1. Exploring Microsoft Office Excel 2007
Chapter 2:
Formulas and Functions
Robert Grauer, Keith Mulbery, Judy Scheeren
Committed to Shaping the Next Generation of IT Experts.
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Objectives
Create and copy formulas
Use relative and absolute cell addresses
Use AutoSum
Insert basic statistical functions
Use date functions
The objectives of Chapter 1 includes:
Creating and copying formulas
Using relative and absolute cell addresses
Using AutoSum
Inserting basic statistical functions
Using date functions
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3. Objectives (continued)
Use the IF function
Use the VLOOKUP function
Use the PMT function
Use the FV function
The objectives of Chapter 1 also include:
Using the IF function
Using the VLOOKUP function
Using the PMT function
Using the FV function
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Formula Basics
Formulas are used to perform mathematical operations and arrive at a calculated result
Must begin with an equals (=) sign
Contain mathematical operators
Used to automate calculations that were once done manually
Formulas consist of a combination of constants, cell references, and arithmetic The equal sign within Excel indicates that a mathematical calculation is about to begin.
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Creating a Formula
Rather than typing a cell address, use an alternative method that involves minimal typing
Pointing uses the mouse or arrow keys to select the cell directly when creating a formula
To create a formula, you must type the = sign to start the formula. Click on the desired cell and type an operator. Then continue to select cells and type operators to complete the formula.
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6. Copy Formulas with Fill Handle
Use the fill handle, a small black square in the bottom right corner of a selected cell, to copy formulas
Provides a clear-cut alternative method for copying the contents of a cell
Can be used to duplicate formulas
To copy and paste, using the fill handle:
1. Click on the cell (or drag through the cells) to be copied.
2. Position the mouse pointer over fill handle of the selected cell or cells. The pointer changes to a thin cross hair.
3. Click and hold down the left mouse button, while dragging over the destination cells.
4. Release the mouse button.
If the cell to be copied contains a formula, the formula is copied, the cell references are changed appropriately and Excel performs the calculation.
The fill handle works with contiguous or adjacent cells. Contiguous cells are those that are adjacent to each other. The fill handle can also be used to finish a text series, like days of the week, month names, etc.
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7. Relative vs. Absolute Addressing
Relative cell references change relative to the direction in which the formula is copied
Absolute cell references are exact; they do not change when a formula is copied
Indicated by dollar ($) signs in front of the column letter and row number
Most often used when the value need not change, such as a sales tax percentage.
Use the F4 key to toggle between relative and absolute cell referencing
When you copy a formula containing a relative cell reference over multiple columns, the column letter changes. When you copy a formula containing relative cell reference down multiple rows, the row number changes.
Mixed cell reference is a formula that contains both relative and absolute cell references. Remember, formulas should always be based on cell references.
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Functions
A predefined formula that can be selected from a list
Already has the formula information; just requires cell references
Do not replace all formulas
Take values, perform operations, and return results
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9. Functions (continued)
SUM is the most commonly used function
represented by a sigma ()
Adds values within a specified range
Syntax refers to the grammatical structure of a formula
Must adhere to stated structure of formula
Arguments are values ─ used as input and returned as output
Function Wizard automates entering the function formulas
In order to use a function, one must keep in mind two things: syntax and
arguments.
All functions are listed in the Function Library group on the Formula tab. They
Can be accessed by clicking on the Function Wizard.
Insert the Function dialog box to do the following:
Search for a function by typing a brief description of what you want the function to do.
Select a function from the Most Recently Used list, by function category displayed in alphabetical order; or from an alphabetical list of All functions.
Click the function name to see the syntax and description or double-click the function name to see the function and the Function Arguments dialog box for help with adding the correct arguments. Figure 2.6 in your text shows the Function Arguments dialog box for the SUM function.
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Using AutoSum ()
Automates the SUM function
Click the cell where you want the result
Click AutoSum button
Select the range of cells you want to sum
Press Enter to complete
An example of AutoSum,
=Sum(C4:C10) represents sum of all the cells in the cell range C4 to C10
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11. Basic Statistical Functions
Perform a variety of calculations to aide in decision making process
AVERAGE calculates the average of a range of numbers
MIN calculates the minimum value in a range
MAX calculates the maximum value in a range
COUNT counts the number of values within a range
MEDIAN finds the midpoint value in a range
The basic statistical functions include the following:
AVERAGE calculates the average of a range of numbers.
MIN calculates the minimum value in a range.
MAX calculates the maximum value in a range.
COUNT counts the number of values within a range.
MEDIAN finds the midpoint value in a range.
COUNTA function counts the number of cells in a range that are not blank.
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Date Functions
Efficiently handle time-consuming procedures
Help analyze data related to the passing of time
TODAY function places the current date in the selected cell
Updates when file is opened again
NOW function displays current date and time, side by side
The NOW function also updates automatically. The Function AutoComplete will provide a drop-down list of known options from which to select.
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13. Logical and Lookup Functions
Logical functions help in decision making
Lookup functions are very useful for looking up data entered in a specific range of cells
Example: Well suited well for tax tables
Searches for a value based on a cell reference
Two types: VLOOKUP and HLOOKUP
VLOOKUP arranges data vertically
HLOOKUP arranges data horizontally
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IF Function
Used to determine whether a condition has been met
Has three arguments:
a condition tested to determine if it is true or false
the resulting value if the condition is true
the resulting value if the condition is false
When the condition is met, the formula performs one task; when it is not met, the formula performs another task
Comparison operators are used to specify conditions. The result of a conditional expression using a comparison operator is always true or false. The six comparison operators supported are:
Operator Description
= Equal to
<> Not equal to
< Less than
> Greater than
<= Less than or equal to
>= Greater than or equal to
An example of an IF function usage is as follows:
=IF(C6 > 3.5, "Dean's List", "No") tests the condition C6 > 3.5 i.e. whether the contents of cell C6 is greater than 3.5. If the answer is true, then it returns "Dean's List" as the answer; if false it returns "No" as the answer.
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VLOOKUP
Allows for lookup within a vertical table of information
Well suited for large tables of data, such as tax tables
Has three arguments:
a lookup value stored in a cell
a range of cells containing a lookup table
the number of the column within the lookup table that contains the value to return
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VLOOKUP (continued)
The lookup value ─ value to look up in a reference table
The lookup table ─ a range of cells containing the reference table
A breakpoint ─ is the lowest numeric value for a category or series
The column index number ─ the column number in the lookup table that contains return values
VLOOKUP function works by searching in the left column of the lookup table until it finds an exact match or a number that is larger than the lookup value. If Excel finds an exact match, it returns the value stored in the column, designated by the index number on that same row.
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Financial Functions
Used for decisions involving payments, investments, interest rates, etc.
Allows you to consider several alternatives
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PMT Function
Used to calculate loan payments
Has three arguments:
the interest rate per period
the number of periods
the amount of the loan
Computes the associated payment on a loan
To use the PMT function, you must divide the annual percentage rate (APR) by 12 months to obtain the monthly periodic rate. Multiply the 3-year term by the number of payments per year. Because you will make monthly payments, you multiply number of years by 12 months to calculate the total number of months in the term.
The amount of the loan is a minus figure; it is considered a negative because it is an outflow of cash or an expense.
An example would be:
=PMT(.09/ 12, 36 , )
The first argument 0.09/12 is the interest per pay period (annual rate divided by 12.)
The second argument 36 is the number of periods (3 years x 12 months/year.)
The third argument─14999 ─is the amount of loan (as a negative value.)
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FV Function
Used to determine the future value of an amount, such as an investment
Has three arguments:
The interest rate (also called the rate of return)
The number of periods (how long you will pay into the investment)
The periodic investment (how much you will invest per year)
The periodic payment is preceded by a minus sign, just as the principal in the PMT function.
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