ࡱ> eods  'jbjb Ԁkk xH]  TTTT84T4n:00Fs  ,j- s W \\0FW W W \80FJ JJJ\\ W W  ГyTT The P Value Calculator Excel Add-in Humberto Barreto and Frank M. Howland barretoh@wabash.edu and howlandf@wabash.edu (765) 361-6315 and (765) 361-6317 The P Value Calculator add-in is PValue.xla (in 0BasicTools/ExcelAdd-Ins). This document explains how to find exact probability values (or significance levels) in Excel by using the P Value Calculator add-in. Normal, t (Students t), c2 (chi-squared), F, and Durbin-Watson d distributions are available. The user provides needed input and the P Value is calculated. A picture of the result is available for P values greater than 0.01%. This document reviews Excel add-ins and describes how to access and install the P Value Calculator. Once installed, it explains how to use the P Value Calculator via an example. Organization Reviewing Excel Add-Ins Installing the P Value Calculator Add-In Using the P Value Calculator Conclusion Reviewing Excel Add-Ins An add-in file, usually named filename.xla (a for add-in), is a way for Excel to access procedures and algorithms that are not part of the core Excel program. Add-ins provide extensive flexibility and additional functionality from within the familiar Excel interface. Humberto Barreto (barretoh@wabash.edu) and Frank M. Howland (howlandf@wabash.edu) wrote the P Value Calculator add-in. We retain all rights, but allow free educational use of the software. Any user of the Econometrics Explained Using Monte Carlo Simulation with Microsoft Excel materials is entitled to use the P Value Calculator.  The Add-In Manager, a dialog box from which you control the add-ins available to Excel, can be accessed by executing Tools: Add-Ins. Try it now in order to see which, if any, add-ins you have installed. To the right is an example of the Add-Ins dialog box. Notice the Browse (Windows) or Select (MacOS) button in the Add-In Manager dialog box. This button enables you to access additional add-ins and include them in the list of available add-ins. Excel Add-Ins are usually contained in the Library folder of the Office application folder on your hard drive. Folder names can be changed so you may have a different folder name (e.g., Excel Add Ins) where the add-ins are stored. If you open an add-in file on a floppy disk, CD-ROM, or network folder, Excel will ask you if you want to copy it to the folder where the other add-ins are stored. This is a good idea so you should agree when prompted. Different Excel installations will have different add-ins available. You can find out which files are available in your add-ins folder because they appear in the list of available add-ins displayed by the Add-In Manager. However, just because an add-in is available does not mean it is installed. The add-in must have a check mark next to its name before Excel can access the procedures and algorithms in the add-in. In order to use the P Value Calculator as an Excel add-in, you will use the Add-In Manager to get the add-in file and make it available to Excel, then you will check the box in order to install the add-in. Both steps, making available and installing the add-in, are necessary for you to able to use the P Value Calculator. The good news is that this need only be done once. Unless you explicitly uninstall the add-in (by clicking off the check mark), Excel will install it automatically when you launch Excel. Now that you know what an Excel add-in is and how the Add-In Manager organizes add-in files, the next section walks you through installing the P Value Calculator add-in. Installing the P Value Calculator Add-In First, make sure you know where the add-in is located. The PValue.xla file can be found in the 0BasicTools/ExcelAdd-Ins folder of the Econometrics Explained materials. It can also be downloaded from the Internet by using your browser to go to HYPERLINK "http://www.wabash.edu/econexcel"www.wabash.edu/econexcel. The add-in file itself is called PValue.xla. Do not double-click or directly open the PValue.xla add-in file. Excel will open the file, but it is improperly installed and may not work correctly. Instead, follow the instructions below that explain how to install the add-in via the Add-In Manager. Once you know where the add-in is located, from within Excel, execute Tools: Add-Ins to bring up the Add-In Manager dialog box. There should be several add-ins available, and some may have check marks that indicate they are not only available, but also installed. If the P Value Calculator is listed and it has a check box (as shown in the picture below), you are finished. Click the Close button and skip the explanation below on how to install the add-in. If the P Value Calculator is not listed in the Add-In Manager dialog box, click on the Browse or Select button and navigate to the PValue.xla file (which you located in the first step). Select the PValue.xla file and click on the Open button. If the PValue.xla file is not on your hard drive (e.g., if you are accessing it from a CD-ROM), Excel will ask if you want to copy the add-in to your add-in folder. You should click Yes. After clicking the Open button, the Add-In Manager will look something like this:  The PValue.xla file is the P Value Calculator listing in the Add-In Manager. Since it is listed it is available to Excel and the check mark means that it will be installed. Click on the OK button to finish the installation. Excel notifies you of successful installation with the following dialog box:   Notice that the P Value Calculator is accessed through the Tools item on the menu bar. Executing Tools: P Values . . . will bring up the P Value Calculator form (described in the next section). Once installed, The P Value Calculator loads automatically when Excel is launched. If you feel this slows down opening Excel too much, simply execute Tools: Add-Ins to get to the Add-In Manager and click off the check mark before you quit Excel. The add-in will be available, but not installed next time you launch Excel. The P Values item will be removed from the Tools menu. To install the add-in when needed, execute Tools: Add-Ins and simply click the check mark on. Using the P Value Calculator With the P Value Calculator add-in successfully installed, you are ready to find P values for a variety of distributions. To run the P Value Calculator, simply click on the Tools menu and select the P Values option (usually at or near the bottom of the list). If the P Values item is not on the Tools list, the add-in has not been properly installed. The previous section describes how to install the add-in. A common error is to directly open the PValue.xla file using File: Open (CTRL-O) instead of using the Add-In Manager as suggested in the previous section.  After executing Tools: P Values, a dialog box will appear with a variety of distributions to choose from. Select your desired distribution by clicking on the appropriate radio button. Click the Next button to continue.  The Input screen will be different depending on the distribution selected. The picture to the right shows the input needed for the Normal distribution. Click on the observed value box and type in a value. The null hypothesis value of 0 can be changed to any number you wish. Click the Next button to get the results. These are the results for a one-tailed test from a normal distribution with an observed value of 1, null hypothesis of 0, and SE of 1. The Show Picture option places a picture of the results on the worksheet you are currently using. For this example, the resulting picture looks like this:  The output provides the given values, results, and a picture of the distribution with appropriate area shaded in. Note that the distribution is scaled in standard units. If the P value is less than 0.01%, no picture option is provided. In these cases, the picture carries little information. NOTE: The Durbin-Watson d distribution requires you to have the Residuals and values of the X variable(s) available. It is restricted to fewer than 256 observations because that is the maximum number of columns available in Excel. Conclusion If you have comments, suggestions, or criticisms of the P Value Calculator, please contact us. We welcome your feedback and opinions. The About tab contains contact information:   MacOS users may have to click on the List of Files of Type option and select All Files to see the Pvalue.xls add-in.  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