1. Copyright © 2008 Pearson Prentice Hall. All rights reserved. 11 Copyright © 2008 Prentice-Hall. All rights reserved. Committed to Shaping the Next Generation of IT Experts. Chapter 2: Formulas and Functions Robert Grauer, Keith Mulbery, Judy Scheeren Exploring Microsoft Office Excel 2007

2. Copyright © 2008 Pearson Prentice Hall. All rights reserved. 2 Objectives Create and copy formulas Use relative and absolute cell addresses Use AutoSum Insert basic statistical functions Use date functions

3. Copyright © 2008 Pearson Prentice Hall. All rights reserved. 3 Objectives (continued) Use the IF function Use the VLOOKUP function Use the PMT function Use the FV function

4. Copyright © 2008 Pearson Prentice Hall. All rights reserved. 4 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

5. Copyright © 2008 Pearson Prentice Hall. All rights reserved. 5 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

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

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

8. Copyright © 2008 Pearson Prentice Hall. All rights reserved. 8 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

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

10. Copyright © 2008 Pearson Prentice Hall. All rights reserved. 10 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

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

12. Copyright © 2008 Pearson Prentice Hall. All rights reserved. 12 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

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

14. Copyright © 2008 Pearson Prentice Hall. All rights reserved. 14 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

15. Copyright © 2008 Pearson Prentice Hall. All rights reserved. 15 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

16. Copyright © 2008 Pearson Prentice Hall. All rights reserved. 16 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

17. Copyright © 2008 Pearson Prentice Hall. All rights reserved. 17 Financial Functions Used for decisions involving payments, investments, interest rates, etc. Allows you to consider several alternatives

18. Copyright © 2008 Pearson Prentice Hall. All rights reserved. 18 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

19. Copyright © 2008 Pearson Prentice Hall. All rights reserved. 19 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)

20. Copyright © 2008 Pearson Prentice Hall. All rights reserved. 20