Unit 1

Foundations of Business Analytics

BUSINESS ANALYTICS
B.Tech(CSE) IV Year - I Semester
Open Elective - III

Prof. S.Adinarayana, Dept of CS&SE, College of Engineering, Andhra University

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Open Elective – III: BUSINESS ANALYTICS

Wed: 1.30 PM to 3.10 PM & Sat: 9.00 AM to 10.40 AM

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 Introduction- Business Analytics
• Business Analytics has become an integral part of business operations and
performance management.

• Businesses and corporations who wish to gain a competitive edge in the market during
modern times must employ the services of skilled business analysts to do so.

• Without utilizing data effectively and without a dedicated analytics team, companies
will not be able to sustain themselves in this world where the competition employs
various analytical tools and techniques to facilitate peak performance.

• business analytics can help companies increase revenue by cutting costs and
decreasing waste.
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• Business analytics is also about sustainability and the efficient use of
resources.
• From finances and marketing to performance or operations analytics, business
analytics is being used everywhere to optimize a company’s operational affairs.

• Business analytics also helps organizations to make the right choices based on
customer preferences, changing trends, and past performance, and avoid risks
in both the short term and the long term.

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 Evolution of Business Analytics
• Business analytics has evolved into a much more advanced set of tools and
techniques assisted by automation and big data.
• Initially, business analytics was limited to a few corporate applications used by only
the major MNCs.
• Initially, computing for business was noticed in the use of report-building,
presentations, and data entry using Microsoft Excel.
• Later on, more advanced applications that involved multi-dimensional data
processing and data analytics were seen using add-ons such as PowerPivot in Excel.
• The concept of Business Intelligence(BI) was introduced into the market, and
corporations around the globe wanted their hands on it.
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• Business Intelligence(BI) uses various digital instruments, technologies, and
metrics to evaluate business performance and help companies get valuable
insights.
• BI Tools like Tableau, SAS, or Microsoft Power BI are used to support
business activities and operations.
• BI, concepts such as ‘web questions,’ collaboration, data security, and
sourcing data from databases and distributed file systems came into
mainstream use as well to support business analysis.

• Nowadays, business analytics is not just used by large MNCs and

conglomerates but also by medium-level and much smaller enterprises as
well.
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 Recent Evolution in Business Analytics
• In recent times, automation in analytics and the concept of big data were
introduced.

• The advent of big data meant that analytics along with various data
sources should become more scalable and more powerful.

• big data technologies helped in introducing more advanced tools and

systems that are compatible with large volumes of data.

• The emergence of cloud technologies enables data stored in virtual

storage called cloud, instead of storing data in-house.
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• There was also a huge demand for automating analytical tools to process

massive datasets rapidly and from multiple sources such as from the cloud

and distributed file systems rather than just the traditional RDBMS.

• Business analysts were also now armed with predictive and forecasting
abilities that were now more accurate than ever with the help of modern
business analytics.

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 Four main spheres in Business Analytics evolution
1. Artificial Intelligence and Automated Analytics
• Artificial intelligence (AI) and automated analytics are transforming the field of
business analytics by offering a level of speed, scale, and granularity that isn’t humanly
possible.

2. Predictive Analytics
• Every business needs to keep periodic financial records, and predictive analytics can play
a big role in forecasting your organization’s future health.

• It uses statistical modeling, data mining techniques, and machine learning to find
patterns and relationships in data. 14
3. Real-time Analytics
• Real-time analytics is collecting, analyzing, and using data in real-time to make informed decisions.

• It involves capturing data as it is generated, processing it immediately, and presenting actionable insights
to users without any delay.

• Machine learning and artificial intelligence (AI) are essential technologies for real-time analytics.
Combined, these enable businesses to detect patterns, trends, and anomalies in real time, leading to
more rapid and precise decision-making for business growth.

4. Big Data
• Big data analytics refers to the systematic processing and analysis of large amounts of data and complex
data sets, known as big data, to extract valuable insights.

• By uncovering trends, patterns, and correlations in vast raw data, analysts can make data-informed
decisions for business analytics.
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 Scope of Business Analytics
• The scope of business analytics is massive, and the future seems bright for
people pursuing this field.
• More than 2.5 quintillion bytes(1018 bytes) of data are generated every day,
thus ensuring that businesses cannot function without business analytics
anymore.
• To effectively use the huge volume of data generated(big data), and to
enhance the performance of the website, business, product, and service, we
must rely on business analytics.
• 53% of companies use business analytics in their daily operations.
• Business analytics is also one of the most desirable jobs now, with companies
always in dire need of skilled analysts.
• The growing dependency on data and the reliance on business analytics will
only increase with more advancements in technology with business
intelligence and data.
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 Scope of Business Analytics

❑ Descriptive analytics
- uses data to understand past and present
❑ Predictive analytics
- analyzes past performance
❑ Prescriptive analytics
- uses optimization techniques

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Data for Business Analytics

• Data has become one of the most precious assets in the 21st-century
economy. Governments, companies, and individuals use data to improve
their decision-making processes.
• This has resulted in a huge demand for qualified professionals to process
and analyze vast amounts of data.
• The rapid digitalization of our society has resulted in unprecedented data
growth.
• With the advent of new technologies and infrastructures, such as virtual
reality, the metaverse, the Internet of Things (IoT), and 5G, this trend will
likely keep up in the future.
• Therefore, it’s crucial to understand how to analyze data.

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Models for Business Analytics
• A business analysis model outlines the steps a business takes to complete a specific
process, such as ordering a product.

• Process modeling is key to improving process efficiency, training, and even complying
with industry regulations.

• BAs employ a variety of visual models to map and analyze data.

• Models for Business Analytics include: 1. Activity diagrams 2. 2. Feature mind maps 3.
Product roadmaps 4. Organizational charts 5. SWOT analysis 6. User interface
wireframe 7. Process flow diagram 8. PEST analysis 9. Entity-relationship diagram

• Lucidchart, a cloud-based intelligent diagramming application, is a core component of

Lucid Software's Visual Collaboration Suite to model the business analysis.

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 1. Activity diagrams
• An activity diagram is a type of UML behavioral diagram that
describes what needs to happen in a system. They are particularly
useful for communicating processes and procedures to stakeholders
from both the business and development teams.

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2. Feature mind maps
• Feature mind maps help BAs organize the sometimes messy
brainstorming process so that ideas, concerns, and requests are
clearly captured and categorized.

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This visual ensures initial details and ideas don’t fall through the cracks so you can make informed decisions
about business direction, goals, and scope down the line.
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 3. Product roadmaps
• A product roadmap is a visual representation of the strategic plan for a product’s development and evolution over time.

• The purpose of a product roadmap is to provide a clear direction, align stakeholders, prioritize initiatives, and manage
expectations.

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 4. Organizational charts
• Organizational charts allow one to visually understand an organization's structure and
hierarchy.

• This can give an overview of how information and instructions are deployed through
organizations.

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5. SWOT analysis
• SWOT is used to help assess the internal and external factors
that contribute to an organization’s relative advantages and
disadvantages.
• A SWOT analysis can help you to challenge risky assumptions,
uncover dangerous blind spots, and reveal important new
insights.
• SWOT Analysis is a tool that can help you to analyze what your
company does best now and to devise a successful strategy for
the future.

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SWOT Analysis Matrix

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6. User interface wireframe

• Wireframes are the skeletons, blueprints, and essential

components of a business website’s designs.

• Business or personal websites are no different. That is why

business analysts use wireframes to have a clear picture of the
webpage they are looking to create.

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Examples of wireframes-business websites &
mobile phone business app organization

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 7. Process flow diagram
• Process flow diagrams map out the journey of a particular
process or system, delineating how various inputs (like
materials, energy, or data) are converted into outputs (like
products, services, or results)

• PFD visualizes the sequence of operations, decisions, and

pathways that occur during a process.

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 Process flow diagram-An Example
• Consider an order processing of a product. How the detailed process
of order process is represented through Process flow diagram(PFD).
Process

Decision?

Pathway

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8. PEST analysis
• PEST analysis is a tool to assess the external factors that
influence a business, such as political, economic, social, and
technological.

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PEST ANALYSIS OF XIOMI’S BUSINESS

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PEST ANALYSIS OF APPLE PRODUCT

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9. Entity-Relationship diagram
• An Entity Relationship (ER) Diagram is a type of flowchart that illustrates how “entities”
such as people, objects or concepts relate to each other within a system.

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ER MODEL –CUSTOMER ORDRING A PRODUCT

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 Data for Business Analytics
• Data may be in many forms in Business Analysis

❑ DATA
- collected facts and figures
❑ DATABASE
- a collection of computer files containing data
❑ INFORMATION
- comes from analyzing data

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Examples of using DATA in business:
➢ Annual reports
➢ Accounting audits
➢ Financial profitability analysis
➢ Economic trends
➢ Marketing research
➢ Operations management performance
➢ Human resource measurements

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Metrics Data for Business Analytics

 Metrics are used to quantify performance.

 Measures are numerical values of metrics.
 Discrete metrics involve counting
- on time or not on time
- number or proportion of on time deliveries
 Continuous metrics are measured on a continuum
- delivery time
- package weight
- purchase price

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Data for Business Analytics

Example 1.2 A Sales Transaction Database File

Records

Entities
Fields or Attributes Figure 1.1

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Types of Data for Business Analytics

Four Types Data Based on Measurement Scale:

 Categorical (nominal) data
 Ordinal data
 Interval data
 Ratio data

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Categorical data

• It is a type of data in statistics that stores data into groups or

categories using names or labels.
▪ Types of Categorial Data: Categorial Data is divided into two
main categories: nominal categorical data, Ordinal
Categorial Data.
• Nominal data is a basic data type that categorizes data by labeling
or naming values such as Gender, eye color, or types of animal,
transport type . It does not have any hierarchy.
• Ordinal data involves classifying data based on rank, such as social
status in categories like ‘wealthy’, ‘middle income’, or ‘poor’.
However, there are no set intervals between these categories.

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Data for Business Analytics

Classifying Data Elements in a Purchasing Database

Figure 1.2

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Data for Business Analytics
Classifying Data Elements in a Purchasing Database

Figure 1.2

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Categorical (nominal) Data
 Data placed in categories according to a specified characteristic
 Categories bear no quantitative relationship to one another
 Examples:
- customer’s location (America, Europe, Asia)
- employee classification (manager, supervisor, associate)

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Categorical(Ordinal Data)

 Data that is ranked or ordered according to some relationship with

one another
 No fixed units of measurement
 Examples:
- College football rankings
- survey responses
(poor, average, good, very good, excellent)
- Seniority level
- Grades in schools

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 Interval Data
 Ordinal data but with constant differences between observations
 No true zero point
 Ratios are not meaningful
 Examples:
• - 1. Time of each day in the meaning of a 12-hour clock.
• -2. Temperature is in degrees Fahrenheit or Celsius (but not
Kelvin).

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Ratio Data
 Continuous values and have a natural zero point
 Ratios are meaningful
 Examples:
- monthly sales
- delivery times
-Height (5ft. 8in., 5ft. 9in)

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 Decision Models
• A business analysis model outlines a business’s steps to complete a specific
process, such as ordering a product.
• Process modeling is key to improving process efficiency, training, and even
complying with industry regulations.
• Types of decision models: 1. A Sales-Promotion Model 2. Descriptive
Decision Models 3. A Mathematical Model for Total Cost 4. Break-even
Decision Model 5. A Linear Demand Prediction Model 6. A Nonlinear
Demand Prediction Model 7. Prescriptive Decision Models 8.Pricing
model

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 Decision Models
1.A Sales-Promotion Model
In the grocery industry, managers typically need to know how best to use
pricing, coupons, and advertising strategies to influence sales.
Using Business Analytics, a grocer can develop a model that predicts sales
using price, coupons, and advertising.

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Decision Models

Sales = 500 – 0.05(price) + 30(coupons)

+0.08(advertising) + 0.25(price)(advertising)

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2. Descriptive Decision Models
 Simply tell “what is” and describe
relationships
 Do not tell managers what to do
Example - An Influence Diagram for Total Cost

Influence Diagrams
visually show how various
model elements relate to
one another.

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3.A Mathematical Model for Total Cost

TC = F +VQ

TC is Total Cost
F is Fixed cost
V is Variable unit cost
Q is Quantity produced

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4.A Break-even Decision Model
TC(manufacturing) = $50,000 + $125*Q
TC(outsourcing) = $175*Q
Breakeven Point:
Set TC(manufacturing)
= TC(outsourcing)
Solve for Q = 1000 units

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5.A Linear Demand Prediction Model
As price increases, demand falls.

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6.A Nonlinear Demand
Prediction Model
• Assumes price elasticity
(constant ratio of % change in
demand to % change in price)
• Predictive Decision Models often
incorporate uncertainty to help
managers analyze risk.
• Aim to predict what will happen in
the future.
• Uncertainty is imperfect knowledge
of what will happen in the future.
• Risk is associated with the
consequences of what actually
happens. 56
7. Prescriptive Decision Models help decision-makers to identify the
best solution.
There are two types: a) Deterministic prescriptive and b) Stochastic
prescriptive model
 Optimization - finding values of decision variables that minimize (or
maximize) something such as cost (or profit).
 Objective function - the equation that minimizes (or maximizes) the
quantity of interest.
 Constraints - limitations or restrictions.
 Optimal solution - values of the decision variables at the minimum
(or maximum) point.

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• Deterministic prescriptive models have inputs that are known with
certainty.
• Stochastic prescriptive models have one or more inputs that are not
known with certainty.
• Algorithms are systematic procedures used to find optimal solutions
to decision models.
• Search algorithms are used for complex problems to find a good
solution without guaranteeing an optimal solution.

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8.A Pricing Model
 A firm wishes to determine the best pricing for one of its products in
order to maximize revenue.
 Analysts determined the following model:
Sales = -2.9485(price) + 3240.9
Total revenue = (price)(sales)
 Identify the price that maximizes total revenue, subject to any
constraints that might exist.

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 Problem Solving and Decision Making

Business Analysts represent only a portion of the overall problem-

solving and decision-making process.
 Six steps in the problem-solving process
1. Recognizing the problem
2. Defining the problem
3. Structuring the problem
4. Analyzing the problem
5. Interpreting results and making a decision
6. Implementing the solution

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Problem Solving and Decision Making

1. Recognizing the Problem

 Problems exist when there is a gap between what is happening and
what we think should be happening.
 For example, costs are too high compared with competitors.

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Problem Solving and Decision Making

2. Defining the Problem

 Clearly defining the problem is not a trivial task.
 Complexity increases when the following occur:
- large number of courses of action
- several competing objectives
- external groups are affected
- problem owner and problem solver are not the same person
- time constraints exist

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Problem Solving and Decision Making

3. Structuring the Problem

 State the goals and objectives
 Characterizing the possible decisions
 Identifying the constraints or restrictions to solve the problem

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Problem Solving and Decision Making

4. Analyzing the Problem

 Identify and apply appropriate Business Analytics technique
 Typically involves experimentation, statistical analysis, or a solution
process

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Problem Solving and Decision Making

5. Interpreting Results and Making a Decision

 Managers interpret the results from the analysis phase.
 Incorporate subjective judgment as needed.
 Understand limitations and model assumptions.
 Make a decision utilizing the above information.

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Problem Solving and Decision Making

6. Implementing the Solution

 Translate the results of the model back to the real world.
 Make the solution work in the organization by providing adequate
training and resources.

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 Problem Solving and Decision Making-a case study
Developing Effective Analytical Tools at Hewlett-Packard
 Will analytics solve the problem?
 Can they leverage an existing solution?
 Is a decision model needed?
Guidelines for successful implementation:
 Use prototyping.
 Build insight, not black boxes.
 Remove unneeded complexity.
 Partner with end users in discovery and design.
 Develop an analytic champion.

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Analytics on spreadsheets

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Analytics on Spreadsheets- Topics
• Basic Excel Skills
• Excel Functions
• Spreadsheet Add-ins for Business Analytics
• Spreadsheet Modeling and Spreadsheet Engineering

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Basic Excel Skills

• Many commercial software packages can be used for Business

Analytics.
• Spreadsheet software, such as Microsoft Excel, is widely used across
all areas of business.
• Spreadsheets provide a flexible modeling environment for
manipulating data and developing and solving models.

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Basic Excel Skills

• Opening, saving, and printing files

• Navigation
• Selecting ranges
• Inserting/deleting rows and columns
• Entering and editing text, data, and formulas
• Formatting data (number, currency, decimal)
• Working with text strings
• Performing basic arithmetic calculations
• Formatting text
• Modifying the appearance of a spreadsheet

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 Basic Excel Skills
Ribbon in Excel 2010 for Windows
• Tabs - Home, Insert, Page Layout, Formulas, …
• Groups - Font, Alignment, Number, Styles, …
• Buttons and Menus
- Buttons appear as small icons.
- Menus of additional choices are indicated by
small triangles.

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Figure 2.1
 Basic Excel Skills
Excel Formulas
• Common mathematical operators are used
5 c
a− bP + would be entered into Excel as:
d
=a− b*P^5 + c/d
• Cell references can be relative or absolute.
• Using a dollar sign before a row or column label creates an
absolute reference.
• Relative references: A2, C5, D10
• Absolute references: $A$2, $C5, D$10

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 Basic Excel Skills
Example 2.1
Implementing Price-Demand Models in Excel
Two models for predicting price using demand
Linear
D = a – bP
=B4 – B5*A8
(in cell B8)
Nonlinear
D = cP-d
=E4*D8^-E5
(in cell E8)
Figure 2.2

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 Basic Excel Skills
Example 2.1 (continued) Implementing Price-Demand Models in Excel

D = a – bP (linear)
D = cP-d (nonlinear)

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Basic Excel Skills

Copying Excel Formulas

Cells can be copied in many ways.
• Use the Copy button in the Home tab, then Paste
• Use Ctrl-C, then Ctrl-V
• Drag the bottom right corner of a cell (the fill handle) across a row or
column
• Double click on the fill handle of a cell and its value (or formula) is
copied to the cells below if there is data in an adjacent column

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 Basic Excel Skills
Example 2.2 Copying Excel Formulas by Dragging

Figure 2.3

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Basic Excel Skills
Example 2.2 (continued)
Copying Excel Formulas by Dragging

Figure 2.4

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 Basic Excel Skills
Example 2.2 (continued)
Copying Excel Formulas by Dragging

Figure 2.5

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Basic Excel Skills

Other Useful Excel Tips

• Split Screen
• Paste Special
• Column and Row Widths
• Displaying Grid Lines and Column Headers for Printing
• Filling a Range with a Series of Numbers

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Excel functions for Database queries

Basic Excel Functions

• =MIN(range)
• =MAX(range)
• =SUM(range)
• =AVERAGE(range)
• =COUNT(range)
• =COUNTIF(range,criteria)

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Excel Functions
Example 2.3 Using Basic Excel Functions

=MIN(F4:F97)
=MAX(F4:F97)
=SUM(G4:G97)
=AVERAGE(H4:H97)
=COUNT(B4:B97)
=COUNTIF(D4:D97,”=O-Ring”)
=COUNTIF(H4:H97,”<30”)
Figure 2.6

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Excel Functions
Functions for Specific Applications:
• =NPV(rate,value1,value2,…)
• Net present value (or discounted cash flow) measures
the worth of a stream of cash flows, taking into
account the time value of money.
F is the cash flow ($)
i is the discount rate
t is the number of time
periods into the future,
where t = 0, 1, …, n
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Excel Functions

Example 2.4 Using the NPV Function

=NPV(rate,value1,value2,…)
Cell B8:
=NPV(B6, C4:H4) – B5

Figure 2.7

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Excel Functions
Insert Function:
• Click the fx button or
choose Insert Function.
• You may type in a
description or search.

Figure 2.8

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Excel Functions
Logical Functions:
• =AND(condition1, condition2, …)
• =OR(condition1, condition2, …)
• =IF(condition, value if true, value if false)
• You may nest up to 7 IF functions, replacing the value
if false with another IF function.
• Conditions may include the following:
= equal <> not equal to
> greater than >= greater than or equal to
< less than <= less than or equal to

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Excel Functions

Basic Excel Functions:

• =COUNTIF(range,criteria)

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Excel Functions
Example 2.5 Using the IF statement
=IF(condition, value if true, value if false)
Cell K4: =IF(F4 >= 10000, “Large”, “Small”)

Figure 2.10

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 Excel Functions
Lookup Functions:
 These functions are useful for finding specific data in a
spreadsheet.
=VLOOKUP(lookup_value, table_array, col_index_num)
=HLOOKUP(lookup_value, table_array, row_index_num)
=INDEX(array, row_num, col_num)
=MATCH(lookup_value, lookup_array, match_type)

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Excel Functions
Example 2.6 Using the VLOOKUP Function

Figure 2.11

=VLOOKUP(10007, $A$4:$H$475,3)
returns the payment type of Credit.

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Excel Functions
Example 2.7 Using the INDEX and MATCH Functions

Figure 2.12
=MATCH(1369,$C$4:$C$475,0)
returns 12 (the first instance of 1369 is the 12th item)
=MATCH(1369,$C$4:$C$475,1)
returns 14 (the last instance of 1369 is the 14th item)

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Excel Functions
Example 2.7 (continued) Using INDEX and MATCH

• =INDEX($A$4:$J$475, MATCH(1369,$C$4:$C$475,0),7)
returns 63,000 (the 12th value in the 7th column)
• =SUM(INDEX($A$4:$G$475,MATCH(1369,$C$4:$C$475,0),7):INDEX($A
$4:$G$475,MATCH(1369,$C$4:$C$475,1),7))
returns 163,800 (the sum of the 3 costs for item 1369)

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 Spreadsheet Add-Ins for Business Analytics

• Microsoft Excel (Windows only) provides a number of add-ins for Business

Analytics:
- Analysis Toolpak
- Analysis Toolpak VBA
- Solver

• Frontline Systems provides:

- Risk Solver Platform
- Premium Risk Solver Platform
- XLMiner add-in

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 Spreadsheet Modeling and Engineering
• Spreadsheet Engineering is the
process of developing good, useful,
and correct spreadsheet models.
• Spreadsheet models characterize
the relationship between inputs
and outputs.
• It is important not to use input
data in model formulas, but to
instead reference the spreadsheet
cells that contain the data.

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Descriptive Analytics

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 Descriptive Analytics
•Data visualization
• creating charts in MS Excel
•Data Queries, Tables
•Sorting and filtering
•Data summarization with statistics, and
•Data exploration using Pivot tables.
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Data visualization-creating charts in MS Excel

• Data Visualization is the representation of analyzed data in a

graphical format.
• Excel is a spreadsheet that is used for data organization and
data visualization as well. In this article, let’s understand Data
Visualization in Excel.
• Excel provides various types of charts like Column charts, Bar
charts, Pie charts, Line charts, Area charts, Scatter charts,
Surface charts, and much more.

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 Steps for visualizing data in Excel
1. Open the Excel Spreadsheet and enter the data or select the
data you want to visualize.
2. Click on the Insert tab and select the chart from the list of
charts available or the shortcut key for creating a chart is by
simply selecting a cell in the Excel data and press the F11
function key.

3. A chart with the data entered in the Excel sheet is obtained.

4. You can design and style your chart with different types of
styles and colors by selecting the design tab.
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• In Excel 2010, the design tab option is visible by clicking on the
chart.

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excel data contains multiple columns and if you want to make a chart for only a few
columns, then select the columns required for making the chart and press the ‘F11’
function key or click on the Insert tab and select the chart from the list of charts available

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Data Queries, Tables in Excel

• In Excel, queries are great for managing data.

• A query is a way to retrieve and process data from internal

or external sources.

• It allows you to use structured query language (SQL) or a

graphical interface to filter, sort, and manipulate data from
databases, text files, other spreadsheets, or web services
directly within Excel.

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Queries types
• Internal Queries
• allow you to sift through data in an Excel workbook, pulling
information from multiple tables without needing external sources.

• External Queries
• connect to external data sources, allowing you to tap into a broader
range of data. Examples of these external sources include SQL Server
databases, text files, Access databases, and even Power BI.

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Internal queries example
1. Specify the data range or table name
2. Define the criteria for selecting data
3. Query results
Example:
You have given a list of students and their grades on an
exam. You want to find out the average grade for all
students who scored above 70.

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1. Select the Range and Apply the filter
Click on the grade tab so that it will show the
tab number filter to specify criteria

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2. Define the criteria for selecting data in custom filter
tab
• here specify grade>70

3. Copy values in another column and find the

average and display result

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 External queries in excel example
1. Create a query from imported data
• This is the most common way to create a query.
i. Import some data. You can import data into Excel from a
wide variety of data sources.
Here import Excel sheet data

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• Let us import data From Excel Workbook.

2. Select a cell in the data and then

3. select function or query
And specify the query.

cell
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Now load the imported data and find the average
of grades if the grade is>70. Use averageif function

Select cell C18 and

insert the function

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Tables in Excel
• Excel Tables are one of the most interesting and useful features
in Excel.
• If you need a range that expands to include new data, and if you
want to refer to data by name instead of by address, Excel
Tables are for you.

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 Create a table in Excel
• To insert a table in Excel, organize your data in rows and
columns, click any single cell within your data set, and do any
of the following:
1.On the Insert tab, in the Tables group, click Table. This will
insert a table with the default style.

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• 2. On the Home tab, in the Styles group, click Format as
Table, and select one of the predefined table styles.

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• 3. If you prefer working from the keyboard rather than using
a mouse, the fastest way to create a table is pressing
the Excel Table shortcut: Ctrl+T

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• As a result, a nicely formatted table is created in your
worksheet.
• At first sight, it may look like a normal range with the filter
buttons in the header row, but there is much more to it!

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One more example of table creation

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 Sorting and filtering In Excel

• Sort and filter options in Excel narrow down a dataset allowing

a deeper analysis.
• The sorting tool allows you to sort data based on alphabetical
order, numbers, dates, etc.
• Using the filter tool, you can filter a column based on given
criteria.
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 Sorting in excel
• Let us sort grades in ascending order
1. Select the whole data and select sort/filter tab
2. Select custom sort ,specify sort by grade.
3. Specify the order as smallest to largest.

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Sorted grades

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 Filter data
• Let us filter the student data based on their grades who got >70
1. Select the Grade column, click on the filter tab, and then select the number filter. Select the greater than option and
specify 70.

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Result of filter operation

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Data summarization with statistics
There are several ways to get summary statistics in Excel
1. Using the Status Bar to Get Summary Statistics in Excel
2. Applying the SUM, AVERAGE, MAX, MIN, and COUNT Functions
3. Using the Data Analysis ToolPak to Get Summary Statistics for One Quantity
4. Using the Quick Analysis Feature
5. Use the Table Feature to Get Summary Statistics in Excel
6. Inserting a Pivot Table to Get Summary Statistics in Excel
7. Using the Power Query to Get Summary Statistics in Excel

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1. Using the Status Bar to Get Summary Statistics in Excel
Steps:
1. Select D5:D12 in the Business Analytics column.
2. In the Status Bar, you can see the Average, Count, and Sum of the selected cells.
• Maximum and Minimum are missing.

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Right-click on the status bar and select max, and min to get displayed on the
status bar of the table data

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 2. Applying the SUM, AVERAGE, MAX, MIN, and COUNT Functions

• The SUM, AVERAGE, MAX, MIN, and COUNT functions can be used to
get summary statistics in Excel.

• To get each statistic specify the

function.
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3. Using the Data Analysis ToolPak to Get Summary Statistics for One Quantity

Step1: Enabling the Analysis ToolPak

i. Goto file and then select options.

ii. The Options dialog box will open.

In Add-ins , select Analysis ToolPak and then click Go.

iii. In the Add-ins dialog box:

Check Analysis Toolpak >> click OK.
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The Options dialog box will open.
In Add-ins , select Analysis ToolPak and then click Go.

In the Add-ins dialog box:

Check Analysis Toolpak >> click OK.
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• Step2: Getting Summary Statistics Using the Data Analysis Toolpak
• In the Data tab >> select Data Analysis.

In the Data Analysis dialog box:

•In Analysis Tools >> select Descriptive Statistics.
•Click OK.

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• Now, a Descriptive Statistics dialog box will appear.
• Select C5:C16 as Input Range.
• Check Labels in first row.
• In Output options, select Output Range as F2.
• Check Summary statistics.
• Click OK.

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Summary statistics OF Business Analytics marks

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4. Using the Quick Analysis Feature

• Step1: Applying the Quick Analysis Feature

1. Go to the File tab and select options.

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• Choose General.
• In User Interface options >> check Show Quick Analysis options on
selection.
• The Quick Analysis feature will be enabled.

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• Step 2: Obtaining a Summary Using the
Quick Analysis Feature

• Select C5:D12.
• Click the Quick
Analysis feature on the left
bottom side of the selected
data (a red color box).
• Select C5:D12 and
press CTRL+Q to see the
options.
• Select Totals.
• And then select
Sum, Average, and Count in
totals respectively.
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 5. Using the Table Feature to Get Summary Statistics in Excel

• Step 1: Inserting the Table

• Select the entire dataset (A1:C9) or

click on A1 and
press CTRL+SHIFT+Right
arrow+Down arrow.
• In the Insert tab, select Table.
• Click ok to create the table for
the selected data.

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• Step 2: Getting Summary Statistics Using a Table

•Click a cell in the Table. Here, C5.

•In the Table Design tab, choose Table Style Options >>
select Total Row.

•Click the drop-down arrow in C10 to see the statistics in the drop list.
•Select Sum.
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• Click the drop-down arrow in C10 to see the statistics in
the drop list , Select count.

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Click the drop-down arrow in C10 to see the
statistics in the drop list , Select average.

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 6. Data exploration using Pivot tables.
• It is one of the data exploration techniques to get summary statistics in
Excel.
• Step 1: Adding a Pivot Table

• Select the entire dataset: B4:D12.

• In the Insert tab , select PivotTable.

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The Pivot Table from table or range dialog box will open.
• Select the Existing Worksheet sheet3 here..
• Select B14 as the Location within the same sheet.
• Click OK.

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 Step 2: Obtaining Summary Statistics Using a Pivot Table

• In PivotTable Fields select Business Analytics marks.

• Drag the Business Analytics marks into the Values group.

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Select the required function by setting the value
field

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 7. Using the Power Query to Get Summary Statistics in Excel

• Step 1: Using the Power Query

• Select the entire dataset and go to the Data tab.

• In Get & Transform Data , Select From Table/Range.

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The Create Table dialog box will be displayed.
•Click OK.

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The Power Query is displayed.

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• Step 2: Getting Summary Statistics Using the Power Query

• Go to the Transform tab.

•Enter Average in the New column name.
• In Table >> select Group By. •Select Average in Operation.
•Select Business Analytics marks in the second Column.
•To add another group, click Add aggregation.

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• Follow the same procedure to add 3 more
groups: Median, Maximum, and Minimum.
• Click OK.
• Import the summary statistics to the Excel sheet.
• Go to the Home tab.
• In Close & Load >> select Close & Load To.
•

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