 Statistics and Excel. Wages, data, box plot or box and whiskers versus histogram. Get ready, taking a deep breath, holding it in for 10 seconds, looking forward to a smooth soothing Excel. First, a word from our sponsor. Well, actually, these are just items that we picked from the YouTube shopping affiliate program, but that's actually good for you because these aren't things that were just given to us from some large corporation, which we don't even use in exchange for us selling them to you. These are things that we actually researched, purchased and used ourselves. Acer 27 inch monitor. I've been using an Acer monitor as my primary monitor for a few years now. This is the first Acer monitor that I have used after having used a series of different brands of monitors in the past. The Acer monitor has been performing well and I'm trusting the Acer brand more and more as I use the monitor. I have a 27 inch monitor, which I think is ideal for what I do, which is of course the screen recording and the editing. If you would like a commercial free experience, consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com, where we have many different courses you can purchase one at a time or have a subscription model, giving you access to all the courses, courses which are well organized, have other resources like Excel files and PDF files to download and no commercials. Here we are in Excel. If you don't have access to this workbook, that's okay. You can either go back to a prior presentation where we basically built this practice problem from a blank sheet starting with a blank sheet from there, or you can create your own data set as we focus in on the creation of a histogram for this part of the practice problem. If you do have access to this workbook, there's three tabs down below. Example, practice blank. Example, in essence, answer key. Practice having pre-formatted cells in it so you can focus on the heart of the presentation. The blank tab is where we build everything from, in essence, a blank sheet with just some raw data to start out with. Let's go to the example on the left-hand side. In prior presentations, we're taking our raw data of simply the wages and we created the box and whisker to get a visual representation of it. Then we did some calculations to try to identify some areas of the box and whisker. Now we want to create the other type of graph which is quite common to be visualizing that being the histogram. Now in Excel, histograms are great to be able to use because they give you a really good kind of spread of the data. I think it would be a little bit more difficult prior to having Excel to obviously chart things out in a histogram format by hand. The box and whiskers might be a little bit easier by hand, but they both have their uses and we can compare and contrast them. We'll be doing a lot more work with different kinds of histograms to see how data plots on the histogram and future presentations. Let's go to the blank tab. We have a little bit different format at this point because we added some of the numbers on the box and whiskers, for example. But the general idea being the same. We've got the data on the left. We created the box and whiskers. The way we created the box and whiskers is we simply just selected the entire data which you could do with the dropdown like this. We went to the insert. That's the tab up top. We went to the charts and in this dropdown, you'll note that that's the home of both the histograms and the box and whiskers because those are going to be applied to similar kind of methods or two methods that will have similar usage. And so they kind of grouped those things together. We put in our histogram last time and then we did some formatting to the histogram. So remember our data represents basically just wages that we might see at a company. And now let's add the second bit, which is going to be the histogram. Now note, if you don't have this data wages, you can look up wages if you want to. You can also use a random generator. So if you wanted to have random wages and then add a few outliers just to have some data to work with, you could say equals random. And then random between in our data set is basically between like, I don't know, 65,000 and then comma. And the top is like 75,000. So if you use the random generator, Excel can do that random numbers between that point those points, copy it down and then maybe add some outliers right with this one be like 85,000. Now it's outside of the range. So obviously it's great to have real data because our goal is statistics is to try to oftentimes see what the difference is between the random data set and the actual data set in real life to give some glean some insights as to what's going on with the data. That's one of our strategies, of course, which we'll talk about more later. But that's one way to generate some data if you just want to then practice putting in a histogram. Once you have your data, we can select the data. You can highlight the data this way, dragging down. If you have the table data in a table format, you can put your cursor on the top of the table, select this way. You can also put your cursor on it and hold down control shift, and that'll take you down to the bottom of the data set. If you want to go back up, you can hold down control and backspace, not delete backspace. And that's another nice way. Note that you'd like to be at the top of the data set usually when you're going to be inserting the whatever charts or graphs you're going to put in. Otherwise, the chart or graph will be shown at the bottom and you're going to have to pull it up to the top, right? So I want to be up here because I want to be able to pull the graph like right around here, okay? So I'm going to say, all right, let's go ahead and now insert tab up top. We're going to go into our charts. We're going to go into that histogram dropdown and we're going to pick this histogram, the standard histogram. Boom. And then I can pull it. I can put my cursor in the white space and I can pull it down here. So there's the two general, you know, get a feel of the shape type of tools that we have. If I select the title, I'm going to say, let's get rid of the title for now at least removing the title. I'm going to make this a little bit on scrolling down holding down control scrolling down a little bit so I could see some more. And then I'm going to make this wider if I could. All right. All right, something like that. Okay. So there we have it. So the histogram as you can see here gives us a pretty nice visualization of basically a center point of the data. And then the spread of the data around that center point. We have a similar thing, of course, with the box and whiskers where we have the center point here, the average and the median and then basically the spread around it with the box. And of course, the whiskers and the outliers. When we look at the histogram, we generally have, you know, the tallest tower here in the middle being in essence, the center point. And then we can look at the spread of the data around that center point. Now we'll take a look at different histograms in future presentations so we can kind of label the types of histograms. In other words, some histograms might have a bigger center point here and have kind of like a tail that's going out to the right or a tail that's going to the left. Or we might have like two center points and so on. So knowing what the center point is is important, but we also want to know what that spread is and the histogram is a nice way to do that. So in this case, we can see kind of like the outliers being represented in these buckets on the right hand side related to the histogram. So once we make the histogram, we have the similar kind of things we had before creating the histogram. It's pretty straightforward to modify the histogram. If I click off of the histogram, you don't see the modification tools up top. If I click on the histogram, we've got the chart design again where we have the chart elements, axis titles and so on. We've got the quick layouts over here. You could change the color, the defaults always that blue, but you could change the color scheme. You can change the whole kind of layout format this way. If you so choose the data, when I select the data, here is our data. That was to edit the data. You can see the data series where the data series is coming from. I'm going to close that back out and then let's close this back out. And so then we have the formatting tools on the right in a similar fashion as we've seen in the box and whisker and a prior chart and prior presentations. Then of course, there's multiple ways to go into many of the editing items. If I select, for example, the numbers on the left hand side and I double click on them, they're going to give us the format axis. I can select the information here and you could see if I change something like it's going from 0, 5, 10, 15, 20, I could change the minimum, the maximum and so on. And that could have, of course, an impact on the shape of the histogram, which we might dive into a little bit more in future presentations. The key to the histogram down here is going to be the data at the bottom. These are the buckets, right? So if I look at, if I click on that and I go to the three bars on the right, you've got the buckets that have been putting the data in. So notice it's here, it's on automatic. So the buckets are on automatic. The bin size then is grayed out because it's automatic, but it's 3,400, which created nine bins. So what does that mean? Down here, we've got the buckets that we're going to be putting this stuff in, right? So it's between 55,000 and 58,400 and then from 58,400 to 61,8 and then 61,8 to 65,2, 65,2 and so on and so forth. And we're looking for the information from the data set that fits within these ranges. And so you could see it would be a similar kind of thing as what we did with a bar chart. You might recall in a prior presentation when we counted the words of Hamlet, right? If I was to have a bar chart, if I was to insert a bar chart, insert and use this one, the bar chart is similar in look and feel. The problem with a bar chart is that it can't create the buckets by itself. Usually, if you're counting words, you remember that the x-axis had words down here and then we can count the number of words and that would be showing pictorially in like a bar chart format. Well, this is kind of like a bar chart. We can actually use the bar chart if we sorted the data ourselves into buckets, right? If I said how many occurrences happened in our data set between 55 and 58,4 and we'll do that in future presentations just to show you the relationship and sometimes that can be useful as well. But just note that that's going to be the difference. So these buckets are a differentiating factor. Now the buckets are also quite important because if you change the size of the buckets, then you're going to have a big difference in terms of what the data set is going to look like. And people can use this to glean more information, but they can also use it to be a bit deceptive in how the information is presented possibly, right? So over here, if I say the bend width, if I bring the bend width down to say 2000, I'm lowering the bend width. As I hit Tab, I would think that the number of bends would increase, right? So I'm going to say boom, notice the automatic number of bends down here. Now went up to 15. So now I've got 15 bends with the 2000 there. Now notice these outliers are getting more extreme as I make more buckets, right? Because now these outliers are way out here. So you're going to get like a skinnier looking graph that might kind of really show those outliers specifically, for example, out there. If you don't want those outliers to be so far out, you could have an overflow bucket, for example. You could say, okay, everything that is over, let's say 79,000, I want you to put that in like one bucket. So now I kind of combine those together. So now it's not giving as much emphasis to those outliers. And you can see that might be good in some cases. I can do the same thing for the bottom. I could say, hey, look, I want you to pull in those to like 64,000 or something, right? So now the data is being pulled in. And you can see you have a whole different looking field to the data once we start to do that. So you have to be kind of careful with the parameters that you're going to be putting around your histogram because they can have an influence on what the data is going to look like, obviously. So if I reset this, we're going to go back to the resetted format. So there we have those. Let's reset this one as well. Hold on a second. I'm clicking on this. Let's go to this and then I'll see if I can, this one, I want to go back to automatic. Let's go back to automatic. And so there we have our automatic. And then I'm going to just take the overflow bin off completely, untagging the overflows. And so that that's basically the default that we were given with the histogram. So usually the default is pretty, pretty not pretty good with the histogram. But oftentimes you might want to go in here. And again, the major things that you would be adjusting would be the bin width. And then and then those basically the overflows. So we'll get into a lot more detail on that in future presentations. For now, I'm just going to close this out and note that we have some more options up top. So there's multiple ways we can get into different things. So these are the axes. This is the axis title. So if I select this item, it's going to give us those titles over here that we can add. And because it's a histogram, you might want the chart title might be the way to go. Because if you were going to name the axis, you know, these would be like the wage amounts and then the number over here. So so it might just be easier just put like this is wages, you know, histogram or something like that. And then we're going to say the data labels oftentimes that's useful to to be adding. So now you can see the numbers that were counted up. We'll do we'll we'll get to those numbers in a few in a bit more detail on future presentations to get a better idea. And we typically aren't going to need a legend because we only have one item on the histogram, right? So we don't really need a legend here. So I'm going to close that if I select the numbers note that that within within the numbers you can change. Like I could go to the home tab, for example, and increase the size of the numbers. If we so choose, we could embolden the number, for example. And so we have the formatting, you know, for those so that so that's the general the general idea of the histogram that we can compare and contrast to the good old box and whiskers.