Formulas and Functions Essentials

Using Formulas and Functions
10Session
Version 1.0 © 2011 Aptech Limited.

Version 1.0 © 2011 Aptech Limited. 2
Objectives
At the end of this session, students will be able to:

Define a formula

Explain the procedure for including functions

Explain the use of AutoSum function

Explain the use of Conditional Formatting
Using Formulas and Functions / Session 10

Version 1.0 © 2011 Aptech Limited. 3Using Formulas and Functions / Session 10
Introduction

Excel spreadsheet enables user to create tables and graphs.

It also helps them to create tables with formulas and apply formatting styles
to them.

Excel’s real power and strength lies in its ability to perform simple and
complex calculations.

Working with Formulas [1-13]

Supports the use of mathematical formulas in the spreadsheet

Requires the user to not only specify the cells referenced in the calculation
but also requires the user to provide the operators to specify the type of
calculation that should take place

Formulas are suited for simple calculations such as addition, subtraction,
multiplication, and division

A formula can consist of any of these following elements:

Mathematical operators such as + (addition), - (subtraction) and so on

Cell references

Values or text

Worksheet functions


Can enter data in any number of cells, and display the results anywhere in the
spreadsheet

Replaces addition with subtraction, multiplication, or division

Uses different mathematical signs together in a single formula

Enter formulas using any one of the following techniques:

Type the entire formula including the cell address

Type the formula operators and select the cell references


To create simple mathematical formulas, perform the following steps:

Open Microsoft Excel

Click cell A1

Type the value $324

Click cell A2

Type the value $234

Click cell A3 to contain the formula

Type = to start the formula

Type the first reference cell, A1

Type the Math operator, +

Type the second reference cell, A2

Press Enter
Addition of Numbers


Another example displays the use of formula in a worksheet.

Type any numerical data from cell A1 to A4

Type the following formula in cell A6:
=A1*A2-A3/A4

Press Enter
Using Mathematical Operators in a Formula


To enter the formula using cell reference, perform the following steps:



Type =SUM(A1:A5) in cell A11
Addition using Cell Reference


Can provide cell references present in the same sheet or from another sheet
in the functions or formulas

Using the cell reference, they do not have to copy the data repeatedly

Provides a range name for reference

Use a range name in formulas and functions in the workbook


The advantages of using range names are as follows:

Easy to remember a meaningful range name rather than a cell address

Less error prone when range name is used rather than when a cell
address is used

Easy to move around in a worksheet by specifying the range name

Easy and simple to use range name in functions rather than cell address


The two ways to insert name to a formula are as follows:

Type the formula and then type the first character of the name, which will
display a drop-down list from which you select the name.

Press F3 to display the Paste Name dialog box

Name Manager helps the user to keep track of all the names that have
been used in a sheet. Users can add, edit, or delete a name from the
Name Manager.

The Name Manager option is available in the Defined Names group in the
Formula tab.


To provide reference of cells in other worksheet, perform the following
steps:


Type the data as shown in the figure below:
Entering Data in a Worksheet

Select cells C1 to C4

Click Define Name drop-down

Select Define Name

Type Sales

Click OK
New Name Dialog Box


Type =AVERAGE(Sales)in cell C9

Press Enter

Go to a new worksheet

Type =SUM(Sales)in cell A1

Press Enter
Using Defined Name on a New Sheet
Using a Defined Name


To create a formula with point and click method, perform the
following steps:


Type the data

Click cell E7

Type =

Click cell B3

Type +

Click cell C4

Type -

Click cell D5

Press Enter
Entering Sales Data in a Worksheet
Selection of Cells using Point and Click


To use the AutoFill feature to copy formulas,
perform the following steps:


Type the heading as Jan in cell A1

Type numerical data from cell A2 to A11

Type the heading as Feb in cell B1

Type numerical data from cell B2 to B11

Type the heading as Total Sales in cell C1

Click cell C2

Type =A2+B2 and press Enter

Click cell C2 to copy the formula to the cells

Drag the fill handle up to cell C11 Implementation of AutoFill
Function


Formulas allow users to reference to cells or range of cells

Help users to change the data in the referenced cell, without changing the
formula

For example, if the value entered in cell D4 changed later, Excel will use the
revised value every time it uses the cell reference of D4

If cell reference is not used, then the data in the formula is required to be
changed every time there is a change in value of D4

There are three ways of referencing cells in a formula. They are as follows:

Absolute

Relative

Mixed

Working with Basic Functions [1-17]

Common uses of functions are to calculate the sum, find the maximum and
minimum value, count the number of entries, and calculate the average value
from a range of data

Consist of two parts namely, the function name and the cell address

The cell address is used by functions to derive a result

Can use a single argument, a fixed number of arguments, an indeterminate
number of arguments, or an optional argument

May not require arguments in certain cases


Uses more than one argument, separates the arguments with a comma

Can also use the AutoSum feature of Excel to perform quick calculation such
as finding the Sum, Average and so on

Excel has a large library of function with more than 3000 functions, which
have been grouped into different categories

Financial
Function Syntax Description Example
DISC(settlement, maturity, pr,
redemption, [basis])
Returns the discount rate for
security
1. Type the following data from cell A1 to
A5 in a worksheet:
Settlement date
Maturity date
Price
Redemption Value
Type of Day Count Basis
2. Type the following data from cell B1 to
B5:
1/1/2011
12/1/2011
95.00
100
1
3. Select cell B6.
4. Select DISC.
5. Type B1 through B5 in each of the
text boxes in the dialog box.
6. Click OK. 0.054640719 is
displayed on the worksheet.

Financial
EFFECT(nominal_rate, npery) Returns the effective annual
interest rate based on the
given nominal annual interest
rate and the number of
compounding periods in each
year
1. Type the following data in cell A1 and
A2 in a worksheet:
Nominal Interest Rate
Number of Compounding
Periods Per Year
2. Type the following in cell B1 and B2:
5.50%
5
3. Select cell B4.
4. Select EFFECT.
5. Type B1 and B2 in the text boxes in
the dialog box.
6. Click OK. 0.056223 is displayed on
the worksheet.

Financial
NOMINAL(effect_rate, npery) Returns the nominal annual
interest rate based on the
given rate and number of
compounding periods per year
1. Type the following in cell A1 and A2 in
a worksheet:
Effective Interest Rate
Number of Compounding
Periods Per Year
2. Type the following in cell B1 and B2:
6.25%
4
3. Select cell B4.
4. Select NOMINAL.
5. Type B1 and B2 in each of the text
boxes in the dialog box.
6. Click OK. 0.061086 is displayed on
the worksheet.

Logical
AND(logical1, logical2) Checks whether all the
arguments are TRUE and it
returns TRUE only if all the
arguments are TRUE
1. Select AND.
2. Type 4*3=12 in the Logical1 text
box.
3. Type 7*2=14 in the Logical2 text
box.
4. Click OK. TRUE is displayed on the
worksheet.
IF(logical_test, value_if_true,
value_if_false)
Checks whether the condition
is TRUE, returns a value if the
condition is true and returns
another value if the condition
is FALSE
1. Type 100 in A1.
2. Select cell A2.
3. Select IF.
4. Type the following text in each of the
text boxes.
A1<=50
Conveyance will be given
Conveyance will not be given
5. Click OK. Conveyance will not be given
is displayed on the worksheet.

Text
LOWER(text) Transforms the letters in the
text string to lower case
=LOWER("OFFICE 2010")
Will display office 2010 in the
worksheet
DOLLAR(number,[decimal]) Changes a number to text using
currency format
=DOLLAR(452, 3)
Will display $452.000 in the
worksheet
EXACT(text1,text2) Examines whether two texts
are exactly same (case-
sensitive) and returns the value
of TRUE or FALSE
=EXACT("Hello", "hello")
Will display FALSE in the worksheet
FIXED(number,[decimal],
[no_commas])
Rounds off the number to
specified decimal places and
displays the number with or
without the commas
=FIXED(5443.295,1,TRUE)
Will display 5443.3 in the worksheet
PROPER(text) Capitalizes the first letter in the
word and letter after special
character, and lowers the case
of all the other letters in the
word
=PROPER("mY friend’s
book")
Will display My Friend’S Book in the
worksheet

Text
REPLACE(old_text,start_n
um,num_chars,new_text
)
Replaces old text with a new text
string
=REPLACE("Hello",1,2,"A")
Will display Allo in the worksheet
REPEAT(text,number_tim
es)
Prints text the number of times
specified
=REPT("1#A",3)
Will display 1#A1#A1#A in the
worksheet
SEARCH(find_text,within
_text,[start_num])
Returns the location of the character
from within a string starting from left
to right, considering the starting
number of the text in the string
=SEARCH("A","Apache",2)
Will display 3 in the worksheet
SUBSTITUTE(text,old_tex
t,new_text,
[instance_number])
Replaces the old text with the new
text. You can also specify the instance
position of the text in the string that
is required to be replaced
=SUBSTITUTE("December 1,
2011",1,2,3)
Will display December 1, 2012 in
the worksheet
T(value) Returns text if the value referred is
text else returns blank if the value
referred is numerical or logical
=T(“Office”)
Will display Office in the worksheet
TRIM(text) Removes all the extra spaces in the
string but preserves the single spacing
in between words
=TRIM("Microsoft
Excel")
Will display Microsoft Excel in
the worksheet

Date & Time
DATEVALUE(date_text) Transforms the date in into
serial number that represents
date in Microsoft Excel date-
time code
=DATEVALUE("12/12/2012
")
Will display 41255 in the
worksheet
DAYS360(start_date,end_date,
[method])
Returns the numbers of days
between two dates based on a
360-days year
=DAYS360("1/1/2011","5
/1/2011")
Will display 120 in the
worksheet
WEEKNUM(serial_number,
[return_type])
Returns the week number of
the year
=WEEKNUM("7/1/2011",1)

Lookup & Reference
HYPERLINK(http_location,
[friendly_name])
Creates a shortcut or jump that
opens a document stored on a
network server, an intranet, or
the Internet
1. Select HYPERLINK.
2. Type http://google.com
in Link_location box.
3. Type Google in the Friendly_name
text box.
4. Click OK. Google is displayed in the
worksheet.
LOOKUP() Looks up value from one-row
or one-column range, or from
an array
1. Type the following data in cells from
A1 to A5 in a worksheet:
Alison
Martha
Peter
Ricky
Ted
2. Type the following data in cells from
B1 to B5:
$56
$68
$80
$93
$86

3. Select cell A7.
4. Select LOOKUP.
5. Select OK.
6. Type the following in the text
boxes of the dialog box:
A3
A1:A5
B1:B5
7. Click OK. 80 is displayed in the
worksheet.

Math & Trig
COMBIN(number,
number_chosen)
Returns the number of
combinations for a given
number of items
=COMBIN(6,2)
GCD(number1,number2,…) Returns the greatest common
divisor of more than one
=GCD(3,17)
LCM(number1,number2,…) Returns the least common
multiple
=LCM(6,9)
LOG(number,base value) Returns the log of the number
depending upon the base value
specified
=LOG(9,2)
Will display 3.169925001 in the
worksheet
PI() Returns the PI value =PI()
worksheet

Math & Trig
ROMAN(number,[form]) Returns the Roman value of
the Arabic numerical
=ROMAN(56,1)
Will display LVI in the worksheet
FACT(number) Returns the factorial of a
number
=FACT(5)
ATAN(number) Returns the arctangent value of
the specified number
=ATAN(9)
worksheet
COSH(number) Returns the hyperbolic cosine =COSH(5)
worksheet
SIN(number) Returns the sine value of the
given angle
=SIN(10)
Will display -0.544021111 in the
worksheet

Statistical
CONFIDENCE(alpha,
standard_dev, size)
Returns a confidence interval
for a population mean
1. Type 0.05 in A1.
2. Type 3.5 in A2.
3. Type 100 in A3.
4. Select CONFIDENCE.
5. Type the following the text boxes of
the dialog box:
A1
A2
A3
6. Click OK. 0.685987395 is displayed
in the worksheet.
FISHER(x) Returns the Fisher
transformation
1. Type -0.5 in A1.
2. Click cell A2.
3. Select FISHER.
4. Type A1 in the X box.
5. Click OK. -0.549306144 is displayed
in the worksheet.

Statistical
PEARSON(array1, array2) Returns the Pearson product
moment correlation co-
efficient (r)
1. Type the following from cell A1 to A5:
3
4
1
2
5
2. Type the following from cell B1 to B5:
2
5
4
3
1
3. Select PEARSON.
4. Type the following in the text boxes of
the dialog box:
A1:A5
B1:B5
5. Click OK. -0.4 is displayed on the
worksheet.

Engineering
BIN2DEC(number) Converts the binary number to
a decimal number
1. Type 110010 in A1.
2. Click cell A2.
3. Select BIN2DEC.
4. Type A1 in the Number text box.
worksheet.
DELTA(number1, number2) Tests whether two numbers
are equal
1. Select DELTA.
2. Type 5678754335 in the Number1
box.
3. Type 5678745335 in the Number2
box.
worksheet.
IMREAL(inumber) Returns the real co-efficient of
a complex number
1. Select IMREAL.
2. Type 6+i7 in the text box of the
dialog box.
worksheet.

Information
INFO(type_text) Returns the information about
the current operating
environment
1. Select INFO.
2. Type system in the Type_text text box.
3. Click OK. pcdos is displayed on the
worksheet.
ISTEXT(value) Checks whether the value is
text and returns TRUE or FALSE
1. Type Excel in A1.
2. Select ISTEXT.
3. Type A1 in the Value text box.
4. Click OK. True is displayed in the
worksheet.


To use the average function, perform the
following steps:


Type the heading Jan in cell A1

Type any numerical data from cell A2 to
A11

Type the heading Feb in cell B1

Type any numerical data from B2 to B11

Type the heading Total Sales in cell C1

Type =A2+B2 in cell C2

Similarly, enter =A3+B3 in cell C3 and
copy the function for all the cells till cell
C11

Click cell C12

Type =AVERAGE(C2:C11)

Press Enter
Using the Basic Function


To use the AutoSum function, perform the
following steps:

Open Microsoft Excel.

Type the heading Jan in A1

Type any numerical data from cell A2 to
A12

Type the heading Feb in B1

Type any numerical data from B2 to B12.

Type the heading Total Sales in C1.


Similarly, enter =A3+B3 in C3, and copy
the function for all the cells until cell C12

Click cell C13

Click AutoSum from the Editing group of
the Home tab

Select Max

Press Enter
AutoSum
Using the AutoSum Feature


To insert a function from the Function
Library, perform the following steps:


Type any numerical data in cell A1

Click cell D5

Click Math & Trig from Function Library
group in the Formulas tab

Select COS from the list

Type A1 in the Number box or select the cell
A1 by clicking on that cell and click OK
Math & Trigonometric Functions
in Excel
Function Arguments Dialog Box


To insert a function from the Insert
Function command, perform the
following steps:


Type any numerical data in cell A1

Click cell D5

Click Insert Function from
Function Library group in the
Formulas tab

Select Math & Trig from Or select
a category list

Select COS from the list

Type A1 in the text field in the
dialog box and click OK Insert Function Dialog Box

Using Conditional Formatting [1-2]

There are five sections in Conditional Formatting gallery:

Highlight Cells Rules
Highlights the selected cells by rules, such as Greater Than, Equal To, Duplicate
Values, and so forth

Top/Bottom Rules
Highlights the selected cells by rules, such as Top 10 Items, Bottom 10%, Above
Average, and so forth

Data Bars
Provides a bar graph on the opposite side of the numbers

Color Scales
Applies colors to the selected cells based on the data range. It is used for
comparison of values in the cell range.

Icon Sets
Applies set of icons such as arrows, traffics lights, flags, ratings, and so forth to the
data range of the selected cells.


To apply conditional formatting, perform the following steps:



Type any numerical data from B2 to B11


Similarly, enter =A3+B3 in C3

Copy the formula for all the cells till cell C11

Select cells C1 to C12

Click Conditional Formatting

Select Highlight Cells Rules > Greater Than

Specify the number or the cell reference and specify the condition

Click OK
Conditional Formatting
Using Conditional Formatting [2-2]
Conditional Formatting in Excel


Excel allows user to enter formulas for calculations.

Users can add, subtract, multiply, or divide any values present in any cells,
and display the result anywhere in the spreadsheet.

AutoFill can be used to generate series like months of the year, days of the
week and so on.

The users can apply functions, such as count, average, sum, and so forth by
using cell reference.

Users can even insert different mathematical signs in a single cell.

AutoSum feature directly provides access to functions like addition, average,
and so forth.

Conditional Formatting allows user to format the cells based on rules
specified.
Summary

Formulas and Functions Essentials

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