2DA3

Decision Making with

Analytics
W E E K 3 : I N T RODU C TION TO E XCE L A N D P OW E R BI
( P I VOT TABLES AN D CHARTS , T WO E X AMPLES, AN D P OWE R BI )
I N STRUC TOR: ZA HR A M A S HAYEK HI

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Chapter 2:
Introduction to Excel (Append A., Chs. 3
and 10 in the book)

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ILOs
oPivot tables and charts.
oTwo Examples: Break-Even point and Gambrell Manufacturing
oPower BI

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Open “Unsolved – Pivot Tables and Charts.xlsx”

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Pivot Table/Chart
Zagat’s Restaurant Review: Data on the quality rating, meal price,
and the usual wait time for a table during peak hours were collected
for a sample of 300 Los Angeles area restaurants.

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Open “Unsolved - 2 Business Problem Examples.xlsx”

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Example 1: Break-Even Point
◦ Nowlin is considering outsourcing the production of some products for next year,
includ-ing the Viper. Nowlin has a bid from an outside firm to produce the Viper for
$3.50 per unit (buy).

◦ Fixed cost: $234K, variable cost: $2 for the production (make).

◦ For what quantities of production Nowlin should outsource rather than produce the
Viper?

◦ Excel “Goal Seek” and “Data Table”

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Example 2: Gambrell Manufacturing
oGumbrell sells four products with IDs, 570, 578, 741, and 755. Each
product has an order-up-to point (M) and on-hand inventory (H).
Stated mathematically, if Q is the amount we order, then Q=M-H.
oEach time a component is ordered, it costs Gambrell $120 to
process the order.
oIf 50 or more units are ordered, there is a quantity discount of 10%
on every unit purchased.

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End of Week
Glossary (Common Excel terminology)
Referencing: The method by which you refer to a cell or series of cells in a formula.

Filtering: to display only the rows that meet certain conditions.

Sorting: Arranging data according to our requirements.

Mean (arithmetic mean): A measure of central location computed by summing the data values and dividing by the number of observations.

Median: A measure of central location provided by the value in the middle when the data are arranged in ascending order.

Mode: A measure of central location defined as the value that occurs with greatest frequency.
Variance: A measure of variability based on the squared deviations of the data values about the mean.
Range: A measure of variability defined to be the largest value minus the smallest value.

Scatter chart: A graphical presentation of the relationship between two quantitative variables. One variable is shown on the horizontal axis and the other on the vertical axis.
Time series: data Data that are collected over a period of time (minutes, hours, days, months, years, etc.).

Histogram: A graphical presentation of a frequency distribution, relative frequency distribution, or percent frequency distribution of quantitative data constructed by placing
the bin intervals on the horizontal axis and the frequencies, relative frequencies, or percent frequencies on the vertical axis.

Categorical data: Data for which categories of like items are identified by labels or names. Arithmetic operations cannot be performed on categorical data.

Pivot table: is a table of grouped values that aggregates the individual items of a more extensive table within one or more discrete categories.

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Summary of Excel Features and Functions
Excel Features:

Referencing: The method by which you refer to a cell or series of cells in a formula.

Filtering: To display only the rows that meet certain conditions.

Sorting: Arranging data according to the requirements.

Scatter chart: A graphical presentation of the relationship between two quantitative variables. One variable is shown on the horizontal axis and the other on the vertical axis.
Time series: data Data that are collected over a period of time (minutes, hours, days, months, years, etc.).

Histogram: A graphical presentation of a frequency distribution, relative frequency distribution, or percent frequency distribution of quantitative data constructed by placing the bin intervals on
the horizontal axis and the frequencies, relative frequencies, or percent frequencies on the vertical axis.

Pivot table: is a table of grouped values that aggregates the individual items of a more extensive table within one or more discrete categories.

Excel Functions:

MIN Max

AVERAGE IF

SUM SUMPRODUCT

Count COUNTIF

AGGREGATE

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