PRDV007: Spreadsheets III: Presenting Data

This section reviews the most commonly used Excel chart types. To demonstrate the variety of chart types available in Excel, it is necessary to use a variety of data sets. Therefore, instead of addressing a specific theme, we will use a variety of themes. This is necessary to demonstrate the construction of charts and explain how to choose the right type of chart given your data and the idea you intend to communicate.

Before we begin, let's review a few key points you must consider before creating any chart in Excel. The first is identifying your idea or message. It is important to remember that a chart's primary purpose is to present quantitative information to an audience. Therefore, you must first decide what message or idea you wish to present. This is critical in helping you select specific data from a worksheet used in a chart. Throughout this chapter, we will reinforce the intended message first before creating each chart.

The second key point is selecting the right chart type. The chart type you select will depend on the data you have and the message you intend to communicate.

The third key point is identifying the values that should appear on the X- and Y-axes. One of the ways to identify which values belong on the X- and Y-axes is to sketch the chart on paper first. If you can visualize what your chart is supposed to look like, you will have an easier time using Excel to construct an effective chart that accurately communicates your message. Table 4.1, Key Steps Before Constructing an Excel Chart, briefly summarizes these points.

Step	Description
1. Define your message.	Identify the main idea you are trying to communicate to an audience. If a chart cannot reveal a main point or important message, you should question the necessity of creating a chart.
2. Identify the data you need.	Once you have a clear message and identify the data on a worksheet, you must construct a chart. Sometimes, you may need to create formulas or consolidate items into broader categories.
3. Select a chart type.	The type of chart you select will depend on the message you are communicating and the data you are using.
4. Identify the values for the X and Y axes.	After you have selected a chart type, you may find that drawing a sketch helps you identify which values should be on the X- and Y-axes (the X-axis is horizontal, and the Y-axis is vertical).

Table 4.1 Key Steps Before Constructing an Excel Chart

Time Series Trend: Line Chart 1

The first chart we will demonstrate is a line chart. Figure 4.1, "52 Week Data for the S&P 500 and Microsoft," shows part of the data that will be used to create two line charts. The first line chart will show the S&P 500 stock index trend. This is an aggregate price index of 500 publicly traded companies. This chart will communicate a simple message: to show how the index has performed over 52 weeks. We can use this chart in a presentation to show whether stock prices have been increasing, decreasing, or remaining constant over the designated period of time.

Figure 4.1 52 Week Data for the S&P 500 and Microsoft

Before creating the line chart, it is important to identify why it is an appropriate chart type given the message we wish to communicate and our data. When presenting the trend for any data over a designated period of time, the most commonly used chart types are the line chart and the column chart. The column chart limits you to several bars or data points. As you increase the number of bars on a column chart, it becomes increasingly difficult to read. As you scroll through the data on the worksheet shown in Figure 4.1, "52 Week Data for the S&P 500 and Microsoft," you will see 52 data points used to construct the chart. This is generally too many data points to put on a column chart, which is why we use a line chart. Our line chart will show the closing price for the S&P 500 on the Y-axis and the week number on the X-axis. The following steps explain how to construct this chart:

1. Highlight the range A3:B55 on the Stock Trend worksheet.
2. Click the Insert tab of the Ribbon.
3. Click the Line button in the Charts group of commands (see Figure 4.2 Selecting the Basic Line Chart).
4. Click the first option from the list, a basic line chart (see Figure 4.2 Selecting the Basic Line Chart). This adds, or embeds, the line chart to the worksheet, as shown in Figure 4.3, Embedded Line Chart in the Stock Trend Worksheet.

Figure 4.2 Selecting the Basic Line Chart

Line Chart vs. Column Chart

We can use line and column charts to illustrate a trend over time. However, a line chart is far more effective when many periods of time are being measured. For example, if we measure 52 weeks, a column chart would require 52 bars. A general rule of thumb is to use a column chart when 20 bars or less are required. A column chart becomes difficult to read as the number of bars exceeds 20.

Figure 4.3 "Embedded Line Chart in the Stock Trend Worksheet" shows the embedded line chart in the Stock Trend worksheet. Notice that three additional contextual tabs have been added to the Ribbon. We will demonstrate the commands in these tabs throughout this chapter. These tabs appear only when the chart is activated.

Figure 4.3 Embedded Line Chart in the Stock Trend Worksheet

As shown in Figure 4.3, "Embedded Line Chart in the Stock Trend Worksheet," the embedded chart is not placed in an ideal location on the worksheet since it covers several cell locations that contain data.

 The following steps demonstrate common adjustments that are made when working with embedded charts:

1. Moving a chart: Click and drag the chart's upper left corner to the center of cell H2.
2. Resizing a chart: Place the mouse pointer over the left middle sizing handle, hold down the ALT key on your keyboard, and click and drag the chart so it "snaps" to the left side of Column H.
3. Repeat step 2 to resize the chart so the top "snaps" to the top of Row 2, the bottom "snaps" to the bottom of Row 17, and the right side "snaps" to the right side of Column P.
4. Adjusting the chart title: Click the chart title once. Then click in front of the letter S. You should see a blinking cursor in front of the letter S. This allows you to modify the chart's title.
5. Type the following in front of the letter S in the chart title: 52 Week Trend for the S&P 500.
6. Removing the legend: Click the legend once and press the DELETE key on your keyboard. This removes the legend from the chart. Since the chart contains only one data series, the legend is unnecessary. Once you remove the legend, the plot area automatically expands.

Figure 4.4, "Line Chart Moved and Resized," shows the line chart after it is moved and resized. You can also see that the chart's title has been edited to read 52 Week Trend for the S&P 500. Also, notice that the sizing handles do not appear around the perimeter of the chart. This is because the chart has been deactivated. To activate the chart, click anywhere inside the chart perimeter.

Figure 4.4 Line Chart Moved and Resized

Adjusting the Y-Axis Scale

After creating an Excel chart, you may find it necessary to adjust the scale of the Y-axis. Excel automatically sets the maximum value for the Y-axis based on the data used to create the chart. However, the minimum value is usually set to zero. Depending on the data you are using to create the chart, setting the minimum value to zero can substantially minimize the graphical presentation of a trend. For example, the trend shown in Figure 4.4, "Line Chart Moved and Resized," appears to be increasing slightly. However, the S&P 500 increased by over 20 percent during this period, which is substantial. The presentation of this trend can be improved if the minimum value starts at 800. While it is certainly possible for the S&P 500 to fall below 800, it is most likely remote. The following steps explain how to make this adjustment to the Y-axis:

1. Click anywhere on the Y-axis on the 52-week trend for the S&P 500 line chart (Stock Trend worksheet).
2. Click the Format tab in the Chart Tools section of the Ribbon.
3. Click the Format Selection button in the Current Selection group of commands (see Figure 4.5, "Format Axis Dialog Box"). This opens the Format Axis dialog box.
   
   
   

   
   Figure 4.5 Format Axis Dialog Box

   
   
4. Click the Fixed option next to the "Minimum" axis option in the Format Axis dialog box.
5. Click the input box for the "Minimum" axis option and delete the zero. Then, type the number 800. As soon as you make this change, the Y-axis on the chart adjusts.
6. Click the Close button at the bottom of the Format Axis dialog box.

Figure 4.6, "Adjusted Y-Axis for the S&P 500 Chart," shows the change in the presentation of the trendline. Notice that with the Y-axis starting at 800, the trend for the S&P 500 is more pronounced and reflects the substantial increase over the 52-week period. This adjustment makes it easier for the audience to see the magnitude of the trend.

Figure 4.6 Adjusted Y-Axis for the S&P 500 Chart

Trend Comparisons: Line Chart 2

We will now create a second line chart using the data in the Stock Trend worksheet. This chart compares two trends: the change in value for the S&P 500 and the Microsoft common stock. "Logical and Lookup Functions" presented a personal investment portfolio where the investments were compared to a benchmark. The S&P 500 is a benchmark commonly used to judge the performance of individual stocks. The purpose and message of this chart is to show whether Microsoft is performing better or worse than the S&P 500 index. This type of analysis can determine whether a stock should be sold, purchased, or held.

Before creating the chart to compare the S&P 500 and Microsoft, reviewing the data in the range E4:F55 on the Stock Trend worksheet is important. We cannot use the price data for Microsoft and the S&P 500 because the values are incomparable. That is, the data for Microsoft is in a range of $22.00 to $28.00, but the data for the S&P 500 is in a range of 1,022 to 1,363. If we used these values to create a chart, we would not be able to see any substantial change in the trend for either the S&P 500 or Microsoft. Therefore, formulas were used to calculate the percent change in value for the S&P 500 and Microsoft each week. For example, looking at cells E5 and F5 on the Stock Trend worksheet, the S&P 500 increased 2.4 percent in week 2, whereas Microsoft increased 3.1 percent. The percent change calculations now provide an appropriate method of comparison. This is a very important step to consider when comparing trends.

The construction of this second line chart will be similar to the first line chart. The X-axis will be the 52 weeks in the range A4:A55. However, the Y-axis will be the percentages in the range E4:F55. This creates a problem because Columns B, C, and D will not be used in this chart. Therefore, we cannot simply highlight one contiguous range of cells to create the chart. In this chapter, we will demonstrate two options for charting data that are not in a contiguous range. The following steps demonstrate the first option:

1. Highlight the range A3:A55 on the Stock Trend worksheet.
2. Hold down the CTRL key on your keyboard and highlight the range E3:F55.
3. Click the Insert tab of the Ribbon.
4. Click the Line button in the Charts group of commands.
5. Click the first option from the list, which is a basic line chart.
   
   Figure 4.7, "Trend Comparison Line Chart," shows the appearance of the line chart comparing the S&P 500 and Microsoft before it is moved and resized. Notice that Excel does not add a title to the chart.
   
   
   
   
   
   

   Figure 4.7 Trend Comparison Line Chart

6. Move the chart so the upper left corner is in the middle of cell H20.
7. Resize the chart so the left side is locked to the left side of Column H, the right side is locked to the right side of Column P, the top is locked to the top of Row 20, and the bottom is locked to Row 35.
8. Click the Layout tab in the Chart Tools section of the Ribbon.
9. Click the Chart Title button in the Labels group of commands. Select the Above Chart option from the drop-down list (see Figure 4.8, "Adding a Title to a Chart"). This adds a generic title above the plot area of the chart.
10. Click in the text box containing the chart title. Delete the generic chart title and replace it with 52-Week Trend Comparison.
    
    

Figure 4.8 Adding a Title to a Chart

Figure 4.9, "Final Trend Comparison Line Chart," shows that Microsoft has not performed as well as the S&P 500 benchmark. From week 31 to week 52, Microsoft has shown a significant decline compared to the S&P 500, which continues to grow. This chart is effective because an audience can quickly see how Microsoft compares with the S&P 500 over the 52-week period.

Figure 4.9 Final Trend Comparison Line Chart

Frequency Distribution: Column Chart 1

A column chart is commonly used to show trends over time so long as the data are limited to approximately 20 points or less. For example, in Chapter "Fundamental Skills," we showed a sales trend over a 12-month period. Another common use for column charts is frequency distributions. A frequency distribution shows the number of occurrences by established categories. For example, a common frequency distribution used in most academic institutions is a grade distribution. A grade distribution shows the number of students that achieve each level of a typical grading scale (A, A−, B+, B, etc.). The Grade Distribution worksheet contains final grades for a hypothetical academic class. To show the grade frequency distribution, the numbers of students appear on the Y-axis, and the grade categories appear on the X-axis. The following steps explain how to create this chart:

1. Highlight the range A3:B8 on the Grade Distribution worksheet. Column B shows the number of students who achieved a grade within the grade category shown in Column A.
2. Click the Column button in the Charts group section on the Insert tab of the Ribbon. Select the first format from the drop-down list of options, which is the Clustered Column format.
3. Click and drag the chart so the upper left corner is in the middle of cell H2.
4. Resize the chart so the left side is locked to the left side of Column H, the right side is locked to the right side of Column P, the top is locked to the top of Row 2, and the bottom is locked to Row 16.
5. Click the legend once and press the DELETE key on your keyboard. The legend is not necessary since the chart presents only one data series.
6. Click the chart title twice to place the cursor before the word Class.
7. Type the following before the word Class: Final Grades for the.
8. Click any cell location on the Grade Distribution worksheet to deactivate the chart.

Figure 4.10, "Grade Frequency Distribution Chart," shows the completed grade frequency distribution chart. By looking at the chart, you can immediately see that the greatest number of students earned a final grade in the B+ to B− or the C+ to C− categories.

Figure 4.10 Grade Frequency Distribution Chart

Column Chart vs. Bar Chart

When using charts to show frequency distributions, the difference between a column chart and a bar chart is really a matter of preference. Both are very effective in showing frequency distributions. However, if you are showing a trend over a period of time, a column chart is preferred over a bar chart. This is because a period of time is typically shown horizontally, with the oldest date on the far left and the newest date on the far right. Therefore, the descriptive categories for the chart would have to fall on the X-axis, which is the configuration of a column chart. The descriptive categories are displayed vertically along the Y-axis on a bar chart.

Creating a Chart Sheet

The charts we have created up to this point have been added to or embedded in an existing worksheet. Charts can also be placed in a dedicated worksheet called a chart sheet. It is called a chart sheet because it can contain only an Excel chart. Chart sheets are useful if you create several charts using the data in a single worksheet. If you embed several charts in one worksheet, navigating and browsing through the charts can be cumbersome. It is easier to browse charts when they are moved to a chart sheet because a separate sheet tab is added to the workbook for each chart. The following steps explain how to move the grade frequency distribution chart to a dedicated chart sheet:

1. Click anywhere on the Final Grades for the Class chart on the Grade Distribution worksheet.
2. Click the Move Chart button in the Design tab of the Chart Tools set of commands. This opens the Move Chart dialog box. Use this dialog box to move the chart to a different worksheet or create a dedicated chart sheet.
3. Click the New sheet option on the Move Chart dialog box.
4. The entry in the input box for assigning a name to the chart sheet tab should automatically be highlighted once you click the New sheet option (see Figure 4.11, "Moving a Chart to a Chart Sheet"). Type Class Grades. This replaces the generic name in the input box.
5. Click the OK button at the bottom of the Move Chart dialog box. This adds a new chart sheet to the workbook named Class Grades.
   
   

Figure 4.11 Moving a Chart to a Chart Sheet

Figure 4.12, "Chart Sheet Added to the Workbook," shows the Final Grades for the Class column chart in a separate chart sheet. Notice the new sheet tab added to the workbook matches the tab name entered into the Move Chart dialog box. Since the chart has been moved to a separate chart sheet, it is no longer displayed on the Grade Distribution worksheet.

Figure 4.12 Chart Sheet Added to the Workbook

Frequency Comparison: Column Chart 2

We will create a second column chart to compare two frequency distributions. Column C on the Grade Distribution worksheet contains data showing the number of students who received grades within each category for the entire college. We will use a column chart to compare the grade distribution for the class (Column B) with the overall grade distribution for the college (Column C). However, since the number of students in the class significantly differs from the total number of students in the college, we must calculate percentages to make an effective comparison. The following steps explain how to calculate the percentages:

1. Highlight the range B9:C9 on the Grade Distribution worksheet.
2. Click the AutoSum button in the Editing group of commands on the Ribbon Home tab. This automatically adds SUM functions that sum the values in the range B4:B8 and C4:C8.
3. Activate cell E4 on the Grade Distribution worksheet.
4. Enter a formula that divides the value in cell B4 by the total in cell B9. Add an absolute reference to cell B9 in the formula =B4/$B$9.
5. Copy the formula in cell E4 and paste it into the range E5:E8 using the Paste Formulas command.
6. Activate cell F4 on the Grade Distribution worksheet.
7. Enter a formula that divides the value in cell C4 by the total in cell C9. Add an absolute reference to cell C9 in the formula =C4/$C$9.
8. Copy the formula in cell F4 and paste it into the range F5:F8 using the Paste Formulas command.
   
   

Figure 4.13 Completed Grade Distribution Percentages

Figure 4.13, "Completed Grade Distribution Percentages," shows the percentages added to the worksheet. The column chart uses the grade categories in the range A4:A8 on the X-axis and the percentages in E4:F8 on the Y-axis. Similar to the trend comparison line chart, this chart uses data not in a contiguous range. The following steps explain a second method for creating charts with data that is not in a contiguous range:

1. Activate cell H2 on the Grade Distribution worksheet. It is important to note that this is a blank cell that is not adjacent to any data on the worksheet.
2. Click the Insert tab of the Ribbon.
3. Click the Column button in the Charts group of commands. Select the first option from the drop-down list of chart formats, which is the Clustered Column. This adds a blank chart to the worksheet.
4. Click and drag the blank chart so the upper left corner is in the middle of cell H2.
5. Resize the blank chart so the left side is locked to the left side of Column H, the right side is locked to the right side of Column P, the top is locked to the top of Row 2, and the bottom is locked to the bottom of Row 16.
6. Click the Select Data button in the Design tab of the Chart Tools section of the Ribbon. This opens the Select Data Source dialog box.
7. Click the Add button on the Select Data Source dialog box. This opens the Edit Series dialog box.
8. In the Series name input box on the Edit Series dialog box, type the word Class.
9. Press the TAB key on your keyboard to advance to the Series values input box on the Edit Series dialog box.
10. Highlight the range E4:E8 on the Grade Distribution worksheet. This automatically adds the range to the Series values input box. You also see bars added to the column chart (see Figure 4.14, "Completed Data Series for the Class Grade Distribution").
11. Click the OK button on the Edit Series dialog box.

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    Figure 4.14 Completed Data Series for the Class Grade Distribution
    
    

12. Click the Add button on the Select Data Source dialog box.
13. In the Series name input box on the Edit Series dialog box, type the word College.
14. Press the TAB key on your keyboard to advance to the Series values input box on the Edit Series dialog box.
15. Highlight the range F4:F8 on the Grade Distribution worksheet. This automatically adds the range to the Series values input box. You also see bars added to the column chart.
16. Click the OK button on the Edit Series dialog box.
17. Click the Edit button on the right side of the Select Data Source dialog box under the Horizontal (Category) Axis Labels section. This will define the labels that will appear on the X-axis of the chart and open the Axis Labels dialog box.
18. Highlight the range A4:A8 on the Grade Distribution worksheet. This adds the range to the Axis Labels dialog box, and the labels appear on the X-axis on the column chart (see Figure 4.15, "Final Settings for the Select Data Source Dialog Box").
19. Click the OK button on the Axis Labels dialog box.
20. Click the OK button on the Select Data Source dialog box.
    
    
    
    
    

    Figure 4.15 Final Settings for the Select Data Source Dialog Box
    
    

21. Click the Chart Title button on the Layout tab of the Chart Tools section of the Ribbon. From the drop-down list, select the Above Chart option.
22. Click in the text box containing the chart title. Delete the generic chart title and replace it with the Grade Distribution Comparison.

Figure 4.16, "Completed Grade Distribution Column Chart," shows the final appearance of the column chart. The column chart is appropriate for this data because there are fewer than 20 data points, and we can easily see the comparison for each category. An audience can quickly see that the class is issued less than the college. However, the class had more Bs and Cs than the college population.

Figure 4.16 Completed Grade Distribution Column Chart

Figure 4.17 Poor Use of a Column Chart

Percent of Total: Pie Chart

The next chart we will demonstrate is a pie chart. A pie chart shows a percentage of the total for a data set at a specific point in time. The data we will use to demonstrate a pie chart relates to the healthcare industry's overall spending activity. The Healthcare worksheet contains data showing total spending in the United States for 1969 and 2009. In 1969, the total amount spent in the United States for health-related expenses was over $66 billion. The pie chart shows how this $66 billion was funded. The following steps explain how to accomplish this:

1. Highlight the range A2:B7 on the Healthcare worksheet.
2. Click the Insert tab of the Ribbon.
3. Click the Pie button in the Charts group of commands.
4. Select the "Exploded pie in 3-D" option from the drop-down list of options.
5. Click and drag the pie chart so the upper left corner is in the middle of cell E2.
6. Resize the pie chart so the left side is locked to the left side of Column E, the right side is locked to the right side of Column M, the top is locked to the top of Row 2, and the bottom is locked to the bottom of Row 17 (see Figure 4.18 "Pie Chart Moved and Resized").
   
   
   
   
   

   Figure 4.18 Pie Chart Moved and Resized
   
   

7. Click the chart legend once and press the DELETE key on your keyboard. A pie chart typically shows labels next to each wedge. Therefore, the legend is not needed.
8. Click the Data Labels button in the Layout tab of the Chart Tools section of the Ribbon.
9. Select More Data Label Options from the drop-down list. This opens the Format Data Labels dialog box.
10. Click the box next to the Value option under the Label Options section in the Format Data Labels dialog box. This removes the check mark (see Figure 4.19, "Final Settings in the Format Data Labels Dialog Box").
11. Click the Percentage option under the Label Options section in the Format Data Labels dialog box. A green check should appear in the box next to this option (see Figure 4.19, "Final Settings in the Format Data Labels Dialog Box").
12. Click the Category Name option under the Label Options section in the Format Data Labels dialog box. A green check should appear in the box next to this option (see Figure 4.19, "Final Settings in the Format Data Labels Dialog Box").
13. Click the Close button at the bottom of the Format Data Labels dialog box.
14. Click the Home tab of the Ribbon and then click the Bold button. This should bold the data labels on the pie chart.
    
    
    
    
    

    Figure 4.19 Final Settings in the Format Data Labels Dialog Box

15. Click the chart title twice.
16. Click in front of 1969 and type Healthcare Spending by Source.

Figure 4.20, "Final Healthcare Pie Chart," shows the completed pie chart. You can quickly see that Health Insurance and Out-of-Pocket made up the majority of healthcare spending in 1969. Similar to the column chart, the key to creating an effective pie chart is the number of categories presented on the chart. Although there are no specific limits for the number of categories you can use on a pie chart, a good rule of thumb is ten or less. As the number of categories exceeds ten, it becomes more difficult to identify key categories that comprise most of the total. In this example, it is easy to see that two categories compose 75 percent of the total.

Figure 4.20 Final Health Care Pie Chart

Percent of Total Trend: Stacked Column Chart

The last chart type we will demonstrate is the stacked column chart. We use a stacked column chart to show how a percent of total changes over time. For example, the data on the Healthcare worksheet shows spending by source for 1969 and 2009. A stacked column chart can show whether there is any change in the percent of total for each source between the two years. The chart's Y-axis shows the percentage from 0 percent to 100 percent. The X-axis shows the two years: 1969 and 2009. The following steps explain how to create this chart:

1. Highlight the range A2:C7 on the Healthcare worksheet.
2. Click the Insert tab of the Ribbon.
3. Click the Column button in the Charts group of commands. Select the 100% Stacked Column format option from the drop-down list (see Figure 4.21, "Selecting the 100% Stacked Column Format").
   
   
   

   Figure 4.21 Selecting the 100% Stacked Column Format

   
   Figure 4.22, "Initial Construction of the 100% Stacked Column Chart," shows the column chart created after selecting the 100% Stacked Column format option. As mentioned, this chart aims to show the percentages on the Y-axis and the years 1969 and 2009 on the X-axis. However, notice that Excel places the spend sources on the X-axis. The remaining steps explain how to correct this problem and complete the chart:
   
   

   

   Figure 4.22, Initial Construction of the 100% Stacked Column Chart
   
   

4. Click the Switch Row/Column button in the Design tab on the Chart Tools section of the Ribbon. This reverses the legend and current X-axis categories (see Figure 4.22, "Initial Construction of the 100% Stacked Column Chart").
5. Click and drag the chart so the upper left corner is in the middle of cell E19.
6. Resize the chart so the left side is locked to the left side of Column E, the right side is locked to the right side of Column N, the top is locked to the top of Row 19, and the bottom is locked to Row 37.
7. Click the legend one time and press the DELETE key on your keyboard.
8. Click the Layout tab on the Chart Tools section of the Ribbon.
9. Click the Data Table button in the Labels group of commands and select the Show Data Table with Legend Keys option from the drop-down menu. This is another way of displaying a legend for a column chart along with the numerical values that make up each component.
10. Click the Chart Title button in the Layout tab of the Chart Tools section of the Ribbon.
11. Select the Above Chart option for the drop-down menu.
12. Click the chart title two times. Delete the generic chart title name and type Change in Health Care Spend Source.

Figure 4.23, "Final 100% Stacked Column Chart," shows the final stacked column chart. Notice that the Out-of-Pocket category, or the amount of cash people paid for healthcare expenses, decreased significantly from 1969 to 2009. However, the Health Insurance category increased significantly from 1969 to 2009. The chart shows total out-of-pocket and health insurance expenses increased significantly from 1969 to 2009. These two categories comprised approximately 75 percent of total healthcare spending in 1969. By 2009, these two categories increased to over 80 percent of healthcare spending.

Figure 4.23 Final 100% Stacked Column Chart

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