfeatures of the Excel database.

To add a field to your database, insert a new column anywhere onthe worksheet.

You can enter a new field name and the data for the individualrecords right on the worksheet.

When you go to Data, Form, the new field will appear in the

Dialog Box.



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Sorting

There are 2 Sort buttons on the toolbar.

You can use these to sort any field by Ascending orDescending order.

When you sort a field, the entire record information will

move with the sorted data. You can also click Data, Sort.

The Sort dialog box pops up. Select a field to sort by andchoose from Ascending or Descending.

Select By to choose a secondary field to sort by.



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AutoFilter

AutoFilter will sort i.e. filter a field to give you justthe information you want.

From the Data menu select Filter, AutoFilter. Drop-down arrows appear.

Click an arrow to sort by that field. To see all the records click back on the drop down

arrow and select All.

You can also customize AutoFilter to do a more

specific search.

To turn AutoFilter off, go back to Data, Filter,AutoFilter and uncheck it.



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Data Validation

Data Validation allows you to define fields and the type ofinformation that can be entered there.

You can specify whether an entry can be a number or textor even restrict it further.

Once you've specified what data is valid, Excel preventsother data (invalid) from being entered.

To activate this feature, click on the column letter headingto black out the entire column.

Click Data, Validation on the toolbar. There are 3 tabs in the Data Validation dialog box:

Settings, Input Message and Error Alert

=IF(D11=>100,"PAID","NOTPAID")



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Application of excel spreadsheet

ROI and ROE Performance Measure

Forecasting Techniques

Comparative Ratio Analysis Using Data from RobertMorris Associates (RMA)

GANTT Chart for Scheduling Resources

Data Input and Analysis

Number of Days, Months and Years Between Two

Dates Number of Days, Months and Years Between Two

Dates

Maximum Sustainable Growth


8. excel data analysis

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