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1 Terminology spreadsheet design Excel environment working with cells formulas 1

2 Excel Part 1 1. Definitions & Terms 2. Spreadsheet design 3. The Excel Window 4. Working with cells Data entry tips 9. Intro to Formulas Arithmetic Functions and arguments Ranges Pasting formulas Autosum 2

3 1. Definitions & Terms Spreadsheet Spreadsheet: a rectangular table (or grid) of information, often financial information 1 Spreadsheet program: an application that helps us to organize and perform calculations with numeric data laid out in rows and columns, providing: improved speed and accuracy over hand calculation the ability to redo the calculations for multiple data sets the ability to consider what if alternatives by changing data and observing the effect on the calculated values 1 Wikipedia,

4 Spreadsheet programs were inspired by financial ledgers 4

5 Sheets of cells replace the pages of the ledger 5

6 1. Definitions & Terms Excel Microsoft Excel, the spreadsheet application in Microsoft Office, integrates: calculation, including hundreds of mathematical and lookup functions table formatting, including: text layout borders and pattern fills number formatting hidden rows and columns conditional formatting charting to display your data graphically (a good way to present data to an audience) 6

7 1. Definitions & Terms Worksheet Excel Terms Worksheet: like a single page in a ledger, with: cells, each containing a number or character string organized into columns A, B, C, D, E, and rows 1, 2, 3, 4, charts which lie overtop of the cells Every cell has a unique address consisting of the column letter followed by the row number (for example, A1 or E7 or G127) Chartsheet: a worksheet that contains only a chart 7

8 1. Definitions & Terms Workbook A workbook is the file created by Excel to store related worksheets One workbook can have multiple worksheets Each worksheet in a workbook: has a name that appears on a sheet tab at the bottom of the sheet can be made the active sheet by clicking on its tab can be renamed by editing the tab label: Right click on the tab choose Rename from the pull down list can be moved or copied within the workbook 8

9 1. Definitions & Terms Cells Every cell has the following attributes: a value a format A cell value can be: a number: (which can be formatted as a date, a time, dollar amount, etc.) a formula: that specifies a calculation (usually involving values in other cells) text: containing any sequence of characters, including digits, that can be interpreted as data: for example, a customer name Leslie Bing, or a label: to identify groups of cells, for example, Sales 9

10 1. Definitions & Terms Cells (cont d) Cell format Numbers can be formatted as text, dates, accounting, general, time, etc. Numbers or text can have: alignment attributes (left, right, word wrap) font attributes (colour, size) border and fill attributes (thickness, colour), etc. The default format is the General format: left aligned text right aligned numbers standard font size 10

11 1. Definitions & Terms Cells (cont d) To format cells, first select the cells you wish to format, then: 1. choose Format from the Cells group in the Home tab on the Ribbon 2. or select Format Cells from the pull down menu 3. or right click and choose Format Cells from the context menu 4. or choose Format as Table or Cell Styles from the Styles group in the Home tab on the Ribbon to quickly apply predefined formats 11

12 2. Spreadsheet Design 5 Steps You can save a lot of time and produce a better product if you think about what you want from your spreadsheet before entering data. Step 1 Set goals: What do you want your spreadsheet to do? For whom? What values will you need, and what results will you calculate? Which results do you want people to notice, and which ones can be out of sight? 12

13 2. Spreadsheet Design 2 Step 2 Decide on row, column and sheet layout: Repetitive data will appear in tables. Design principles are similar to database tables Which tables should appear on which sheet? Typically only small tables can share a sheet. Often rows and columns can be interchanged. Usually you want more rows than columns. It is easier to compare entries down a column than across a row. The final result may be a set of charts. Where do you want the charts to appear? Does the reader need easy access to the data on which the charts are based? 13

14 2. Spreadsheet Design 3 Step 3 Format the spreadsheet for clarity LABELS Label rows and columns of each table at the left and top respectively don't confuse (user defined) labels with the worksheet s column headings (A, B, C, ) and row headings (1, 2, 3,...) Many worksheets have fixed values called parameters used in calculations (e.g. interest rate) label the parameters and place them in their own section in the worksheet (sometimes called assumptions) 14

15 2. Spreadsheet Design 4 Step 3 Format the spreadsheet for clarity (cont d) FORMATTING OPTIONS Connect related parts of the spreadsheet with borders and background colours Use a standard font throughout. Emphasize labels with bolding or italics or colour. Use the general formatting convention of left justification for text, right justification for numbers, so you can tell them apart Use appropriate precision for numbers Highlight values you want a reader to notice 15

16 16

17 2. Spreadsheet Design 5 Step 4 Determine appropriate formulas for calculated quantities Choose a formula that will work for the most common cases, and then modify it to handle exceptional cases (e.g. missing values) as well. Where different cells contain similar formulas (e.g. total for a column of cells): get one formula right, then copy or drag it to the other locations (to be discussed later) Do not re enter it, as you could make a mistake each time you do that. 17

18 2. Spreadsheet Design 6 Step 4 Determine appropriate formulas for calculated quantities (cont d) Check that your formulas produce the correct results. In a 1999 survey of financial models by KPMG 1 : 95% of spreadsheets had major errors 59% of spreadsheets had poor design models 75% had significant accounting errors Document your formulas. Put the explanation in a text cell, or in a comment attached to a cell

19 2. Spreadsheet Design 7 Step 5 Use chart types and options that make your point Explain each chart with a title and axis labels. Use appropriate units in axis labels (e.g. meters or $) Use bar charts, not pie charts, to compare quantities (e.g. what fraction of Canada's gross domestic product is produced by each province?) as the eye is most accurate in comparing lengths 3 D charts look impressive, but usually are difficult to read accurately because of the perspective; use them only to represent functions of 2 variables Use a graph region that is approximately square Choose axes so that the data fills the graph region 19

20 A 3 D chart looks impressive, but how easy is it to compare the heights of different bars? 20

21 3. The Excel window Quick Access Toolbar Office button Ribbon Name Box Select All button Formula bar Active cell (B5) Column D Row 9 Worksheet tabs Status bar 21

22 3. The Excel window: the Status Bar The Status Bar gives you information about what Excel expects next: when you make a cell active, it displays Ready meaning it is ready to receive input as you type it displays Enter meaning it expects you to enter (or cancel) the input if you use commands like Cut or Copy it displays a brief description about what to do next Common Misconception: It does NOT tell you whether the file has been saved since your last change 22

23 4. Working with cells The active cell has a black border and highlighted row and column headings As you work with cells the formula bar changes the active cell address appears in the name box Data you type is entered into the active cell your typing appears in both the cell and in the entry area in the formula bar cancel and enter buttons appear cancel undoes your typing enter places entry into cell changing the active cell also places the entry into the cell 23

24 4. Working with cells: Changing the active cell To change the active cell, you can: click in any inactive cell use the arrow keys or key combinations Tab move right one cell Shift+Tab move left one cell Enter move down one cell Shift+Enter move up one cell use the arrow keys to move up and down or left and right 24

25 4. Working with cells: Data Entry Tips Hint: try selecting an area for data entry, then observe that the Tab key moves to the next line once you reach the end of the current line. Hint: if you tab from cell to cell, when you press enter, the active cell goes back to the beginning of the next line (i.e. the column where you started tabbing) Hint: Experiment with using fill handle when you need to type in series, like the days of the week or months of the year fill handle 25

26 5. Formulas Entry area Formulas perform calculations All formulas begin with an equals sign (=) As you enter a formula, it is displayed both in the cell and the entry area Once the formula is entered, the result is displayed in the cell To see the formula that produced the result, make the cell the active cell the formula will appear in the entry area 26

27 5. Formulas: Entering Formulas Begin a formula by typing the equal (=) sign Type an expression, usually referring to other cells by using cell addresses For example, =B9 D9 subtracts the value in cell D9 from the value in cell B9 You can either type an address directly, or just click on the cell and Excel will put its address in the formula Once you have created the formula, press the enter key (or click the check mark on the formula bar) and the result of the formula will appear in the cell 27

28 5. Formulas: Arithmetic Formulas Simple arithmetic formulas involve the usual operators ( e.g. + * / ^ ) cell addresses (e.g. A5) numbers (e.g. 10.5, 2) For example, =(A2+10)/5+2.5 Formula precedence order is: ( ) inner most parentheses first ^ power or exponent operator * / multiply, divide + addition, subtraction Consider the example above. If A2 contains the value 5, the result is...? Without the ( )? 28

29 5. Formulas: Examples Operator examples: =5+2 =10/2 =10.0/2 =2*4 =2^2 =4^0.5 =2^ 2 Precedence Rules: =5+7*100 =(5+6)*10 =SUM(5,6)*10 =5^2+6*10 =

30 5. Formulas: Functions and Arguments Some formulas can involve a lot of typing For example, adding a column of 100 numbers =D10+D11+D12+ +D109 Others involve operations that can t be done using the arithmetic operators For example, finding largest/smallest value Excel provides functions to overcome these problems 30

31 5. Formulas: Functions and Arguments A function has two parts: function name function arguments in parentheses For example, =SUM(D10, D11, D12) Functions that perform some operation on cell values specify those cells as arguments in the example above, the function has 3 arguments it sums 3 values Note that some functions have no arguments, but still require the parentheses for example, PI( ) returns the value of the constant π 31

32 5. Formulas: Ranges We can now use the SUM function to add our column of 100 numbers but we haven t saved any typing because we still have to enter the 100 cell addresses! Excel has a shorthand for specifying the addresses of cells in a rectangular region just enter two addresses separated by a colon first address: the upper left corner of the region second address: the lower right corner of the region for example, our sum now becomes =SUM(D10:D109) This shorthand is called a range 32

33 5. Formulas: Ranges as Function Arguments A range can be selected either by: typing it directly, or dragging over the cells in the range, or clicking on the upper left cell and then shift clicking on the lower right cell In the last two methods, the size of the range will appear in a name box attached to your cursor For example, 4R x 3C Once you finish selecting the range, it appears in your formula (don t forget to press the Enter key to enter the whole formula when you are done) 33

34 5. Formulas: Inserting Functions Insert a function into your formula using the Insert Function dialog click f x on the formula bar or select the Formulas tab on the ribbon and choose Insert Function from the Function Library group You may search for a function or select it from a list After selecting a function click OK and the function is pasted into your formula 34

35 5. Formulas: Inserting Functions After you paste the function another dialog opens which helps you supply the arguments 35

36 5. Formulas: Autosum The most common formula is one that sums a row or column of values It is so common that Excel provides a tool for creating sum formulas Make the active cell the cell where you want the sum click on the AutoSum button in the Editing group on the Home tab in the Ribbon You can pick other commonly used functions (like AVERAGE, COUNT, MAX, etc.) from the drop down list 36

37 5. Formulas: Autosum AutoSum will choose the numbers to the left (for a row sum) or the numbers above (for a column sum) If this is the range and function you want, just press Enter to accept the formula You can adjust the range by dragging the mouse or using the arrow and shift +arrow keys 37

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