What Are Statistical Functions In Excel?

Statistical Functions in Excel

In Microsoft Excel, a wide range of functions related to statistics is present, like mean, median, mode, etc. Apart from these, Excel also provides a wide array of beneficial and important statistical functions. Some of the fundamental statistical functions are often used in Data Science. 

Here is a list of some of the most integral statistical functions used in Excel:-

1.COUNT function In Excel: The COUNT function is used for counting the number of cells that have a number. This function solely counts the number. 

Syntax for the COUNT function = COUNT(value1, [value2], …)

2. COUNTA function In Excel: This function is used for counting everything. Apart from the number within the cell, it will count any information, including error values and empty text.

Syntax for the COUNTA function = COUNT(value1, [value2], …)

3. COUNTBLANK function In Excel: The COUNTBLANK function solely counts empty or blank cells. 

Syntax for the COUNTBlANK function = COUNTBLANK(range)

4. COUNTIFS function In Excel: This is the most used statistical function in Excel that works on one or multiple conditions in a specific range and counts the cell(s) that meet the said condition.

Syntax for the COUNTIFS function = COUNTIFS (range1, criteria1, [range2]

5. STANDARD DEVIATION Function In Excel: The STANDARD DEVIATION Function in Excel calculates the observed value that’s deviated or varied from the average. It is the most commonly used statistical function in Excel. 

Syntax for the STANDARD DEVIATION Function: 

= STDEV.P(number1,[number2],…)

6. VARIANCE function In Excel: The Variance function is used for determining the degree of variation present in a data set. More data is spreading, leading to more variance. 

Formula for VARIANCE function = VAR(number1, [number2], …)

7. QUARTILES function In Excel: Quartile can divide data into four parts. Akin to the median function that divides data into two equal parts. This function returns the quartiles of a particular dataset, along with the first, second, and third quartiles and the minimum and max values. 

Syntax for QUARTILES function = QUARTILE (array, quart)

8. CORRELATION function In Excel: This Excel function determines the connection between the two variables. Data analysts primarily use this function for studying data thoroughly. Remember that the CORRELATION coefficient range is situated between -1 to +1.

Syntax for the CORRELATION function = CORREL(array1, array2)

9. MAX function In Excel: This function returns the highest numeric value present in a given data set or array.

Syntax for the MAX function = MAX (number1, [number2], …)

10. MIN function In Excel: The MIN function is the exact opposite of the MAX function in Excel. It returns the smallest numeric value in a given data set or array.

Syntax for the MAX function = MAX (number1, [number2], …)

11. LARGE function  In Excel: The LARGE function in Excel is almost identical to the MAX function. They are different because they return the nth largest value in a specific data set or array. 

Syntax for  LARGE function = LARGE (array, k)

12. SMALL function  In Excel: In Excel, the SMALL function is like the MIN function. It returns the smallest numeric value in a specific data set or array. The only difference is that it returns the smallest nth value in a given data set or array.

Syntax for  SMALL function = SMALL (array, k)

13. MEAN Calculation In Excel: The MEAN formula in Excel is one of the most commonly used statistical functions that can add all numbers in a dataset and divide by the number of points combined.

The formula for the Mean Calculation In Excel: =AVERAGE (array of numbers)

14. MEDIAN function in Excel: The MEDIAN statistical function in Excel is used whenever an even amount of numbers are present in the dataset. It is additionally used for calculating the average of the two middle numbers. 

The syntax for the Median Calculation In Excel: =MEDIAN (array of numbers) 

15. MODE function in Excel: The MODE function in Excel returns the most commonly recurring number in any numeric dataset.

Formula for MODE function in Excel: =MODE (number1, [number2], …)

What do statistical functions in Excel do?

The predefined formulas known as statistical functions in Excel allow users to run statistical analyses on a dataset. The mean, median, standard deviation, correlation, and other statistical metrics can all be calculated using these functions. Users can acquire useful insights into their data, spot trends, predict the future, and assist informed decision-making by making use of these functions.

Common Statistical Functions in Excel:

1. AVERAGE: The arithmetic mean of a set of numbers is determined by this function. Using “=AVERAGE(A1:A10)” as an example, you may get the average of the values in cells A1 through A10.
2. MEDIAN: The MEDIAN function identifies the midpoint of a set of numbers. It is helpful for determining a dataset’s central tendency, especially when there are outliers.
3. STDEV: STDEV determines a sample’s standard deviation. It gauges the variability or dispersion of data points relative to the mean.
4. CORREL: The CORREL function figures out how closely two sets of data are correlated. The magnitude and direction of the linear relationship between the variables are quantified.
5. COUNT counts the number of cells in a range that are made up entirely of numbers. It helps count cells that don’t have empty spaces or meet certain requirements.
6. MAX and MIN: The functions MAX and MIN show the highest and lowest values in a range, respectively. They are useful for locating extreme values or figuring out a dataset’s range.
7. SUMIF and COUNTIF: COUNTIF counts how many cells in a range match a particular requirement. Based on a specified criterion, SUMIF adds the matching values in a range.
8. PERCENTILE: Using the PERCENTILE function, you may figure out what value a specific percentage of data falls below. It is useful for figuring out percentiles and analysing data distribution.

Excel Statistical Functions with Examples 

1. Consider a dataset with sales data in column A. You wish to calculate the average sales for this dataset. Use the formula “=AVERAGE(A1:A10)” to use the AVERAGE function.
2. Use the CORREL function to get the correlation coefficient between two pieces of data, such as revenue and advertising spending: “=CORREL(A1:A10, B1:B10)”.
3. The PERCENTILE function can be used to find the 75th percentile of a dataset in column C: “=PERCENTILE(C1:C10, 0.75)”.

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Conclusion

Statistics is extensively used in every industry, including business, engineering, marketing, healthcare, education, etc. It helps organisations to read numbers for present and future planning. And Microsoft Excel is the most commonly used spreadsheet tool for mathematical and statistical calculations. It is used for charting and presenting data, financial forecasting, budget planning, etc. Essentially, Microsoft Excel is used in a host of use cases, particularly by Data Analysts and Data Science professionals on a daily basis.

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Wrapping Up!

In conclusion, statistical functions in Excel offer strong resources for deciphering and analysing data. They give users the ability to perform numerous computations, such as those for correlation, dispersion, and other statistics as well as measurements of central tendency. People can gain useful insights from their data, make wise decisions, and promote business success by comprehending and properly utilizing these services. The statistical tools in Excel provide a simple and effective approach to statistical analysis, making it a vital tool for professionals in a variety of fields.

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