Which method is used to create a pivot table in Excel?

Creating a pivot table in Excel primarily involves selecting the data range that you wish to analyze and then utilizing the "Pivot Table" feature. This method allows users to summarize and analyze extensive data sets efficiently. When you select your data range and navigate to the "Insert" tab, clicking on the "Pivot Table" option will prompt Excel to create a new table where you can dynamically reorganize and summarize your data according to your analytical needs.

This method is particularly valuable because it enables users to manipulate large amounts of data without altering the original data set. It allows for quick comparisons, allowing you to arrange your data by different categories, which is the core functionality of pivot tables—turning raw data into meaningful insights through customization of rows, columns, values, and filters.

In contrast, entering data through the formula bar pertains to directly inputting values or formulas into a cell, which does not create a pivot table. Importing data from external sources can be part of the process that precedes pivot table creation, but it is not a method for creating one itself. The baby-step data entry method refers to a slow, manual process of entering data, which is also not relevant to the pivot table function.