# Histograms Capital Credit Union - PowerPoint PPT Presentation

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Histograms Capital Credit Union. Issue: Analyze credit card balances for Capital Credit Union customers using a frequency distribution and histogram. Objective: Use Excel 2007 to develop a frequency distribution and histogram for credit card balances. Use ten class intervals.

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Histograms Capital Credit Union

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HistogramsCapital Credit Union

Issue: Analyze credit card balances for Capital Credit Union customers using a frequency distribution and histogram.

Objective: Use Excel 2007 to develop a frequency distribution and histogram for credit card balances. Use ten class intervals.

Data file is Capital.xls

Histograms-Capital Credit Union

• Open the Excel file “Capital.xls”

• The file contains 300 observations – The last row is 302 – Column 2 (B) contains the balances

Histograms-Capital Credit Union

c

Use Excel’s “Max” function to determine the largest valueMax(b2:b301)

Note: ignore the cell number in the RED circle

Histograms-Capital Credit Union

c

Use Excel’s Min function to determine the smallest value

Min(b2:b301)

Note: ignore the cell number in the RED circle

Histograms-Capital Credit Union

• Compute Class Width

• Compute range as Maximum – Minimum: 1493 – 99 = 1394

• Excel: 2^k >= n (300)

• 2^8=256 and 2^9=512

• Take 10 instead of 9 because of convenience

• Divide range by 10 to construct 10 classes: 1394 / 10 = 139.40

• Round up to \$150.00 (width)

• Intervals are:

• \$90 to < \$240 (90+150)

• \$240 to < \$390

• \$390 to < \$540

• Etc…

Histograms-Capital Credit Union

Intervals are:

\$90 to < \$239.99

\$240 to < \$389.99

\$390 to < \$539.99

\$540 to < \$689.99

\$690 to < \$839.99

Go on

…..

…..

….

…..

…< \$1589.99

Histograms-Capital Credit Union

• Construct the Bins (The upper limits of each class

• Intervals are:

• \$90 to < \$239.99

Histograms-Capital Credit Union

• Select the Data tab

• Select Data Analysis

• Select Histogram

• OK

Histograms-Capital Credit Union

Input Range is Column B.

Bin Range is Column F – The range of Bins that you entered.

Select New Worksheet Ply

Select Chart Output

OK

Histograms-Capital Credit Union

Frequency legend

This is Excel’s default output. It should be modified for most applications. The first change would be to delete the Frequency legend , change the Bins title to Balances and increase the size of the chart using the resize handles.

Bins Title

Sizing Handle

Excel’s default on a histogram is to include a More category. Remove the More category from the chart. Select the chart, right mouse click, Select Data, Edit Frequency. In the Edit Series dialog box, change Series Values to \$B\$11 rather than \$B\$12. Click OK.

Histograms-Capital Credit Union

• Right click on any of the bars in the Histogram

• Select Format Data Series

Histograms-Capital Credit Union

Set Series Overlap and Gap Width to Zero to format the Histogram as shown

Histograms-Capital Credit Union

To put border colors around the bars of the histogram , select Border Color, Choose Solid line, Select the Color arrow, and Choose Dark Blue, Text 2 Theme Color.

Histograms-Capital Credit Union

Change the Bins categories to 0-239.99, 240-389.99, etc. and delete the More bins and frequency. Change the Histogram title to Credit Card Balances. See next slide for results of these changes.