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 trend of the S&P 500An aggregate price index for five hundred of the largest publicly traded US companies. stock index. This is an aggregate price index of five hundred of the largest publicly traded companies. This chart will be used to communicate a simple message: to show how the index has performed over a fifty-two-week period. 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.

Before we create the line chart, it is important to identify why it is an appropriate chart type given the message we wish to communicate and the data we have. 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. With the column chart, you are limited to a certain number of 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 that there are fifty-two points of data used to construct the chart. This is generally too many data points to put on a column chart, which is why we are using a line chart. Our line chart will show the closing price for the S&P 500 on the Y axisThe vertical axis of a chart. and the week number on the X axisThe horizontal axis of a chart.. 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, which is 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 4.3 "Embedded Line Chart in the Stock Trend Worksheet" shows the embedded line chart in the Stock Trend worksheet. Notice that three additional tabs, or contextual tabsHidden tabs on the Ribbon that contain commands related to a specific object. Contextual tabs become visible when the related object is added or activated., are added to the Ribbon. We will demonstrate the commands in these tabs throughout this chapter. These tabs appear only when the chart is activated.

As shown in Figure 4.3 "Embedded Line Chart in the Stock Trend Worksheet", the embedded chartAny chart that is created and placed within a worksheet. is not placed in an ideal location on the worksheet since it is covering 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 upper left corner of the chart 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 title of the chart.
5. Type the following in front of the letter S in the chart title: 52 Week Trend for the.
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 not necessary. 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 title of the chart 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.

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% during this period, which is substantial. The presentation of this trend can be improved if the minimum value started at eight hundred. While it is certainly possible for the S&P 500 to fall below eight hundred, 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.

Trend Comparisons: Line Chart 2

We will now create a second line chart using the data in the Stock Trend worksheet. The purpose of this chart is to compare two trends: the change in value for the S&P 500 and the Microsoft common stock. Chapter 3 "Logical and Lookup Functions" presented a personal investment portfolio where the investments were compared to a benchmark. The S&P 500 is a benchmark that is 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 be used to determine whether a stock should be sold, purchased, or held.

Before creating the chart to compare the S&P 500 and Microsoft, it is important to review the data in the range E4:F55 on the Stock Trend worksheet. We cannot use the price data for Microsoft and the S&P 500 because the values are not comparable. 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 for each week. For example, looking at cells E5 and F5 on the Stock Trend worksheet, you see that the S&P 500 increased 2.4% in week 2, whereas Microsoft increased 3.1%. 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 is 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 the bottom of 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 the following: 52 Week Trend Comparison.

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 is showing a significant decline compared to the S&P 500, which continues to grow. What makes this chart effective is that an audience can quickly see how Microsoft compares with the S&P 500 over the 52-week period.

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 twenty points or less. For example, in Chapter 1 "Fundamental Skills" we showed a sales trend over a twelve-month period. Another common use for column charts is frequency distributions. A frequency distributionThe number of occurrences for an established set of categories. 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 that 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 the bottom of Row 16.
5. Click the legend one time and press the DELETE key on your keyboard. Since the chart presents only one data series, the legend is not necessary.
6. Click the title of the chart twice so the cursor is placed in front of the word Class.
7. Type the following in front of 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.

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 sheetAn Excel worksheet that is designated for a chart.. It is called a chart sheet because it can contain only an Excel chart. Chart sheets are useful if you need to create several charts using the data in a single worksheet. If you embed several charts in one worksheet, it can be cumbersome to navigate and browse through the charts. It is easier to browse through 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. You can 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 with the name Class Grades.

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 is moved to a separate chart sheet, it no longer is displayed in the Grade Distribution worksheet.

Frequency Comparison: Column Chart 2

We will create a second column chart to show a comparison between 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 is significantly different from the total number of students in the college, we must calculate percentages in order 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 Home tab of the Ribbon. 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" shows the completed percentages added to the Grade Distribution worksheet. The column chart uses the grade categories in the range A4:A8 on the X axis and the percentages in the range E4:F8 on the Y axis. Similar to the trend comparison line chart, this chart uses data that is 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.

    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 is used to define the labels that will appear on the X axis of the chart and opens 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. Select the Above Chart option from the drop-down list.
22. Click in the text box containing the chart title. Delete the generic chart title and replace it with the following: Grade Distribution Comparison.

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

Percent of Total: Pie Chart

The next chart we will demonstrate is a pie chart. A pie chartA chart used to show the percent of total for each component of a data set. is used to show a percent of total for a data set at a specific point in time. The data we will use to demonstrate a pie chart is related to the overall spending activity in the health-care industry. The Health Care worksheet contains data that shows total spending in the United States for the years 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 Health Care 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 the year 1969 and type Health Care Spending by Source:.

Figure 4.20 "Final Health Care Pie Chart" shows the completed pie chart. You can quickly see that Health Insurance and Out of Pocket made up the majority of health-care 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 make up the majority of the total. In this example, it is easy to see that two categories compose 75% of the total.

Percent of Total Trend: Stacked Column Chart

The last chart type we will demonstrate is the stacked column chartA chart used to show how a percent of total changes over time or between two or more entities.. We use a stacked column chart to show how a percent of total changes over time. For example, the data on the Health Care 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 Y axis of the chart shows the percentage from 0% to 100%. 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 Health Care 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 that is created after selecting the 100% Stacked Column format option. As mentioned, the goal of this chart is 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 the bottom of 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 health-care expenses, decreased significantly from 1969 to 2009. However, the Health Insurance category increased significantly from 1969 to 2009. Overall, the chart shows that the total out-of-pocket and health insurance expense increased significantly from 1969 to 2009. These two categories made up approximately 75% of total health-care spending in 1969. By 2009, these two categories increased to over 80% of total health-care spending.