Statistics with Excel Tutorial

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Introduction

The objective of this tutorial is to present how to use a simple but powerful tool in order to work with complex statistics: Microsoft Office Excel. This module teaches how to use Excel to generate information and interpret the output. The three main topics addressed here are: Hypothesis Testing, Analysis of Variance (ANOVA), and Regression.

Hypothesis Test

A hypothesis test is a statistical test that is used to determine whether there is enough evidence in a sample of data to infer that a certain condition is true for the entire population.

A hypothesis test examines two opposing hypotheses about a population: the null hypothesis and the alternative hypothesis. The null hypothesis is the statement being tested. Usually the null hypothesis is a statement of "no effect" or "no difference". The alternative hypothesis is the statement you want to be able to conclude is true.

Based on the sample data, the test determines whether to reject the null hypothesis. You use a p-value, to make the determination. If the p-value is less than or equal to the level of significance, which is a cut-off point that you define, then you can reject the null hypothesis.

For more information on Hypothesis tests: Click here

ANOVA

Analysis of variance (ANOVA) tests the hypothesis that the means of two or more populations are equal. ANOVAs assess the importance of one or more factors by comparing the response variable means at the different factor levels. The null hypothesis states that all population means (factor level means) are equal while the alternative hypothesis states that at least one is different.

To perform an ANOVA, you must have a continuous response variable and at least one categorical factor with two or more levels. ANOVAs require data from approximately normally distributed populations with equal variances between factor levels

If the p-value is less than your alpha, then you conclude that at least one durability mean is different.

For more information on ANOVA: Click here

Regression

A regression analysis generates an equation to describe the statistical relationship between one or more predictors and the response variable and to predict new observations. Linear regression usually uses the ordinary least squares estimation method which derives the equation by minimizing the sum of the squared residuals.

For more information on regression: Click here