1 CSE 2337 Chapter 4 Logic

2 Objectives Boolean Values Logical Operators Conditional Logic Nested Functions

3 Boolean Logic Boolean Logic Values –True –False

4 Background Scenario Dun & Bradstreet® (D&B) –Widely used financial reporting services –Provides financial information about corporations and institutions and extensive analyses on each company’s creditworthiness and payment history (PAYDEX® index) Create formulas by applying several credit approval indicator rules to each customer’s data

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6 Rule #1 Accept a customer who has a past due balance that is less than 10% of this year’s total sales Is past due balance less than 10% of this year’s total sales? In Other Words:

7 Relational Operators Compare to values and determine if True or False

8 Rule #1 Applied

9 Rule #2 Accept a customer who has either a composite credit appraisal value of 1 or a PAYDEX score over 90

10 Rule #2 Accept a customer who has either a composite credit appraisal value of 1 or a PAYDEX score over 90 2 conditions that both have a truth value Reduce to one Truth value

11 Boolean Logic Functions ANDUsed to determine if all arguments are TRUE ORUsed to determine if either argument is TRUE NOTEvaluates only one logical argument to determine if it is FALSE

12 AND

13 OR

14 NOT

15 Logic Functions in Excel OR (logical1,logical2,….) AND (logical1,logical2,…) NOT (logical1)

16 Applying Rule #2

17 Rule #3 Accept a customer who has all of the following: –Net worth of at least $500,000 –Composite credit appraisal value of 2 or lower –PAYDEX score over 70 –Stress risk class of 1

18 Applying Rule #3

19 Cell M3

20 IF Conditional IF function –Boolean logical function that returns different values (TRUE or FALSE) depending on how the specified condition evaluates –=IF(logical_test,value_if_true,value_if_ false) Nested function (permitted by IF function) –Contains additional formulas and/or functions as one or more of its arguments Provides flexibility of choosing between two different sets of criteria, and up to seven different levels of logical tests

21 EXAMPLE

22 If to perform conditional calcuations

23 Conditional Calc with IF

24 Explanation

25 Nested IFs Nesting IF functions, one inside the other, allows you to ask a question, then another question depending on the outcome of the first question, and so on

26 Nested IFs

27 Nested IF