Excel Data Mining (All Things You Need to Know)

Here’s a simplified overview of data mining in a smaller dataset.

Overview of data mining Excel example

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How to Install the Data Mining Add-in in Excel

  • Click on Insert and select Get Add-ins.

Clicking Get Add-ins option from Insert tab

  • In the Search bar of the Office Add-ins window, write Data Mining.
  • Select Analytic Solver Data Mining, or another add-in for mining, and click Add.

Searching Analytic Solver Data Mining

  • Check the I agree to all the above terms & conditions box and go to Continue.

Checking I agree to all the above terms & conditions

  • The Data Mining tab appears in your ribbon.

Data Mining Add-in appears in Excel

How to Prepare Data Before Data Mining in Excel

Step 1 – Use Excel Tools for Data Cleaning

Tool 1 – Remove Duplicates

  • Select the range B5:E13 you want to clean.
  • Go to the Data tab and select Remove Duplicates.

Accessing Remove Duplicates from Data tab

  • In the Remove Duplicates dialog, check Location and select OK.

Checking Location column in Remove Duplicates dialog box

  • Click OK in the Excel notification box.

Tapping OK to close warning

  • The duplicates in the Location column disappear.

Two rows with redundancy disappear

Tool 2 – Filter

  • Select the range B4:E13, click on Data, and choose Filter.

Clicking Filter command in Data tab

  • Click the Filter dropdown icon for the Bottle Size (ml) column.
  • Check 500 and click OK.

Selecting 500 in Filter dropdown

  • The filter displays only rows that contain the value 500 in the Bottle Size(ml) column.

Filtered data appears

Step 2 – Transform Data Using a PivotTable in Excel

  • Go to the Insert tab and click on PivotTable, then select From Table/Range.

Inserting PivotTable using From Table/Range

  • In the PivotTable from table or range dialog box, input B4:E13 as Table/Range.
  • Check New Worksheet and click OK.

Selecting range for Pivot table

  • In the PivotTable Fields pane, drag Temperature (°C) to the Filters field, Location to Rows field, and Sales to Values field.

Dragging columns to fields in PivotTable Fields

  • The Pivot Table pops up.

Pivot table appears

Step 3 – Insert Excel Power Query for Data Integration

  • Go to Data and select Get Data, then From File, and choose From Excel Workbook.

Clicking From Excel Workbook in Get Data for data mining excel example

  • In the Import Data window, select the source file and hit Import.

Importing desired file

  • Go to List and select Load on the Navigator window.

Selecting List in Navigator window

  • We get the List query.

List query appears in another sheet for data mining excel example output

  • You can combine, merge, or connect this with the main query table.

Step 4 – Use the Excel AVERAGE Function for Data Reduction

  • In cell D15, use the following formula and press Enter.
  • Enter the following AVERAGE formula in D16,

Using AVERAGE function for data reduction for data mining excel example output

  • The formulas return averages of temperature and sales, respectively.

Examples of Data Mining in Excel

Example 1 – Regression Analysis

We will apply a Regression Analysis to predict sales of cold water bottles based on the weather forecast.

  • Go to the Data tab and select Data Analysis.
  • Select Regression in the Data Analysis dialog box and hit OK.

Selecting Regression option in Data Analysis

  • Input B5:B13 in the Input Y Range box and E5:E13 in Input X Range, then hit OK.

Inputting range of X and  Y axis

  • Here’s the summary output.

Summary of Regression analysis for data mining excel example output

Example 2 – Data Visualization with One Independent Variable

Let’s consider the Sales column as the independent variable.

  • Select the ranges B4:B13 and E4:E13.
  • Go to the Insert tab, choose Insert Line or Area chart, and select Line chart.

Selecting data to create a  Line chart

  • Right-click on a Node and click Add Trendline from the Context Menu.

Selecting Add Trendline in Line chart for data mining excel example

  • In the Format Trendline pane, select Linear for Trendline Options.

Clicking Linear option in Format Trendline

  • The trendline appears suggesting the sales trend.

Trendline appears in Line chart as data mining excel example output

Example 3 – Use the LINEST Function

We will predict our future sales with the change in temperatures using this function.

  • Use the LINEST formula in E5:

Using LINEST function for data mining Excel example

  • The output of m and b columns indicate the changing temperature and predicted sales respectively.

Advantages and Disadvantages of Data Mining in Excel

Advantages of Data Mining:

  • User-friendly interface: People can explore ways to do data mining, even without much programming knowledge.
  • Versatile: People can do various data mining methods like grouping, prediction, and finding connections. They can also make their calculations and rules.

Disadvantages of Data Mining:

  • Lack of Scalability: Excel has limits in handling big data. For big organizations needing to grow, it might not be the best choice.
  • Slow Processing: Excel provides slower analysis and less exact outcomes for large data.

Frequently Asked Question

Can we customize our data analysis result in Excel?
You can customize analysis results through Excel formulas or rules.

What is the function of Outliers in Excel data mining?
The Outliers command provides a proper way to clean the information.

What is the data mining cycle?
Business Understanding Data Understanding Data Preparation Modeling Evaluation Deployment Business Understanding.

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Yousuf Khan
Yousuf Khan

Yousuf Khan has been working with the ExcelDemy project for over one year. He has written 47+ articles for the ExcelDemy site. He also solved a lot of user problems with ExcelDemy Forum. He has interests in Excel & VBA, Desktop and mobile applications, and projects & templates. He completed his graduation and post-graduation in Information Technology from Jahangirnagar University. Currently, he works as a VBA & Excel Content Developer in ExcelDemy projects, writing unique and informative content... Read Full Bio

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