Sometimes, working with a large amount of data can get complicated. Grouping them under specific criteria can help such cases. We can also capture the outputs after a definite time interval. This will ease the analysis process of continuous happening events. Such a dataset is known as Time-Scaled Data. Again, we use Excel for many different reasons. Performing various essential tasks and data analysis is one of the most valuable applications of MS Excel. In this article, we’ll show the step-by-step procedures to Analyze Time-Scaled Data in Excel.
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Step by Step Procedures to Analyze Time-Scaled Data in Excel
Time-Scaled Data is especially beneficial in real-life events like stock prices, exchange rates, sales, production, etc. To illustrate, we’ll use a sample dataset as an example. For instance, in the following dataset, we’ll work with the annual sales of a company. Here, we’ll input the Years and the Net Sales in that year. Therefore, go through the below steps carefully to Analyze Time-Scaled Data in Excel.
STEP 1: Input Time-Scaled Data in Excel
- First, type the precise data in the Excel worksheet.
- See the below picture to have a better understanding.
STEP 2: Insert Data Analysis Button
The Data Analysis button may not be present in the Data tab. In that case, follow the process to add the button.
- Firstly, go to File ➤ Options.
- As a result, the Excel Options dialog box will pop out.
- There, go to the Add-ins tab.
- Then, select Excel Add-ins from the Manage drop-down.
- After that, press Go.
- Consequently, the Add-ins dialog box will appear.
- Afterward, check the box for Analysis ToolPak.
- Subsequently, press OK.
- In this way, you’ll get the Data Analysis button under the Data tab.
STEP 3: Perform Statistical Analysis
In this step, we’ll set the necessary details for performing Statistical Analysis. So, learn the following process.
- First of all, select Data ➤ Data Analysis.
- Accordingly, the Data Analysis dialog box will emerge.
- Now, choose Exponential Smoothing from the Analysis Tools.
- Next, press OK.
- As a result, the Exponential Smoothing dialog box will pop out.
- Then, select the desired Input Range.
- In this example, select the Net Sales in the range C5:C9.
- After that, specify the Damping factor.
- Next, choose the Output Range.
- Furthermore, check the boxes for Chart Output and Standard Errors.
- Lastly, press OK.
Final Output to Analyze Time-Scaled Data in Excel
After pressing OK, it’ll return the Excel worksheet with 2 new columns and a graph.
- In the following image, the Smoothed Level and Standard Error columns are the results of the statistical analysis.
- Moreover, you’ll get a graph of the Actual Net Sales and a Forecast.
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How to Forecast Time-Scaled Data in Excel
However, we can add the trend lines to forecast the time-scaled data in Excel. Hence, follow the steps below to carry out the operation.
- Select the Actual net sales curve at first.
- Then, right-click on the mouse.
- In the context menu, click Add Trendline.
- Thus, the Format Trendline pane will appear in the worksheet.
- Here, check the circle for Polynomial.
- The Polynomial trend line has a lower error rate in the forecast models.
- After that, check the boxes for the equations and R-squared values.
- See the below picture to get a better understanding.
- Hence, it’ll return the desired trend line in the graph.
- Again, If you prefer to have a Linear trend line, choose Linear.
- Subsequently, mention the periods.
- In consequence, it’ll return a linear trend line alongside the Actual in the graph.
- Moreover, we can insert the GROWTH function for forecasting the exponential dependence.
- Select cell F5.
- Type the formula:
- Next, press Enter.
- Thus, you’ll get the value.
- Now, use the AutoFill tool to complete the rest.
- At last, it’ll return the prediction for the sales values.
Henceforth, you will be able to Analyze Time-Scaled Data in Excel following the above-described procedures. Keep using them and let us know if you have more ways to do the task. Follow the ExcelDemy website for more articles like this. Don’t forget to drop comments, suggestions, or queries if you have any in the comment section below.