Lab 7.

1 Excel Solution

Lab 7.1 Excel Word Document Submission:

Lab 7.1 Excel Assessment
Questions 1-5 Answer
Assessment What is the average processing time (rounded) for
1 LeTable Inc.? 10 days
Assessment What is the average cost of the tables sold between
2 2018 and 2022 (rounded to the nearest dollar)? $ 133.73
Assessment What is the maximum amount of time it took to ship an
3 order? 30 days
Does the Descriptive Statistics of the Excel Analysis No, we have to
Assessment ToolPak allow statistics to be automatically created for create it
4 subtotals within a column? manually.
When using the Data > Data Analysis to create a
“histogram” (really a bar chart), which option in the
Histogram dialog box should you select if you want to
sort the “histogram” from largest to smallest
Assessment frequency? (Note: Try the options to figure out the Pareto ( sorted
5 answer to this question.) histogram)

Lab 7.1 Excel Analysis Questions

1. If we created another column called Gross Profit that is equal to

SellingPrice minus Cost, and if we generated descriptive statistics
for Gross Profit, what would that information tell Rob about his
business?

Generating descriptive statistics for Gross Profit, which is calculated as SellingPrice minus Cost,
would provide Rob with valuable insights into the profitability of his business. Here are some of
the key pieces of information and their implications:

1. Mean (Average) Gross Profit: This would tell Rob the average profit he is making per
sale. A higher mean indicates better overall profitability. If the mean is negative, it means
he is, on average, losing money on each sale.
2. Median Gross Profit: The median gives the middle value of the gross profits when they
are ordered from lowest to highest. It is useful for understanding the typical profit,
especially in the presence of outliers that might skew the mean.
 3. Mode Gross Profit: This is the most frequently occurring gross profit value. It helps Rob
understand the most common profit he is making on sales.
4. Standard Deviation and Variance: These statistics measure the spread or dispersion of
the gross profit values. A high standard deviation indicates that the gross profits vary
widely from one sale to another, which could mean inconsistent pricing, costs, or both. A
low standard deviation means that gross profits are more consistent.
5. Minimum and Maximum Gross Profit: These values show the range of gross profit,
indicating the lowest and highest profits made on individual sales. This can help Rob
identify the best and worst-performing products or services.
6. Range (Maximum - Minimum): This gives the overall spread of gross profit values. A
large range might prompt Rob to investigate why there is such a wide variation in profits.
7. Skewness and Kurtosis: Skewness indicates whether the distribution of gross profit is
asymmetric, while kurtosis indicates the presence of outliers. Understanding these can
help Rob identify any irregularities in his profit distribution.

By analyzing these descriptive statistics, Rob can gain insights into the following aspects of his
business:

 Profitability: Understanding average and typical gross profit values will help Rob gauge
overall profitability and identify if his pricing strategy is effective.
 Consistency: The standard deviation and range will show whether his gross profits are
consistent across different sales or if there are significant fluctuations.
 Risk and Opportunities: Identifying the minimum and maximum gross profits can help
Rob assess the risk of losses and identify highly profitable opportunities.
 Decision Making: Insights from the distribution of gross profits can inform strategic
decisions, such as pricing adjustments, cost management, and focusing on high-margin
products or services.

Overall, descriptive statistics for Gross Profit provide Rob with a comprehensive view of his
business's financial performance, helping him make informed decisions to improve profitability
and reduce risks.
Alternative Lab 7.1 Excel Solution

Alternative Lab 7.1 Excel Word Document Submission:

Alternative Lab 7.1 Excel Assessment

Questions 1-15 Answer

What is the average SellingPrice (rounded to the
$ 224
Assessment 1 nearest dollar) for LeTable Inc.?
What is the average cost of the tables sold
between 2018 and 2022 (rounded to the nearest $ 94
Assessment 2 dollar)?
What is the maximum amount of time it took to
27 days
Assessment 3 ship an order?
According to the (real) histogram, which bin had
Bin 5
Assessment 4 the second-most-frequent processing time?
Which statistic provides information about the
Standard deviation
Assessment 5 distribution of the data?
What is the median Process Time (rounded) for
Assessment 6 LeTable Inc.? 9 days
What is the average Process Time (rounded) for
Assessment 7 LeTable Inc.? 9.5 days
What is the median SellingPrice (rounded to the
Assessment 8 nearest dollar) for LeTable Inc.? $ 180
What is the median Cost (rounded to the nearest
Assessment 9 dollar) for LeTable Inc.? $95
What is the median number of days (rounded to
Assessment the nearest day) it takes to create and ship a
10 table? 9 days
Assessment What is the most common selling price of a
11 table? $140
Assessment What is the most common number of days to
12 create and ship a table? 9 days
Assessment
13 How many observations are in the data set? 19989
Assessment What is the most expensive SellingPrice for a
14 table? $ 600
Assessment What is the highest Cost of all of the tables
15 created? $ 185
Alternative Lab 7.1 Excel Analysis Questions

1. What is the limitation of using Descriptive Statistics generated by

the Excel Analysis ToolPak?

A key limitation of using Descriptive Statistics generated by the Excel Analysis ToolPak is that
it provides a basic summary of the data, which may lack the depth and flexibility required for
more complex or nuanced analysis. Specifically:

1. Limited Depth of Analysis: The Analysis Tool Pak provides summary statistics such as
mean, median, mode, standard deviation, range, and variance, but it doesn't offer more
advanced statistical techniques or insights into data distribution, correlations, or
regression analysis.
2. Static Outputs: The results generated are static and do not automatically update if the
underlying data changes. This means that any change in the dataset requires a manual re-
run of the Tool Pak to update the results.
3. Lack of Visualization Tools: While descriptive statistics provide numerical summaries,
the Tool Pak does not offer advanced visualization options to help interpret the data.
Users would need to create charts and graphs separately, which can be time-consuming
and may lead to inconsistencies.
4. Limited Handling of Missing Data: The ToolPak does not provide robust options for
handling missing data, which can skew results or lead to incorrect conclusions if not
addressed properly.
5. User Interface Limitations: The interface is not as user-friendly or intuitive as
specialized statistical software, making it less accessible for users who are not familiar
with statistical analysis or Excel's functions.
6. Error Handling: There is limited error checking or guidance on interpreting results,
which can be problematic for users who may misinterpret the output or overlook potential
data issues.

In summary, while the Excel Analysis Tool Pak is useful for quick, basic statistical summaries, it
is not sufficient for more comprehensive, dynamic, or sophisticated data analysis tasks.