Session 9 Managerial Spreadsheet Modeling -- Prof. Juran1.

Session 9

Managerial Spreadsheet Modeling -- Prof. Juran 1


OutlineAdvanced GraphingUseful changes to default “basic” graphs

– Scatter plots– Line charts– Bar charts

Chart suggestionsSpecial-purpose column graphs

– Waterfall charts– Box and Whisker charts

Other useful types of graphs


Chart Suggestions (Andrew Abela)


Default Issues

Default axis maximum is usually too high.Don’t make a graph with probabilities going up to 120%!

If a series runs exactly along the top axis, its width will be partially chopped off.Set the chart maximum very slightly higher (e.g., 100.2%),Or nudge the data a little lower (e.g., 99.8%).

Unfortunate colors, fonts, etc.Gridlines, backgrounds, scales


Chart type

Plot Area

Series

Axes

Labels

Gridlines

Error Bars

Lines and Markers? Just one or the other?

Do not check the “Smoothed Line” option.For fitted lines, maybe eliminate the markers, make the line dashed; could use the “Smoothed Line” option.

Components of graphs


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Metals

Metals

Default Scatter Plot


Changes to the Default Scatter Plot

Add vertical gridlines (or delete the horizontal ones).Chart Tools | Design | Add Chart Element | GridlinesMove the legend inside the plot area, or eliminate it.


Changes to the Default Scatter Plot

Format the axes so that the labels are outside the graph.Reduce the number of decimal places to 0.Change the chart title.Add a trendline? Change the markers?

y = 0.7352x + 0.0009R² = 0.1425

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Metals vs. S&P Index


• Format Chart Area | Border | Rounded corners

• Format | Shape Styles | Shape Effects | Shadow– Outer: Graph casts a shadow– Inner: Raises graph off the page– Perspective: Graph floats over

shadow

Formatting the Chart

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A B C D E F G H I J K L M N O

500 Index MetalsSep-87 -2.3% 3.1%Oct-87 -21.7% -28.6%Nov-87 -8.2% 14.1%Dec-87 7.5% -4.9%Jan-88 3.5% -15.7%Feb-88 4.6% -2.9%Mar-88 -3.1% 11.8%Apr-88 1.0% -1.3%

May-88 0.9% 4.3%Jun-88 4.5% -2.6%Jul-88 -0.3% 0.7%

Aug-88 -3.4% -5.2%Sep-88 4.2% -6.6%Oct-88 2.8% 6.6%Nov-88 -1.5% 2.4%Dec-88 1.8% -4.1%Jan-89 7.3% 4.2%

y = 0.7352x + 0.0009R² = 0.1425

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Metals vs. S&P Index


Cleanest: set the plot fill to “No fill” and delete the gridlines.

Subtle color option: set the plot fill to light gray, and color the gridlines white.

Formatting Line Charts

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1987 1992 1997 2002 2007 2012

Metals vs. S&P 500

500 Index

Metals


Sometimes it’s difficult to click on a specific data series (or axis) to select it for formatting.

Much easier: Format | Current selection– Dropdown box: Choose what to format– Format Selection

Selecting and formatting a data series


U.S. Treasury Bond yields (March 1, 2013)

Misleading Line Graphs

Scatter graph (better)

(line without marker)

Line graph (misleading)


Pie, doughnut, and radar charts are very difficult to interpret correctly. Avoid them unless your data is circular (clock time, compass direction).

Line and area graphs are appropriate only for data that (a) occurs in a recognized sequence, and (b) is evenly spaced.

Bar and column charts are good when there’s not a connecting recognized sequence for the data.

Scatter charts are good when the data are not evenly spaced.

Avoid 3-D charts, which add “chartjunk” with no benefit.

Particularly avoid cone and pyramid charts, which distort the data by reducing the appearance of the series at the top.

Stock, surface, and bubble charts are useful on occasion.

Types of graphs to avoid


Don’t use multiple colors to represent the same kind of data.– OK to use a different color to focus on one value.– OK to use a different color for future forecasts.

If possible, label chart elements directly (through text boxes), rather than in a separate legend.

For icons and bubbles, their size should be proportional to the square root of the value.

Other Rules for Graphs

300% x height makes 900% x area – misleading!

173.2% x height makes 300% x area

15:5 = 300%

Nobel Prizes:Bruins 15, Trojans 5


Column Graphs

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A B C D E FStrongly Agree Agree Undecided Disagree Strongly Disagree

Store locations are convenient 12.0% 14.0% 21.0% 21.0% 32.0%Store hours are convenient 15.0% 18.0% 24.0% 29.0% 14.0%Stores are well maintained 9.0% 11.0% 32.0% 31.0% 17.0%You are easy to reach by phone 1.0% 5.0% 9.0% 40.0% 45.0%I like your web site 18.0% 32.0% 32.0% 12.0% 8.0%Emp;oyees are friendly 2.0% 6.0% 32.0% 43.0% 17.0%Employees are helpful 3.0% 4.0% 21.0% 39.0% 33.0%Employees are knowledgeable 1.0% 9.0% 18.0% 33.0% 39.0%Pricing is competitive 38.0% 24.0% 21.0% 12.0% 5.0%You have a good selection of products 16.0% 19.0% 32.0% 21.0% 12.0%I like your TV ads 0.1% 9.0% 32.0% 38.0% 16.0%You sell quality products 24.0% 21.0% 28.0% 15.0% 12.0%Overall I am satisfied 6.0% 28.0% 24.0% 25.0% 17.0%I would recommend your company 3.0% 9.0% 20.0% 27.0% 41.0%


Insert | Charts | Column | Clustered Column

Simple changes:– Eliminate gridlines, plot area, and plot border– Select Data | Horizontal (Category) Axis Labels: B1:F1

Changes to Default Graph


Appearance now:

Reverse the order– Right-click | Format Axis | Axis Options– Categories in reverse order– Vertical axis crosses: At maximum value

Changes to Column Graph


Appearance now:

Vertical axis: Format Axis | Axis options– Maximum: 0.50– Major unit: 0.10

Left-click to select chart area– Insert | Illustrations | Shapes | Text box and draw the box– With the cursor blinking inside the box, click in the formula

window, type “=”, and click on A2. Enlarge, make bold, and center the text.



Appearance now:

Maybe right-click | Format Data Series |– Series Options | Gap Width = 80%– Fill | Gradient fill, and add gradients to make it look like a

cylinder


Title linked to data in A2


Final Chart


Add a spinner linking back to a cell, and let it vary between 1 and 14.

Use the Index() function to copy that row.

Change the data series to refer to this copied row.

Dynamically choosing the series to graph

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A B C D E F G H I J K L M N OStrongly Agree Agree Undecided Disagree Strongly Disagree

Store locations are convenient 12.0% 14.0% 21.0% 21.0% 32.0%Store hours are convenient 15.0% 18.0% 24.0% 29.0% 14.0%Stores are well maintained 9.0% 11.0% 32.0% 31.0% 17.0%You are easy to reach by phone 1.0% 5.0% 9.0% 40.0% 45.0%I like your web site 18.0% 32.0% 32.0% 12.0% 8.0%Employees are friendly 2.0% 6.0% 32.0% 43.0% 17.0%Employees are helpful 3.0% 4.0% 21.0% 39.0% 33.0%Employees are knowledgeable 1.0% 9.0% 18.0% 33.0% 39.0%Pricing is competitive 38.0% 24.0% 21.0% 12.0% 5.0%You have a good selection of products 16.0% 19.0% 32.0% 21.0% 12.0%I like your TV ads 0.1% 9.0% 32.0% 38.0% 16.0%You sell quality products 24.0% 21.0% 28.0% 15.0% 12.0%Overall I am satisfied 6.0% 28.0% 24.0% 25.0% 17.0%I would recommend your company 3.0% 9.0% 20.0% 27.0% 41.0%

Employees are friendly 2.0% 6.0% 32.0% 43.0% 17.0%

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Employees are friendly


Create “good” graphs from the three last tabs in the Excel file:• Scatter• Line• Column

Hands-on Practice

Session 9 Managerial Spreadsheet Modeling -- Prof. Juran1.

Documents

Transcript of Session 9 Managerial Spreadsheet Modeling -- Prof. Juran1.