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How to create a Heat Map?

First, let us try and understand What is a Heat Map?


A Heat Map is a graphical representation of data where individual values contained in a matrix are represented as colors. 'Heat Map' is a relatively new term, but the practice of coloring matrices has existed for over a century.
Also, in simple terms, a Heat Map may be defined as a visual representation that quickly shows a comparative view of a dataset. For Example, in the dataset below, we can easily spot which are the months when the scales were low (highlighted in red) as compared with other months.



Creating a Heat Map in MS Excel:
While we can use several tools like R, Python, or Bash as well to create a Heat Map, it is entirely possible to create a Heat Map with MS Excel. There is a quote "We should not pull out sword where we can use a Needle". Therefore, using complex algorithms to create a simple Heat Map is really not necessary. This doesn't mean that we should create all Heat Maps on Excel, as it also has some limitations, but most of the time when we have to depict small and single parameter changes in a dataset, Excel does a comparable good job in creating really geometric looking Heat Maps.

Now let us follow some of the basic steps in creating awesome Heat Maps:
1. To create a Heat Map in Excel we only need to use conditional formatting. A Heat Map is a graphical representation of data where individual values are represented as colors.
2. Here we are taking an example of a record of temperatures in New York. Copy the data and select the range B3:M11.



3. On the Home Tab, in the Styles group, click Conditional Formatting.



4.Click color scales and click a subtype.



5. Result will be a Heat Map with Numbers.



6. Again select the range B3:M11.
7. Right Click, and then click format cells.
8. Select the custom category.
9. Type the following number format code: ;;;

10. Click Ok and you will see a Heat Map in excel.


In this, you can clearly see that summer of 2014 in New York was cool and that Christmas 2015 in New York was warm.
This is one of the easiest ways of creating Heat Maps and you can use it in various situations like:
1. HR Analytics: To show variation in interests of employees in your organization with respect to changing Age.
2. Marketing Analytics: To compare buying habits of customers according to Demographic variations.
3. Financial Analytics: To compare the risk-taking abilities of various clients who are going to take loans from your bank or organization with their Ages and Monthly Income.
4. Operations Analytics: To compare effects of LIFO and FIFO in storage processes.

To learn more about analytics or for any consultation about any project that you are working on. You can connect with me at info@thewiki.in

 

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