Basic Overview of Excel
Table of Contents
Table of Contents ............................................................................................................ 1
Introduction to Excel ....................................................................................................... 3
Opening Excel and Inputting Data ................................................................................... 3 Opening a Document ................................................................................................... 3 Entering in Data .......................................................................................................... 4 Sorting and Organizing Data ........................................................................................... 4 Graphing Data ................................................................................................................. 4
Scatter Plot .................................................................................................................. 5
Adding Trendlines ....................................................................................................... 6 Formulas for +,-,*,/ of Cells ............................................................................................ 6 Adding/Subtracting Two Cells ..................................................................................... 6
Adding/Subtracting Multiple Cells ........................................................................... 6 Dividing/Multiplying Individual Cells ......................................................................... 7 Basic Statistical Analysis ................................................................................................. 7 Average (Mean) of a Set of Data ................................................................................. 8 Median ........................................................................................................................ 8
Quartile ....................................................................................................................... 8
Standard Deviation ...................................................................................................... 9 t-Test ........................................................................................................................... 9
Covariance ................................................................................................................ 10 Matrix (Array) Operations ............................................................................................. 11 Multiplying Matrices ................................................................................................. 11 Inverse Matrix ........................................................................................................... 12 Determinant Matrix ................................................................................................... 14 Pivot Tables .................................................................................................................. 15
Using a Pivot Table to Tally Columns: ...................................................................... 15 Tallying Data by Two Categories .............................................................................. 16 Making a Graph Directly from the Pivot Table .......................................................... 16 Removing Pivot Table Rows or Columns .................................................................. 16 Using Pivot Tables to Display Calculated Data .......................................................... 16 Other Resources ............................................................................................................ 17
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Introduction to Excel
Microsoft Excel helps you to organize, analyze and attractively present data.
A spreadsheet is the computer equivalent of a paper ledger sheet. It consists of a
grid made from columns and rows. It is an environment that can make number
manipulation easy and somewhat painless.
The math that goes on behind the scenes on the paper ledger can be overwhelming.
If you change the loan amount, you will have to start the math all over again
(from scratch). The nice thing about using a computer and spreadsheet is that you
can experiment with numbers without having to RE-DO all the calculations.
NO erasers! NO new formulas! NO calculators!
Excel has many applications:
？ Sorting and organizing data
？ Creating visual representations of the data
？ Addition, Subtraction, Division, Multiplication of Cells
？ Statistical analysis
o Average (Mean)
o Median
o Quartile
o Standard deviation
o t-Test
o Covariance
？ Matrix Operations
o Addition/Subtraction
o Multiplying
o Inverse
o Determinant
Opening Excel and Inputting Data
Opening a Document
New Document: Start ? Programs ? Microsoft Office ? Excel
Saved Document: ? File ? Open then select the document you would
like to open (then click open)
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Entering in Data
What you see on the screen is a new Excel Document. Each rectangle is a
Cell which is arranged in rows and columns each having a name. The first
cell (upper left-hand corner of the document) is A1, moving one cell to the
right is B1, and moving down one from A1 is A2.
To type in data (either number, words, formulas) simply click on a cell
and begin typing. When finished you can either click on a new cell to
enter more data. Or, to move one right press Tab and pressing Enter brings
you back to the first column entered but one row down. The Arrow Keys
will also move you from one cell to the next.
If you can not see all your data on the screen simply select the Row or
Column by clicking on the letter (A, B, C…) or number (1, 2, 3…) in gray
and then go to
Format ? Row ? Auto Fit Section
Or
Format ? Column ? Auto Fit Section
Sorting and Organizing Data
You may sort data in ascending, descending or alphabetical order.
Highlight the data.
Go to:
Data;Sort
A window will open with several options for sorting the data
In the Sort by dialogue box, use the drop down menu to highlight the variable you
want the data sorted by (2003 ELA Scaled Score for example). Click on
Ascending or Descending.
The data will sort by that category. In other words, if you sorted by Ascending
2003 ELA Scaled Scores, the spreadsheet will now start with the lowest score and
progress to the highest score, and the other columns will correspond to the
appropriate score (i.e., all of the columns will not be sorted ascending; the
integrity of the data will be maintained)
Graphing Data
You may create different types of graphs to visually represent your data. Perhaps
the most pertinent type of graph you will be creating for this project is a scatter-
plot. To make a scatter-plot
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Scatter Plot
You may create different types of graphs to visually represent your data. Perhaps the most pertinent type of graph you will be creating for this project is a scatter-plot. To make a scatter-plot
Highlight the data you need for the scatter-plot (don’t worry about
highlighting extra data)
Go to:
Insert;Chart
1. A window will appear asking what type of chart you would like to
create Select XY (Scatter) from the menu on the left
2. When you select the Scatter-plot option the right side of the
window will change to show Chart Sub-Types. Select the first one
(where Excel will not connect the points) and click Next >
3. Click on the tab Series (top of window)
4. To select the values to be used on the x-axis, click on the blue and
red box to the right of the X Values blank. You will now see your
original spreadsheet. Click and drag over the appropriate values.
Then press Enter or click on the box on the right.
5. To select the values for the y-axis, follow the same procedure as
above except in the Y Values box.
6. You should see a sample of your graph in the window (make sure
it makes sense).
Click Next >
7. In the proceeding Chart Options box you may do a variety of
things such as assign labels to the axes (under the Titles tab) or
create a legend under the Legend tab
8. Click Next > when you are done customizing the chart.
9. The last dialogue box asks if you would like the chart placed on a
separate sheet (literally, a separate page) or as an object on the
same page. Select one of the two options and click Finish.
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Adding Trendlines
1. Click on your existing Chart
2. Select Add Trendline
Chart;Add Trendline
3. Select an appropriate option from the Trend/Regression Type dialogue
box (linear, exponential, polynomial, etc.)
4. Click on the Options tab
5. Check the boxes next to Display equation on chart and Display r -
squared value on chart if not already checked (this will show the
equation for the generated regression line)
6. The trendline should now be displayed on the graph (you may double-
click it to change properties like color)
7. The equation for the line should also be displayed on the chart. Note
that it may need to be dragged to an area of the chart where it is visible
(it may be buried behind the actual data points)
Formulas for +,-,*,/ of Cells
Adding/Subtracting Two Cells
Click on a empty cell (where you want the output) type in stnd =Name of 1 Cell + Name of 2 Cell
Example
A B C
1 8 9 =A1+B2 17
2 10 11
3 7 6
To add Column A and B for the other rows simply click on C1 so there is
a black box around the cell then bring your curser to the lower right-hand
corner when your curser turns in to a + sign, click, hold and drag the
curser so it highlights C2 and C3 and release.
Adding/Subtracting Multiple Cells
Type in your two matrices
Example
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A B C D E F G
1 1 2 3 1 3 5
2 4 5 6 2 4 6
3 7 8 9 7 9 11
4
5
6
7
Click on an empty cell and type in the addition equation for A1
and E1
Example
A B C D E F G
1 1 2 3 1 3 5
2 4 5 6 2 4 6
3 7 8 9 7 9 11
4
5 =A1+E1
6
7
Highlight A5 and click on the bottom right-hand corner and drag it
to the right two and down two. When you let go you will see:
A B C D E F G
1 1 2 3 1 3 5
2 4 5 6 2 4 6
3 7 8 9 7 9 11
4
5 2 5 8
6 6 9 12
7 14 17 20
Dividing/Multiplying Individual Cells
Is done the same as adding/subtracting cells
Basic Statistical Analysis
Excel can compute a variety of basic statistics about a set of data.
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Average (Mean) of a Set of Data
1. Click the cell where you would like the mean to be displayed
2. In the formula bar at the top of the document, type:
=AVERAGE(starting cell:ending cell),
Example:
=AVERAGE(D2:D357)
(this would compute the average of the set of data starting
in cell D2 and ending in D357)
Or
You may type =AVERAGE(then highlight the set of cells
you want the average of)
Median
1. Click the cell where you would like the median to be displayed
2. In the formula bar at the top of the document, type:
=MEDIAN(starting cell: ending cell),
Example:
=MEDIAN(D2:D357)
Or
You may type =MEDIAN(then highlight the set of cells
you want the average of)
Note: If there is an even number of numbers in the set, then MEDIAN
calculates the average of the two numbers in the middle
If an array or reference argument contains text, logical values or
empty cells, those values are ignored; however, cells with the value
zero are included
Quartile
1. Click the cell where you would like the quartile to be displayed
2. In the formula bar at the top of the document type:
=QUARTILE(starting cell: ending cell, quart)
If quart equals QUARTILE returns
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0 Minimum value
1 First quartile (25th percentile)
2 Median value (50th percentile)
3 Third quartile (75th percentile)
4 Maximum value
Standard Deviation
1. Click the cell where you would like the standard deviation to be
displayed
2. In the formula bar at the top of the document type:
=STDEV(starting cell: ending cell),
Example:
=STDEV(D2:D357)
Or
You may type =STDEV then simply highlight the relevant
cells
NOTE: Excel uses the following formula to compute STDEV:
2x？x;；， (using the “unbiased” or n-1 method) (n？1)
If you want the standard error calculation to not be based on (n-1) and
simply have n in the denominator, use the STDEVP function (input
syntax same as STDEV)
t-Test
1. Click the cell where you would like the t-test to be displayed
2. In the formula bar at the top of the document type:
= TTEST(array1,array2,tails,type)
Where:
Array 1 is the first data set (Selected by highlighting)
Array 2 is the second data set (Selected by highlighting)
Tails specifies the number of distribution tails (1 or 2)
Type is the kind of t-Test to perform
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If type equals This test is performed
1 Paired
2 Two-sample equal variance (homoscedastic)
3 Two-sample unequal variance (heteroscedastic)
Covariance
Covariance can be calculated easily and on a large scale using the
capabilities of an Excel spreadsheet. First, create a chart to compare the
different stocks:
Covariance Matrix
ADM IBM KO MAY XOM
ADM
? IBM
KO
MAY
XOM
For example, the ? will represent the calculated covariance of KO and
IBM stocks, or the degree to which their rates of return move together
over the investigated period.
Next, the covariance must be calculated for each cell in the table.
As an example, for cell ?, KO vs. IBM, follow the steps below.
1. Select the cell
2. Click the function (f) button x
3. Select the function COVAR, click OK
4. A box will appear into which you must enter two
arrays
5. For Array 1, click the button at the end of the text
field, then choose the entire column of daily returns
for KO, rows 5-255. Press Enter.
6. For Array 2, use the same process to select the
entire column of IBM daily returns. Press Enter
7. Click OK
Repeat this process for each cell. The covariance function is communitive,
and therefore it does not matter which order the arrays are selected in.
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