Book Image

Data Forecasting and Segmentation Using Microsoft Excel

By : Fernando Roque
Book Image

Data Forecasting and Segmentation Using Microsoft Excel

By: Fernando Roque

Overview of this book

Data Forecasting and Segmentation Using Microsoft Excel guides you through basic statistics to test whether your data can be used to perform regression predictions and time series forecasts. The exercises covered in this book use real-life data from Kaggle, such as demand for seasonal air tickets and credit card fraud detection. You’ll learn how to apply the grouping K-means algorithm, which helps you find segments of your data that are impossible to see with other analyses, such as business intelligence (BI) and pivot analysis. By analyzing groups returned by K-means, you’ll be able to detect outliers that could indicate possible fraud or a bad function in network packets. By the end of this Microsoft Excel book, you’ll be able to use the classification algorithm to group data with different variables. You’ll also be able to train linear and time series models to perform predictions and forecasts based on past data.
Table of Contents (19 chapters)
Part 1 – An Introduction to Machine Learning Functions
Part 2 – Grouping Data to Find Segments and Outliers
Part 3 – Simple and Multiple Linear Regression Analysis
Part 4 – Predicting Values with Time Series


In this chapter, we applied the Elbow and K-means functions to find the optimal number of groups and segments for two and three variables. Once we obtained the results, we did a business intelligence analysis using pivot tables and charts. In the product sales example developed in this chapter, we used segmentation to find the groups that generated higher revenues and what quantity of items were delivered. Grouping helps to achieve the target of selling smaller quantities of products to avoid logistics costs. The four variables segmentation analysis showed that the group with the highest revenue was not the group delivering more items, nor was it the most expensive in terms of shipping costs. Multivariable K-means segmentation helps to do this complex analysis, which would be impossible with just business intelligence and pivot tables and charts. In this chapter, you learned to combine different variables with different units, such as quantity and profit, to research which...