In Microsoft Excel, cross-tabulation is a powerful tool to obtain accurate data sets that can be used to improve your business operations. In this article, we will consider a couple of examples of how cross-tabulation can benefit your business. In the meantime, mTab is an expert in data analytics, and we help organizations interpret data and make the best market decisions.
What is Cross-Tabulation?
Cross-tabulation is a method of quantitatively analyzing the relationship between multiple variables. It is usually performed on categorical data and is useful for analysis, such as deep market research. It can help with spotting trends, patterns, and probabilities within a data set.
For example, in Microsoft Excel, you can show the commercial details for several product categories at once. Details can be displayed across payment methods, region, price, units, sales, and other data sets. Perhaps you want to find out which is the most profitable product category and which is the preferred method of payment for your customers.
First, you will select all of the data you wish to compute. Then, in the Insert tab in the ribbon, you'll click on 'Pivot Table.' In the dialogue box, you will leave everything set to its defaults. A pane will then open to the right of your current window. Pivot tables can correlate different variables row-wise, column-wise, or value-wise in either table or chart format.
How to Use Cross-Tabulation?
To use an example; you can check on 'Payment Method,' 'Product Category,' and 'Sales.' You'll move the Product Category into the Columns field. The pivot table will show you which product is the most profitable category and which method of payment is most preferred by your customers.
To give you another example of how cross-tabulation works in Microsoft Excel, you'll go back to your original data and create another pivot table. Perhaps this time, you'll want to find out which product sells the most units and also, what the preferred payment method is of your customers. Again, you'll check the 'Payment Method' and 'Product Category' boxes, but this time, you'll use 'Units' as the value.
By default, the value is set to 'Sum of Units.' If you want an actual count, you'll go to the values dropdown menu and choose 'Value Field Settings.' In the dialogue box, you'll change it from 'Sum' to Count. The resulting data will show which product sells the highest number of units and which is the most commonly preferred method of payment.
What are the Benefits of Cross-Tabulation?
The benefits of cross-tabulation is that can be used to eliminate confusion when interpreting critical data. Also, it is helpful when used to derive innumerable insights from data, and it offers data points to chart out your course of action.
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