What is a pivot table used for in Excel?

A pivot table is primarily used to summarize and analyze data from a larger dataset. This powerful tool allows users to organize and manipulate data in a way that provides insightful information without altering the original dataset. Through pivot tables, you can easily aggregate data, calculate totals, and figure averages, all while providing flexibility in how the data is viewed.

For instance, a user might have a large list of sales transactions and wants to see total sales by region or by product category. Instead of manually sorting and using formulas, a pivot table can be created to instantly provide this summary, making it easier to observe trends, patterns, or outliers.

While the other options mention important functionalities in Excel, they don't capture the specific purpose of pivot tables. Formatting text and numbers, performing calculations, and creating graphical representations, like charts, are general features of Excel but do not define the unique capabilities of pivot tables in data summarization and analysis.