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Stat-403/Stat-650 : Intermediate Sampling and Experimental Design ...

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Computing Algorithms for Basic <strong>Stat</strong>istics✔Excel Uses Poor Algorithms To Find TheSt<strong>and</strong>ard Deviation (See Help screen forSTDEV shown above)Get the Right Tool for the Job!✔✔Excel Defines The First Quartile To Be TheOrdered Observation At Position (n+3)/4Excel Does Not Treat Tied ObservationsCorrectly When Ranking✔Regression Computations Are Often ErroneousDue To Poor Algorithms (See below)In addition Excel, usually displays many more digitsthan appropriate. (See histogram <strong>and</strong> paired t-test outputshown above.)Finally, Excel has major <strong>and</strong> documenteddifficulties with its regression procedures.Regression in Excel✔✔✔✔✔✔Does Not Treat Zero-Intercept ModelsCorrectlySometimes Gets Negative Sums Of SquaresDoes Not H<strong>and</strong>le Multicollinearity CorrectlyComputes St<strong>and</strong>ardized Residuals Incorrectly!Displays Normal Probability Plots That AreCompletely Wrong!Makes Variable Selection Very DifficultReferencesFriends Don’t Let FriendsUse Excel for <strong>Stat</strong>istics!Allen, I. E. (1999), “The Role of Excel for<strong>Stat</strong>istical Analysis”, Making <strong>Stat</strong>istics MoreEffective in Schools of Business 14th AnnualConference Proceedings, ed. A. Rao,Wellesley: http://weatherhead.cwru.edu/msmesb/In summary:Due to substantial deficiencies, Excel should not beused for statistical analysis. We should discouragestudents <strong>and</strong> practitioners from such use.The following pretty much sums it up:Callaert, H. (1999), “Spreadsheets <strong>and</strong> <strong>Stat</strong>istics:The Formulas <strong>and</strong> the Words”, Chance, 12, 2,p. 64.Clevel<strong>and</strong>, W. S., Visualizing Data, 1993, HobartPress, Summit, NJClevel<strong>and</strong>, W. S., The Elements of Graphing Data,Revised Edition, 1994, Hobart Press, Summit,NJGoldwater, Eva, Data Analysis Group, AcademicComputing, University of Massachusetts,Using Excel for <strong>Stat</strong>istical Data Analysis:Successes <strong>and</strong> Cautions, November 5, 1999,www-unix.oit.umass.edu/~evagold/excel.html10

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