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. Copyright © 2008 Pearson Prentice Hall. All rights reserved. Copyright © 2008 Prentice-Hall. All rights reserved. 1 1

Copyright © 2008 Pearson Prentice Hall. All rights reserved. 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 Copyright © 2008 Pearson Prentice Hall. All rights reserved.

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 Copyright © 2008 Pearson Prentice Hall. All rights reserved.

Copyright © 2008 Pearson Prentice Hall. All rights reserved. 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. Copyright © 2008 Pearson Prentice Hall. All rights reserved.

Copyright © 2008 Pearson Prentice Hall. All rights reserved. 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. Copyright © 2008 Pearson Prentice Hall. All rights reserved.

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. Copyright © 2008 Pearson Prentice Hall. All rights reserved.

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. Copyright © 2008 Pearson Prentice Hall. All rights reserved.

Copyright © 2008 Pearson Prentice Hall. All rights reserved. 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 Copyright © 2008 Pearson Prentice Hall. All rights reserved.

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. Copyright © 2008 Pearson Prentice Hall. All rights reserved.

Copyright © 2008 Pearson Prentice Hall. All rights reserved. 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 Copyright © 2008 Pearson Prentice Hall. All rights reserved.

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. Copyright © 2008 Pearson Prentice Hall. All rights reserved.

Copyright © 2008 Pearson Prentice Hall. All rights reserved. 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. Copyright © 2008 Pearson Prentice Hall. All rights reserved.

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 Copyright © 2008 Pearson Prentice Hall. All rights reserved.

Copyright © 2008 Pearson Prentice Hall. All rights reserved. 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. Copyright © 2008 Pearson Prentice Hall. All rights reserved.

Copyright © 2008 Pearson Prentice Hall. All rights reserved. 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 Copyright © 2008 Pearson Prentice Hall. All rights reserved.

Copyright © 2008 Pearson Prentice Hall. All rights reserved. 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. Copyright © 2008 Pearson Prentice Hall. All rights reserved.

Copyright © 2008 Pearson Prentice Hall. All rights reserved. Financial Functions Used for decisions involving payments, investments, interest rates, etc. Allows you to consider several alternatives Copyright © 2008 Pearson Prentice Hall. All rights reserved.

Copyright © 2008 Pearson Prentice Hall. All rights reserved. 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 , -14999) 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.) Copyright © 2008 Pearson Prentice Hall. All rights reserved.

Copyright © 2008 Pearson Prentice Hall. All rights reserved. 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. Copyright © 2008 Pearson Prentice Hall. All rights reserved.

Copyright © 2008 Pearson Prentice Hall. All rights reserved.