Exploring Microsoft Office

Excel 2010
by Robert Grauer, Keith Mulbery,
and Mary Anne Poatsy

Chapter 2
Formulas and Functions

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall. 1

 Objectives
• Use semi-selection to create a formula
• Use relative, absolute, and mixed cell references
in formulas
• Avoid circular references
• Insert a function
• Total values with the SUM function
• Insert basic statistical functions

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 Objectives (continued)
• Use date functions
• Determine results with the IF function
• Use lookup functions
• Calculate payments with the PMT function
• Create and maintain range names
• Use range names in formulas

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 Using Semi-Selection to Create a
Formula
• Semi-selection uses the mouse pointer to build
a formula containing cell references or ranges
• This technique is also called pointing

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 Cell References

• Excel offers three types of cell references for

use when a formula is copied
– Absolute $A$1
– Relative A1
– Mixed $A1 or A$1
• $ indicates that the row number or column letter
will not be modified during a copy

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 Relative Cell References
• When the formula shown in the formula bar is
copied, relative address A8 is modified

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 Absolute Cell References
• When the formula shown in the formula bar is
copied, absolute address $B$5 is fixed

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 Mixed Cell References
• In mixed reference $A1, the column is fixed,
but the row may be altered during a copy
• In mixed reference A$1, the row is fixed, but
the column may be altered during a copy

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 Avoiding Circular References
• A circular reference error occurs if a formula
refers to itself

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 Function Basics
• An Excel function is a predefined formula that
performs a calculation
Category Description
Compatibility Contains functions compatible with Excel 2007 and earlier.
Cube Returns values based on data in a cube, such as validating
membership or returning a member’s ranking.
Database Analyzes records stored in a database format in Excel and
returns key values, such as the number of records or
averages value in a field.
Date & Time Provides methods for manipulating date and time values.

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 Function Basics (continued)
Category Description
Engineering Calculates values commonly used by engineers, such as conversions.
Financial Performs financial calculations, such as payments, rates and
present/future values.
Information Provides information about the contents of a cell, typically displaying
TRUE if the cell contains a particular data type, such as a value.
Logical Performs logical tests and returns the value of the tests. Includes
logical operators such as AND, OR, and NOT.
Lookup & Looks up values, creates links to cells, or provides references to cells
Reference in a worksheet.
Math & Trig Performs standard math and trigonometry calculations.
Statistical Performs statistical calculations, such as averages or standard
deviation.
Text Manipulates text strings, by combining words or converting cases.

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 Function Terminology
• Syntax is the set of rules that govern correct
formation of a function
• An argument is an input, such as a cell or range
• A function begins with the equal sign (=)
followed by the function name and arguments in
parentheses
Example: =SUM(A1:A3)

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 Inserting a Function
• When a function is typed, Formula
AutoComplete displays a list of functions
matching the partial entry

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 Inserting a Function
• A function ScreenTip is a small pop-up
description that displays the function arguments

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 Insert Function Dialog Box
• Use the Insert Function dialog box to search
for a function or select one from a list

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Function Arguments Dialog Box
• The Function Arguments dialog box offers
help on each argument

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 Totaling Values with SUM
• The SUM function returns the mathematical
sum of some number of cells or ranges; for
example:
=SUM(A1:A3)
=SUM(A1,B3,C5)
=SUM(A1:B3,C5:E8)

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 Basic Statistical Functions
• Common statistical functions include:
– AVERAGE arithmetic mean
– MEDIAN midpoint value
– MIN minimum value
– MAX maximum value
– COUNT number of values in range
– COUNTA number of nonempty cells
– COUNTBLANK number of empty cells

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Basic Statistical Functions

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 Other Math & Trig Functions
Function Syntax Description
=ABS(number) Displays the positive value of a number.
=FREQUENCY(data_array, Counts how often values appear in a given range.
bins_array)
=INT(number) Rounds a value down to the nearest whole number.
=MODE.SNGL(num1, Displays the most frequently occurring value in a
[num2],…) list.
=PI() Returns the value of pi accurate to 15 digits.
=PRODUCT(num1, Multiplies all values within the argument list.
[num2],…)
=RANDBETWEEN(bottom, Generates a random number between two values.
top)

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 Other Math & Trig Functions
Function Syntax Description
=RANK.AVG(number, Identifies a value’s rank within a list; returns
ref,[order]) average rank for identical values.
=RANK.EQ(number, Identifies a value’s rank within a list; the top rank is
ref,[order]) identified for identical values.
=ROUND(number, Rounds a value to a specific number of digits.
num_digits)
=SUMPRODUCT(array1, Finds the result of multiplying values in one range
[array2],…) by related values in another column and adding
products.
=TRIMMEAN(array, Returns the average of the internal values in a range
percent) by excluding a specified percentage at the upper
and lower ends.
=TRUNC(number, Returns the integer equivalent of a number by
num_digits) truncating the fractional part.

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 Date Functions
• Since dates are numeric, calculations can be
performed, such as subtraction
• The TODAY function displays the current date
• The NOW function displays the current date
and time

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 Making Decisions with the IF
Function
• =IF(logical_test, value_if_true,value_if_false)
• The IF function has three arguments:
– A logical test or condition that is true or false
– The resulting value if the condition is true
– The resulting value if the condition is false

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Using the IF Function

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 Designing the Logical Test
• The logical test is built from the logical
operators
Operator Description
= Equal to
<> Not equal to
< Less than
> Greater than
<= Less than or equal to
>= Greater than or equal to

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 Using Functions as Arguments
• A nested function occurs when one function is
embedded as an argument to another function;
for example:
=IF(A1<A2,MIN(B1:B5),MAX(B1:B5))
– Compute the MIN function if A1 is less than A2
– Compute the MAX function if A1 is not less than
A2

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 Using Lookup Functions
• Lookup functions are used to look up values in
a table to perform calculations or display results
– For example, a teacher may want to look up an
average in order to assign a grade
Range Grade
90‐100 A
80‐89 B
70‐79 C
60‐69 D
Below 60 F

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 Creating a Lookup Table
• When searching a range, the breakpoint is the
lowest value
• A lookup table typically lists breakpoints in one
column and return values in a second column
Range Grade
0 F
60 D
70 C
80 B
90 A

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 VLOOKUP Function
• The VLOOKUP function searches a lookup
table for a value and returns the result from the
related column
• VLOOKUP has three required arguments:
– Lookup value
– Table array (range of lookup table)
– Column index of return value

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Using the VLOOKUP Function

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 HLOOKUP Function
• The HLOOKUP function is used when the
breakpoints and return data are placed in rows
• The third argument now lists the row index
0 60 70 80 90
F D C B A

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Calculating Payments with the PMT
Function
• The PMT financial function calculates the
periodic payment for a loan with a fixed interest
rate and term length
• PMT has three required arguments:
– Interest rate
– Number of periods
– Present value (amount of loan)

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Using the PMT Function

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 Range Names
• A range name is a word or phrase used to
identify a cell or cell range
• Range names make formulas easier to read

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 Range Name Rules
• Range names use the following rules:
– 1to 255 characters
– Begin with a letter or underscore (_)
– Contain letters, digits, period, underscore
• Valid names include Rate, Tax_Rate, Rate_2012

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 Creating a Range Name
• Excel offers a variety of methods to enter a
range name after selecting the cells:
– Type the range name in the Name Box area
– Enter the name using New Name dialog box

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 Maintaining Range Names
• Use the Name Manager dialog box to edit or
delete a range name

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 Summary
• In this chapter, you have learned to write
formulas using relative, absolute, and mixed cell
references.
• You have learned about statistical and date
functions, such as SUM, AVERAGE, and
TODAY.
• You have explored the IF, VLOOKUP, and
PMT functions.
• You learned to create and use range names.
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 Questions

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 Copyright

All rights reserved. No part of this publication may be reproduced, stored in

a retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

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