Visual Explorations in

Statistics Help
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 2 Visual Explorations in Statistics Help

Table of Contents
Foreword 0

Part I Introduction 3

Part II Normal Distribution 3

1 Probability
...................................................................................................................................
Density Function 3
Probability Density
..........................................................................................................................................................
Function Problem Definition 3
Probability Density
..........................................................................................................................................................
Function User Instructions 3
Probability Density
..........................................................................................................................................................
Function Suggested Exam ple 4
2 Areas ................................................................................................................................... 4
Areas User Instructions
.......................................................................................................................................................... 4

Part III Sampling Distribution 4

1 Sampling
...................................................................................................................................
Distribution 4
2 Sampling
...................................................................................................................................
Distribution User Instructions 4

Part IV Simple Linear Regression 4

1 Simple...................................................................................................................................
Linear Regression 4
2 Explore
...................................................................................................................................
Coefficients Problem Definition 5
3 Explore
...................................................................................................................................
Coefficients User Instructions 5
4 Simple...................................................................................................................................
Linear Regression using your worksheet data 5
Sim ple Linear Regression
..........................................................................................................................................................
using your w orksheet data 5
Sim ple Linear ..........................................................................................................................................................
Regression using your w orksheet data User Instructions 5

Index 0

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 Introduction 3

1 Introduction

Welcome to Visual Explorations in Statistics, a Microsoft Excel add-in that facilitates learning of
introductory statistics.
Using the add-in, you explore the effects of changing values on the results produced by one of the
statistical analyses.

To see the effects of differing values for the means and standard deviation on the normal distribution,
select Probability Density Function. To illustrate normal probabilities, select Areas.

To learn more about the nature of a sampling distribution, select Sampling Distribution.

To learn more about the simple linear regression, select Simple Linear Regression.

To practice line fitting for a simple linear regression model, select Explore Coefficients.

To practice line fitting for a simple linear regression model with your own data, select Simple Linear
Regression using your worksheet data.

These procedures are contained in the following add-in files: VE-Normal Distribution.xlam, VE-
Sampling Distribution.xlam, and VE-Simple LInear Regression.xlam files.

At the time of publication, these add-in files were compatible with Microsoft Windows Excel 2007,
2010 and 2013 and OS X Excel 2011 and should be compatible with successor versions. Some
functionality of these add-ins may work in some versions of Microsoft Windows Excel 2003, but these
add-ins are not certified for use with Excel 2003.

This is Visual Explorations version 2.0.

2 Normal Distribution

2.1 Probability Density Function

2.1.1 Probability Density Function Problem Definition
The time it takes to download the home page of a web site is normally distributed with an arithmetic
mean = 7 seconds and a standard deviation = 2 seconds. With this information, questions about
the probability that the page will be downloaded in less than a certain amount of seconds (the X
value) can be answered. Use this simulation to explore the effects of changing the values of the
arithmetic mean and standard deviation on the answers to such questions.
Probability Density Function User Instructions

2.1.2 Probability Density Function User Instructions

Use the X Value spinner buttons to set the X value to see the probability that X will be less than the
value set. Then use the spinner buttons for the arithmetic mean and standard deviation to change
these values and to observe their effects on this probability.
Click the Reset button to reset spinner button fields to their original values.
Toggle the display of the X or Z scale on the horizontal X axis by clicking the appropriate option

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 4 Visual Explorations in Statistics Help

button.

Suggested Example

2.1.3 Probability Density Function Suggested Example

1. Change the arithmetic mean to 5 and observe what happens to the probability that the time to
download the web page is less than 3.
2. Then change the standard deviation to 5 and observe what happens to the probability that the time
to download the web page is less than 3.
3. Finally, change the X value to 10 and observe what happens to the probability.

2.2 Areas
2.2.1 Areas User Instructions
Enter values for the mean, standard deviation, the probability of X <, and the probability of X >. Click an
Areas Options and then click the OK button.
Area(s) representing the probability selected will appear in the darker color.

Area shadings are approximate as only 40 values on the X axis are plotted.

3 Sampling Distribution

3.1 Sampling Distribution

A sampling distribution represents the distribution of results that would occur if all possible samples
that could occur were taken from a population. This choice uses a dice simulator to develop a
sampling distribution for the population of outcomes from rolling two dice. Recall that dice have six
sides on which either one, two, three, four, five, or six dots appear and that the sum of the faces of
two dice range from 2 to 12. The probabilities for each of these sums are: 2 = 1/36, 3 = 2/36, 4 =
3/36, 5 = 4/36, 6 = 5/36, 7 = 6/36, 8 = 5/36, 9 = 4/36, 10 = 3/36, 11 = 2/36, and 12 = 1/36.
Sampling Distribution User Instructions

3.2 Sampling Distribution User Instructions

Use the spinner buttons to set the number of throws per tally (the default 50 is recommended) and click
Tally to record the results of that number of throws in the frequency table and histogram. Click Tally
repeatedly and observe what happens to the distribution of the sum of the two dice as this experiment is
carried out additional times.

Over time, what distribution does the sum of the faces of the two dice seem to approximate?

4 Simple Linear Regression

4.1 Simple Linear Regression

Regression analysis develops a statistical model to predict a variable of interest based on the values
of one or more other variables. The simplest relationship, represented by a straight-line relationship
between two variables, is known as simple linear regression. In this regression, values of the variable

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 Simple Linear Regression 5

known as the dependent, or response, variable (Y) are predicted from the values of an independent, or
explanatory, variable (X).
Explore Coefficients Problem Definition
Explore Coefficients User Instructions

4.2 Explore Coefficients Problem Definition

Over the years, a chain of discount womens clothing stores increased its market share by opening
new stores in locations that were informally considered to be great locations for shopping or locations
that came with very favorable lease terms. This year, the director of planning has been asked to
develop an approach to forecasting annual sales for all new stores. She decides to select a sample of
14 existing stores and to use regression analysis to predict the sales of each store based on the
number of profiled customers that live within a fixed radius of each store.
Explore Coefficients User Instructions

4.3 Explore Coefficients User Instructions

Use the spinner buttons to change the values for b0, the Y intercept and b1, the slope of the line, to
change the line of regression that has been superimposed on a scatter plot of profiled customers in
millions on the horizontal X axis, and store sales in $millions on the vertical Y axis. Try to produce a
fitted line of regression that is as close as possible to the least squares regression line. Use visual
feedback as well as the changing value in the difference between the sum of squares error (SSE) for
your model and the target least squares model.

Click the Solution button to compare how close your line is to the actual fitted line of regression.

4.4 Simple Linear Regression using your worksheet data

4.4.1 Simple Linear Regression using your worksheet data
Use your own data to visually explore the fitting of a simple linear regression line using technique of
the sales prediction problem.
Simple Linear Regression using your worksheet data User Instructions

4.4.2 Simple Linear Regression using your worksheet data User Instructions
Before selecting this choice, select the worksheet that contains the data for your dependent (Y) and
independent (X) variables. In the Simple Linear Regression dialog box enter the cell ranges for the Y
and X variables, check the First cells in both ranges contain a label check box, if appropriate,
optionally enter a title and click the OK button.

As with the demo, click the spinner buttons to change the values for b0, the Y intercept and b1, the
slope of the line, to change the line of regression that has been superimposed on the scatter plot. Try
to produce a fitted line of regression that is as close as possible to the actual fitted least squares
regression line. Use visual feedback as well as the changing value in the difference between the sum
of squares error (SSE) for your model and the target least squares model.

Click the Solution button to compare how close your line is to the actual fitted line of regression.

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