Histogram and frequency analysis in Excel - Real Business Scenario

Scenario Mode

👤 Your Role: You are a sales analyst at a retail company.

📋 Request: Your manager wants to understand the distribution of daily sales amounts to identify common sales ranges and frequency.

📊 Data: You have a list of daily sales amounts for the last 12 days.

🎯 Deliverable: Create a frequency distribution table and a histogram chart showing how many days fall into each sales range.

Sample Data

Day	Sales Amount ($)
1	120
2	150
3	90
4	200
5	170
6	130
7	80
8	160
9	110
10	140
11	190
12	100

1

Step 1: Create bins for sales ranges in a new column. Use these bins: 80, 100, 120, 140, 160, 180, 200.

Enter these values in cells D2 to D8: 80, 100, 120, 140, 160, 180, 200

Expected Result

Bins column with values 80, 100, 120, 140, 160, 180, 200 listed vertically.

2

Step 2: Calculate the frequency of sales amounts falling into each bin using the FREQUENCY function.

Select cells E2 to E9, enter formula: =FREQUENCY(B2:B13, D2:D8), then press Ctrl+Shift+Enter to enter as an array formula.

Expected Result

Frequency counts for each bin showing how many sales amounts fall into each range.

3

Step 3: Label the frequency table columns as 'Sales Range' and 'Frequency'.

Enter 'Sales Range' in cell D1 and 'Frequency' in cell E1.

Expected Result

Headers above bins and frequency counts for clarity.

4

Step 4: Create a histogram chart using the frequency table.

Select cells D1:E8, go to Insert > Charts > Column Chart > Clustered Column.

Expected Result

A histogram chart showing sales ranges on the horizontal axis and frequency on the vertical axis.

Final Result

Sales Range | Frequency
80          | 2
100         | 2
120         | 2
140         | 2
160         | 2
180         | 1
200         | 1

Histogram Chart:
[Bar heights correspond to frequencies above, bars labeled by sales ranges]

✓Most sales amounts fall between 80 and 160 dollars.

✓The highest frequency is 2 days for several sales ranges, showing sales are spread evenly across these ranges.

✓There are no sales amounts below 80 or above 200 in the data.

Bonus Challenge

Create dynamic bins that adjust automatically if new sales data is added.

Show Hint

Use the MIN and MAX functions to find the lowest and highest sales amounts, then create bins using formulas that divide this range into equal intervals.

Practice

1. What does the FREQUENCY function in Excel do when given a data array and bins array?

easy

A. Finds the maximum value in each bin

B. Sorts the data array in ascending order

C. Calculates the average of numbers in each bin

D. Counts how many data points fall into each bin range

Solution

1. Step 1: Understand FREQUENCY function purpose

   The FREQUENCY function counts how many values from the data array fall into each bin range defined by the bins array.

2. Step 2: Analyze the function output

   It returns an array where each element shows the count of data points within each bin interval.

3. Final Answer:

   Counts how many data points fall into each bin range -> Option D

4. Quick Check:

   FREQUENCY counts data per bin [OK]

Hint: FREQUENCY counts items per bin, not sorts or averages [OK]

Common Mistakes:

• Thinking FREQUENCY sorts data
• Assuming FREQUENCY calculates averages
• Confusing FREQUENCY with MAX or MIN functions

2. Which of the following is the correct way to enter the FREQUENCY function as an array formula in Excel for data in A2:A10 and bins in B2:B5?

easy

A. =FREQUENCY(A2:A10, B2:B5)

B. =FREQUENCY(A2:A10; B2:B5)

C. =FREQUENCY(A2:A10 B2:B5)

D. =FREQUENCY(A2:A10, B2:B5) entered normally

Solution

1. Step 1: Check FREQUENCY function syntax

   The correct syntax uses a comma to separate arguments: =FREQUENCY(data_array, bins_array).

2. Step 2: Understand array formula entry

   In modern Excel, pressing Enter is enough; older versions require Ctrl+Shift+Enter, but syntax remains the same.

3. Final Answer:

   =FREQUENCY(A2:A10, B2:B5) -> Option A

4. Quick Check:

   Correct syntax uses comma and proper ranges [OK]

Hint: Use commas between arguments; no semicolons in standard Excel [OK]

Common Mistakes:

• Using semicolons instead of commas
• Missing comma between arguments
• Entering formula without array selection in old Excel

3. Given data in cells A2:A7 as {2, 5, 7, 3, 8, 10} and bins in B2:B4 as {3, 6, 9}, what is the result of =FREQUENCY(A2:A7, B2:B4) entered as an array formula?

medium

A. {1, 3, 1, 1}

B. {1, 2, 2, 1}

C. {2, 1, 2, 1}

D. {3, 1, 1, 1}

Solution

1. Step 1: Identify bins and count data per bin

   Bins are 3, 6, 9. Count how many data points fall ≤3, >3 and ≤6, >6 and ≤9, and >9.

2. Step 2: Count data points in each bin

   Values: 2 (≤3), 3 (≤3), 5 (>3 ≤6), 7 (>6 ≤9), 8 (>6 ≤9), 10 (>9). Counts: ≤3 -> 2 values (2,3), >3 ≤6 -> 1 value (5), >6 ≤9 -> 2 values (7,8), >9 -> 1 value (10).

3. Final Answer:

   {2, 1, 2, 1} -> Option C

4. Quick Check:

   Count per bin matches {2,1,2,1} [OK]

Hint: Count data points in each bin range carefully [OK]

Common Mistakes:

• Miscounting values on bin edges
• Ignoring the last bin for values above highest bin
• Confusing bin intervals as inclusive/exclusive

4. You entered =FREQUENCY(A2:A10, B2:B5) but the result shows only one number instead of an array. What is the likely cause?

medium

A. You pressed Enter instead of Ctrl+Shift+Enter in an older Excel version

B. The bins array is empty

C. The data array contains text values

D. The formula syntax is incorrect

Solution

1. Step 1: Understand array formula behavior in older Excel

   In Excel versions before dynamic arrays, FREQUENCY must be entered as an array formula using Ctrl+Shift+Enter to return multiple values.

2. Step 2: Identify cause of single value output

   If only Enter is pressed, Excel returns only the first element of the frequency array, showing one number.

3. Final Answer:

   You pressed Enter instead of Ctrl+Shift+Enter in an older Excel version -> Option A

4. Quick Check:

   Old Excel needs Ctrl+Shift+Enter for array formulas [OK]

Hint: Use Ctrl+Shift+Enter for array formulas in old Excel [OK]

Common Mistakes:

• Not entering as array formula in old Excel
• Assuming single number means formula error
• Ignoring Excel version differences

5. You have sales data in A2:A20 and want to create a histogram with bins B2:B6. You want to show the frequency counts in C2:C7. Which formula should you enter in C2:C7 to get correct counts, and how should you enter it?

hard

A. Enter =COUNTIF(A2:A20, "<="&B2) in C2 and drag down

B. Select C2:C7, enter =FREQUENCY(A2:A20, B2:B6), then press Ctrl+Shift+Enter

C. Enter =FREQUENCY(A2:A20, B2:B6) in C2 and press Enter

D. Select C2:C6, enter =FREQUENCY(A2:A20, B2:B6), then press Ctrl+Shift+Enter

Solution

1. Step 1: Determine output size for FREQUENCY

   FREQUENCY returns an array with one more element than bins, so for 5 bins, output needs 6 cells (C2:C7).

2. Step 2: Enter FREQUENCY as array formula

   Select C2:C7, type =FREQUENCY(A2:A20, B2:B6), then press Ctrl+Shift+Enter (in older Excel) to fill all cells with counts.

3. Final Answer:

   Select C2:C7, enter =FREQUENCY(A2:A20, B2:B6), then press Ctrl+Shift+Enter -> Option B

4. Quick Check:

   Output range size = bins + 1, enter as array formula [OK]

Hint: Output range must be bins count + 1, enter as array formula [OK]

Common Mistakes:

• Selecting wrong output range size
• Not entering as array formula in old Excel
• Using COUNTIF which counts differently