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    The Basic Computational Techniques For Data Analysis

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    Ram

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    DETAILED ConTENTS List of Figures List of Tables List of Abbreviations “About the Book ‘Acknowledgements “About the Authors CuarTer 1 Getting Started with Microsoft Excel 1.1. Glimpse of Excel 2019 1.2. Basic Data Manipulation 1.3. Finding the Number of Rows and Columns in Data 1.4, Formatting Decimal Places 1.5. Sorting Data 1.6. Unhide and Hide Rows and Columns 1,7. Filtering Data 1.8. Freezing Worksheet Panes Cuarrer 2 Basic Arithmetic Operations in Excel 2.1. Addition 2.2. Subtraction 2.3. Multiplication 2.4. Division 2.5. Relative and Absolute References 2.6. AutoSum Function 2.7. SUMIF Function 2.8. MAX and MIN Function 2.9. COUNT and COUNTIE Function 2.10. Power Function 2.11. Pivot Tables Carrer 3 Data: Input into Excel and Sources 3.1. Understanding Data 3.2. Data Entry in Excel 3.3. Importing Data in Excel 3.4, Data Sets Available in the Public Domain RRO Roa 37 38 38 40 4 VII Basic ComautaTionaL TECHNIQUES FOR Dara ANALYSIS Curren 4 Visualization of Data 4.1. Line Graph 4.2. Column Chart 3, Histogram 4.4, Pie Chart 4,5. Scatter Plot Using Charts in Excel Cuaprer 5 Measures of Central Tendency 5.1. Arithmetic Mean 5.2. Median 5.3. Mode 5.4, Weighted Arithmetic Mean 5,5. Geometric Mean 5.6. Harmonic Mean 5,7. Relationship between Arithmetic Mean, Geometric Mean and Harmonic Mean Cuarrer 6 ‘Measures of Dispersion 6.1. Range 6.2. Standard Deviation 6.3. Variance 6.4. Coefficient of Variation 6.5. Skewness 6.6. Kurtosis 6.7. Data Analysis Using Excel Cuarrer 7 Compounding: Future Value of Money 7.1. Time Value of Money 7.2. Simple Interest 7.3. Compound Interest 7.4, Future Value of an Annuity CHarTER 8 Investment Decision Criteria: NPV and IRR 8.1, Net Present Value (NPV) 8.2. Merits and Demerits of NPV 8.3, Internal Rate of Return (IRR) 8.4, Common Applications of IRR 8.5. IRR versus Extended | 8.6. Merits and Demers ork Tenn ee I Detailed Contents Cuarree 9 Loan Amortization 9,1. Type of Loan: Fixed Inter 9,2. Loan Amortization with 1 9,3. Amount of Loan afi Is Payment or EMI Using Excel Cumulative Principal and Interest Amount Using Excel PPMT and IPMT fective Annual Interest Rate versus Reducing Balance Method Cuarrer 10 Correlation Coefficient 10.1. Covariance 10.2. Correlation 10.3. Karl Pearson's Coefficient of Correlation 10.4, Spearman's Coefficient of Correlation Cuarrer 11 Regression Analysis 11.1, Regression Analysis 11.2. Developing a Linear Regression Model, 11.3. Estimation of the Coefficients in the Regression Model 11.4, Interpretation of the Estimated Coefficients in the Regression Model 11.5. Forecast the Values of the Dependent Variable 11.6. Residuals or Errors and OLS Method 11,7. Coefficient of Determination CuarTer 12, Hypothesis Testing in Regression Analysis 12.1. Hypothesis Testing Using the Statistics 12.2, Hypothesis Testing Using the p-value 12.3. Hypothesis Testing Using the Confidence Interval Appendix 1: Present Value and Future Value Tables Appendic 2: Table of the Student’ t-distribution Index 164 165 168 169 171 172 174 177 181 181 185 187 195 206 207 207 210 215 215 219 220 231 232 236 239 247 251 252 List oF FiguREs rout of Excel Worksheet ing the Number of Rows and Columns in Data Profile of Rural Workers Formatting Decimal Points Formatting Decimal Points Using Home Tab Formatting up to Two Decimal Points Step 1 in Sorting Data Step 2 in Sorting Data Step 3 in Sorting Data Hidden Column Filtering Data through Key Commands Filtering Data through Tabs Filtering Data Using Text Filters Custom Filter Number Filters Copy and Paste of Filtered Data Freezing /Unfreezing of Panes Data of Workers Employed in Non-farm Activities Step 1 in Adding of Cells Step 2 in Adding of Cells Subtracting of Cells Method 1 of Multiplication of Cells Method 2 of Multiplication of Cells Division Function in Excel Absolute Cell Reference Usage of the AutoSum Function Usage of SUMIF Function The MAX Function The MIN Function The COUNT Function The COUNTIF Function The Power Function Sales Data of a Company Inserting a Pivot Table Illustration of a Pivot Table Template Summary of Results Step 1 of Data Filtering in Pivot Table Step 2 of Data Filtering in Pivot Table Wwe OIIAQAUAN 3.10 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 3.36 41 42 43 44 Basic Compuramionat. Techniaues FOR DATA ANALYSIS. Summarizing of Values Forms of Summarized Values Adding Form to Quick Access Toolbar Data Entry Form DBIE Website: Statistics Data on Real Sector on DBIE Website Exporting Data (Sector-wise) The MoSPI Website The Downloading of Reports at MoSPI Statistical Publications Provided by MoSPI Press Release Downloading of Tables Data on MoSPI Website Step 1 in Microdata Catalogue Step 2 in Microdata Catalogue (National Data Archive) Step 3 in Microdata Catalogue (National Data Archive) National Data Bank The New NSE Website Step 1 in Downloading Historical Reports—NSE Step 2 in Downloading Historical Reports—NSE Step 3 in Downloading Historical Reports—NSE Step 1 in Historical Data of a Company—NSE Step 2 in Historical Data of a Company—NSE Step 3 in Historical Data of a Company—NSE Step 1 in Downloading Historical Data—BSE Step 2 in Downloading Historical Data—BSE Step 3 in Downloading Historical Data—BSE Step 4 in Downloading Historical Data—BSE Step 5 in Downloading Historical Data—BSE World Bank Open Data Downloading Data: Indicator-wise Downloading Data: Country-wise Downloading Data: Combination Downloading Data: Combination UNdata Website Step 1 in Downloading of Data Series—UNdata Step 2 in Downloading of Data Series—UNdata Step 3 in Downloading of Data Series—UNdata Step 4 in Downloading of Data Series—UNdata of an Indicator and Country of an Indicator and Multiple Countries Per Capita Gross Domestic Product (2011 PPP $) Line Graph in Excel Labelling of Chart Per Capita GDP of SAARC Countries, 2010-2018 33, 34 39 40 42 42 44 45 46 47 47 48 49 49 50 51 52 52 53 53 354 54 55 55 56 56 57 37 58 59 59 60 60 61 62 62 63 63 65 66 67 68 45 4.6 47 48 49 4.10 411 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 61 6.2 63 64 65 6.6 67 6.8 69 6.10 6.11 6.12 6.13 6.14 6.15 6.16 List of Figures Steps of Depicting Per Capita GDP of SAARC Countries, 2010-2018 in Column Chart Column Chart Depicting Per Capita GDP The Histogram: Direct Method The Histogram: Another Method Steps in Labelling Pie Chart, Motor Vehicle Production 2008-2009 Pie Chart of Motor Vehicle Production 2009-2010 The Scatter Plot of Company ABC Step 1 in Calculating the Mean Step 2 in Calculating the Mean Step 3 in Calculating the Mean Step 1 in Calculating the Median Step 2 in Calculating the Median Step 3 in Calculating the Median Step 1 in Calculating the Mode Step 2 in Calculating the Mode Step 3 in Calculating the Mode Calculating the Mode Using Graph Step 1 in Calculating the Mode Using MAX Step 2 in Calculating the Mode Using MAX Step 1 in Calculating the Weighted Arithmetic Mean Step 2 in Calculating the Weighted Arithmetic Mean Step 1 in Calculating the Geometric Mean Step 2 in Calculating the Geometric Mean Step 1 in Calculating the Harmonic Mean Step 2 in Calculating the Harmonic Mean Scatter Plot for Scores of Class A Scatter Plot for Scores of Class B Step 1 in Calculation of Range Step 2 in Calculation of Range Step 1 in Calculation of Standard Deviation Step 2 in Calculation of Standard Deviation Step 1 in Calculation of Variance Step 2 in Calculation of Variance Step 1 in Calculation of Skewness Step 2 in Calculation of Skewness Histogram Step 1 in Calculation of Kurtosis Step 2 in Calculation of Kurtosis Step 1 in Data Analysis (Descriptive Statistics) Step 2 in Data Analysis (Descriptive Statistics) Step 3 in Data Analysis (Descriptive Statistics) Xi 69 70 71 73 75 75 77 83 84 84 88 89 89 91 a1 92 93 94 94 7 97 98 98 101 101 106 107 109 110 113 114 117 118 124 124 125 127 128 130 130 131 XIV 7 7.2 73 8.1 83 8.4 8.5 9.1 9.2 55 9.4 9.5 9.6 9.7 9.8 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 11.1 11.2 11.3 11.4 11.5 watysis Basic COMPUTATIONAL TECHNIQUES FOR Data At nding in Investment Value Using Excel Value of Annuity Using Impact of Compou Calculating Future Excel Calculating Future g Calculating NPV Using Ese Calculating IRR Using Excel Calculation of IRR of Endowment Phas Calculating IRR in a Moneyback Policy Calculating XIRR thod : ae A Calulting EMI Using Fixed Rave Med ee Calculating Outstanding Loan Amount Calculating EMI Amount Using Excel CUMPRINC Function in Excel CUMIPMT Function in Excel PPMT Function in Excel IPMT Fanetion in Excel Effective Annual Rate Function Step 1 in Calculation of Covariance Step 2 in Calculation of Covariance Positive Correlation Negative Correlation No Correlation Step 1 in Calculation of Correlation Step 2 in Calculation of Correlation Step 1 in Calculation of Pearson Correlation Coefficient Step 2 in Calculation of Pearson Correlation Coefficient Step 1 in Calculation of Correlation using Data Analysis Step 2 in Calculation of Correlation using Data Analysis Step 3 in Calculation of Correlation using Data Analysis Scatter Plot Showing Linear Relationship between the Monthly Rate of Returns on Sensex (X) and Nifty 50 (¥) Step 1 in Calculation of Spearman Correlation Coefficient Step 2 in Calculation of Spearman Correlation Coefficient Step 3 in Calculation of Spearman Correlation Coefficient Step 4 in Calculation of Spearman Correlation Coefficient Relationship between Hours of Work and Average Cost Graphical Representation of Regression Line Regression Line with Positive Slope (B, > 0) Regression Line with Negative Slope (B, < 0) Regression Line with Constant Slope (B, = 0) Step 1 in Calculating Regression Parameters 140 143 146 152 156 158 158 159 165 171 172 173 174 175 176 178 184 185 186 186 187 190 190 191 192 192 193 193 195 199 200 200 203 208 209 209 209 214 1.6 Wo 110 Wl Wd2 Ws Wd 1S 11.16 121 12.2 12.3 124 12.5 12.6 12.7 12.8 List of Figures meters ion Analysis (Predicting the Dependent Variable) ion Analysis (Predicting, the Dependent Variable) Population (PRE) and Sample Regression Functions (SRE) Graphical Representation of Three Types of Variations Regression Analysis Dialogue Box Regression Analysis (Summary Output) Regression Analysis (Residual Output) Regression Analysi nal Expense Line Fit Plots : Promot Rejection Areas for aTwo-tailed ‘Test Rejection Are: ailed ‘Test Residual Degree of Freedom bution p-value > Alpha (ct) The distribution p-value < Alpha (a) ‘The Fdistribution Computed p-value < Alpha (a) Regression Analysis Output (95% Confidence Intervals) ‘Test Results of the Regression Equation Displayed in the Excel Sheet 214 214 215 217 217 218 220 223 224 224 225 234 234 236 238 238 238 239 240 —— CHAPTER — Getting Started with Microsoft Excel LEARNING OBJECTIVES After reading this chapter, the readers will be able to understand Basics of the Excel program How to find the number of rows and columns Formatting the decimal places Sorting of data Unhide or hide some of the rows and columns Filtering the data using various methods Freezing worksheet panes college students, researchers, financial analysts and many more. Released in 1985, it is now widely used. Its popularity arises out of its ability to do mass arithmetic calculations like addition, subtraction, multiplication and division of thousands of numbers simultaneously. Tt automates calculations and even supports complex functions when used with other functions included in the software. Further, it is a perfect tool for creating graphs and tables for visual data analysis. In fact, it does much more. Not only it aggregates ‘and simplifies numbers for data managemen, but it also processes raw data towards deeper data analysis. Hence, working, knowledge of Excel is considered vitally important in today’s world, irrespective of professionals in F& is.a spreadsheet/worksheet program which is used by most people, be it businessmen, pues the compurato ledge of software pein Fg 1A ui dp Lechner is presented anes comprehension Ie containg . ra see i A the Ribbon Display Option on pe withalanations. Ble ECT ng Auto-hide Option wil hide othe det nde ST ahd hr aa eran comme ich wl ake ii of the de SE Geoting Stated with Mirosont Excel . bar: The Quick Access Toolbar consists of favourite commands commands such as Save, Undo and Redo, As we wil proces lata analysis, we may use more commands like Sort, Copy and Format ec. ly which can be added ro the Quick Access Toolbar using the drop-down rom the drop-down list by sl umber of functions arranged in alphab ‘Tabs: The tabs on the ribbon area are Fi Help, Each tab cont , Home, Insert, Page Layout groups. The groups are further separated by a these groups which can be used as per requirement. The quently used commands in Excel Name Box: It displays the selected cel in the spreads call box number and press Enter to reach the deste cel Formula Bar: The Formula Bar displays the data or formula entered ‘This Formula Bar may also be used to edit entered data or he active splays the results of the formula entered while we see the formula itself Formula Ba. é : i 2 ll area where data can be placed is called the work area. These format of rows and colurmns. The entice work area consists of 1,048,576 rows and 16,384 columns. The exsist way to find the number of rows can bbe observed by selecting any cll and then pressing Ctsl+ Dowen arrow on the keyboard Sin + Right arrow is pressed for the number of columns. ‘* Worksheet: In Excel, a sheer is generally called a Worksheet. Ics listed ar the bottom. of the document. A worksheet can be thought of as sheet of paper where calculations ae performed. Any workbook contains at least one worksheet by default subject to the maximum of 255 worksheets. Each sheet can have its name. It can be senamed by right clicking on the worksheet tab. A new sheet can be created by clicking on the Insert Sheet icon if the data is lage enough as wel as heterogeneous ‘The sheets can be deleted, renamed, moved or copied by right clicking that worksheet tab, Zoom in and zoom out: In most cases, one can quickly use the minus and plus symbols inthe Status Bar to 200m the document. Adjustment of column width in the work area: It may happ. data/texe entered in a cell exceeds the width of a cell. To a another cell, place the cursor at the end of the respect appears. Now double click cis sign and the sizeof the columa wi 10 the cell having che lengehiest data .2. BASIC DATA MANIPULATION 1 spreads ‘move from the rop ofa column 0 the bottom ofthe column, how to format cells, how co Sort 3 Daa Avera so Cowoyraronas TeciaUes FOR i Getting Started with Microson Excel 5 Finding the Number of Rows and Columns in D312 Sabe--escbe 8 satis columns in che spreadsheet and how to hide/unhide some of the columns. To exp Jn Figure 12, we have taken a hypothetical data of rural workers engaged in non-farm act a village This daa perains co 25 workers only; in real life the data may run into thous rows and hundzeds of columns. 18? swaensen Reha Qe ole eae 4:3, FINDING THE NUMBER OF ROWS AND COLUMNS'|IN DATA\ up t0 4 decimal places, whereas worker with ID number 3 owns 2.258 acres of land which is up 1 land data in a consistent manner such that all umn of the dara, The data inthe sheet can further be selected by pi Cus ne eaamicatmpeus ees F decimal places (Figure 1.4) If ewo decimal Ibe transformed into two decimal places as displayed in Figure 1.5, the data in the chosen cells may be converted directly 1s by choosing Numbers in the Home tab and selecting desired decimal 1e decimal places are shortened or rounded off to two decimal places by 4,4, FORMATTING ‘DECIMAL PLACES It may be noted in Fi epee in landowned data have values up to different | 1D number 1 owns 0.7534 acres of land or value suas Tecnnsques Fon DAT AN 6 Base Counaro soeoHGGbe. jp beeiices data according to the number of months workers h of months workers have worked in an ascen hers wh ana ig of the workers as per data file. An easy , press Ctel + Shife + Gotting Started with Microsoft Excel 7 Hie Click Data ‘Stop 1 In Sorting Data Toor 4+ Sorby workin months by order Smallest to Largest Now we with Sort it farther by worker ID, * Sipe! (evb) valle aunt fom he dop-down bo, choot Smale | {2 Lars oder because we wane the sri IDs in ascending order, Since ous data his | ‘sn wensd alae dh box wh My dale chechd ga | Step in Sorting Data | | se | See Raa ey —=— punts 1A DEA RATES playing data selectively, aecordin pave in our example is sel we wish (0 see gender fhe Home tab and spe One can aio Pr selec bye the sme. Ont elt. The box has Text Filers ang bers, respectively. Getting Started with Microsoft Excel 11 Filtering Data through Tabs 4 4 -8--HEee--ezegey oz senaqeopraaa [ie P tpteonnn [Now suppose we are interested i which are employed in non-farm act Incheek the box, Select All and Check the female’ box gain. Data tab. "Advanced Filter tools can be used for farther insight into the daca both textual and numeral according to the format of data given, For text data, click on the drop-down arrow of the column to be filtered (in our example, i is gender), click Text Filters, and a desired option such as Equals, 1g Bese Conran, Teowmaues fon DA Anas 42 Bast | Ends With and Co! Getting Started with Microsoft Excel 19 7 after selecting up immediately af data tbe pasted and press Ce» V (igure i" now ready for scrutiny to the researcher. : " Custom Filter | ww TH kaaee O farge #0 that the con. data nse track Of virgen arenes (0 Ie fans The application the f¢ a Fecha situation, te roe point Jown oF HED" cen, daca is nor displays vill vite scrolings I rows and colin of these otis! tows belongs _ pares @ hat ewe TZ the steps tof an |, i fone to freete (He NE shown 1 Com 4 Draaes is the eecnlath | figs the Pet show! h Fee scrolling actos He viewed even alice scrolling Fese cobra ae given below w tals colume @ Click 2 Select Freeze Panes irecae First C = hen from the drop-down Te box selec sn - right, we will not lose sig] 4d now. Sevaling the righ ight of , locked top rows aun is frozen (orl to freere the The first colun at, Likewises fest coum aay lon «First Unfreeze Pons from Freeze Panes drop-down box @ Select Freeze Top Row aati hen ve ned to frene bot he SOP FON and first column, Further, ina @ Click on Freeze Panes in View tab drop-down box Select Unfreeze Panes from the Place the cunor on the intersection point ofthe frst d Select Freeze Panes in View tab Select the first option of Freeze Panes. rolling data to the right or down. point (Cell B2) Now the first row and column will remain visible while s 15] tmmamatatneed , eoemaeteectee =m With these introductory ipulation i techni manipulation in Excel in th niques, we will now next chapter leari n thi f € techniques to perform arith woes CHAPTER Basic Arithmetic Operations in Excel LEARNING OBJECTIVES After reading this chapter, the readers will be able to understand Basic arithmetic operations in Excel such as addition, subtraction, multiplication and division Performing calculations using functions such as SUMIF, COUNT and COUNTIF, MAX and MIN Use of relative and absolute cell references Creating pivot tables in Excel are necessary for undertaking any study. In particular, entering a formula in the spreadsheet to perform basic operations such as addition, subtraction, multiplication and division are introduced. Some other commands, namely SUMIF, COUNT and COUNTIF, MAX and MIN are also introduced. How to Copy and Paste the formulas across the spreadsheet is presented. To learn these functions, the data set of workers engaged in non-farm activities considered in Chapter 1 is used here. This time, however, additional information on their incomes and expenses ie chapter imparts an understanding of basic arithmetic operations in Excel. Such operations are also presented as shown in Figure 2.1. pours ayes For OMA 46 Base Courutanons TECH rs Employed in Non-farm Acth cof Worker Brien ecermine the total income eared per month of worker with ID number 1. To figure ronthly wages and income earned from other sources which are 0 G2 and H2 cells, place the cursor in Cell J2 where we wane the 3c calculation to appeat. Press the = key to sar writing che formula ik on chefs cll which isto be added (or write the name ofthe cel), press + (i. the pl and dick on the second call thar needs to be added (or simply write the name of the Enter for the result Another practical approach is the following: © Press the Insert Function key. Ie automatically brings in = i a dologes wee rineton (Dk: I aomaicly brings in = in Formula Bar a ely. Lec us find the ealulation in Column J and name it tot | Search Basic Arithmetic Operations in Excel 17 for a function SUM or select a func intended co be summed. The: ur example) or may be entere c= SB e twaote aightaway from the given options sivinga Range lumber 3 and so vethoton seer ateain “vanes lermenthig [ineabaddipadioeaieinetiae neal (termes Basic Atimete Operators in Excel 19 1 i { i | i sanauvaeeanssusnenaneed®| ofthe cls, we fellow the step mentioned that is taking che cursor to the bottom right of | the cel ll we see a thin plus oe Sere ign and then double clicking on it. Thus, we get the result for | the remaining cell as well | & Press the Insert Funeton (f) key. Ie automatically brings =" i che Formula Bar and : | dialogue box shows up © Select category Math & Trig In addin co the above informatio earned pai Taguines one may be curious to know the total income © Select the function Product and final income earni ‘© Press OK. It leads to another pop up as shown in Figure 2.6 4 year, we need co multiply | Daa Awwss Basic Aathmotle Oporations in Excol 24 ws Tecnu FOR Cowunrow 20 Base. RbnowneEy * the Number I and Number 2 boxes, enter the numbers tobe mulled respectively. We | ID number 1 collected 46,800 in an year figures ae more chan two, che Number boxes can be (B1) refers co med in our ages 8 i samp), copying the ines, the Division fiuncign can often bea complex task, We can use the {perform this function. In our ongoing di Basic Anthmetic Operations in Excel 23 E—= = —= SS = 2. - i TS See specifies the gender-relaced d eared by all the workers using the 9.700, ur example eategorically also save Antmetc Operations in Excel 25 See PEAS e NPI onat ch can be found lpi in reach and busine and MIN MAX ad the data range. In income earned is 216,500 (Figure the income info aes apy unknown (giv formula turns our to be 22. The output has nor ct 26 Buse FIGURE 212 | “The MIN Function enue fait The COUNTIF Function 27 Basic Anthmetic Operations in Excel ced ro a power. Power Excel ind the second one is an r sreoseques FOR DA ATES 2 BS Basic Arithmetic Operations in Excel 29 Sales Data of a Company to the power of 10 is exp Figure P amber bax and 10 in Power box which is equal to 5,903 ‘sping =3* (called hat) and typing 10, that is, to the numb: rnlied, Hence, we get the same resule by using these two approaches. | eae | Table which isa very powerful tool for summing up data. We wil ies uses and how to construct one. in this, we can view data summaries in various formats as per our requirement Pivot Tables are also dynamic. It is dynamic in the sens | summary in the Pivot Tables automaticaly th an example ofa fictitious company different regions in the year 2019-2021 ‘one, whereas the scons of rom and columns. Th dats presented Perse, We may draw some usefl information fiom th " mn From the a summary of all items dispatched he year mentioned using the Pivot Table, Fortis sutnmasy ay ay represent the items dispatch | pos We wl now we Pn Tle tes patched and the rows represent | 2.16 does not convey any meaning ‘We begin by inserting a Pivot Table rempl: which we wish to create a Pivot Table. We se Then Excel asks us if where we want the Pivot Table press OK afer selecting it, We, for exam igure 2.18). We may rename the New Wot plate of the Pivot Table. We may various columns in the data table ae also given. However, if we place tnywhete outside the Pivot Tale, the fields disappear but appear again as soon as we are beak in the Pivot Table area. Ar the bottom, we have certain tools that allow us to organize our Pivot Table Report Since we wish to find che data summary of items dispatched in various regions, we a ij 4 | u hull | i i Bal cae sunsoy jo Areuuns, Re I te Le pepe neceecy ceuwy oeeg Basic Anthmetic Operations in Excel 33 and select Summarize Values By option ‘or any such option from the Summarize value jenn SeRecnvae ‘ss080 basic © AutoSum (To find aggregates ofall number © SUMI (To caleulae sum of the data + MAX and MIN (To find the maxitnum and the minimums vak + COUNT and COUNTIE (To find the our dataset) th one or more cot in the data) (To ger the esl of number aise to an exponential powet) we have been trained on hoy explored the operation of arithmetic fun son the summarized data. PRACTICE QUESTIONS Basie Arithmetic Operations in Excel! nt of numerals in our data with or without conditions) 35 summarize data using Pivot Tables. We have also Following isthe table showing the marks secured in Physics of Class Xth students. Read the information given and answer the qu siven below. ——— eS Practical out of 30) 27 25 29 26) 28 Toul (out of 100) 25 2 27 (Continued) ee 36 Basic COMPUTATIONAL Tecuniaues ron Data Anatysts: (Continued) ee (Comedy Physles | ae TT SN aia | Theory Practical a Roll No Name (out of 70) (out of 30) | 12. ‘Aastha at | 13, Shubham 57. 14, Amit 68 27 15. Atul 55 22 | Complete the table. If the total marks are increased to 300, comy upgraded marks. Using the AutoSum function, calculate ch practical. ‘What are the average marks obtained by Using SUMIF function, calculate the aggregate o} than 80. How many students scored more than 80 marks (use COUNTIF function)? Name the students who topped the class and who scored the least marks. Summarize the class results by using the Pivot Table. pure the new table showing the combing aggregate marks of all students in theory ang the class in theory and practical? £ marks obtained by students scoring mor. ee () || /\ |) | | il ceememeneennnememenenaal Data: Input into Excel and Sources LEARNING OBJECTIVES After reading this chapter, the readers will be ablo to undorstand Qualitative and quantitative data Meaning of primary and secondary data Methods of entering data in Excel Importing data from other sources Sources of data— data sets avalible inthe public domain such as Rl, NSE, BSE, MOSPI, World Bank and UNdata and how to download thom in Excol 2 one ofthe mast essen and key aspects of any sud, Data is collection of numbers, De figures texts, words or descriptions of things, A collection of data is knowns ssuly organized in tabular Frm, Datasets are chan sel for analig Conclusions to gain a beter understanding ofa phenomenon andlor to male In this chapter, we wil learn data entry into an Excel shet aders wit the feey available data resources on the various sectors of ou economy that can be imported to an Excel spreadsheet. drawing nformed decisions, haprer also acquaints the ae OIE. 98 Base Conruanionnr Troumoura ror Data Avaya RMU scene NeMeysira) ive data and quantitative data, Quaitatine datas WOW Ye, to describe, classify or categorize things based on characteris stance, information related to gender Daca ean be categorized into quali and based! on categorical variable ts, stip hited, On the other hand, quantitative data is expressed" properties, quality oF labels, For and customer’ feedback on services av numerical rerms and can be counted oF me: +, income, revenues or prices illustrates qt ae ' ine fo types—p) “Ito calect the data the data can be classiied into two types— primary ayy collected for the first time for cific purpose of ysis, itis known , the primary data, Primary data, therefore, is the first-hand information collected. St is collected iin, « or personal interviews. The examples are data collected by an organization fro, its customers to conduct market research oF the census data collected by the government, Secondary data refers to the information already collected. Examples of sources on secondary | data are either reports published by government departments and organizations on their website, ly time-consuming and expensive, the secondary data is used “The information collected from either of oer : i ssured, Information about the height, weight, ape, ntitative data, area, seo) Based on the sources us sevondary, When the data surveys, questionn: ing primary data is us by many as it is less expensive, quick and easy to collect. n be analysed using various techniques. SPY NENT EIN UN ALUN = ed = Excel has many features when it comes to data entry. We can enter both numbers and alphabet in |. Usually, the following are the methods adopted to do the same. The first method to enter the data in Excel is to type the data directly into the cell by using 2 keyboard. Alternately, select the cell where the data is required to appear and use Formula Bar to enter the data. For example, if we want to enter 350 in cell B1, then select cell B1 and go to the Formula Bar, enter 350 and press Enter button, The same can be done by entering the data in cell itself, Nevertheless, this method to enter data manually, one by one, is difficult and not practical, if the data size is large. Moreover, manual entry of data is time-consuming and the probability of occurrence of error is also high. The second method is by the use of copy and paste option, Select the cell that we would like to copy, right click and select Copy or press Ctrl + C. Then select the cell where we want to Paste the data, right click and select Paste or press Ctel + V. In case, we want to copy the same data available in the cell ro the subsequent cells, the method is to use the Autofill option. Select the data cell that we want to copy; bring the cursor to the bottom right corner of the cell to the + icon and drag up to the cel where we want the data to be copied. We can fill other types of data series as well in the same mannet. Select the first two data cells, bring the cursor to the bottom right corner of the second cell to the same + icon, drag it up to the last cell where we want data to appear. The numbers in selected cells are filled orderly. Like numbers, one can also add months. In case of any mistake in the data, like a spelling error or the number error, select the cell and double click into the cell and correct it or you can use Formula Bar and press Enter. Excel also provides Auto Prompt. If we type any name and want to repeat it in any other cell, select the cel! where data is to be entered and type the first letter of the same name, Excel will auto prompt it these data sou soland Sources 39 Data: Input into and press Enter to confirm. In addition to thi fractions here. To illustrate, if 2% is 3.35, But if we type fr it is importane to understand the character of rater, the a date format, These types of cro in front of the fraction (ege 0M). ; form, In this utility, dara can be entered up to 32 fields per record. This is a useful feature of Excel doing tte fiee ss ce eater a sth fever errors. Typically, the option of data is not available on Quick Access Toolbar but can be added in the following manner: seavuta Bar displays Right click on any of the existing icons or click the down arrow in the Q Click on Customize Quick Access Toolbar From the drop-down list, select More Commands See All Comanends and choose Forms in the lise shown The Form icon will be displayed on the Quick Access Toolbar as shown in Figure 3.1 ick Access Toolbar To make a new form, we have to add headings in the column and adjust the width of column, The form will use this width as the default size for all form fields. Select all the cells containing the headings and click OK. For example, if we want to create a form of consumer satisfaction with seven fields, then enter the headings such as name of the customer, quantity of apple purchased, income of the customer, price of apple, price of its sub: preference, and number of family members. Verify that all che columns have headings. High your data range including column headings by clicking the cell from where the data starts and p: Ctrl + Shift + in case the headings are in columns. Similarly, press Ctrl + Shift + 4 in case the headings are in rows. Then select Forms from the Quick Access Toolbar. Click OK. A new window will appear as shown in Figure 3.2 with the heading of the column as fields. Enter the data in the Form fields. Press Enter or New button to enter the record in the table and get a blank form for the next record. This data form can be created to enter the primary data. ‘A data entry form in Excel has many different buttons as shown in Figure 3.2. News This will clear the existing data in the form and allows it to create a new record. Delete: This will allow to delete an existing record. Restore: If editing an existing encry, one can restore the previous daca in the form. Find Prev: This will find the previous entry. Find Next: This will find the next entry. Adding Form to Quick Access Toolbar eas gl) Fee nL FY [-1 5 7-10 Sua a2 Cc Da en 40. Base Goarsnrens THOM Data: Input into Excol and Sources. 44 ype of the newly ed ‘Test Import Wizard if Nex 1 Comma command feom the Delim icolon, Space and o rs according to your data ) and thousand separ “Advanced Key on the 1 steps, select Finish. ‘A new dialogue box convert the impor and can impore any data from any the data thac you wane vo impor, an ‘© Selece Data from tabs Select From Web fiom the get external data groups + A-new web query window appear, then paste the URL that is already copie inthe Address bor given and click Go ‘opened, you can select the arrow near the table you want to add and select © Ceiteri: This allows us co find specifi econds Close: This wil cose the form. + Scroll Bas Use the Sell Barro go trough the records « button. Tago Nowadays, the secondary data is easily accesible online or from public and ‘make the change and press is economical to collect such secondary data asa wide range of data sets can fice of cost ot by paying nominal charges, Since the datasets are usual eed 10 prepare an Freel data sheet for given parame urces of publicly available daa chac are widely used. dei lable in Excel format, Here is the list of few 3.4.1, Database for Indian Economy import the data fon The Reserve Banko India (RBI) isthe central bank of India which prepaes and furnishes large volume | Steps involved in importing data fin Feconomic and financial data dough the data publication and reports. Department of Seatics and Information Management of RBI has setup a public website (hr: sbicorgin) for database for the Indian economy referred to as the RBIs data warehouse. This website provides quick access to a wide | «From Tet rom te Get eel range of realtime egonomic and financial data, Data on the Database on Indian Economy (DBIE) From the new window as group, ihe website can be downloaded and saved as Excel files for analysis. The websire has four pars HOME, Toure docs noche CSV Gta gee stom the boron sight hand comerd | STATISTICS, TIME SERIES Figure 3.3). ‘elmore to Excl and sce impoyy “Atel choose the CSV file that you pee Hoe ei G-See Turnover, IP, RBI Balance Sheet and Foreign Select Data from the tbs, So Bee Qa TOS DSIE Wedete: Stites NANCE Dasbase dispense time seties day, SAARC counties thar can be downloaded ang ne page contains a dashboard chat shows he i tified below the n DBIE (Engl pare Statistics “Speed inc seven subject areas (Figure 3.3). The data series par Stati Be oubeae compiled pedi: The subject arene 1 Relsator compas in aac and pice and wages consisting mation mentioned in Figure 3.4. «agziclture such a production and aea under culivation data for major food grains GNcommencal cops, indices on area under cultvaion yield per hectare and statesvse production of food grins. Data on Real Sector on OBIE Website ES ‘Data: input into Excel and Sources 43 investment companies non-government non-financial 2. ies and assets of scheduled branches, newly opened branches gross and nec non-performing Bank, Small Indu Key rates such ‘+ Monetary statistics, non-banking nani compan Financial market furnishes daa on: + Equity and corporate debe market such as data series on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) indies + Forex marker such as data series on exchange rates fr four major curcenies, tha 8, USD ($), Euro, GBP and Japanese Yen aginst the domestic currency (INR) payment systems ‘© External debe such as government borrowing sternal sector indices, forex reserve ‘© International finance such as foreign investment inflows and international tade like commodity-wise export and import * Components of balance of payments such as current and capital account balance, ‘merchandise rade and service income Public finance segment data on central and state government finances (combined) such as direct and tax revenues of central and state governments and masket borrowings of central and state governments Socio-economic indicators provide information on the employment situation in India and (44 Baso Coururanou Teowsauts Fon DA ANA | FIGURE SS Exporting Data (Sector-wise) clude numerous tables incorporated in tons. They ate organized under the espectve pi mexers— economic income and spending ofthe houses Ts same manner asthe aforementioned. Data: Input into Excel and Sources 3.4.2. Ministry of Statistics and Programme Implementation @000000<"> 45 —«_ i — Recent Reports on the Home pase ‘To download the previous national accounts ‘the Download Reports on the Home page and in Search Reports and chen select imate drop-down menu id date) for which we need to download the date — we Dee: rout nis ErcelencSoxves | 47 S_... — | stattical Publications Provided by MoSPL Press Release Press Release INTERUONALCOMPEISONFROGRAM (202448) 6 Paso teu Foe Sune PUES) As Reaway.2010- ee 238 ata: put into Excel and Sources 48 eo FF op 110 Mlerodata Catalogu peonecon ‘REN a —....-) sop 2 in Microdata Catalogue (National Data Archive) qiftanhr sitc wri f ia Ministry of Statistics & Programme Implementation National Data Archive 50 Bectaorcow TNT Den Awss Date notin Excel and Souess 54 ‘sep 3in Microdata Cetalogue Nationa Data Archive) ‘national Data Bank oor BRP? Nace ¢ ooens Economic Census National Data Bank | Boe esos ag ae tee nto TAKES cae eto cet and psn the appieon and cick on Sl ree, poet and anemplayment, land ates and lveack rote tha every state has vas incorporated in 1992 and commenced 1994, I provides A mutual funds, equity de cs, devas, fxd income an tof NSE. The Home page of the website Tion, announcement anda dahbourd tha shows a chart demonsating che ~ step 2in Downloading Wstrical Roports NSE 54 ‘Step 1 ONSE Base Com Historical Data: Input into Exeal and Sources 55 56 Buse Gouruarowe Teas oR DER ANS Data: Input into Excel and Sources ST fc \-BSE ‘Step 2 in Downloading Historical Data— BSE SRPORSE Sinan. [ veony 2010) Secures Lending and Rovrowing (SLB), Exchange Taded Funds (ETH) 8.4.6,World Bank Gommodiy Deiraves, Forig Instore he ; wn asthe International Bank or hoot he rquted dae fom he The World Bank isan international organization, formerly known a the Ii i if out of the Brerwon Woods Agreement. Ne ———E—_ 59 14 Sources agaea ata: input ito cel 2 World Bank Open Dat waren or oes wa Downloading Data: Indicator-wise 58 Base Comvurows THO Gz le world Bank open Dat2 reevaipen cen pn sacs Word Bank provides ee and pen cost comprensv of igh guy dg, coumes sound the gabe Is 8 es ey acces, download ay so ed ie feast with minim resitions. To obtain dhe oe the search boron the top ofthe page as shower, ndicaor of County or any othe topic (Figure 3.27)- serch box howe ait of matching results. We can select one opig and the reaulewlbe aaplaed sing graphs and 2 daa table. Click on the Download button ightchand side to downlad the data in Excel, CSV ot XML format. fone selects a spec nthe dara fo al countries For all years with rpg ata is downloaded for a country, then ity Nias SNS igure 3.27. Weoy ors such a poplo, sro The ah cm fern fr 27 econo an re {cou go hd or monoid gg moh 90ers Tec lin heme prety and sein sot nd so ol people, environment, 0005 _- USES Site also covers diverse colons an a 2 re on the Worl Bak Open Daas ae es teliing data bank—the data avai S a : Cv bd es ce th wale ince Ws Bank da bik eet we . aoe and dovnload the data to your sien © 310 your system Peels of dataset published | . =a oo Buse Counyaro Teowaues nD NUNES Data: input into Excel and Sources 61 FAGURES20 ‘onnlanding Dat: Combination of an indcator and County st assistance (Fi 33: pe the keywords in the search box on the top of jes to view the entre record. As shown in Fig serneres and all yeas will be displayed. Click on the Download button above the data «© Downloading Data: loading Data: Combination of an Indicator and Multiple Counties oi UUNdata Website \ ther UNSD Databases: @mes Cpsoci rcs aaate steer to pata; nputinto Excel and Sources 69 ot Data Seles UNdSta ‘step 2in Downloading Onde SESS es Sear Seninnievnnnrees hemes Gt owl hed sen XM forma We can alo apply fers to download te in XML, Exel or text format. We can also ‘an be downloaded preted on the bass of different ees CHAR Ce Visualization of Data Using Charts in Excel LEARNING OBJECTIVES ‘After reading this chapter, the readers will be able to understand ‘+ Popular charts provided by Excel f \ * Plotting and interpreting the data using a line graph (also known as graph ‘ot only they display -nds and relationships, Raw date The data needs 10 be summa Comm a sed petiod 2010-2018, an Visualization of Data Using Charts in Excel 65 (afghaniztan Bhutan Tepat | Patistan [Setanka i672 oa 1987 [4072 | 6503 3627, 7268) 72053 | 4095_| 9156. 3773) 7548, ‘2185 | e149 | 9960. 3808, 7616. z2so_|azax_| 10239 1796: 79sa_|~s378_| 49892 | 2385 | asae_| 10647 3767 _| ‘a0 | 5743 | 2604 [2055 | aso | 1078 1757 aaa | 64s | a3019 | 24a7 [ago | 23207 1758) s2a7|~es16_| 3333 | 2606 _|4771_| 11706. 3s 34a | 6a09 | a3611 | 2724 | asz8_| 11056 8 Satis! Update: Human Development Indices ad Indiarors. New York Available 9/contenvhuman development indies indicator-2018 (acces 29 Api 202). ‘measure the values of a variable ver atime period. Conventionally, in days, weeks, quarters, yeas and So on) is usually placed on the X-axis. We may né " in Figure 4.1 in Excel. To stare with, note that che rich fa more commonly used option among the options vay cot bet let data fst and then cckon the laser tb 0 of gaph. peas th Formas Chan A Ri She popup windows named Slt Date Sure i Por ORDTTIL note that the data range aio includes an Excel name sheet onan Auwss 66 Base Comrvroona. Teowinu year column (A3-AL1). Click OK and another OK. ‘The char is eady as shown in Figure 42, 4.1.4. How to Put Labels? ‘This cars not sleplanaoy, We, therefore, ned 0 label his hare farther. Tis can be doe in the flowing evo way 1) emay sce Design ab and then choose che Add Chart Element as shown in Figue 43 2 Wemay dick on the + sign given onthe cop right comer ofthe char, ifcot options played inthe methods mentioned above have been elaborated her the so primary axes (borzotal and vertical) on the gh ‘wo aus wile preparing our chre wi tame the as according to the variables we choose or select. We Chea Tae i Aa Tie which appear next beth the ae aad ho + Dan Labels digi is he deters cha ane ays the values. Of diene daa yen + Gaia ae bd sound he as pine in diferent ays such, ce wesc svazation of Data Using Charts in Excel 67 Data Table: In cate we wish to show our entire data se ight below the chart, we may use this option. Error Bars: Ie represents the variation graphically in data dard ertor, percentage syed in the graph for ferent series of data presented in our graph. These labels can be peor bottom ofthe char. Ie isan essential to! for ifferentiaing, data inthe graph eer pte odeon of th dati alines exponents linear forecse manner. Ar our level, tis no of much ws. tye ted to connect heist and the st series of the daa. Again, is not cof much importance at this stage 4.1.2. Formatting the Axes ‘We can fonmat the axes as well Let us forma here the vertical value axis by right clicking on the values of the Vai. 4 Selec Format Axis and a fo m ga exec Coury Teowtous Fon Da US ‘2010-2018 Per Capita GDP of SAARC Countries se- npn 01.2018 Sadia Upie Haman Delos ads and Tr New Yor aa Se ane dedopmence ind 2018 sed 29 Apel 202, Next, under the Units, the spacing berween the values on the Y-axis ean also be changed ig the Major box. 1+ Another feature cha can be used is Display units that adjusts the units o rnsstetly the highest in Maldives and lowest in that, for example, the per capita GDP for India increased from $4,451 in 2010 ro $6,899 in 2018 Peer Luis Unlike the line graph, which displays continuous data over a time used to compare values acru categories uch as years, countries and el Measures of Central Tendency 95 Pe ana scenarios when the observations d raging is erroneous. The cor portance of observation as com observation is known as the 100 per cent. Let us understand the argument with ibute equally, the application of arithmetic mean the help of an example of wets 810,000 00, 15,000, €25,000, £16,000 and €24,000 in estment options ae 5 per cent, 7.5 per cent, 6 percent, 10 percent and fh cases, we cannot simply calulae the arithmetic because we have invested different stent. In this example, per cent (funds invested in investment Option A / Tot and 0.24 inthe res of che schemes, respect proceed withthe calculation, ip all the producs calculated in S .e sum ofall che weight. the products of the values and their weight fictor ‘Sam ofall the ys, Hy Hye tant, De where B= Symbol or notation for weighted mean, or Xe Putting values in che formula 0.2.5 96-+0.15%7.59%6 + 0.25 x 6% + 0.16109 + 0.24 109% 0.259% + 0.157.596 + 0.25% 696+ 0.16108 + 0.241096 T =7.63% erage return earned by this investor i 7.63 per cen, given hither porlio investment recurns + another example in detail o further clarify the concept and ale Excel, The college decided ro grade the students fora comps based on 8 wig ‘Measures of Corral Tendency 7 ec the range for ay 1, esc f Gn AS For Array 2, select th ‘ Calculate the weighted score and compare it wih the simple arithmetic mean of group, First Method ‘The difficulty levels ofthe rounds are different, Round | is easy (weightage 20 Round 1 co (weightage 5096), so the score of Round 3 contributes the ms group. So we calculate the weighted mean We use the formula 50 the sore of Round oe pM te tyay teh > Telit eg man fr Gap A,B, Cond Dis 6 Compared tthe simple ergs ate 6833, 7 ny tone example congo he simple eng te mean score of 75. Comparing i ath he ia thei se 76 Scond Method re caleaates weighted mean cil sng he allowing steps, Step 1. Enter the scores ofall foreach round, © SUMPRODUCT fun (alo) sign heel wheres the groups foreach round. Also, en 30 le he weigh ighted mean. Sid Yan ert fay a special ype of mean and is commonly wed 10 ke into acount the eft of compounding efor, the geometic mean is particuly used in the field of finance and demographic growth Infinance, iis sed to calculate the average annual tenuns on investments over a specific period or average growth rate Similarly, the population growrh rate is calculated using this type of mean only. Mlustration ‘Lee us understand is application in finance, Fr istanc, the vale of firm increases i 100 inthe second year The growth rate in the bye 10 percent and 50 percent in the second year. The simple average ofthe growth at per cent. Using simple average growth the firms value afer second year will be = 100,000 > (1309 x 13086) =2169,000 Jue is more dan the actual value since mean is additive. In contrast, ive and caleulated as the nth root of the product of ‘r to calculate the geomettic mean for tn’ numbers, we m root of the product. In ous example, calculating, Y110%150 yields 128.45 “rz alute cl ference $F28F4 in our formula th Is ate ang FFA (eights foreach round) remains co pa an OSE 98 Base Connon Tron sng (quire w 28.45% eompound an Br sometre mean, the fm s 8 Vale a, 12606 « 1289) value, Hence, geomese mean is a beter meas “This apposite eg theo mnie mean 2 Bee i snout th ooh es beet ners rma elt the Bo femnt = Produc ofl he numbers)"* 11 = Notation forthe product +55 lth oberon inthe dita set and ‘n= Number of oberon. Gleulating Geometric Mean Using Excel Te mus be realized by now tha eis iff to cals geometric mean manually, Sie ofthe dat is large, due wo extensive cautions involved. Ie can, however, be cal ‘he Exel function GEOMEAN ina few simple tps, ‘Step 1, Entec che data in an Exel preadec. ‘tsp 2, Use the GEOMEAN function to calculate the geometric mean (Figur ZBpe the (equal to) sgn inthe cll where the result is desied, say ‘CP, and fanction name GEOMEAN and then select I rer the hed, dati, CCH sex the range for which geomettic mean i to be ep A geomeric mean 128 per. "al for v0 yas which nce rs Metered 3 the meas fe mean cate of growth ofthe fem Per cent uniformly over the two deduction of 100. ha from the value avd st the sa geometic mean and a ee ‘Measures of Cental Tendency 99 ic mean is another ype of average which ocas ofthe observations, This ype of mean Tveightage (0 larger values, Stig ai For ample aca tan ta peed of 30 kv from Ave fom B to/A. Then the average speed i no he arithmetic meen, thats (30 + 45) Slane saad 2 = 36.36 hth Lec us say the distance is D ‘Average speed = Total disance/Toal dime __ Distance (fom A to B)+ Distance (from B to A) 7 Aw B)+ Time(from B wo A) _2 wm | 2 Bo Oa) es 30°45 a0 as, '=3636 km/hr [A generalized formula of the Barmonic mean is as follows Namberof observations Harmonic mean = SumoFreciprocalsof givenvalucs where ith observation inthe dsbaton, 3 Sigmaloperator for summation and t= Number of ebseratons. The steps involved are as follows alee els al esi he dae Be Compe fe sce Sep reciprocal ofthe value obtained in Step 2 Step 3. Calculate the Daw AMES 402 Basic Cowman Tecanaues FoR Daa Ana sacle Ua te) Reames es aa NEANIU Goce eae Jess than or equal to arithmetic mean, less than or equal to geometric mean. ‘The value of geomettic mean ‘mean 2 Harmonic mean mean and harmonic mean are Pythagorean means, ficance ofthe measures of central tendency to reduce represents and summarizes the data as a whole by ve leamed ow to compute mean (athmetic,geometsi and , median and mode and apply them under diffeent conditions. The question aries adequate or do we need to compute additonal sass co make the ut the answer to this in our next chapter where We Ys of measures of dispersion or vail. ‘The sales sargets achieved by 20 sles representatives of P Ld ate summarized as follows, Calculate mean and median for the data. ‘Sil ipremnatine Sala) Sale epreaine SET) 213,000 0 401,000 489,000) 72 270,000) aa a 336,000 14 2200) 5 111,000 15 471.000 6 379.000 16 464.000 7 297.000 17 781,000 BE 306.000 18 207,000 2 497.000 19 390,000 10) 383,000, 20 372,000) ‘Ans. Mean = 336,850; Median = 375,500. ‘The maximum temperature recorded for November in Delhi ‘median temperature and mode, eda follows, Caleulate the [arpa Teper Temper] (Cobia) (Gobig) Dey (Cebit) 1 a a A a | ‘Measures of Cental Tendency 103 50 Wooo ey “Ans, Median = 32; Mode = 32 XYZ Led earned net profit (milion USS) as follows in the last 10 years. Caleulate the geometric mean 2019 7160 2018) G60) 2017, 63,500 2016) (O70 2015 63.050 014 (6,600 2013 665.600 012) (500 2011 57.830 2010) 31250 Ans, 62,669.18 ‘Ten cars traveled from Delhi ro Chandigarh. ‘The table shows the petrol consumption for each car, Calculate the harmonic mean to estimate the average consumption of petrol per car. Gen Tel Coan (Ce per RD n 20 PaaS s 15 See TTT, | 18 7 9 3 is 5 as | 7 a 9) ‘Ans, 17.7153) 400 Base Conrutaonas Teeweouts ror DNA ASS ‘Measures of Contral Tendoncy 101 Mlustration in cell B18 (Figure 5.18). sulating the Harmonic Mean First Method (Direct Method) Using Harmonic mean = —Nemberof Sumof reciprocals 40s. Bsc Counrarers TeoveutsFoRDas AUS following criteria, ry ne | | Ace decided ogra th des fora semen bse ee weighage 10% Asigment 2d ex om Bam A a 10% CTR, Mas obtained by Shige and Shriya aes fllows Ee Se : ae Measures of Dispersion _ os | ‘Ans Shipra = 89.2; Shriya = 73, Clete the weighted sor. | | LEARNING OBJECTIVES | Atte + Concept of measure of seer eo | f symmetrical and asymmetrical dist | ‘of coefficient of skewness using Excel and its interpretation Concept and calcul Using data analysis to of descriptive sat to calculate the messures of di 1d with the help of the following cable which summarizes the test scores in two diferes ‘of 10 students each, sige ia edn et ste lel na yates Tet dimes wad not pees gee 2 trellises iy | inde da Ayo mei shld neh ering ei os l [ one 2 ao oa oe ola ea ude nal ce sinc ai wd ale it wor bl, sed yt eae eres ci, Fiche ae ier sisi 5; shale le gi rn acura ii inc ae Themes nls nes dps, Akihrgings ince isch Bee een ihr von opr hig an he one sin ted is rem th mma vinci. Minune dia Contig ng of Cs Br lie = Msi se -iu =i : 5 Te meee | detonate 8,7 llustration eri dan on chars US Dll (USD) Taian Rapes yp fom January 2019 co December 2019. forthe dara given as allo. par, ET Gy SB): tite 71311 =| TUB Org. | SSS) Smegeacone — i a ria Cant ae eee Se a 70.957) (ee ena ——_— = 71.6802 | i ai ° emmte Se eS EET ‘uspane | _ ———— an 5 za — 98] ha 38 71.722 ocimam ange Rate [TOAST | ae aes aaa z pene 71.6802 22 Range t a a ay [69.0775 : rane ‘Source: Yahoo Finance. hexps:lffinance yahoo.com/quote/INR%3DXIhistory? petiod1=15636082038cperiod? 169.325 — ~ 71595230603 =Imaer ht sequen ine 9.98 - : | 9.8118 Ee —-—}-— Fist Method (Direce Method) “March (69.43, Range of exchange aes te[ February 719 = a = Maximum exchange rate ~ Minimum exchange rate ia|_anuary [71.12 james - = 71,722 ~ 69.075 which is equal to 2.6445 ‘Second Method (Excel) ‘To calculate the range using Excel, follow these steps. 6.1.1, Merits of Range ae ee Sp 2 Ur beh i tis idee ene aan ee ee oer es ie ed ne Breas = Gua depen he cell where the rule is dsced, say "EA and encer the 3 rein t ch ee eo ee ae 1ge of number ‘calculate the highest exchange very ny to compute ple co understand even by aya. is less time-consuming. jn ln 6.1.2. Demerits of Range MIN and then select she same cy BasB ‘the result is desired, say ‘ES and ey enter ng of numbers to calculate the lowest isnot based on all the values in a dataset the upper lime of the hig hese class and lower Where the resule is 2 Enter (Figures 6.3 3 of open-end continuous estimated. the lowest cass have o be 2 Wop Text == 5 5 | Bvesnceny , _begnment 7722) e077} 2.6445| Cara sauen Sandard devon (denoted by the Grd ter sign deviations of the ober isthe square root ofthe sum ofall the sgt fom thi meen ide bythe number of observations inthe ite i ions from the mean itt jon or is wid) difference eae been ech oy Measures of Dispersion 114 Seep 3. Square the deviations calculated above Step 4. Calculate the arithmetic mean ofthe squaed dev Step 5. Calculate the square roo of the res obtained in Step 4. ule of Thumb (Assumes Normal Distribution) 1s Weexpect 68 per cent of our daa to fl mean (¢ 1 x std, dev) 1 Weexpect 95 per cent of our data to fll mean (2 2x std. dex) a We expect 99.7 per cent of our data to fall within che range + or ~3 standard deviation of the mean (& 3 x std. dev) + 0.3 per cent values filling beyond the third range are considered to be rare and unusual inthe range + or ~ 1 standard deviation of the inthe range + or ~ 2 standard deviation of the “The aforesaid steps of standard deviation for a series of numbers xp a ayy ve #, can be formalized as ihmetie mean and n= Number of observations. Seg 112. Basic Courvanow Teosvaues Fon Daa Ava Measures of Dispersion 118 Mlustration Ee ‘The following table presents the monthly slaies of CEOs of 10 MNCs, Calculate the standard deviation of salaries, Second Method (Using Ex Use the STDEV.P ‘Stop 1 in Calculation of Standard Deviation i 8 a 2 @ am sues FORD ANA 114 Base Comoros Tee Measures of Dispersion 145 farther sail ana such at skewnes, colton, regresion and esting ao eamene Se «| Ie a I is exptesed in the same unis asthe mean ofthe dis and more accurate. ton, hence easier to Interpret Sea | eRe 8 Bence 6.2.2. Demerits of Standard Deviation 6.2.2. Demerits of Standard Deviation calculation of standard devi sannot be easily understood. standard deviation of two series cannot be added a affected by extreme values in the data sec beeaus due owhich the tion becomes propo Units of measurement do i measure some length Is difficl asi involves many steps. tea square root. devitions fom mean are squared nately bigger th we ok anaheriporant meas feo led see esque draft msn gle wo sree doe by weed wager Maen saptynen wep Step 1. Enter the sie in an Excel shee cof numbers, %y . Step 2. Use the STDEVEP function to | ‘aleulate the standard deviation of the population. pe Brees Gao) src ahr il St the pan, ; Fang name STDEV.P and then se P ‘he range of numbers, chat is, B2:B11, Pres where standard deviation of the sample = Symba for stand devon, desited, say ‘B14’ and enter the Ze Sigmalopersorf for sur . : a Ee Ana incense fom heen n= Number of observations. Mlustration bes the spread or the variation ofthe. based on all f the di values of che dataset. Teo samp oman ere aa Someuemistce aa as an estimation of risk in an i iat 150 ci stent and helps to measure the " 236 a 280 SS ——____* (eee n Ti a a an Dy rn Cale 1 Sadr dsixon 3 Wh am as cone perma? Fist Method Measures of Diparsion 117 =) (SEA | = a7 sere7 10 by. Variance = (Sandad deviation? = 7636.64 a. Standard deviation = sul, Team A performed consent a thei standard de than chat of Tem the range of 205,7-41,90 and 205.7 ie within che range of 196.4-87.38 and 196.4 cond Method (Using Excel) a sete theVAREP Rincon clue te anc ofa popula, using he en popl : isnot posible, we can calculate the variance ofa sample drawn from the population using the ce function VARS. cla the variance wag Face filly the steps as shown in Fgues 7 and 8. ‘step 1 in Calculation of Variance 175601 76,3664 =2057 11022057 PSL, FRE a sorisyoy 10 Variance = (Senda dovition) = 1,756.2) For Team B Monat s Bi Ae oas64 1021964 a Anas 4148 Base Conruranovas Teowwaves Fos DX ‘Step 2 in Calculation of Variance xv para Tema | TamB 150, 260 236 110) 280 175, 90 a5 146, 250 235 | Step1. Enter the scores in an Excel sheet. ‘Step 2. Use the VAR.P function to calculate the variance ofthe population, ‘ype the = (equal to) sign in the cell where the resuleis deed, say "B13" and enter the fanction name VARLP and then select the range of numbers, thats, B2sBI1, Press Enter, Step 3. Use the VAR.S function to calculate the variance ofthe sample, ‘ype the ‘= (equal ro) sign in the cell where the result is desired, say B14" and enter the function name VARS and then select che range of numbers, 1. Press Enter. 6.3.1. Merits of Variance _—eeeeee lescribes the spread or the var the data. 2 useful statistic used to dra es from surveys. also used in account of costs and revenues. 1 2K 3 ‘Measures of Disporsion 149 3.2. Demerit of Variance 69:2: PO ay eis defined as the ra Bcd deviation to the mean and is independent of the unit of measurement for whic is semis The cocflent of asaon i expresed a _ Standard deviation Mean 7 = Ic can be represented in terms of ratio or percentage. For percentage, we mul formula by 100, that is, x10. Lower coefficient of variation suggests lesser variation than fs peter variation than mean. That Saha of 20 per cient of variation sn of 15 per cent and Set B has a coefficient of vari sets having varied fc to compare two or more data sets having, of measurement. One should pre 8 is consider two investment portfolios. We are given the mean ofthe returns camad and the standard deviation forthe rerurns foreach investment portfolio. 4120 Base Covrsanann, Tecievous 7 OAT ANALYS'S a TT Qa. 3s the oefcient of vusiance of 22.92 per cen in the case of Investing, | the cof Invexment B.A higher depe of variability in Invermen compared tothe alternative. In his case, Investment A is safer than Investmen Calculating the Coefficient of Variation Using Excel “There sno dizee Formula to calculate che cofient of variation in Excel. Therefore, | We fire calulte che simple rthmetic mean of the dataset using the AVERAGE funct Then we calculate the standard deviation using the STDEV.P function. calculating the coeficient of by the cll coneaning the mean. ion, we divide the cell containing the standa ical or asymmetrical can be Symmetrical distribution that looks the same om the le to the right side. A normal symmetrical distribu which the value of the mean mode and the skewness is bell-shaped curve as toa bel. For symi tions, the mean = median = mode is represented by the middle ofthe di Mean = Medan = Modo (icra Curve x on whos as ithe large numberof exuomaly high vale ead of smaller vals and fer numberof gn ire the lack of gery a ‘median # mode The rene the he akewnesr of dt. An ssymmeteal di Measures of Dispersion 124 ak ‘Median < Mode. The measure (0 skewness as given by Kad Coefficient of skewnes ‘Mean Median > Wade ‘Mean -Mode 1+ If the coefficient of skewness is asymmetric disei- tion. the coefficient of skewness <0, then itis a negatively sewed dsr 1+ 1F0,5 > | coefficient of skewness | > 0, 1> | coefficient of skewn coefficient of skewness | beaween mean and median, ‘Mean = Mode =3 (Mean ~ Median) ft Mode = 3Median ~2Mesn in evi tonnes) by 30 farmers in India x summarized in the rable follows Karl Pearson coeficent of skewness caen es reyuonas Teosene 122 Be Fice Production n Metre Tonnes) Measures of Dispersion 123 (z} emt + (241) scm Median =$24 102.1 ag Mode = Highest frequency in the daca standard deviation = 5. SE =10342 Mean-Mode__ ¥-M, Standarddeviation Karl Pearson coefficient of skewness = = WA-26 10342 “Answer arid interpretation ofthe result: = 0.106 0.5 > | coefficient of skewness | > 0, the data is comparatively symmetrical di Second Method (Using Excel) ‘To calealte the skewness using Excel, follow these steps. displayed in the ‘The histogram is an ee graphical representation of skewness. Let us plot afi the data related sn. Looking at the graph, ican be concluded that the: ie approximately 5 6.6. KURTOSIS the shape of disteibuto reasure of ‘allednes' of a dist that ofa normal distribution. Ir helps ro hy hs he mee of 424 Bsse Cow caleulation of Skewness senavas Tees FOR DH ATES ‘Measures of Dispersion 125 Frequency 10 15 2 25 30 95 40 45 50 Mow 6.6.1, Mesokurtic Distribution 6.6.1. Mesokurtic Distribution 00 ton having kurt are normal, Ie has a ku 6.6.2. Leptokurtic Distribution fstribution refers to the distribution having kurtosis greater than a mesokutic means thin of narrow which describes the long and nartow looking peak of vc distributions have heavy tals on either side indicating the presence of more aun thar of normal distibution It has a kurtosis of greater than 3. There i too much concentration of items neat the mean. Ass cx 1080 126 Bice Gowrnont T 6.6.3, Platykurtic Dis Measures o Dispersion 127 [conse ss ss ts Es huss let by abi 1s excess kurtosis indifferent distributions. | eee Ll Danae Ti erase Br Vad] ee ee Ear ti | S iia Neral Nora 33) Nactaaipiibe Hery Grete he ena ‘Step 1 in Calculation of Kurtosis —e aa Time akentin He Time then by each contestant igen 2 lls Tine Taken Gin Minato) 0 3 a | ee 2 | eee | op. iso Corsi TEST ac se] Conan ces sss hn ci paladin Such dba phair cb rng eels een we don tt ot dca Irisone ofthe imporancand widely used and mathematical functions to analyse Illustration Mitre EEE Hee eee eee reece errr Hae The ratings f #6 fora move given by 50 people betwee ‘the highs) is given a follows. Cal Mesures of Dispersion 129 Rag ie " Vie TE % 3 3 =e a aes 8 i 26 1 w * 7 4 2 4 uw 1 9 1 3 a = 16 3 aL 4 ee 18 1 8 4 pia 2 4 5 3 i ra i 2 3 a 5 Ey z 3 4B 2 a = as 4 Bs 2 30 a “T calle the descriptive stasis using Exe, fllow the steps shown in Figures 6.14 and 615. Step 1. Enter che data in an Excel shee Seep 2. Go to Data tab, click on the option of Data Analysis in the analysis group on the the sid (you cannot nd the Data Analysis buon then follow the eps cused in Chapter 4 to load Anais TelPok in Exel. ‘Step 3. dialogue bx wll appa. Select the opion of Descriptive Statistic from he and click OK. Step 4.A descriptive statics dialogue box wll apes + Fil the following deals Input range: The range numbers for which the statistics are robe caleulared, chats, B2BS1. ‘Oniput range The cll efence whee he ee dese. Sop DI + Check on Sum tis + Click OK. The Ibe displayed inthe el (Figure 6.16) his chapter delved int the common measures of dispersion which a re pe common measures covered were rangs, standard ds erga, Besides, it ako dscused the concept of skewnes - 4432 Base Couevrancnas Teonnaues Fon DAA AMANSS ‘Ans. 9 degiee Cia z F & & £ & 8 i F g E i & | | ‘Calculate the standard deviation and variance for the data, ‘Ans. Standard deviation = &97,709.98, Variance = 9,547,240,000. le summarizes Gi standard deviation and inerpre dhe ese 494 Base Covevanena Tecaes Fo DHA AMES 5. Calculate the coefcien of variation fr the fllowing data ‘has more variation in ration tits mean than that of height. 6. The ratings given by 40 people fora new feature on socal media app ae given as follows, oS cama Sy Sa Saas SS Sa SES REESE | ear Measures of Dispersion 196 Is the data skewed? Calult the hewn and commen ‘has = 0.083, comparatively symmetizal, MME numberof taxpayers in 30 diferent ces lows inthe tbl, Cae the 1 ‘Te ets and kur andcomnens, gee ema beige Coal OE lw we SSS _~——=—e aaa ss 496 Base Counvarowe Teossai [apie Bee aero 7 = CHAPTER Compounding: Future Value of Money LEARNING OBJECTIVES “the readers will be able to understand ‘iter reading this chat «The Concept of time value of money sompound interest the future value of single cash flows using table and Excel Calculation and interpr today is worth mare han a rape tomorrow. The be de same asthe valu ofthe same rupee over ‘of money, ie is said that a rupee the value ofa rupee today will or =—_—S—s—§>—<“S

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