Data Analysis: Histograms and Descriptive Statistics - AAW4 Post

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This essay discusses the use of histograms and descriptive statistics in data analysis. Histograms are visual displays that group data into ranges, using these ranges to create bars representing the number of items within each range. The essay explains how to generate a histogram using Microsoft Excel's Analysis ToolPak, detailing the steps from creating bins to displaying the chart output. It also covers descriptive statistics, which provide a numerical summary of sample data, focusing on understanding the current data sample rather than projecting population characteristics. The essay outlines how to generate descriptive statistics using Excel and highlights their utility in displaying measures of central tendency (mean, mode, median) and measures of spread (variance, standard deviation, skewness, kurtosis). The essay concludes by emphasizing the role of histograms and descriptive statistics in breaking down large data volumes into understandable components that support informed decision-making.
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Histogram
Is a visual display that group data in to ranges and use the ranges as the basic for
developing bars. Each bar is meant to indicate the number of items that are in a certain range.
Histograms and bar graphs are similar if not for the fact that in histograms data range is used
instead of a single data element like in the barographs (Techopedia Inc, 2019).
One way of generating a histogram involves using the Analysis Tool Pak which
comes with the Microsoft Excel software. To do this the initial stage involve creating a
column of the upper values on the data ranges which is referred to as bins. After doing this
you click on the data tab and go to the data analysis. On clicking the data analysis, a dialog
box will appear on the screen, go through and choose histogram. Afterwards fill the input and
the bin range values followed by selecting the output options which defines where the
histogram will be displayed on the screen. The last step is to check the chart output option
and click OK. A histogram will be displayed on the screen (Cheusheva, 2018).
The uses of histogram in data analysis are applicable in many organizations that apply
data analysis as away of making business decisions. For instance, by creating a histogram
common processes can be gauged. Histogram also displays the symmetry of the data and can
show deviations. All this can assist point to areas in an organization that need minimal effort.
Descriptive statistics
Descriptive statistics is a statistical summary of data that gives a numerical
description of the features of a sample information. Its focus in understanding the current data
sample rather than try project the nature of the population from which the data originates is
what makes it different firm the inferential statistics (Babbie, 2009). Descriptive statistics do
not use probability concepts.
The data analysis Tool Pak can be used to generate the descriptive statistics. To do
this go to the data tab and click the data analysis option. A dialog box will appear in the
screen form which you scroll and choose the descriptive statistics option. Under the input
area insert the data range to be described. Specify the arrangement of the data by clicking on
either rows or columns depending on how the data is entered in the excel document. In case
the first row is made of labels describing the title of the variable click in the labels box.
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Afterwards specify the output area and the statistical measures to be displayed before clicking
OK (Nelson & Nelson, 2019).
To produce, measure, the descriptive statistics can be used in a number of ways. First
it can display the measures of central tendency. This include the mean, mode and the median.
In addition, it can be used to display the measures of spread like the variance, standard
deviation, skewness, kurtosis among others (Narkhede, 2018).
Decision making
Histogram and the descriptive statistics assist break down large volumes of data to
understandable components that are useful in supporting decision making. The measures
generated by descriptive statistics and the visual display by histograms are some of the useful
components of data analysis.
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References
Babbie, E. R., 2009. The Practice of Social Research. 12th ed.). ed. s.l.:Wadsworth.
Cheusheva, S., 2018. How to create a histogram chart in Excel 2016, 2013 and 2010.
[Online]
Available at: https://www.ablebits.com/office-addins-blog/2016/05/11/make-
histogram- excel/
[Accessed 2 February 2019].
Narkhede, S., 2018. Understanding Descriptive Statistics. [Online]
Available at: https://towardsdatascience.com/understanding-descriptive-statistics-
c9c2b0641291
[Accessed 26 February 2019].
Nelson, S. L. & Nelson, N. E. C., 2019. HOW TO USE EXCEL’S DESCRIPTIVE
STATISTICS TOOL. [Online]
Available at: https://www.dummies.com/software/microsoft-office/excel/how-to-use-
excels-descriptive-statistics-tool/
[Accessed 2 February 2019].
Techopedia Inc, 2019. Histogram. [Online]
Available at: https://www.techopedia.com/definition/14410/histogram
[Accessed 2 February 2019].
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