Introduction to Data Visualization Finding errors.

Visualizing your data helps quickly

identify any errors in the data. If the data tends to suggest
Nowadays, companies across domains are willing to the wrong actions, visualizations help identify erroneous
record user interactions with their products or services to data sooner so that it can be removed from analysis.
identify trends, patterns, anything to gain insight into their
target market and make appropriate business decisions Understanding the story. Storytelling is the purpose of
that will propel them toward success and improve their your dashboard. By designing your visuals in a
overall performance. In business intelligence, exploring meaningful way, you help the target audience grasp the
this invaluable user interaction data takes the form of data story in a single glance. Always be sure to convey the
visualization. story in the simplest way, without excessive complicated
visuals.
Data visualization is the technique to assist people in
understanding the significance of data by arranging it in Exploring business insights. In the current competitive
the visual context. When text-based data is exposed in business environment, finding data correlations using
any data visualization tool, a viewer can easily recognize visual representations is key to identifying business
any patterns, trends, and correlations in data. insights. Exploring these insights is important for business
users or executives to set the right path to achieving the
According to Evergreen (2013) on his study about Data business’ goals.
Visualization and Evaluation, the definition of data
visualization relies on three criteria. Data visualization is Grasping the latest trends Using data visualization, you
a process that (a) is based on qualitative or quantitative can discover the latest trends in your business to provide
data and (b) results in an image that is representative of quality products and identify problems before they arise.
the raw data, which is (c) readable by viewers and Staying on top of trends, you can put more effort into
supports exploration, examination, and communication of increasing profits for your business.
the data. Although these criteria may appear self-evident, Example: Tabular vs Visual Data Analysis
in practice it takes thoughtful consideration and
application to achieve them. Refer to the figures below. We can use the data on the
table to determine exactly how many units of a certain
The images used in data visualization have interactive product were sold in a particular month, or to compare one
and dynamic capabilities that allow users to manipulate month to another. For example, we see that sales of
them, extract data for querying and deep analysis. Data product A dropped in February. Beyond such calculations,
visualization is not limited to standard charts and graphs however, it is difficult to draw big picture conclusions. On
made in Microsoft Excel spreadsheet, the number of ways the other hand, we can easily compare in the chart the
is available to display data such as dials and gauges, overall sales of different products (Product C sells the
geographic maps, infographics, heat maps, bar and pie least, for example), and identify trend (sales of Product D
charts, etc. are increasing), other patterns (sales of Product C is
relatively stable), and exceptions (Product E’s sales fell
The Benefits of Data Visualization considerably in September).
When considering business strategies and goals, data
visualization benefits decision makers in several ways to
improve data insights.
Better analysis. Data visualization helps business
stakeholders analyze reports regarding sales, marketing
strategies, and product interest. Based on the analysis,
they can focus on the areas that require attention to
increase profits, which in turn makes the business more
productive.
Quick action. The human brain grasps visuals more
easily than table reports. Data visualizations allow
decision makers to be notified quickly of new data insights
and take necessary actions for business growth.
Identifying patterns. Large amounts of complicated data
can provide many opportunities for insights when we
visualize them. Visualization allows business users to
recognize relationships between the data, providing
greater meaning to it. Exploring these patterns helps
users focus on specific areas that require attention in the
data, so that they can identify the significance of those
areas to drive their business forward.
Dashboards
A dashboard is a visual representation of a set of key
business measures. It provides important summaries of
key business information to help manage a business
process or function. Dashboards might include tabular as
well as visual data to allow managers to quickly locate key
data.

Pie Charts
For many types of data, we are interested in
understanding the relative proportion of each data source
Tools and Software for Data Visualization to the total. A pie chart displays this by partitioning a circle
into pie-shaped areas showing the relative proportion
Data visualization ranges from simple Excel charts to
more advanced interactive tools and software that allow
users to easily view and manipulate data with a few clicks,
not only on computers, but on iPads and other devices as
well.

Charts in Microsoft Excel Area Charts

Microsoft Excel provides a comprehensive charting An area chart combines the features of a pie chart with
capability with many features. With a little those of line charts. Area charts present more information
experimentation, you can create very professional charts than pie or line charts alone but may clutter the observer’s
for business analyses and presentations. These include mind with too many details if too many data series are
vertical and horizontal bar charts, line charts, pie charts, used; thus, they should be used with care.
area charts, scatter plots, and many other special types of
charts.

Column and Bar Charts

Excel distinguishes between vertical and horizontal bar
charts, calling the former column charts and the latter bar
charts. A clustered column chart compares values
across categories using vertical rectangles; a stacked
column chart displays the contribution of each value to
the total by stacking the rectangles; and a 100% stacked
column chart compares the percentage that each value
contributes to a total. Column and bar charts are useful
for comparing categorical or ordinal data, for illustrating
differences between sets of values, and for showing Scatter Charts
proportions or percentages of a whole.
Scatter charts show the relationship between two
variables. To construct a scatter chart, we need
observations that consist of pairs of variables. For
example, students in a class might have grades for both
a midterm and a final exam. A scatter chart would show
whether high or low grades on the midterm correspond
strongly to high or low grades on the final exam or whether
the relationship is weak or nonexistent.

Line Charts
Line charts provide a useful means for displaying data
over time. You may plot multiple data series in line charts;
however, they can be difficult to interpret if the magnitude
of the data values differs greatly. In that case, it would be
advisable to create separate charts for each data series.
Bubble Charts
A bubble chart is a type of scatter chart in which the size
of the data marker corresponds to the value of a third
variable; consequently, it is a way to plot three variables
in two dimensions.

Miscellaneous Excel Charts

Excel provides several additional charts for special
applications. These additional types of charts (including
bubble charts) can be selected and created from the
Other Charts button in the Excel ribbon. These include the
following: Sparklines
• A stock chart allows you to plot stock prices, such as Sparklines are graphics that summarize a row or column
the daily high, low, and close. It may also be used for of data in a single cell. Sparklines were introduced by
scientific data such as temperature changes. Edward Tufte, a famous expert on visual presentation of
• A surface chart shows 3-D data. data. He described sparklines as “data-intense, design-
• A doughnut chart is similar to a pie chart but can simple, word-sized graphics.” Line sparklines are clearly
useful for time-series data, while column sparklines are
contain more than one data series.
more appropriate for categorical data. Win-loss
• A radar chart allows you to plot multiple dimensions
sparklines are useful for data that move up or down over
of several data series.
time. They are found in the Sparklines group within the
Geographic Data Insert menu on the ribbon.

Many applications of business analytics involve

geographic data. For example, problems such as finding
the best location for production and distribution facilities,
analyzing regional sales performance, transporting raw
materials and finished goods, and routing vehicles such
as delivery trucks involve geographic data. In such
problems, data mapping can help in a variety of ways.

Other Excel Visualization Tools

Data Bars, Color Scales and Icon Sets
These options are part of Excel’s Conditional Formatting
rules, which allow you to visualize different numerical
values through the use of colors and symbols. Excel has
a variety of standard templates to use, but you may also
customize the rules to meet your own conditions and
styles.

Excel Camera Tool

A little-known feature of Excel is the camera tool. This
allows you to create live pictures of various ranges from
different worksheets that you can place on a single page,
size them, and arrange them easily. They are simply
linked pictures of the original ranges, and the advantage
is that as any data are changed or updated, the camera
shots also.
 Statistical methods are essential to business analytics
and Microsoft Excel supports statistical analysis in two
ways:

• With statistical functions that are entered in worksheet

cells directly or embedded in formulas.
• With the Excel Analysis Toolpak add-in to perform
more complex statistical computations.

Data Queries: Tables, Sorting and Descriptive statistics refers to methods of describing
and summarizing data using tabular, visual, and
Filtering quantitative techniques.
Sorting Data in Excel Frequency Distribution for Categorical Data
Excel provides many ways to sort lists by rows or column A frequency distribution is a table that shows the
or in ascending or descending order and using custom number of observations in each of several nonoverlapping
sorting schemes. The sort buttons in Excel can be found groups. Categorical variables naturally define the groups
under the Data tab in the Sort & Filter group. Select a in a frequency distribution.
single cell in the column you want to sort on and click the
“AZ down arrow” button to sort from smallest to largest or To construct a frequency distribution, we need only count
the “AZ up arrow” button to sort from largest to smallest. the number of observations that appear in each category.
You may also click the Sort button to specify criteria for This can be done using the Excel COUNTIF function.
more advanced sorting capabilities.

Pareto Analysis
Pareto analysis is a term named after an Italian
economist, Vilfredo Pareto, who, in 1906, observed that
a large proportion of the wealth in Italy was owned by a
relatively small proportion of the people. The Pareto Relative Frequency Distributions
principle is often seen in many business situations. A
We may express the frequencies as a fraction, or
Pareto analysis relies on sorting data and calculating the
proportion, of the total; this is called the relative
cumulative percentage of the characteristic of interest.
frequency. If a data set has n observations, the relative
Example: Applying the Pareto Principle frequency of category i is computed as

We often multiply the relative frequencies by 100 to

express them as percentages. A relative frequency
distribution is a tabular summary of the relative
frequencies of all categories.

Frequency Distributions for Numerical Data

For numerical data that consist of a small number of
We see that about 75% of the inventory value is discrete values, we may construct a frequency distribution
accounted for by less than 40% (9 of 24) of the items. If similar to the way we did for categorical data; that is, we
these high-value inventories aren’t selling well, the store simply use COUNTIF to count the frequencies of each
manager may wish to keep fewer in stock. discrete value.

Filtering Data
For large data files, finding a particular subset of records
that meet certain characteristics by sorting can be
tedious. Excel provides two filtering tools: AutoFilter for
simple criteria and Advanced Filter for more complex
criteria.

Statistical Methods for Summarizing

Data
Statistics, as defined by David Hand, past president of
the Royal Statistical Society in the UK, is both the science
of uncertainty and the technology of extracting information
from data. Statistics involves collecting, organizing,
analyzing, interpreting, and presenting data.
Excel Histogram Tool Exploring Data using PivotTables
A graphical depiction of a frequency distribution for Excel provides a powerful tool for distilling a complex data
numerical data in the form of a column chart is called a set into meaningful information. PivotTables allows you to
histogram. Frequency distributions and histograms can create custom summaries and charts of key information
be created using the Analysis Toolpak in Excel. To do this, in the data. PivotTables can be used to quickly create
click the Data Analysis tools button in the Analysis group cross-tabulations and to drill down into a large set of data
under the Data tab in the Excel menu bar and select in numerous ways.
Histogram from the list.
To apply PivotTables, you need a data set with column
labels in the first row, similar to the data files we have
been using. Select any cell in the data set and choose
PivotTable from the Tables group under the Insert tab and
follow the steps of the wizard.

Percentiles and Quartiles

Data are often expressed as percentiles and quartiles.
Generally speaking, the kth percentile is a value at or
below which at least k percent of the observations lie.
However, the way by which percentiles are calculated is
not standardized. The most common way to compute the
kth percentile is to order the data values from smallest to
largest and calculate the rank of the kth percentile using Pivot Charts
the formula
Microsoft Excel provides a simple one-click way of
creating PivotCharts to visualize data in PivotTables. To
display a PivotChart for a PivotTable, first select the
PivotTable. From the Analyze tab, click on PivotChart.
Excel will display an Insert Chart dialog that allows you to
where n is the number of observations. Round this to the choose the type of chart you wish to display.
nearest integer, and take the value corresponding to this
rank as the kth percentile.
Quartiles, on the other hand, break the data into four
parts. One-fourth of the data fall below the first quartile,
one-half are below the second quartile, and three-fourths
are below the third quartile.

Cross-Tabulations
One of the most basic statistical tools used to summarize
categorical data and examine the relationship between
two categorical variables is cross-tabulation. A cross-
tabulation is a tabular method that displays the number of
observations in a data set for different subcategories of Slicers
two categorical variables. A cross-tabulation table is often Excel 2010 introduced slicers—a tool for drilling down to
called a contingency table. The subcategories of the “slice” a PivotTable and display a subset of data. To
variables must be mutually exclusive and exhaustive create a slicer for any of the columns in the database, click
meaning that each observation can be classified into only on the PivotTable and choose Insert Slicer from the
one subcategory, and, taken together over all Analyze tab in the PivotTable Tools ribbon.
subcategories, they must constitute the complete data
set.