Lab-03

Basic Formulas and Functions in Excel

Objectives:

The objective of this lab is to understand the basic formulas and functions in Microsoft Excel. By
the end of this lab, you will learn how to:

1. Use simple arithmetic formulas.

2. Apply basic Excel functions like SUM, AVERAGE, MIN, MAX, etc.

Create more advanced functions using relative and absolute cell references.

Theory

Unit 3.1
Microsoft Excel: Overview
Microsoft Excel is a powerful spreadsheet software developed by Microsoft. It is widely used for
data management, analysis, and visualization. Excel allows users to organize data in rows and
columns, perform calculations using formulas, and generate graphical representations of data like
charts and graphs. Excel is an essential tool for both business and personal use in various fields
like finance, accounting, engineering, and data science.

Key Features of Microsoft Excel

1. Spreadsheet Grid: Excel's interface is based on a grid of rows and columns, with each
cell identified by its row number and column letter (e.g., A1, B3, etc.).
2. Formulas and Functions: Excel enables users to perform calculations using built-in
formulas or functions. Formulas can be simple arithmetic operations like addition or
more complex operations like statistical analysis or data manipulation.
3. Charts and Graphs: Excel provides users with various charting tools (bar, pie, line, etc.)
to visualize data effectively. This is useful for data analysis and presentation.
4. Data Analysis Tools: Excel offers features like PivotTables, Conditional Formatting,
Data Validation, and What-If Analysis to help users analyze and interpret data
efficiently.
5. Data Management: Excel allows users to filter, sort, and organize large amounts of data.
Users can also import/export data from various formats, such as CSV, XML, and
databases.
Unit 3.2
Introduction to Excel Formulas
Formulas in Excel always start with an equals sign (=). When you enter a formula in a cell, Excel
will compute the result and display it. Here's how you create a basic formula:

Basic Arithmetic Formulas

 Addition: =A1 + B1
 Subtraction: =A1 - B1
 Multiplication: =A1 * B1
 Division: =A1 / B1

Basic Functions in Excel

Excel comes with several built-in functions to simplify calculations. Some of the basic functions
are as follows:
SUM Function

 Purpose: Adds a range of numbers.

 Syntax: =SUM(A1:A10)
 Example: If you want to sum the values in cells from A1 to A10, you can write
=SUM(A1:A10).

AVERAGE Function

 Purpose: Calculates the average (mean) of numbers.

 Syntax: =AVERAGE(A1:A10)

Example: To find the average of values in cells A1 through A10, you use
=AVERAGE(A1:A10).
MIN Function

 Purpose: Finds the smallest number in a range.

 Syntax: =MIN(A1:A10)
 Example: Use =MIN(A1:A10) to find the minimum value in a selected range.

MAX Function

 Purpose: Finds the largest number in a range.

 Syntax: =MAX(A1:A10)
 Example: Use =MAX(A1:A10) to find the maximum value in a selected range.
COUNT Function

 Purpose: Counts the number of numeric values in a range.

 Syntax: =COUNT(A1:A10)
 Example: =COUNT(A1:A10) will return the number of numeric values in the range
A1 to A10.
Figure 3.1
Unit 3.3

Relative vs. Absolute References

When you copy a formula to other cells, Excel adjusts the references based on the new location.
This is called relative referencing. If you don’t want the reference to change, you use absolute
referencing by adding dollar signs ($).

 Relative Reference: =A1 + B1

 Absolute Reference: =$A$1 + $B$1
 Mixed Reference: =A$1 + $B1

Combining Functions
You can combine multiple functions in one formula. For example, to calculate the total and
average of a range:

 Total: =SUM(A1:A10)
 Average: =AVERAGE(A1:A10)
 You can also combine different functions like this:
 =SUM(A1:A10) / COUNT(A1:A10) to calculate the average manually

Advantages of Combining Functions

.  Saves time by automating complex calculations.

 Reduces manual errors in data analysis.
 Improves data organization by merging logic and formulas

Exercise

Question 1:
Question 1: Automating Data Formatting Using Excel Formulas

You are working as a data analyst in a company, and your manager has assigned you the task of
formatting sales data efficiently. Instead of manually calculating and formatting each entry, you
decide to use formulas in Excel to automate the process.

Task:

1. Apply the SUM(), AVERAGE(), and COUNT() functions to analyze a given dataset.
2. Format the total sales values to be bold, brown, and displayed in Currency format.
 3. Ensure that every time new data is added, the formulas automatically update the
calculations.

Instructions:

 Explain the steps involved in entering, applying, and modifying the formulas.
 Demonstrate how the formulas update automatically when new data is added.

Expected Outcome:

 Every time new sales data is added, the total, average, and count calculations are updated
without manual intervention.

Question 2: Automating Data Lookup with VLOOKUP and HLOOKUP

As part of the HR department, you frequently search for employee details based on their ID.
Instead of searching manually, you decide to automate this process using lookup functions.

Task:

1. Record an Excel function that uses VLOOKUP() to retrieve an employee’s name and
department based on their ID.
2. Use HLOOKUP() to extract data from a horizontal table of employee benefits.
3. Ensure that headers are bold for clarity.

Instructions:

 Explain how to use VLOOKUP() and HLOOKUP() effectively.

 Describe how to modify the lookup range if the dataset expands.

Expected Outcome:

 Every time an employee ID is entered, the relevant information is retrieved automatically

without manually searching the table.

Question 3: Automating Conditional Formatting Based on Cell Values

As a financial analyst, you need to highlight key financial data based on performance. Instead of
manually reviewing the data, you decide to use Conditional Formatting in Excel.

Task:

1. Use IF() and Conditional Formatting to highlight sales figures above $10,000 in green
and below $5,000 in red.
 2. Display a message “High Sales” for values above $10,000 and “Low Sales” for values
below $5,000 using an IF() function.
3. Ensure that formatting is applied dynamically to new data entries.

Instructions:

 Explain the steps to apply IF() logic and conditional formatting.

 Describe how to modify the conditions if the sales thresholds change.

Expected Outcome:

 Each time a new sales figure is added, it is automatically formatted and categorized.

Question 4: Automating Monthly Report Calculations

You frequently generate monthly financial reports that require sum totals, averages, and
percentage calculations. Instead of manually calculating them every time, you decide to use
Excel formulas.

Task:

1. Create an Excel sheet that calculates:

o Total revenue using SUM()
o Average revenue per month using AVERAGE()
o Percentage of total sales per product using a percentage formula
2. Apply formatting so that the totals appear bold and in blue.
3. Ensure that when new revenue data is entered, the calculations update automatically.

Instructions:

 Explain how to apply the formulas and modify them when needed.
 Describe how to use absolute and relative cell references to ensure formulas work
correctly across multiple rows and columns.

Expected Outcome:

 Every time new revenue data is added, totals and percentages update automatically
without manual recalculations.
Conclusion:
 Lab-04

PivotTables and PivotChart in Excel

Objectives:
To understand how to create, modify, and analyze data using PivotTables and PivotCharts in
Microsoft Excel

Theory

Unit 4.1
Microsoft Excel: Overview
A PivotTable is an interactive Excel feature that allows users to summarize, analyze, explore, and present large
amounts of data efficiently. A PivotChart is a graphical representation of a PivotTable that helps visualize data
trends and patterns
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