What is Histogram : How to create it in excel by 2 different ways

What is Histogram

Histogram is a chart that helps us discover and present continuous data basis frequency distribution. It is sort of bar chart just the major difference is that histogram used to show frequency of data in the data set which has been divided in classes also known as bin.

Histogram also helps us to find underlying distribution of data, outliers, skewness and kurtosis. It helps us to check how the output of a process looks like, is process able to meet customers requirement and many more other thing.

How to create Histogram in excel

I will explain 2 methods of creating Histogram in excel

  1. by creating frequency table
  2. by excel inbuilt histogram chart

By creating frequency table:

We have a data set of few samples and its measurement received. In this scenario we will first decide bins for creating histogram as per our requirement. I have broken this data into 6 bins started from 5 to 30.After fixing our bins we will use FREQUENCY formula of excel to get the frequency of numbers which is less than the bin value and more than the previous bin value.

What is Histogram
Histogram data

After calculating frequency of data set we will use column or bar chart. To get a bar chart in excel we will got to Insert >> Insert column or Bar chart. A chart will come as below.

Bar Chart
Histogram by bar chart

We will make few changes in this by selecting SELECT DATA after right clicking on the chart. A new popup will come as below.

Select data option
Select data option

We will uncheck bin option and use Edit option from right side to select bin data from excel. Chart will modify as below.

Histogram by Bar chart
Histogram by Bar chart

Now it looks like histogram and presenting our data basis the selected bin.

By using excel’ s inbuilt histogram chart

To create Histogram by using excel’ s inbuilt histogram, first we will select our data set then will go to Insert >> Insert Statistics Chart >> Histogram . A new chart will as illustrated in the below image.

Histogram by excel' s inbuilt chart
Histogram by excel’ s inbuilt chart

Now we can do some changes in different setting to make it look more visual friendly. We will right click on the chart of axis and then select Format Axis. A new box will emerge on right side. This box provides multiple options to control bin size.

  • Bin width: asks for the width of bin by which data frequency will be shown.
  • Number of Bins: it asks for number of bins by which dataset needs to divide.
  • Automatic: System will select bin by it’ s own.
  • Overflow Bin: Any value above this number will be placed into a kind of “all other” bin.
  • Underflow Bin: Any value below this number will be placed into a kind of “all other” bin.

We will choose 2 options here Bin Width as 5 and Overflow and underflow bin as 30 and 5 respectively. Now the New chart will look as previous chart.

Histogram bin setting in excel
Histogram’s bin setting in excel

When to use Histogram:

S.N. When to use Histogram
1 When data is numeric.
2 When we wanted to see the distribution of data
3 Determining how two sets of data are behaving
4 To analyzing whether a process can meet the customer’s requirements.
5 To see whether a process change has occurred from one time period to another
When to use Histogram

There are other settings available as well which you needs to explore by yourselves. That includes but not limited to size, color, gap between bins.

You can also read more from below link to explore it further.

https://www.formpl.us/resources/graph-chart/histogram/

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