CHARTS are the graphic representation of any data . As we know that EXCEL is a super analytical tool.
Analysis of data is the process of deriving the inferences by finding out the trends, averages etc. about different parameters.
Data is everywhere. There is no work, where we don’t deal with the data. Sales data in business, employee data, patient data in hospitals, students data in school etc. Maximum data is presented in the tables but we all know that visual representation is easier to interpret. That is the reason that as the Excel developed, so the charts options in Excel.
Excel gives us a variety of charts which are beautiful, colorful, more customizable and more powerful.
In this article we are going to discuss one particular type of the charts which are known as PARETO CHART.
PARETO CHART is used to contains both columns sorted in descending order and a line representing the cumulative total percentage.
PARETO CHART is used to show the biggest factor responsible for any process.It is one of the quality tools.
PARETO CHARTS comprise of a histogram type graph in the descending order i.e. the first column represents the factor which has highest value to the last column which has the least value. In addition to there is a line which shows the cumulative values together with the columns.
The button for column chart is found under the INSERT TAB under the CHARTS SECTION.
The procedure to insert a PARETO chart are as follows:
So , we have successfully created a pareto chart in Excel.
We can see that EXCEL put the factors as per their descending values and put the columns as per the value of the factors which makes easy for us to find the most important factor at once. Similarly the cumulative percentage value is also shown as a line graph.
HOW TO CONFIGURE BINS IN PARETO CHARTS
Follow the steps to configure bins in PARETO CHARTS.
Bins are the number of different groups which we use to show our data.
Bins can be adjusted by many ways. For example,
Follow the steps to change the BIN SIZE in PARETO CHART:
Right Click on the horizontal axis >FORMAT AXIS>AXIS OPTIONS [ON THE RIGHT]
The FORMAT AXIS BOX will open on the right.
Go to the AXIS OPTIONS.
Go to BINS.
Choose the type of bin as per requirement.
The chart will be redrawn as per the choice.
Scott’s normal reference rule:
Scott’s normal reference rule tries to minimize the bias in variance of the Pareto chart compared with the data set, while assuming normally distributed data.
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