1. 4 - 1 Chapter 4: Advanced Excel Skills Management Science: The Art of Modeling with Spreadsheets, 2e PowerPoint Slides Prepared By: Alan Olinsky Bryant University S.G. Powell K.R. Baker © John Wiley and Sons, Inc.

2. 4 - 2 Chapter Coverage  Keyboard shortcuts  Controls  Cell comments  Naming cells and ranges  Advanced formulas and functions  Recording macros and using Visual Basic for Applications

3. 4 - 3 Useful Keyboard Shortcuts: Moving, Scrolling and Entering Data

4. 4 - 4 Useful Keyboard Shortcuts: Working in Cells or the Formula Bar

5. 4 - 5 Useful Keyboard Shortcuts: Inserting, Deleting, Copying, Selecting

6. 4 - 6 Useful Keyboard Shortcuts: Working with Worksheets and Macros

7. 4 - 7 Controls  Excel controls allow the user to change the contents or behavior of a spreadsheet without interacting directly with individual cells.  Controls can be added to a spreadsheet to assist users to choose parameter inputs and to assist the analyst in performing sensitivity analysis.

8. 4 - 8 Standard Controls The eleven standard controls are:  Check Box  Text Box  Command Button  Option Button  List Box  Combo Box  Toggle Button  Spin Button  Scroll Bar  Label  Image

9. 4 - 9 Excel Tip: Using Controls  1. Place the Control toolbar on the screen (View►Toolbars►Control Toolbox).  2. Click on Design Mode.  3. Click on the desired control icon to select it.  4. Double click on the desired location in the spreadsheet to place the control icon there.  5. Click on Properties in the Control Toolbox to open the Properties window.  6. Edit Properties as needed.  7. Click on Exit Design Mode.

10. 4 - 10 Use of Controls

11. 4 - 11 Cell Comments  To insert a comment in a particular cell, highlight the cell and choose Insert►Comment.  Edit the comment by placing the cursor anywhere within the comment box.  To delete a comment, click on the border to highlight the comment and choose Delete.  All of the comments in a workbook can be displayed by choosing View►Comments.  When a cell containing a comment is copied, the contents and the comment are both copied to the new cell.

12. 4 - 12 Cell Comments (continued)

13. 4 - 13 Naming Cells and Ranges  Individual cells and ranges of cells can be given names, and these names can be used in formulas to make them more readable.  The simplest way to define a range name for a single cell is to place the cursor on that cell and note that the address of the cell appears in the Name box above column A.  Click in the Name box and enter the name of the cell there.  An alternative means for entering range names is to choose Insert►Name►Define.

14. 4 - 14 Define Name Window

15. 4 - 15 Documenting Range names using Paste List

16. 4 - 16 Advantages and Disadvantages of Range Names  Advantages: Formulas are easier to understand Useful in Pivot Table and other applications  Disadvantages: Range names may reference incorrect cells or ranges Adds complexity to spreadsheet Requires additional effort Complicates copying

17. 4 - 17 Advanced Formulas and Functions  Some of the tools of advanced formulas and functions: R1C1 references Mixed addresses Nesting calculations Parameterization Advanced functions

18. 4 - 18 R1C1 Style  Excel allows us to switch back and forth between the normal style and the R1C1 style of referencing.  Some modelers use the R1C1 style when developing their models but switch to the normal style when the model is complete.  They enjoy the benefits of the more logical and more easily debugged R1C1 style without imposing this less-well known style on users.

19. 4 - 19 Mixed Addresses Using mixed addresses in copying

20. 4 - 20 Nesting Calculations  Excel allows functions to be used within other functions. This is referred to as nesting. So, for example, we could nest a SUM function within an IF function: IF(SUM(A1:A10)>0, F9*F10, G9*G10  In fact, we can nest functions as many times as we like (in most cases), as long as the resulting calculations can be performed by the functions themselves.  For example, we can nest IF functions within IF functions (although there is a limit of seven IFs in one formula), as in: IF(D2>D3, G7, IF(B2>B3,G8,G9))  Or we can nest several different functions: MIN(MAX(D4:D10), SUM(E4:E10), MIN(F4:F10))

21. 4 - 21 Parameterization  A well-parameterized function is one which represents the relationship between two or more variables accurately, with parameters that have a natural meaning in the problem being modeled.  Picking the best parameterization for the problem at hand is part of the art of modeling.  For example, a demand relationship between the price of a product and the quantity demanded could be modeled using the constant-elasticity function: Q = aPb In this function, the parameter b measures the percentage change in quantity that results from a percentage change in price.

22. 4 - 22 Example of Parameterization A flexible four-parameter function for market share growth.

23. 4 - 23 Advanced Functions  AND and OR  SUMIF and COUNTIF  VLOOKUP and HLOOKUP  INDEX, SMALL and MATCH  Text and date functions  ROUND, CEILING, FLOOR, and INT  RAND and RANDBETWEEN  Financial functions

24. 4 - 24 Using Nested Functions

25. 4 - 25 Recording Macros and Using VBA*  Macros are small computer programs that automate frequently-performed tasks.  Macros are written in the Visual Basic for Applications (VBA) language and stored in Visual Basic modules.  Excel provides a mechanism for creating macros simply by recording the steps involved, so many simple macros can be created by users who have little or no programming knowledge.

26. 4 - 26 Calculating Cumulative Returns using Excel

27. 4 - 27 Record Macro Window

28. 4 - 28 Visual Basic Editor

29. 4 - 29 Cumulative Return Macro as Recorded Sub Cumulative_return() ' Macro recorded 2/27/2006 by The Tuck School Columns("C:D").Select Selection.Insert shift:=xlToRight Range("C4").Select ActiveCell.FormulaR1C1 = "=RC[-1]+1" Range("C4").Select Selection.Copy Range("C5:C25").Select ActiveSheet.Paste Range("D4").Select Application.CutCopyMode = False Range("D4").Select ActiveCell.FormulaR1C1 = "=PRODUCT(R4C3:RC[-1])-1" Range("D4").Select Selection.AutoFill Destination:=Range("D4:D25"), Type:=xlFillDefault Range("D4:D25").Select End Sub

30. 4 - 30 Cumulative Return Macro as Edited Sub CumulativeEdited() 'declare ranges for the user's data, the return + 1, and the cumulative return Dim userdata As Range, plusOneRng As Range, cumRetRng As Range Set userdata = Selection 'insert two new columns ActiveSheet.Columns(userdata.Column + 1).Select Selection.Insert shift:=xlToLeft 'select where the new data is going to be added Set plusOneRng = userdata.Cells(1).Offset(0, 1) Set cumRetRng = userdata.Cells(1).Offset(0, 2) 'create a column with the returns + 1 plusOneRng.Select ActiveCell.FormulaR1C1 = "=RC[-1]+1" plusOneRng.Select Selection.Copy userdata.Offset(0, 1).Select ActiveSheet.Paste 'create a column with the cumulative returns cumRetRng.Select ActiveCell.FormulaR1C1 = _ "=PRODUCT(R" & cumRetRng.row & "C" & cumRetRng.Column - 1 & ":RC[-1])-1" cumRetRng.Select Selection.AutoFill Destination:=Range(userdata.Offset(0, 2).Address), _ Type:=xlFillDefault End Sub

31. 4 - 31 User-defined Function to Calculate Cumulative Return Public Function CumulativeReturn (Returns As Range) Dim cell As Range Dim TotalRet As Double TotalRet = 1# For Each cell In Returns.Cells TotalRet = TotalRet * (cell.Value + 1#) Next CumulativeReturn = TotalRet - 1# End Function

32. 4 - 32 Summary  Keyboard shortcuts  Controls  Cell comments  Naming cells and ranges  Advanced formulas and functions  Recording macros and using Visual Basic for Applications

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