Today let's take a look
at how we can quickly create
a histogram chart in Excel.
First of all, what is
a histogram good for?
Well, it's great for checking
how the data is spread within a range.
So for example, you want to
understand the salary distribution
within your company.
You can use a histogram chart
to find the number of people
who earn a salary within a specific range.
This makes histograms great for cases
when you have data with
large value ranges,
and you'd like to
understand the distribution.
When you use an Excel histogram,
you can also set and adjust
your own data ranges,
which are also called bins.
Let's set one up from scratch.
(upbeat music)
So in this case, we're taking a look
at salary distribution.
We have specified these groupings here,
and we can quickly tell that 15 people
fall in the 30,000 to 70,000 salary range.
We have two people that earn
less than or equal to 30,000
and one person earning more than 200,000.
Let's make this from scratch.
Here's our dataset.
We have the employee
names, their entry date
and the yearly salary.
So based on this, I want to
create a histogram chart.
What I'm going to do
is highlight the data,
go to Insert and insert the histogram.
Now you might be fine
with the standard histogram
chart that you get,
but you probably will want
to adjust the bins here
because what Excel does is it tries
to automatically guess
the best fitting range
based on your dataset,
but you might want to analyze
the data in different ranges.
You can specify that in the options.
So just activate the axis
by just clicking on it
and bring up the Axis Options.
So you can use the
shortcut key Control + 1.
Right here, we can see
it's set to automatic,
but we can decide on the bin width,
which means the width of the range here.
So instead of 53,000,
I'm going to change that
to 40,000 and press Enter.
Immediately I can see that the number
of bins changed to six.
It would also be nice
to have the ranges rounded to thousands.
I can control that, so I
can define the Overflow
and the Underflow bin.
For overflow bin, which
means the highest point
that I want to have here
is something I'm going to manually set.
I'll change that to
200,000 and press Enter.
For the underflow bin, I'm
going to change that as well.
So instead of minus 62,000
default that it has,
I'll change it to 30,000 and press Enter.
Now, my ranges look a lot neater.
All I have to do is to
activate the data labels.
So select the series, right
mouse click, Add Data Labels.
Let's make them a bit bigger
so they stand out more
and make them bold.
Now I can remove the axis,
remove the grid lines
and I'm done.
And all of this is automatic.
So if I take Paul Hill
out of this range here,
let's say he gets a demotion.
And he goes down to
20,000 and I press Enter.
The first range automatically increases.
And the second range decreases.
If you're already using
histograms in your files,
comment below and let us know
what you're using it for.
I hope you enjoyed this video.
If you did, don't forget
to give it a thumbs up
and don't forget to subscribe,
in case you haven't subscribed already.
And I'm going to see
you in the next video.
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