Joseph Schmuller, PhD Author of Active X: No Experience Required Learn to: • Understand mean, median, margin of error, standard deviation, permutations, and correlations • Crunch numbers and interpret statistics • Use Excel formulas and functions • Work with probabilities, related dist ributions, trends, and more Statistical Analysis with Excel ® 2nd Edition Making Everything Easier! ™ Open the book and find: • Ten statistical and graphical tips and traps • The difference between descriptive and inferential statistics • Why graphs are good • How to measure variations • What standard scores are and why they’re used • When to use two-sample hypothesis testing • How to use correlations • Different ways of working with probability Joseph Schmuller, PhD, is a technical architect at Blue Cross-Blue Shield of Florida. A former member of the American Statistical Association, he has taught statistics at the undergraduate, honors undergraduate, and graduate levels, and has been honored with an award for excellence in teaching. $29.99 US / $35.99 CN / £19.99 UK Desktop Applications/Spreadsheets ISBN 978-0-470-45406-0 Go to dummies.com ® for more! You too can understand the statistics of life, even if you’re math-challenged! What do you need to calculate? Manufacturing output? A curve for test scores? Sports stats? You and Excel can do it, and this non-intimidating guide shows you how. It demystifies the different types of statistics, how Excel functions and formulas work, the meaning of means and medians, how to interpret your figures, and more — in plain English. • Getting there — learn how variables, samples, and probability are used to get the information you want • Excel tricks — find out what’s built into the program to help you work with Excel formulas • Playing with worksheets — get acquainted with the worksheet functions for each step • Graphic displays — present your data as pie graphs, bar graphs, line graphs, or scatter plots • What’s normal? — understand normal distribution and probability • Hyping hypotheses — learn to use hypothesis testing with means and variables • When regression is progress — discover when and how to use regression for forecasting • What are the odds — work with probability, random variables, and binomial distribution Statistical Analysis with Excel ® Schmuller 2nd Edition spine=1.01” www.it-ebooks.info www.it-ebooks.info Statistical Analysis with Excel ® FOR DUMmIES ‰ 2ND EDITION 01 454060-ffirs.indd i01 454060-ffirs.indd i 4/21/09 7:13:09 PM4/21/09 7:13:09 PM www.it-ebooks.info 01 454060-ffirs.indd ii01 454060-ffirs.indd ii 4/21/09 7:13:10 PM4/21/09 7:13:10 PM www.it-ebooks.info Joseph Schmuller, PhD Statistical Analysis with Excel ® FOR DUMmIES ‰ 2ND EDITION 01 454060-ffirs.indd iii01 454060-ffirs.indd iii 4/21/09 7:13:10 PM4/21/09 7:13:10 PM www.it-ebooks.info Statistical Analysis with Excel ® For Dummies, ® 2nd Edition Published by Wiley Publishing, Inc. 111 River Street Hoboken, NJ 07030-5774 www.wiley.com Copyright © 2009 by Wiley Publishing, Inc., Indianapolis, Indiana Published by Wiley Publishing, Inc., Indianapolis, Indiana Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permit- ted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http:// www.wiley.com/go/permissions. Trademarks: Wiley, the Wiley Publishing logo, For Dummies, the Dummies Man logo, A Reference for the Rest of Us!, The Dummies Way, Dummies Daily, The Fun and Easy Way, Dummies.com, Making Everything Easier, and related trade dress are trademarks or registered trademarks of John Wiley & Sons, Inc. and/or its af liates in the United States and other countries, and may not be used without written permission. Excel is a registered trademark of Microsoft Corporation in the United States and/or other countries All other trademarks are the property of their respective owners. Wiley Publishing, Inc., is not associated with any product or vendor mentioned in this book. LIMIT OF LIABILITY/DISCLAIMER OF WARRANTY: THE PUBLISHER AND THE AUTHOR MAKE NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE ACCURACY OR COMPLETENESS OF THE CONTENTS OF THIS WORK AND SPECIFICALLY DISCLAIM ALL WARRANTIES, INCLUDING WITH- OUT LIMITATION WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE. NO WARRANTY MAY BE CREATED OR EXTENDED BY SALES OR PROMOTIONAL MATERIALS. THE ADVICE AND STRATEGIES CONTAINED HEREIN MAY NOT BE SUITABLE FOR EVERY SITUATION. THIS WORK IS SOLD WITH THE UNDERSTANDING THAT THE PUBLISHER IS NOT ENGAGED IN RENDERING LEGAL, ACCOUNTING, OR OTHER PROFESSIONAL SERVICES. IF PROFESSIONAL ASSISTANCE IS REQUIRED, THE SERVICES OF A COMPETENT PROFESSIONAL PERSON SHOULD BE SOUGHT. NEITHER THE PUBLISHER NOR THE AUTHOR SHALL BE LIABLE FOR DAMAGES ARISING HEREFROM. THE FACT THAT AN ORGANIZA- TION OR WEBSITE IS REFERRED TO IN THIS WORK AS A CITATION AND/OR A POTENTIAL SOURCE OF FURTHER INFORMATION DOES NOT MEAN THAT THE AUTHOR OR THE PUBLISHER ENDORSES THE INFORMATION THE ORGANIZATION OR WEBSITE MAY PROVIDE OR RECOMMENDATIONS IT MAY MAKE. FURTHER, READERS SHOULD BE AWARE THAT INTERNET WEBSITES LISTED IN THIS WORK MAY HAVE CHANGED OR DISAPPEARED BETWEEN WHEN THIS WORK WAS WRITTEN AND WHEN IT IS READ. For general information on our other products and services, please contact our Customer Care Department within the U.S. at 877-762-2974, outside the U.S. at 317-572-3993, or fax 317-572-4002. For technical support, please visit www.wiley.com/techsupport. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. Library of Congress Control Number: 2009926356 ISBN: 978-0-470-45406-0 Manufactured in the United States of America 10 9 8 7 6 5 4 3 2 1 01 454060-ffirs.indd iv01 454060-ffirs.indd iv 4/21/09 7:13:11 PM4/21/09 7:13:11 PM www.it-ebooks.info About the Author Joseph Schmuller is a veteran of over 25 years in Information Technology. He is the author of several books on computing, including the three editions of Teach Yourself UML in 24 Hours (SAMS), and the  rst edition of Statistical Analysis with Excel For Dummies. He has written numerous articles on advanced technology. From 1991 through 1997, he was Editor-in-Chief of PC AI magazine. He is a former member of the American Statistical Association, and he has taught statistics at the undergraduate and graduate levels. He holds a B.S. from Brooklyn College, an M.A. from the University of Missouri-Kansas City, and a Ph.D. from the University of Wisconsin, all in psychology. He and his family live in Jacksonville, Florida, where he is an Adjunct Professor at the University of North Florida. 01 454060-ffirs.indd v01 454060-ffirs.indd v 4/21/09 7:13:11 PM4/21/09 7:13:11 PM www.it-ebooks.info 01 454060-ffirs.indd vi01 454060-ffirs.indd vi 4/21/09 7:13:11 PM4/21/09 7:13:11 PM www.it-ebooks.info Dedication In loving memory of Jesse Edward Sprague, my best friend in the whole world — a man who never met a stranger. “Friends have all things in common” —Plato Author’s Acknowledgments One thing I have to tell you about writing a For Dummies book — it’s an incredible amount of fun. You get to air out your ideas in a friendly, conver- sational way, and you get a chance to throw in some humor, too. To write a second edition is almost more fun than one writer should be allowed to have. I worked again with a terri c team. Acquisitions Editor Stephanie McComb and Project Editor Beth Taylor of Wiley Publishing have been encouraging, cooperative, and patient. Technical Editor Namir Shammas helped make this book as technically bulletproof as possible. Any errors that remain are under the sole proprietorship of the author. My deepest thanks to Stephanie and Beth. My thanks to Waterside Productions for representing me in this effort. Again I thank mentors in college and graduate school who helped shape my statistical knowledge: Mitch Grossberg (Brooklyn College); Mort Goldman, Al Hillix, Larry Simkins, and Jerry Sheridan (University of Missouri-Kansas City); and Cliff Gillman and John Theios (University of Wisconsin-Madison). A long time ago at the University of Missouri-Kansas City, Mort Goldman exempted me from a graduate statistics  nal on one condition — that I learn the last course topic, Analysis of Covariance, on my own. I hope he’s happy with Appendix B. I thank my mother and my brother David for their love and support and for always being there for me, and Kathryn for so much more than I can say. Finally, a special note of thanks to my friend Brad, who suggested this whole thing in the  rst place! 01 454060-ffirs.indd vii01 454060-ffirs.indd vii 4/21/09 7:13:11 PM4/21/09 7:13:11 PM www.it-ebooks.info Publisher’s Acknowledgments We’re proud of this book; please send us your comments through our online registration form located at http://dummies.custhelp.com. For other comments, please contact our Customer Care Department within the U.S. at 877-762-2974, outside the U.S. at 317-572-3993, or fax 317-572-4002. Some of the people who helped bring this book to market include the following: Acquisitions, Editorial, and Media Development Project Editor: Beth Taylor (Previous Edition: Sarah Hellert) Senior Acquisitions Editor: Stephanie McComb Copy Editor: Beth Taylor Technical Editor: Namir Shammas Editorial Manager: Cricket Krengel Editorial Assistant: Laura Sinise Cartoons: Rich Tennant ( www.the5thwave.com) Composition Services Project Coordinator: Kristie Rees Layout and Graphics: Carrie A. Cesavice, Shawn Frazier, Melissa K. Jester Proofreaders: Melissa Cossell, Bonnie Mikkelson, Indexer: Steve Rath Publishing and Editorial for Technology Dummies Richard Swadley, Vice President and Executive Group Publisher Barry Pruett, Vice President and Executive Publisher Andy Cummings, Vice President and Publisher Mary Bednarek, Executive Acquisitions Director Robyn Siesky, Editorial Director Sandy Smith, Senior Marketing Director Amy Knies, Business Manager Publishing for Consumer Dummies Diane Graves Steele, Vice President and Publisher Composition Services Debbie Stailey, Director of Composition Services 01 454060-ffirs.indd viii01 454060-ffirs.indd viii 4/21/09 7:13:11 PM4/21/09 7:13:11 PM www.it-ebooks.info [...]... 7:15:21 PM 2 Statistical Analysis For Dummies, 2nd Edition for you to find what you’re looking for in a hurry and use it immediately — whether it’s a statistical concept or an Excel tool On the other hand, cover to cover is okay if you’re so inclined If you’re a statistics newbie and you have to use Excel for statistical analysis, I recommend you begin at the beginning — even if you know Excel pretty... What’s New in This Edition? 25 Chapter 2: Understanding Excel s Statistical Capabilities 27 Getting Started 27 Setting Up for Statistics 30 Worksheet functions in Excel 2007 30 Quickly accessing statistical functions 33 www.it-ebooks.info 02 454060-ftoc.indd xi 4/21/09 7:14:15 PM xii Statistical Analysis with Excel For Dummies, 2nd Edition Array functions... Juggling Many Relationships at Once: Multiple Regression 282 Excel Tools for Multiple Regression 283 TREND revisited 283 LINEST revisited 285 Regression data analysis tool revisited 287 www.it-ebooks.info 02 454060-ftoc.indd xv 4/21/09 7:14:15 PM xvi Statistical Analysis with Excel For Dummies, 2nd Edition Chapter 15: Correlation: The Rise and Fall of Relationships... 7:14:15 PM xx Statistical Analysis with Excel For Dummies, 2nd Edition www.it-ebooks.info 02 454060-ftoc.indd xx 4/21/09 7:14:15 PM Introduction W hat? Yet another statistics book? Well this is a statistics book, all right, but in my humble (and thoroughly biased) opinion, it’s not just another statistics book What? Yet another Excel book? Same thoroughly biased opinion — it’s not just another Excel book... Your Graph 373 Be Careful When Relating Statistics-Book Concepts to Excel 374 www.it-ebooks.info 02 454060-ftoc.indd xvii 4/21/09 7:14:15 PM xviii Statistical Analysis with Excel For Dummies, 2nd Edition Chapter 20: Ten Things (Twelve, Actually) That Didn’t Fit in Any Other Chapter 375 Some Forecasting 375 A moving experience 375 How to... 7:15:22 PM 4 Statistical Analysis For Dummies, 2nd Edition Part V: The Part of Tens Part V meets two objectives First, I get to stand on the soapbox and rant about statistical peeves and about helpful hints The peeves and hints total up to ten Also, I discuss ten (okay, twelve) Excel things I couldn’t fit in any other chapter They come from all over the world of statistics If it’s Excel and statistical, ... If you’re using Excel 97, Excel 2000, or Excel 2003, that’s okay The statistical functionality is the same Some of the screen shots in the book will look a little different from what appears on your computer, however Also, Excel 2007 has an entirely new user interface, so getting to the statistical functionality is somewhat different from previous versions ✓ You’ve worked with Excel before, and you understand... 7:14:15 PM xiv Statistical Analysis with Excel For Dummies, 2nd Edition Part III: Drawing Conclusions from Data 153 Chapter 9: The Confidence Game: Estimation 155 What is a Sampling Distribution? 155 An EXTREMELY Important Idea: The Central Limit Theorem 157 Simulating the Central Limit Theorem 158 The Limits of Confidence 162 Finding confidence limits for a mean... Contents or in the Index and go for it Same final admonition as in the first edition: If you have half as much fun reading and using this book as I had writing it, you’ll have a blast www.it-ebooks.info 03 454060-intro.indd 5 4/21/09 7:15:22 PM 6 Statistical Analysis For Dummies, 2nd Edition www.it-ebooks.info 03 454060-intro.indd 6 4/21/09 7:15:22 PM Part I Statistics and Excel: A Marriage Made in Heaven... been through before Foolish Assumptions This is not an introductory book on Excel or on Windows, so I’m assuming: ✓ You know how to work with Windows I don’t go through the details of pointing, clicking, selecting, and so forth ✓ You have Excel installed on your computer and you can work along with the examples I don’t take you through the steps of Excel installation Incidentally, I use Excel 2007 (running . distribution Statistical Analysis with Excel ® Schmuller 2nd Edition spine=1.01” www.it-ebooks.info www.it-ebooks.info Statistical Analysis with Excel ® FOR DUMmIES ‰ 2ND. • Use Excel formulas and functions • Work with probabilities, related dist ributions, trends, and more Statistical Analysis with Excel ® 2nd Edition Making