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Lecture5 Data Visualization

The document is a lecture on data visualization using Excel, focusing on various chart types and their applications. It covers the importance of data visualization in simplifying complex information, creating investment reports, and performing what-if analyses. Key topics include creating pie and column charts, formatting elements, and using different chart types to effectively communicate data insights.

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Aniruddh Parikh
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© © All Rights Reserved
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0% found this document useful (0 votes)
10 views70 pages

Lecture5 Data Visualization

The document is a lecture on data visualization using Excel, focusing on various chart types and their applications. It covers the importance of data visualization in simplifying complex information, creating investment reports, and performing what-if analyses. Key topics include creating pie and column charts, formatting elements, and using different chart types to effectively communicate data insights.

Uploaded by

Aniruddh Parikh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Spreadsheet Modelling

Lecture 5: Data Visualization


Santosh Kumar Dash
IRMA, Anand
2024-12-30
2024-12-30 Santosh Dash (IRMA) Excel - Data Visualization 2
Agenda for Today’s Class
• Understanding Data Visualization
• Learning various charts and their usability
• Create various charts
• Formatting chart elements
• Create a combination chart
• Adding Graphic Objects to a Workbook
• Sparkline, Maps

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Preparing an Investment Report
• Case | Philbin Financial Group
• Hideki Eto is an analyst for the Philbin Financial Group, a financial investment
firm located in Phoenix, Arizona. Hideki needs to prepare financial reports
that the company’s clients will receive at meetings with a Philbin Financial
Group advisor. One of the funds handled by the company is the Sunrise Fund,
a large growth/large risk investment fund. Hideki needs you to summarize
the fund’s financial holdings as well as document its recent and long-term
performance. Hideki has already entered the financial data into a workbook
but wants you to finish the report. Because many clients are overwhelmed by
tables of numbers, you will summarize the data using Excel financial charts
and graphics.

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Data Visualization
• To communicate data in a quick and meaningful way while remaining 100
percent accurate.
• A better way to convert raw information into a visual interactive medium.
• A way to dissect increased volumes of rows and columns of information to
understand trends, patterns and make strategic, operational and tactical
decisions.
• A powerful way to simplify the ever increasing size and complexity of
information.
• In sum, Data Visualization is an emerging area of data analytics that combines
quantitative information with technology and graphical design to tell stories,
convey ideas and, make decisions.

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Visual Overview: Chart Elements

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Getting Started with Excel Charts, Part 1
• Charts show trends or relationships in data that are easier to see in a graphic
representation rather than viewing the actual numbers or data.
• Excel has more than 60 types of charts organized into the 10 categories
described in Figure 4–1.
• Within each chart category are chart variations called chart subtypes.
• You can also design custom chart types to meet your specific needs.

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Getting Started with Excel Charts, Part 2
• Creating a Chart
▪ Select the range containing the data you want to chart.
▪ On the Insert tab, in the Charts group, click the Recommended Charts
button or a button representing the general chart type, and then click the
chart you want to create;
▪ Or click the Quick Analysis (Ctrl + Q) button, click the Charts category, and
then click the chart you want to create.
▪ On the Chart Design tab, in the Location group, click the Move Chart
button, select whether to embed the chart in a worksheet or place it in a
chart sheet, and then click OK.

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Getting Started with Excel Charts, Part 3:
Figure 4-1 Excel chart types and subtypes
Chart
Category Description Chart Subtypes
Column or Compares values from different categories. Values 2-D Column, 3-D Column, 2-D Bar,
Bar are indicated by the height of the columns or the 3-D Bar
length of a bar.
Hierarchy Display data that is organized into a hierarchy of Treemap, Sunburst
categories where the size of the groups is based on a
number.
Waterfall or Displays financial cash flow values or stock market Waterfall, Funnel, Stock
Stock data.
Line or Compares values from different categories. Values 2-D Line, 3-D Line, 2-D Area, 3-D
Area are indicated by the height of the lines. Often used Area
to show trends and changes over time.
Statistic Displays a chart summarizing the distribution of Histogram, Pareto, Box and
values from a sample population. Whisker
2024-12-30 Santosh Dash (IRMA) Excel - Data Visualization 9
Getting Started with Excel Charts, Part 4:
Figure 4-1 Excel chart types and subtypes
Chart Category Description Chart Subtypes
Pie Compares relative values of different categories to the 2-D Pie, 3-D Pie,
whole. Values are indicated by the areas of the pie slices. Doughnut/Donut
X Y (Scatter) or Shows the patterns or relationship between two or more Scatter, Bubble
Bubble sets of values. Often used in scientific studies and
statistical analyses.
Surface or Radar Compares three sets of values in a three-dimensional Surface, Radar
chart.
Combo Combines two or more chart types to make the data easy Clustered Column-Line,
to visualize, especially when the data is widely varied. Clustered Column-Line on
Secondary Axis, Stacked Area-
Clustered Column
Map Compares data values across geographical regions. Filled Map
PivotChart Creates a chart summarizing data from a PivotTable. PivotChart, PivotChart &
PivotTable
2024-12-30 Santosh Dash (IRMA) Excel - Data Visualization 10
Charts by Category/Objective, Part 1
Category Chart Type Category Chart Type
Distribution Beeswarm Evolution Area Chart
Distribution Box Plot Evolution Calender
Distribution Density Plot Evolution Candlestick
Distribution Dot Plot Evolution Line Chart
Distribution Dumbell Evolution Slope
Distribution Histogram Flow Alluvial
Distribution Ridgeline Flow Chord
Distribution Violin Plot Flow Sankey
Correlation Bubble Chart Flow Waterfall Chart
Correlation Contour Plot
Correlation Correlogram
Correlation Heat Map
Correlation Scatter Plot
2024-12-30 Santosh Dash (IRMA) Excel - Data Visualization 11
Charts by Category/Objective, Part 1
Category Chart Type Category Chart Type
Part of a Whole Bar Chart Spatial Cartogram
Part of a Whole Dendrogram Spatial Choropleth
Part of a Whole Donut Chart Ranking Bar Chart
Part of a Whole Mosaic Ranking Bump Chart
Part of a Whole Parliament Ranking Lollipop
Part of a Whole Pie Chart Ranking Parallell Coordinates
Part of a Whole Tree Map Ranking Radar Chart
Part of a Whole Venn Diagram Ranking Word Cloud
Part of a Whole Voronoi
Part of a Whole Waffle Chart

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Creating a Pie Chart, Part 1
• Exploring Chart Types and Subtypes
▪ A pie chart is a chart in the shape of a circle divided into slices like a pie
▸ Each slice represents a single value from a data series
▸ Larger data values are represented with bigger pie slices
▸ The relative sizes of the slices let you visually compare the data values and see
how much each contributes to the whole
▪ Pie charts are most effective with six or fewer slices, and when each slice
is large enough to view easily

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Creating a Pie Chart, Part 2
• The data displayed in a chart come from a data source, which includes one or
more data series and a set of category values
▪ The data series is the actual values that are plotted on the chart
• The Charts category in the Quick Analysis tool displays chart types that are
appropriate for the selected data source

2024-12-30 Santosh Dash (IRMA) Excel - Data Visualization 14


Creating a Pie Chart, Part 3
• Inserting a Pie Chart with the Quick Analysis Tool
▪ After you select an adjacent range to use as a chart’s data source, the
Quick Analysis tool appears.
▪ The Quick Analysis tool includes a category for creating charts.
▪ The Charts category lists recommended chart types—the charts that are
most appropriate for the data source you selected.

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Creating a Pie Chart, Part 4
• Moving and Resizing Charts
▪ Excel charts are either placed in their own chart sheets or embedded in a
worksheet
▪ When you create a chart, it is embedded in the worksheet that contains
the data source
▪ Selecting the chart displays:
▸ A selection box (used to move or resize the chart)
▸ Sizing handles (used to change the chart’s width and height)

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Creating a Pie Chart, Part 5
• Pie slices do not need to be fixed within the pie.
• An exploded pie chart moves one slice away from the others as if someone
were taking the piece away from the pie.
• Exploded pie charts are useful for emphasizing one category above the
others.
• To explode a pie slice, first click the pie to select it, and then click the single
slice you want to move. Then drag the slice away from the pie.

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Creating a Pie Chart, Part 6

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Working with Chart Elements, Part 1
• Every chart contains elements that can be formatted, added to the chart, or
removed from the chart.
• The Chart Elements button is used to add, remove, and format individual
elements.
• When you add or remove a chart element, the other elements resize to fit in
the space.

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Working with Chart Elements, Part 2

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Working with Chart Elements, Part 3
• Formatting a Chart Element
▪ Each element listed in the Chart Elements button contains a submenu of
common formatting choices, such as the placement of data labels relative
to the position of the data marker or pie slice.
▪ One way of modifying the chart layout is to choose a predefined layout
from the Quick Layout button on the Chart Tools Design tab.

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Working with Chart Elements, Part 4
• Choosing a Chart Style
▪ When you create a chart, the chart is formatted with a style (a collection
of formats).
▪ In the pie chart created, the format of the chart title, the location of the
legend, and the colors of the pie slices are all part of the default style.
▪ You can quickly change the appearance of a chart by selecting a different
style from the Chart Styles gallery.

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Working with Chart Elements, Part 5
• Changing the Color Scheme
▪ A pie slice is an example of a data marker that represents a single data
value from a data series.
▪ You can format the appearance of individual data markers to make them
stand out from the others.
▪ Pie slice colors should be as distinct as possible to avoid confusion.
▪ Depending on the printer quality or the monitor resolution, it might be
difficult to distinguish between similarly colored slices or data.

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Performing What-If Analyses with Charts,
Part 1
• A chart is linked to its data source.
• Changes made to the data source affect the chart; a visual representation of
changes.
• Makes charts a powerful tool for data exploration and what-if analysis.

2024-12-30 Santosh Dash (IRMA) Excel - Data Visualization 24


Performing What-If Analyses with Charts,
Part 2
• Another type of what-if analysis is to limit the data to a subset of the original
values in a process called filtering.
• Rather than creating a new chart, you can filter an existing chart to only show
specific data.
• To modify the pie chart’s data, make the following two changes:
▪ Hideki notes that the value in cell B5 for the amount invested in U.S.
Equities should be $63,804.15 instead of $73,804.15.
▪ Change the category name in cell B9 from “Cash & Equivalents” to simply
“Cash.”

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Performing What-If Analyses with Charts,
Part 3

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Creating a Donut Chart, Part 1
• A Donut chart is a variant of the Pie chart, displaying data in a ring shape with
a hole in the center.
• Represents data as parts of a whole, similar to a pie chart.
• The "hole" can be used for additional information or aesthetic purposes.
• When to Use a Donut Chart:
▪ When comparing proportions or percentages.
▪ To visualize part-to-whole relationships in a more visually appealing
manner than pie charts.
▪ To reduce clutter, especially for datasets with many categories.

2024-12-30 Santosh Dash (IRMA) Excel - Data Visualization 27


Creating a Donut Chart, Part 2
Fund Assets

6%

10%

U.S. Equities
15%
45% U.S. Bonds
Non-U.S. Equities
Non-U.S. Bonds
Cash

24%

2024-12-30 Santosh Dash (IRMA) Excel - Data Visualization 28


Creating a Column Chart, Part 1
• Column chart (Vertical)
▪ Displays values in different categories as columns
▪ Height of each column is based on its value
• Bar chart (Horizontal)
▪ Column chart turned on its side
▪ Length of each bar is based on its value

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Creating a Column Chart, Part 2
• Better to use column and bar charts than pie charts when the:
▪ Number of categories is large
▪ Data values are close in value
• Easier to compare height or length than area
• Column charts can include several data series
• Comparing Column Chart Subtypes
▪ Column and bar charts can display multiple data series
▪ You can plot three data series against one category

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Creating a Column Chart, Part 3
• Comparing Column Chart Subtypes
▪ The clustered column chart displays the data series in separate columns
side-by-side so that you can compare the relative heights of the columns.
▪ The stacked column chart places the data series values within combined
columns showing how much is contributed by each series.
▪ The 100% stacked column chart makes the same comparison as the
stacked column chart except that the stacked sections are expressed as
percentages.

2024-12-30 Santosh Dash (IRMA) Excel - Data Visualization 31


Creating a Column Chart, Part 4

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Creating a Column Chart, Part 5
• Creating a Clustered Column Chart
▪ Select data source
▪ Select type of chart to create
▪ Move and resize the chart
▪ Change chart’s design, layout, and format by:
▸ Selecting one of the chart styles, or
▸ Formatting individual chart elements

2024-12-30 Santosh Dash (IRMA) Excel - Data Visualization 33


Creating a Column Chart, Part 6
• Editing a Chart Title
▪ A the top of the column chart, click Chart Title
▪ Type the new title and press ENTER
• Setting the Gap Width
▪ Excel automatically sets the space between the data series in a column
chart as well as the gap width between one category value and the next.
▪ You can modify the space between the data series and gap width using the
Format pane.

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Creating a Column Chart, Part 7
• Adding Gridlines to a Chart
▪ A gridline is a line that extends from the chart’s horizontal and vertical
axis into the plot area, making it easier to identify the values or categories
associated with the chart’s data markers.
▪ You can use data labels to add data directly to a chart. Another way of
viewing the data values associated with a chart is by adding a data table.

2024-12-30 Santosh Dash (IRMA) Excel - Data Visualization 35


Creating a Line Chart, Part 1
• Line charts are typically used when the data consists of values drawn from
categories that follow a sequential order at evenly spaced intervals.
• To visualize a trend in data over intervals of time – a time series.
▪ For example tracking of closing price of stock prices or production of
grains over a period or time or GDP of a country etc.
• Like column charts, a line chart can be used with one or more data series
• When multiple data series are included, the data values are plotted on
different lines with varying line colors
• You can modify the axis labels and tick marks to change which category
values are displayed in the chart

2024-12-30 Santosh Dash (IRMA) Excel - Data Visualization 36


Creating a Line Chart, Part 2
• Each value from a data series is represented by a data marker:
▪ Individual pie slices in pie charts
▪ Columns in column charts
▪ Points connected by the line in a line chart

2024-12-30 Santosh Dash (IRMA) Excel - Data Visualization 37


Creating a Line Chart, Part 3

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Written Communication: Communicating
Effectively with Charts
• To create effective and useful charts, keep in mind the following tips as you design
your charts:
▪ Keep it simple. Do not clutter a chart with too many graphical elements. Focus
attention on the data rather than on decorative elements that do not inform.
▪ Focus on the message. Design the chart to highlight the points you want to convey
to readers.
▪ Limit the number of data series. Most charts should display no more than four or
five data series. Pie charts should have no more than six slices.
▪ Choose colors carefully. Display different data series in contrasting colors to
make it easier to distinguish one series from another. Modify the default colors
as needed to make them distinct on the screen and in the printed copy.
▪ Limit your chart to a few text styles. Use a maximum of two or three different text
styles in the same chart. Having too many text styles in one chart can distract
attention from the data.

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Creating a Combination Chart, Part 1
• A combination chart combines two chart types within a single chart.
• Enable you to show two sets of data using the chart type that is best for each
data set.
• Can have data series with vastly different values.
• You can create dual axis charts, using primary and secondary axes.

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Creating a Combination Chart, Part 2

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Creating a Combination Chart, Part 3
• Working with Primary and Secondary Axes
▪ When a chart has primary and secondary vertical axes, it is helpful to
identify exactly what each axis is measuring
▪ Add an axis title (a descriptive text that appears next to the axis) to the
chart
▪ You can add, remove, and format axis titles

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Creating a Combination Chart, Part 4
• Adding an Axis Title
▪ With the chart still selected, click the Chart Elements button then the Axis
Titles check box.
▪ Click Axis Title next to the primary axis and add your title, then press
ENTER
▪ Click Axis Title along the bottom axis, type the title, then press ENTER
▪ Click Axis Title next to the secondary axis, and change the title, then press
ENTER

2024-12-30 Santosh Dash (IRMA) Excel - Data Visualization 43


Creating a Combination Chart, Part 5
• Editing a Value Axis Scale
▪ Excel automatically chooses the range of values, or scale, used on the
value primary and secondary axes.
▪ Excel automatically divides the scale into regular intervals, marked on the
axis with tick marks and labels.
▪ Major tick marks identify the main units on the chart axis while minor tick
marks identify the smaller intervals between the major tick marks.

2024-12-30 Santosh Dash (IRMA) Excel - Data Visualization 44


Visual Overview: Scatter Charts, Data Bars,
and Sparklines

2024-12-30 Santosh Dash (IRMA) Excel - Data Visualization 45


Creating a Scatter Chart, Part 1
• A scatter chart plots two data series of numeric values against each other.
• Scatter charts are widely used in economics, science, and engineering
applications when investigators want to discover how two numeric variables
are related.
• Scatter charts comparing rates to volatility are usually centered at a point
representing a balance/intersection between the two series.

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Creating a Scatter Chart, Part 2

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Creating a Scatter Chart, Part 3

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Creating a Scatter Chart, Part 4

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Editing the Chart Data Source, Part 1
• To modify a Chart’s Data Source:
▪ Click the chart to select it.
▪ On the Chart Tools Design tab, in the Data group, click the Select Data
button.
▪ In the Legend Entries (Series) section click the Add button or the Remove
button.
▪ Click the Edit button in the Horizontal (Category) Axis Labels section to
select the category values for the chart.

2024-12-30 Santosh Dash (IRMA) Excel - Data Visualization 50


Editing a Chart Data Source, Part 2

2024-12-30 Santosh Dash (IRMA) Excel - Data Visualization 51


Adding Graphic Objects to a Workbook, Part
1
• Excel supports a large gallery of clip art and icons to supplement your charts
and worksheet data.
• One graphic feature you can add to charts is a data callout.
▪ A callout is a label that appears as a text bubble attached to a data marker.
• Microsoft Office supports a gallery of over 160 shapes that can be added to
any workbook or other Office document.
▪ The shape gallery includes rectangles, circles, arrows, stars, flow chart
symbols, and text boxes.
▪ Each shape can be resized and formatted with a wide selection of colors,
line styles, and special effects.

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Adding Graphic Objects to a Workbook, Part
2
• Graphic icons, another type of graphic object supported by Microsoft Office,
are common symbols often found in signs and posters.
• For precise placement of objects, Excel provides commands to align graphics
within a row or column, distribute them evenly across a horizontal or vertical
space, or stack graphics on top of each other.
• You can also group images together, creating new classes of graphic objects.

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Adding Graphic Objects to a Workbook, Part
3

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Exploring Other Chart Types, Part 1
• Hierarchical Charts
▪ Hierarchy charts are like pie charts in that they show the relative
contribution of groups to a whole.
▪ Unlike pie charts, a hierarchy chart also shows the organizational
structure of the data with subcategories displayed within main categories.
▪ Excel supports two types of hierarchy charts: treemap charts and sunburst
charts.

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• Treemap Chart
▪ In a treemap chart, each category is placed within a rectangle, and
subcategories are nested as rectangles within those rectangles.
▪ The rectangles are sized to show the relative proportions of the groups
based on values from a data series.
• Sunburst chart
▪ A sunburst chart organizes hierarchical data through a series of
concentric rings with the innermost rings showing the highest category
levels and the outer rings showing categories from lower levels.
▪ The size of the rings indicates the relative proportions of the different
groups and categories within groups.

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Exploring Other Chart Types, Part 2
• Pareto Charts
▪ A special kind of combination chart is the Pareto chart, which combines a
column chart and a line chart to indicate which factors are the largest
contributors to the whole.
▪ The categories are sorted in descending order of importance so that the
largest investment category is listed first followed by next largest
category, and so forth.
▪ The line chart provides a running total of the percentage that each
category adds to the overall total.

2024-12-30 Santosh Dash (IRMA) Excel - Data Visualization 57


Exploring Other Chart Types, Part 3
• Histogram Charts
▪ A histogram is a column chart displaying the distribution of values from a single
data series.
▪ For example, a professor might create a histogram to display the distribution of
scores from a midterm exam.
▪ There is no category series for a histogram. Instead, the categories are
determined based on the data series values with the data values allocated to bins
and the size of the columns determined by the number of items within each bin.
▪ The number of bins is be arbitrary and can be chosen to best represent the shape
of the distribution.
• Waterfall Charts
▪ A waterfall chart tracks the addition and subtraction of values within a sum.
▪ Waterfall charts are often used with Profit and Loss statements to track the
impact of revenue and expenses on a company’s net profit.

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Exploring Other Chart Types, Part 4
• Funnel Charts
▪ A funnel chart is commonly used to visualize stages of a process or sales
pipeline, showing the progressive reduction of data as it moves through different
stages.
▪ Let's consider a sales pipeline example with different stages and the number of
leads or customers at each stage.
▪ The top stage of the funnel (e.g., "Prospecting") represents the initial stage with
the highest number of leads or customers.
▪ Each subsequent stage represents the progression of leads through the sales
pipeline, with decreasing numbers as leads move closer to closing a deal.
▪ The funnel chart would visually depict the reduction in the number of leads or
customers at each stage of the sales process, showing the drop-off or conversion
rates from one stage to the next.
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Exploring Other Chart Types, Part 5

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Creating Data Bars, Part 1
• Conditional format that adds a horizontal bar to background of a cell
containing a number.
• Length based on value of each cell in the range.
• Dynamic—the lengths of data bars automatically update if cell’s value
changes.
• Modifying a Data Bar Rule
▪ Modify by altering rules of the conditional format

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Creating Data Bars, Part 2

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Creating Sparklines, Part 1
• A sparkline is a chart that is displayed entirely within a worksheet cell.
• Sparklines are compact in size; don’t include chart elements (legends, titles,
or gridlines).
• The goal of a sparkline is to convey the maximum amount of information
within a very small space.
• Sparklines are useful when you don’t want charts to overwhelm the rest of
your worksheet or take up valuable page space.

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Creating Sparklines, Part 2
• You can create the following three types of sparklines:
▪ A line sparkline for highlighting trends
▪ A column sparkline for column charts
▪ A win/loss sparkline for highlighting positive and negative values
• Three types of sparklines:
▪ Line sparkline: Highlights trends
▪ Column sparkline: For column charts
▪ Win/Loss sparkline: Highlights positive and negative values

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Creating Sparklines, Part 3

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Creating Sparklines, Part 4
• Sparkline Groups and Sparkline Axes
▪ You can change the scale of the vertical axis.
▪ The vertical axis will range from the minimum value to the maximum
value.
▪ You can change the vertical axis scale to be the same for the related
sparklines.

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Creating Sparklines, Part 5
• Sparkline Groups and Sparkline Axes
▪ The sparklines in the location range are part of a single group.
▪ Clicking any cell in the location range selects all of the sparklines in the
group.
▪ Any formatting applied to one sparkline affects all of the sparklines in the
group (ensures that the sparklines for related data are formatted
consistently).
▪ To format each sparkline differently, you must first ungroup them.

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Creating Maps, Part 1
• A data visualization tool to represent geographic data on a map.
• Useful for analyzing trends by location (e.g., sales by region, population by
state).
• Ensure your dataset has a location column (e.g., country, state, city, or postal
code) and a corresponding numerical or categorical value column.
• Highlight the data range, including the headers.
• Navigate to the Insert tab → Choose Maps → Filled Map.
• Use the Chart Elements button to add a legend, labels, or title.
• Modify colors and formatting using the Chart Tools.

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Useful Sites for Data Visualization
• from Data to Viz (https://www.data-to-viz.com/)
• R Coder (https://r-charts.com/)

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Thank You

2024-12-30 Santosh Dash (IRMA) Excel - Data Visualization 70

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