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Next generation excel modeling & analysts
KYODO Consulting Group, CEO
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May 01, 2014
Excel Modeling and analysts
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Transcript of "Next generation excel modeling & analysts"
1. Next Generation Excel®
Founded in 1807, John Wiley & Sons is the oldest independent publishing company in the United States. With offices in North America, Europe, Australia and Asia, Wiley is globally committed to developing and marketing print and electronic products and services for our customers' professional and personal knowledge and understanding. The Wiley Finance series contains books written specifically for finance and investment professionals as well as sophisticated individual investors and their financial advisors. Book topics range from portfolio management to e-commerce, risk management, financial engineering, valuation and financial instrument analysis, as well as much more. For a list of available titles, visit our Web site at www.WileyFinance.com.
Next Generation Excel® Modeling in Microsoft® Excel® for Analysts and MBAs (for Windows® and Mac® OS) Second Edition ISAAC GOTTLIEB John Wiley & Sons Singapore Pte. Ltd.
To my father, Yeshayahu Gottlieb, and to Gilda, Edon, Sivan, David, Jonah, Ruby, and Lev Copyright ª 2013 by John Wiley & Sons Singapore Pte. Ltd. Published by John Wiley & Sons Singapore Pte. Ltd. 1 Fusionopolis Walk, #07-01, Solaris South Tower, Singapore 138628 All rights reserved. First edition published by John Wiley & Sons Singapore Pte. Ltd. in 2010. 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, scanning, or otherwise, except as expressly permitted by law, without either the prior written permission of the Publisher, or authorization through payment of the appropriate photocopy fee to the Copyright Clearance Center. Requests for permission should be addressed to the Publisher, John Wiley & Sons Singapore Pte. Ltd., 1 Fusionopolis Walk, #07-01, Solaris South Tower, Singapore 138628, tel: 65–6643–8000, fax: 65–6643–8008, e-mail: firstname.lastname@example.com. Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. Microsoft and Excel are registered trademarks of Microsoft Corporation. Mac and Mac OS are trademarks of Apple Inc., registered in the U.S. and other countries. Other Wiley Editorial Offices John Wiley & Sons, 111 River Street, Hoboken, NJ 07030, USA John Wiley & Sons, The Atrium, Southern Gate, Chichester, West Sussex, P019 8SQ, United Kingdom John Wiley & Sons (Canada) Ltd., 5353 Dundas Street West, Suite 400, Toronto, Ontario, M9B 6HB, Canada John Wiley & Sons Australia Ltd., 42 McDougall Street, Milton, Queensland 4064, Australia Wiley-VCH, Boschstrasse 12, D-69469 Weinheim, Germany Library of Congress Cataloging-in-Publication Data ISBN 978-1-118-46910-1 (Hardcover) ISBN 978-1-118-46909-5 (ePDF) ISBN 978-1-118-46907-1 (Mobi) ISBN 978-1-118-46908-8 (ePub) Typeset in 10/12pt SabonLTStd by MPS Limited, Chennai, India Printed in the United States of America. 10 9 8 7 6 5 4 3 2 1
"For wisdom is better than rubies, and all the things one may desire cannot be compared with her." Bible, Proverbs (Chapter VIII, Verse 11)
Contents Foreword xv Preface xvii Acknowledgments xxi PART ONE Using Excel Efficiently 1 CHAPTER 1 AutoFill 3 AutoFill Options 8 Right-Drag AutoFill 8 Appendix: AutoFill in Excel 2003 and Excel Mac 2011 10 Review Questions 13 Answers 14 CHAPTER 2 Selecting Efficiently in Excel 15 Review Questions 18 Answers 19 CHAPTER 3 Formulas, Functions, and Relative and Absolute Addressing 21 Relative and Absolute Addressing 22 Other Functions 25 Appendix: Doing It in Mac Excel 2011 28 Review Questions 29 Answers 30 CHAPTER 4 Naming Cells and Ranges 31 Naming a Single Cell 31 Naming a Range of Cells 33 Using the Name Menu to Create Names 34 Appendix: Using the Names Menu in Excel 2003 and Mac Excel 2011 38 Review Questions 41 Answers 42 vii
CHAPTER 5 Conditional and Advanced Conditional Formatting in Excel 45 Simple Conditional Formatting; Adding a Rule 45 New Conditional Formatting Features 46 Advanced Conditional Formatting 49 Appendix: Using the Conditional Formatting in Excel 2003 52 Review Questions 53 Answers 55 CHAPTER 6 Excel Charts 57 Quick/Instant Chart 57 Creating a Chart Using the Menu 57 Adding More Data to an Existing Chart 61 More about Charts 64 Three-Dimensional Charts—Column and Pie 66 Pie Charts 70 Appendix: Generating Charts in Excel 2003 and Mac Excel 2011 73 CHAPTER 7 Sparklines and Advanced Topics in Excel Charts 81 Sparklines 81 More about Charts 83 Review Questions 90 Answers 91 PART TWO IF Functions and Text Manipulations 93 CHAPTER 8 IF Functions 95 Simple IF Functions 95 Nested IF Functions 98 Nested IF—Payroll Example 99 Appendix: Using the IF Function in Mac Excel 2011 101 Review Questions 102 Answers 102 CHAPTER 9 Text Manipulation 103 Text to Columns 103 Appendix: Using Text to Column in Excel 2003 108 Review Questions 111 Answers 112 viii CONTENTS
PART THREE Statistical Tools 113 CHAPTER 10 Descriptive Statistics 115 Descriptive Statistics 115 Appendix: Descriptive Statistics with the Mac Excel 2011 117 Review Questions 119 Answers 119 CHAPTER 11 Frequency Distributions 121 One More Example 126 Appendix: Frequency Distributions with Mac Excel 2011 129 Review Questions 129 Answers 130 CHAPTER 12 Statistical Regression 131 Using the Scatter Chart in Excel 131 Linear Regression—Using Excel Functions 133 Appendix: Using the Chart Feature to Create a Trend Line in Excel 2003 and Mac Excel 2011 137 Review Questions 140 Answers 140 CHAPTER 13 Data Analysis—The Excel Easy to Use Statistics Add-In 141 Descriptive Statistics 141 Frequency Distribution Using Histogram 143 Appendix: Using Data Analysis in Excel Mac 2011 and Excel 2003 148 Review Questions 148 Answers 149 CHAPTER 14 Data Analysis—Multi-Regression 151 Simple or Single Variable Regression 151 Multi-Regression 152 Appendix: Using Data Analysis in Excel Mac 2011 and Excel 2003 160 Review Questions 160 Answers 161 Contents ix
PART FOUR What-If Analysis 165 CHAPTER 15 Naming Cells—For Meaningful Decision Making and Modeling 167 One More Example—If You Have a Ready Model 168 Appendix: Create and Apply Names in Excel 2003 and Mac Excel 2011 170 Review Questions 175 Answers 175 CHAPTER 16 What-If Analysis and Goal Seek 177 Goal Seek 178 Appendix: Goal Seek in Excel 2003 and Mac Excel 2011 182 Review Questions 183 Answers 183 CHAPTER 17 Sensitivity Analysis—One- and Two-Way Data Tables 185 Two-Way Table 187 Data Tables—One More Example 189 Break-Even Point (BEP) Chart 190 Appendix: Sensitivity Analysis—One- and Two-Way Data Tables for Excel 2003 and Mac Excel 2011 192 Review Questions 193 Answers 195 CHAPTER 18 Using Scroll Bars for Sensitivity Analysis 199 Scroll Bar Limitations 203 Appendix: Adding a Scroll Bar in Excel 2003, 2007, and Mac Excel 2011 205 Review Questions 207 Answers 208 PART FIVE Multi-Page Systems and Lookups 211 CHAPTER 19 Multi-Page Budgets—Going to the Third Dimension 213 A Payroll Example 213 A Second Example—Bakers' Supplies 217 Review Questions 219 Answers 220 x CONTENTS
CHAPTER 20 Lookup Tables 221 Range—Approximate Match Lookup 221 An Exact Match Lookup 224 Review Questions 227 Answers 228 PART SIX The Data Menu and Ribbon 229 CHAPTER 21 Sorting Data 231 Sorting by Multiple Parameters 233 Appendix: Sorting in Excel 2003 and Mac Excel 2011 236 Review Questions 238 Answers 239 CHAPTER 22 AutoFilter 241 Dates 241 Below and Above Average 243 Filter by Color 243 Appendix: AutoFilter in Excel 2003 244 Review Questions 246 Answers 247 CHAPTER 23 Data Forms and Features Eliminated in Excel 2007 and 2010 249 Appendix: The Data Form in Excel 2003 or Earlier versions and Mac Excel 2011 251 Review Questions 252 Answers 253 CHAPTER 24 Group and Outline Data 255 Appendix: Group and Outline Data Excel 2003 and Mac Excel 2011 258 Review Questions 260 Answers 261 CHAPTER 25 Excel Subtotals 263 One More Example—Function Applied to Multiple Categories 265 Copying Grouped Data 265 Second Example—Larger Database 269 Appendix: Creating Subtotals in Excel 2003 and Mac Excel 2011 269 Review Questions 273 Answers 273 Contents xi
CHAPTER 26 Pivot Tables 275 PivotTable Example 275 Appendix: The Pivot Table in Excel 2003 and Mac Excel 2011 282 Review Questions 286 Answers 286 CHAPTER 27 Data Mining Using Pivot Tables 289 Appendix: Advanced PivotTable Techniques in Excel 2003 296 Review Questions 297 Answers 298 CHAPTER 28 Using Slicers to Filter Pivot Tables 301 Format a Slicer 302 Sharing Slicers for More Than One Pivot Table 304 Review Questions 305 Answers 306 PART SEVEN Excel Financial Tools 307 CHAPTER 29 NPV and IRR—Evaluating Capital Investments 309 The Time Value of Money 309 IRR—Internal Rate of Return 311 Review Questions 313 Answers 313 CHAPTER 30 Unconventional Financial Functions: XNPV and XIRR 315 Excel XNPV—The Net Present Value Function for Uneven Intervals 315 Excel XIRR—The Internal Rate of Return Function for Uneven Intervals 316 Review Questions 318 Answers 318 CHAPTER 31 Frequently Used Financial Functions 319 Similar Excel Functions 320 Review Questions 323 Answers 323 CHAPTER 32 Amortization Tables 325 Amortization Example 325 Review Questions 334 Answers 334 xii CONTENTS
CHAPTER 33 Accounting Depreciation Functions 337 SLD Straight Line Depreciation 337 SYD Sum of the Years Digits 337 Review Questions 339 Answers 339 PART EIGHT Using the Solver Add-In 341 CHAPTER 34 Beyond the Goal Seek—More Than One Changing Cell? Use the Solver 343 Example—Break-Even Point 343 Using the Solver 343 Appendix: Using the Solver in Excel 2003 and Mac Excel 2011 349 Review Questions 350 Answers 352 CHAPTER 35 The Solver Add-In—Optimizer 353 Solver Example 353 Nonlinear Example Using the Solver 355 Appendix: Using the Solver in Excel 2003 and Mac 2011 360 Review Questions 360 Answers 360 Appendix Summary Case Study—Supply Chain Management Example 365 About the Author 385 Index 387 Contents xiii
Foreword I am pleased to write the foreword to this very practical and important book on Excel by Professor Isaac Gottlieb. As Dean of the Fox School of Business at Temple University in Philadelphia, I have personally known Dr. Gottlieb for several years and can attest to his deep knowledge in this field. Excel is one of the most robust business application tools of our time, and Professor Gottlieb is one of the foremost experts in Excel. Professor Gottlieb teaches Statistics and Excel to graduate and undergraduate students at Temple University. He is very passionate about teaching and receives rave reviews in his classes. This book utilizes not only his many years of using Excel on both PC and Apple, but also his teaching of courses and workshops in many universities and corporations across the world. The many questions that have been asked of him, including those sparked by his "tips of the month," are distilled in this book. This book distinguishes itself in a number of ways. Even though the book utilizes the latest version of Excel (2010), it explains how it differs from—and how to work out the same tasks with—previous Excel versions (2007 and 2003). It even has a special appendix in every chapter for Excel for Mac 2011, which has become increasingly popular. Every topic and chapter includes real-world cases using the most efficient Excel modeling to solve them. Chapters are followed by review questions and solutions. This book covers a number of concentrations most analysts and business stu- dents use today: finance, accounting, statistics, data mining, operations management, and analytic techniques for decision-making. The capstone appendix is a detailed supply chain management case study that combines all the techniques covered throughout the book. The majority of Excel users take advantage of only a very small portion of the software. This book, with 35 chapters covering a variety of topical areas, unleashes the incredible capacity and potential of Excel. Professor Gottlieb's thorough expla- nations of these topics and hundreds of actual screenshots enhance readers' ability to understand and see how routines are performed and displayed. This book will be useful to all who utilize Excel in their daily lives, be they casual users, students or professionals. M. Moshe Porat, Ph.D., CPCU Dean Laura H. Carnell Professor Temple University xv
Preface Ihave taught people how to utilize Excel for business since 1997. My focus has always been on the applications needed in a business environment. Because of years of teaching the application's extensive possibilities, I have found that systematic and hands-on approaches are the most effective. When you get to the heart of the matter, you will find that the author is speaking to the reader, as I am doing now. This book was voluntarily written in a very informal tone, to keep the learning process as dynamic as it can be in a classroom or workshop setting. I wanted to create a book that appeals to students, as well as practitioners and instructors. All the techniques in this book have been developed first with the pro- fessors and students who attended my classes and workshops. What is in this book is the distillation of the feedback of many years' teaching. I have learned what people really want to know about Excel. One thing is certain: They don't want to read long, complicated explanations. They want a simple answer with visual figures or pictures; therefore, this book is filled with short explanations and screen shots. It is organized in a way to help you hit the ground running, and quickly at that! I have verified the application of this book's subject matter outside of the classroom—in putting together projects, generating business plans, and other decision- making instances. I have applied the various techniques time after time in a variety of consulting projects. All the examples in this book are the direct result of real-life, hands-on experience. Most people who use Excel want and need fast answers to their problems. The special features of the Excel software are covered in a manner inviting the user to apply the knowledge immediately. While the book is written with Excel 2010 and 2007 in mind, most chapters have an appendix for Excel 2011 for Mac, Excel 2003 or earlier versions, when the latest version implied different manipulations of the software. Every chapter has a few review questions at the end (with the answers!) to ensure that you really understand what you have read, by applying the knowledge to different problems to be solved than the ones covered in the chapter. I cannot encourage you enough to do these exercises. WHO SHOULD READ THIS BOOK? You will find this book useful if you . . . n Spend more than 10 hours a week using Excel—you will save hundreds of hours a year applying this knowledge. n Are a decision maker at any level—you will improve your decision-making ability. xvii
n Are an analyst in the areas of accounting, finance, marketing & sales, HR, or strategy—you will learn to handle your analysis in a more efficient and creative way. n Have to make quantitative or graphical presentations. n Are an executive and have to train your staff in time-saving process applications. n Are an executive assistant—you can better support management with your improved skills. n Are an entrepreneur and need to create business plans. n Are dealing with accounting, marketing/sales, HR, finance, or other business disciplines. n Are a student or plan to become one. n Will be in a position to have to train people to use Excel. OVERVIEW OF THE CONTENTS This book has eight parts. Read it in order or feel free to jump directly to any of the parts. Part One explains how to use Excel efficiently. It covers the AutoFill, efficient selection, and highlighting functions in Excel. You will also learn how to use key- board selection shortcuts. The second topic covered shows how to insert formulas or functions and the use of absolute versus relative addressing. The last two chapters describe the naming of cells and ranges and how one creates charts. You will also find a chapter on conditional formatting and a chapter about advanced charts and sparklines. Part Two covers two commonly needed skills: the use of the IF functions, which make Excel an invaluable tool for decision-making purposes, and the Text manip- ulation functions. Part Three introduces Statistical Tools. Statistics in Excel provide the user with a set of tools helpful in sorting out and solving a variety of problems. This part covers descriptive statistics and simple regressions. You will also find a new chapter cov- ering Multi Regression. Part Four is called What-If Analysis. What-if analysis enables the user to find out what will be the impact of change. This part of the book shows you how to take advantage of the what-if tools in the decision-making process. It demonstrates fea- tures such as naming cells for modeling, the goal seek, one- and two-way data tables, and the effective use of scroll bars. Part Five covers two chapters, Multi-Page Systems and Lookups. Most Excel users either keep their entire model or information on one worksheet or—when they use a number of sheets—do not take advantage of structuring the workbook/system so that they can use Excel more effectively. Studying the Multi-Page chapter will remedy this shortcoming. The second portion of Part Five discusses lookup functions. It demonstrates how to perform an exact lookup and how to perform range lookups. After you under- stand the lookup function described, you will be able to perform any of the other lookup functions. Part Six loosks at the Data menu and ribbon. This part of the book deals with the Data menu features of Excel. It covers all the following topics: Sorting data, Filters, xviii PREFACE
Creating and Using Data Forms, Grouping Data, Subtotals, and Pivot Tables. This edition has a new chapter covering the Pivot Table Slicer. Part Seven deals with the variety of Financial Tools Excel comes equipped with. What are the most frequently used financial formulas available, including those in the Analysis ToolPak, and how do we apply them using Excel efficiently? Part Eight explains how to use the Solver Add-in. Solver is an Excel Add-in, which, in very simple terms, is a software tool for "solving" mathematical systems of equations for optimizations. This part of the book does not attempt to teach the mathematical aspect of using the Solver, but it does demonstrate how to put it to good use for three different applications. The first application explains how to use the Goal Seek when you want to have more than one changing cell or decision variable. The second application demonstrates efficient use of the Solver for a linear optimi- zation problem. The last case explains its use in a nonlinear optimization problem. Appendix A has a comprehensive Summary Case Study to review and practice many of the topics covered in the book. ADDITIONAL MATERIALS All the Excel files and charts mentioned in the chapters are available for download. Please visit this book's companion website at www.wiley.com/go/gottlieb (password: isaac123). Preface xix
Acknowledgments Special thanks to Ms. Marianne Tan, who worked with us at our Executive MBA offices in Singapore. This book was actually her idea—she took the notes I give to students and handed them (to my great pleasure!) to Ms. CJ Hwu, Senior Publishing Editor at John Wiley & Sons (Asia). I am grateful to both for their support in this endeavor. I am grateful also to Ms. Lucie Alary for the countless hours spent proofreading the chapters' drafts, before they took the shape of a book. In her meticulous manner, she read the text, made suggestions, and pointed out many details that have improved the book a great deal. She was also gracious enough to read the new chapters of this second edition. Also thanks to my friends Avi Miller and Manny Zachodin. They acted as my sounding board as I developed the material for my Excel workshops and through the process of writing this book. They have been teaching MBA and other workshops with me for the last 15 years using the material in this book. Their wisdom, expe- rience, and feedback enabled me to improve the quality of many of the topics cov- ered. I am grateful for their time, effort, and of course, their friendship. The usual disclaimer is in order: Any mistakes in the work are my own. xxi
PART One Using Excel Efficiently Part One describes how Excel, the widely used spreadsheet software, can be used efficiently to help build your spreadsheet for a variety of purposes. As an MBA student, an analyst, or an executive, you will develop enough expertise to perform the same tasks you were performing before—using other means—much faster and in a more efficient way. This part of the book demonstrates tools, shortcuts, and techniques for carrying out some common tasks quickly and efficiently. This part will not turn you into an Excel expert in a short time, but by the end you should improve the tasks you can do—the types of tasks that make Excel into such an incredibly powerful and flexible tool for modeling, finance, statistics, and data manipulation. In Part One: Using Excel Efficiently, we cover the AutoFill feature, efficient selecting, and highlighting in Excel. You will also learn how to use keyboard selection shortcuts. The next topic covered is how to insert formulas, activate functions, and use absolute and relative addressing. The last three parts are the naming of cells and ranges, formatting and conditional formatting, and creating simple as well as complicated charts and Sparklines. 1
CHAPTER 1 AutoFill The AutoFill feature in Microsoft Excel can automatically fill in cells with commonly used series (numbers, months, and days of the week) or with custom lists you can create. This chapter demonstrates how to use the drag handle and other ways to fill in information. These operations work in all directions: top down, down up, left to right, and right to left. Figure 1.1 demonstrates this feature. Select two adjacent cells and release the mouse. When you hover again over the lower right corner, your mouse pointer should change shape to a crosshair (þ) called a drag handle. You can click and drag down the column and Excel will continue the initial two-cell series for you. You can AutoFill several types of data including, but not limited to, numbers, dates, days, and annual quarters by selecting cells and dragging the handle as shown in Figure 1.1. By default, a number of AutoFill lists are pre-installed in the program. For a list of the available AutoFill series, in the 2010 version we use the File icon to get to the Excel Advanced Options menu and the Custom Lists menu. See Figure 1.2. For 2007 go to the Windows icon, click on Excel Options, and click on the Edit Custom Lists button. See Figure 1.2. You may add your own lists as needed to Custom Lists. This is explained at the end of the chapter. Try to use the following example for using the Custom Lists shown in Figure 1.3. We filled in the information in the sheet. You may want to open the AutoFill sheet in the Excel file for Chapter 1 on the web page. The example illustrates the use of the AutoFill feature in Excel. Select the first two values in column B (B2 and B3), click on the lower right drag handle of cell B3, and pull the drag handle down toward cell B10. Dragging down the information created the desired AutoFill effect of continuing with the same series of numbers: 6, 9, 12, 15, . . . , 30. Try to drag down the information shown in columns C and D. You will create the information shown in Figure 1.4. After you experiment with a couple of columns, try a more efficient way: select two vertical adjacent cells E2:E4. Release the mouse for a moment. Go to the drag handle. This time, do not drag—just double-click. Excel will drag it down for you. See Figure 1.5. It will complete filling for you to the end of the adjacent column on the left. You may try double-clicking with more than one column selected at a time. Double-click works only in one direction: down. 3
You may want to try it yourself. As shown in Figure 1.6, all of the columns selected are highlighted and the crosshair handle appears at the lower right corner of the final column. In Figure 1.7, you can see the results after using the AutoFill double-click. More features of the AutoFill function are discussed in the context of regressions in Chapter 12. I also explain the concept of Time in Excel in Chapter 12. Creating Custom Lists in Excel enables you to use these lists as demonstrated with the AutoFill function. Custom Lists let you use them when you sort in Excel. In addition to sorting in numerical or alphanumeric order, you can also sort with these Custom Lists or with the ones you create. You can use the list created here later to sort a database. To create a Custom List in Excel, you need to type the list in a range on a sheet as shown in Figure 1.8. I used a list of the 10 largest cities in the United States where your company may be doing business as an example. Refer to Figure 1.2 for how to access the Custom Lists menu. In Excel 2010, go to the File icon to get to the Excel Advanced Options menu and the Custom Lists menu. For Excel 2007, go to the Office icon, click on Excel Options, and click on the Edit Custom Lists button. The result is shown in Figure 1.9. For Excel 2003 or the Mac 2011 version, see the Appendix to this chapter. Now all you have to do to make the list of the 10 largest cities in the United States, sorted by population size, part of your Excel Custom List, is click on the empty cell on the menu to the left of the Import button and select the cells on the sheet. Click on the Import button and the list is now part of your Custom Lists. See Figure 1.10. FIGURE 1.1 Using the Drag Handle 4 USING EXCEL EFFICIENTLY
FIGURE 1.2 Custom Lists FIGURE 1.3 Drag Handle and AutoFill AutoFill 5
FIGURE 1.4 "Dragging" Down the Information FIGURE 1.5 Double-Click the Drag Handle FIGURE 1.6 Highlighting More than One Column 6 USING EXCEL EFFICIENTLY
FIGURE 1.7 AutoFill Results FIGURE 1.8 Custom List Example FIGURE 1.9 Create a Custom List AutoFill 7
AUTOFILL OPTIONS When you complete dragging any of the AutoFill lists, you will see a small Options icon at the bottom right of the list. When you click on the icon, it will allow you to choose one of the options. See Figure 1.11. The AutoFill option recognizes days and dates. When you click on the menu with a list of dates or days of the week, Excel provides you with the additional options of choosing days, weekdays only—without weekends—or even spacing the list out, incrementing the dates by months or years. See Figure 1.12. RIGHT-DRAG AUTOFILL When you right-click and drag a numeric series, the menu offers you additional features as shown in Figure 1.13. The additional feature that could help us more than the others on the list is the Growth Trend feature. We can think of many other FIGURE 1.10 Custom List Results 8 USING EXCEL EFFICIENTLY
applications once we understand what it can do. The following are two examples that can illustrate the power of this element in Excel. If you need to create an exponential list of the number 2, all you have to do is type the first two terms in the series (2 and 4) and the Growth Trend feature in the list will create the series as show in Figure 1.14. It will result in 2, 4, 8, 16, and so on. Using this idea, we can create a compounded interest series. If you want a growth FIGURE 1.11 AutoFill Options FIGURE 1.12 AutoFill Menu AutoFill 9
factor of 10 percent a year, you can type 1.0 and 1.1 or 100 percent and 110 percent and the Growth Trend feature will do the rest as illustrated in Figure 1.14. APPENDIX: AUTOFILL IN EXCEL 2003 AND EXCEL MAC 2011 Excel 2003 Custom Lists Menu: There are two examples shown in this chapter that are slightly different in Excel 2010 than in Excel 2003. Both examples deal with the procedure to access the Custom Lists menu in Excel 2010. In the 2010 version we used the File icon to get to the Excel Advanced Options menu and the Custom Lists menu. FIGURE 1.13 Choosing AutoFill Options FIGURE 1.14 Exponential Trend Results 10 USING EXCEL EFFICIENTLY
In Excel 2003, you click on the Tools menu and then select Options. See Figure 1.15. The Options screen appears and you can select the Custom Lists tab. See Figure 1.16. All the other features of importing custom lists are the same as in Excel 2010—as described above. FIGURE 1.15 Options Menu in Excel 2003 FIGURE 1.16 Custom Lists Menu in Excel 2003 AutoFill 11
Mac Excel 2011 In the Mac version of Excel, you click on the Excel menu and then select Preferences. The Excel Preferences menu has the Customs Lists Option. See Figure 1.17. All the other features for importing custom lists are the same as in Excel 2010— as described above. See Figure 1.18. FIGURE 1.18 Custom Lists Menu in Excel 2011 FIGURE 1.17 Excel Preferences and the Customs List Option 12 USING EXCEL EFFICIENTLY
REVIEW QUESTIONS You will find these examples in the Excel Chapter 1 file: 1. The chapter problems sheet of Chapter 1 has the following data: 5 22 Tue 12/12/2009 4 1/2 November 6:30 AM 6 17 Thu 12/17/2009 7 1/4 January 7:30 AM Use the AutoFill feature to extend the first column with the values 5 and 6 creating the list through 10 as shown here: 5 22 Tue 12/12/2009 4 1/2 November 6:30 AM 6 17 Thu 12/17/2009 7 1/4 January 7:30 AM 7 8 9 10 2. Use the double-click AutoFill feature to fill up the rest of the table resulting in a complete table. 5 22 Tue 12/12/2009 4 1/2 November 6:30 AM 6 17 Thu 12/17/2009 7 1/4 January 7:30 AM 7 12 Sat 12/22/2009 10 March 8:30 AM 8 7 Mon 12/27/2009 12 3/4 May 9:30 AM 9 2 Wed 1/1/2010 15 1/2 July 10:30 AM 10 À3 Fri 1/6/2010 18 1/4 September 11:30 AM 3. Use your Excel Options menu to create a custom list of the 10 largest suspension bridges in the world: Bridge City/Region Country Akashi Kaikyo Bridge Kobe-Awaji Route Japan Xihoumen Bridge Zhoushan Archipelago China Great Belt Bridge Halsskov Sprogo Denmark Runyang Bridge Yangtze River China Humber Bridge Barton-upon-Humber United Kingdom Jiangyin Suspension Bridge Yangtze River China Tsing Ma Bridge Tsing Yi-Ma Wan Hong Kong Verrazano Narrows Bridge New York City United States Golden Gate Bridge San Francisco United States Yangluo Bridge Yangtze River China AutoFill 13
ANSWERS 1. Select the two first figures, 1.5 and 1.6. Click on the grab handle and drag down until you see the value 10. 2. a. Select the rest of the table as you see in the figure. b. Double-click on the grab handle. 3. Click on the Office icon. Select Excel Options at the bottom of the menu. Click on Edit Custom Lists in the middle of the menu. (In Excel 2003, use Tools . Options . Custom Lists.) On the resulting menu, select the range K10:K19 and click on Import. 14 USING EXCEL EFFICIENTLY
CHAPTER 2 Selecting Efficiently in Excel Dragging the mouse is probably not the most efficient way of selecting a range in Excel. If you select a small range, it may be more effective to hold the Shift key down and use the arrow keys to select the range. In many instances, you have to select large ranges of data. This chapter will describe a number of techniques to select this data in a more efficient way. Selecting an Entire Sheet. To select an entire sheet, either click on an empty cell and use CTRLþA, or click on the small cell between column A and row 1. See Figure 2.1. Selecting a Section. To select any continuous data or section, click on the first cell of the section, then press Shift and click on the last cell of the section. You can also reverse the process, click on the last cell, then press Shift and click on the first cell of this section to select, keeping the Shift key pressed down. See Figure 2.2. Selection Shortcuts. To select the current region in Excel, click on any cell in the region and use CTRLþShiftþ* (star/asterisk) ( þA in Mac). See Figure 2.3. You can select an area from a currently highlighted cell or cells to the end of the data in that region's column. Select the cell or cells and press CTRLþShiftþk (down arrow) ( þShiftþk for the Mac). See Figure 2.4. Using the same concept, you can select an area from a starting cell (or cells) to the end of the data on that region's row. You select the cell(s) and click CTRLþShiftþ- (right arrow). See Figure 2.5. FIGURE 2.1 The Select All Button 15
Any part of the region can be highlighted (selected) by first selecting a cell, a row, or a column in a region and then by using CTRLþShiftþ', CTRLþShiftþm, or as shown above CTRLþShiftþ-, and CTRLþShiftþk, to extend the selection to the end of that region in the direction we wish. CTRLþShiftþ any arrow key (km-') will enable selection from the starting cell(s) until the end of the data range in the direction of the arrow. Use instead of CTRL for the Mac. With larger spreadsheets, you may want to go back to the beginning of the sheet or to the end of the data on the sheet. To go back to cell A1, press CTRLþHome; to reach the last cell of the sheet use CTRLþEnd. Also, try CTRLþShiftþEnd to select the data from the current cell to the last active cell on the sheet. To go to the first cell of a row, press the Home key. FIGURE 2.2 Selecting a Region without Dragging FIGURE 2.3 Use CTRLþShiftþ* ( þA in Mac) for Selecting a Region 16 USING EXCEL EFFICIENTLY
FIGURE 2.4 CTRLþShiftþk ( þShiftþk for the Mac) to Select Down FIGURE 2.5 CTRLþShiftþ- ( þShiftþ- for the Mac) to Select to the Right Selecting Efficiently in Excel 17
Extend and Add mode: After you select a starting cell, you can press F8 to enable the Extend mode (indicated on the right of the status bar by the letters EXT in Excel 2003 and Mac Excel 2011 or Extend Selection in Excel 2007 and 2010). Now you can use the arrows and select from that point on by repeatedly pressing on the arrow keys in the direction you want to select. See Figure 2.6. If you wish to select noncontinuous regions, using the Add mode is much more efficient than holding the CTRL key while dragging the mouse. The Add mode allows selecting desired blocks of ranges without holding down the CTRL key. If you press SHIFTþF8 simultaneously, the status bar will indicate ADD. You can then use the mouse and select additional regions. See Figure 2.7. The Add mode in Excel 2003 or previous versions of Excel is indicated on the right side of the bottom of the screen. REVIEW QUESTIONS You will find these examples in the Excel Chapter 2 file: 1. On Sheet 3 of the workbook Chapter 2, select the entire database using a shortcut: FIGURE 2.6 Extend Mode FIGURE 2.7 Add Mode Reads: "Add to Selection" 18 USING EXCEL EFFICIENTLY
2. On the same sheet select C2:D2. Use a shortcut to select the two columns: 3. Start in cell G16. Use a shortcut to select the region C10:G16. ANSWERS 1. Click anywhere in the region and use CTRLþShiftþ* or CTRLþShiftþF8. 2. Select C2:D2. Use CTRLþShiftþk. 3. Use Shiftþclick on C10. Selecting Efficiently in Excel 19
CHAPTER 3 Formulas, Functions, and Relative and Absolute Addressing This chapter explains formulas, functions, and the addressing features or issues in Excel. I will show simple and advanced ways to create formulas and functions more efficiently. The focus is on speed, accuracy, and the ability to duplicate and repeat the functions and the formulas—saving valuable time and effort. In Figure 3.1, you can see a simple payroll example that you can find in the Excel workbook for Chapter 3. The sheet is named Simple Payroll Before. To calculate the salary, Hours worked × Rate in cell E3: Type the ¼ (equal) sign first; then click on cell C3, type *, and click on cell D3. When you press the Enter key, the formula will cal- culate the result. Note how the cursor will skip down to cell E4. Once you are in cell E4 and you want to duplicate the result for all other employees, you have to select E3 again. This is an extra step. In order to save this additional step you can do one of two things: after entering the formula, rather than pressing the Enter key, either you click on the green check sign O (to the left of the formula bar) or use CTRLþEnter. The cursor will remain in the selected cell. See Figure 3.1. FIGURE 3.1 Use CTRLþEnter to Save a Step 21
When the operation is completed in cell E2, we are ready to copy/drag down the formula to the rest of the cells in column E—all the way to E8—the last cell that has data/information in the adjacent column D. We do not copy and paste, and though you can drag down, it is not the most efficient way. (Imagine if you had 2,000 employees!) Point to the drag handle, on the lower right corner of the cell, and when the mouse pointer takes the shape of a crosshair (þ), double-click and the formula will be transferred/copied to the rest on the cells in column E. Figure 3.2 shows the results. RELATIVE AND ABSOLUTE ADDRESSING You will notice that copying or dragging a formula does not copy the values down. You copied the formula only. Figure 3.3 shows all the formulas on the sheet. To reveal the formulas on a sheet choose CTRLþ0 (CTRLþaccent mark) or CTRLþB (tilde). Notice that the formula reads ¼C3*D3 in row 3, ¼C4*D4 in row 4, ¼C5*D5 in row 5, and so on for all the other rows. This is called "Relative Addressing." The address is relative to the position of the row and the column. You may now choose again CTRLþ0 or CTRLþB to turn back to the initial view, showing the values, not the formulas. CTRLþ0 or CTRLþB acts as a toggle— you can go from one view to the other. You can also use the Show Formulas icon under the Formulas Ribbon: The next step on the simple payroll spreadsheet is to calculate the tax for all the rows. We want to multiply the salaries in column E by the Tax Rate in cell G1 as shown in Figure 3.4. FIGURE 3.2 Double-Click to Copy Down All the Result FIGURE 3.3 Relative Addressing 22 USING EXCEL EFFICIENTLY
This time it is different. If we use the same procedure described above, we could calculate the tax in cell F3, namely multiply E3 by G1 and transfer/drag the formula to the rest of the cells in the column—column F. If you use the same procedure, you will run into a problem. Since Excel is using the "relative addressing" concept, it will multiply F3 by G2, F4 by G3, and so on. G1 is the only cell that contains the tax rate FIGURE 3.4 Cell G1 Has to Have Absolute Addressing FIGURE 3.5 Cells F4 to F10 Resulted in Zero Formulas, Functions, and Relative and Absolute Addressing 23
information. The cells G2, G3, and the following cells are empty. See the results and the problem in Figures 3.4 and 3.5. Other than the correct result in cell F3, all the others result in a zero (0). Revealing the formulas in Figure 3.5 shows that using G1 in the formula with relative addressing causes the rest of the cells in column F to use G2, G3, G4, and so on in the formulas. The other cells are all empty and they cause the problem encountered in Figure 3.5. To overcome this relative addressing problem, we have to be able to refer to cell G1 in all the formulas in the cells in column F. This concept, using a specific cell and not a range, is called Absolute Addressing; we want all formulas in the series to refer to one specific cell only. To do so, we have to change G1 in these cells' formulas to read $G$1. When you see the $ signs in G1, it means that G1's status in the following formulas in the column has been changed from Relative Addressing to Absolute Addressing. As shown in Figures 3.5 and 3.6, you want to use absolute addressing for G1 in cell F3. Select cell F3, type ¼, click on E3 and type *, and click on G1. Before doing anything else, press the F4 key on the keyboard. The F4 key changes G1 to read $G$1. [For the Mac use þT.] This is referred to as Absolute Addressing. When you use Enter (or as explained before, click the green check sign O to the left of FIGURE 3.6 Use Absolute Addressing for Cell G1 24 USING EXCEL EFFICIENTLY
the formula bar or CTRLþEnter) you can double-click the lower left corner of the function icon next to the formula bar, and it will transfer the formula to the rest of the cells in the column (or you may drag the formula down). If you check, all the cells in column F contain the absolutely addressed $G$1. See Figures 3.6 and 3.7. When you reveal all the formulas you can see that all the formulas are calculated with G1 as the absolutely addressed cell. OTHER FUNCTIONS In addition to using formulas, Excel has a variety of different useful functions. I demonstrate here the use of a few of them. A commonly used function in Excel is the AutoSum function. In addition to all the conventional ways to insert functions, AutoSum has a special icon, the Greek capital Sigma Σ. If you like, you could sum the Hours, Salary, and Taxes columns on the same simple payroll function sheet. Start in cell D11 summing the Hours column D3:D10. When you select the D11 cell—all you have to do is click on the Insert Sum icon Σ and see that Excel will attempt to calculate the sum of that column as shown in Figure 3.8. To complete the operation, you can press Enter or click the check sign O. A much more efficient way is to just double-click the AutoSum icon. Try it. The result can be seen in Figure 3.9. FIGURE 3.7 G1 Is Absolutely Addressed FIGURE 3.8 AutoSum Formulas, Functions, and Relative and Absolute Addressing 25
To use all other functions in Excel, you can insert the function by using the Function icon next to the formula bar or by using the shortcut ShiftþF3. To insert the Average function in cell D12, click the Function icon or use ShiftþF3. The Function menu will appear on the screen. Click on the drop-down menu and choose Statistical. See Figure 3.10. On the menu, select Average and click OK. In the first cell of the Average menu cell, select D3:D10 and click OK. It will result in the average. See Figure 3.11. Once you have the two functions as shown in Figure 3.11, you can select the two results in D11:D12 and place your mouse pointer at the drag handle as shown in Figure 3.12. Now drag it to the right through column F, taking advantage of the relative addressing in the sum and average of all three columns. The results and formulas are shown in Figure 3.13. This chapter introduced formulas, functions, and the addressing issues in Excel. We showed how to use these formulas in a simple way. We also demonstrated how to take advantage of the shortcuts and the dragging to duplicate the results for entire columns and rows. The focus is on speed, accuracy, efficiency, and the ability to duplicate the functions and formulas. We will use these techniques again throughout the rest of the book. FIGURE 3.9 AutoSum Result FIGURE 3.10 Excel Function Menus 26 USING EXCEL EFFICIENTLY
FIGURE 3.11 Select the Data in the Menu FIGURE 3.12 Drag the Results to the Right FIGURE 3.13 The Average and the Sum for the Three Columns Formulas, Functions, and Relative and Absolute Addressing 27
APPENDIX: DOING IT IN MAC EXCEL 2011 The Mac Excel 2011 version is slightly different than the Windows version. When you use the function icon fx next to the formula bar or the shortcut SHIFTþF3, you will see the Excel function menu. See Figure 3.14. FIGURE 3.14 Excel Mac Function Menu FIGURE 3.15 Using the Formula Ribbon to Apply Functions 28 USING EXCEL EFFICIENTLY
You may want to get to the menu the long way, using the Formulas menu. This allows you to explore and choose all the functions available in Excel. Select the Formulas ribbon, click on the large icon on the left, select the function type (statistical), and the function (Average) that you wish to use. See Figure 3.15. When you choose the function Average, select the range of numbers and click on Enter to get the average. See Figure 3.16. REVIEW QUESTIONS You will find these examples in the Excel Chapter 3 file. You will find the sheet Review Questions in the Excel File Chapter 3 as shown in the figure here: FIGURE 3.16 Using the Function Menu Formulas, Functions, and Relative and Absolute Addressing 29
1. Calculate the Total Sales in cell D2. 2. Double-click on the drag handle in D2 to calculate the rest of the values in column D. 3. Calculate the Sales Tax in column E, using I1 as an absolute address. 4. Calculate the lowest, highest, and average for each of the columns. ANSWERS 1. See the results and the formulas: 30 USING EXCEL EFFICIENTLY
CHAPTER 4 Naming Cells and Ranges When you use names in Excel to address or represent a cell, a range of cells, or constants, you can make your functions and formulas much more meaningful and so much easier to handle. It is much easier to use Average(Sales) than Average (B738:B897). Another example is when using names in a meaningful way in a for- mula: Use Cost_JanuaryþCost_February instead of A2þA3. I prefer to use names in Excel when I calculate statistics on a large range of numbers. Excel allows you to define a name or names in a variety of ways. Once you adopt the practice of using names in your workbooks, you can easily update, audit, and manage these names. I will show you that naming cells or a range of cells can save you precious time and effort when you use them for calculations, statistics, and decision-making applications. I will also demonstrate that names are helpful when presenting your calculations to an audience; or when you copy your formulas to other applications such as Word and PowerPoint. All the cells in Excel are automatically given a specific name that places them in a specific column and row position—the address. In many situations, you may want to rename a cell or a range of cells to make it easier to refer to the data, which those cells or ranges contain. The following demonstrates the concept with a simple example. NAMING A SINGLE CELL In the example in the Chapter 4 workbook, in the sheet called Names Concept I would like to use a tax rate of 15 percent. Instead of using absolute addressing, I would like to name the cell corresponding to that 15 percent tax and call it "Tax." The value 15 percent was entered in cell G1. See Figure 4.1. To name cell G1 "Tax," select the Name box, above column A and to the left of the Formula bar. Type the word Tax and click Enter. This will name cell G1 Tax, in addition to its original name/address G1. See Figure 4.2. From now on, you may use this new name anywhere in this workbook. For example, if you type a formula in any cell: ¼200*Tax, it will result in the value 30. Using the Name box is only one way to name or rename cells or ranges. There are a number of other ways. To illustrate again how to use the name in the above example, try calculating the tax for all the entries in column F. Type ¼ in cell F3, click on E3, type *, and click on cell G1. It will show up as ¼E3*Tax, as you can see in Figure 4.3. 31
Now you can complete the operation (Enter) and either drag the result down or double-click the lower right corner of cell F3 resulting in the tax calculation for all cells in column F. See Figure 4.4. One additional advantage of using the name concept is eliminating the use of the absolute addressing concept. Another advantage is the fact that you don't have to search for the cell containing the tax rate of 15 percent. You can just type Tax (it is FIGURE 4.1 Use a Name for Cell G1 FIGURE 4.2 Naming a Cell in Excel FIGURE 4.3 Use the Name "Tax" in the Formula 32 USING EXCEL EFFICIENTLY
not case-sensitive—so you can type tax) in the formula and it will result in the 15 percent—even if the Tax cell was on a different sheet in the Excel workbook. The above example illustrates the simplest way of creating a name for a single cell. I will show a number of other examples and techniques to name a range of cells and to use more efficient ways to create names. NAMING A RANGE OF CELLS If you have, for example, a set of 20,000 numbers in a range and you want to obtain different calculations for the range, you may not want to select the range or type the range address in the function more than once. In the second example, on the sheet called Statistics, I entered the values in the range B1:E5000. I would like to calculate for the range the average, sum, standard deviation, and the median. I clicked on a single cell in the range and selected the range by using the shortcut CTRLþShiftþ*. I clicked on the Name box, typed the word Data, and clicked Enter. I changed the name of the range so range B1:E5000 is now called Data. See Figure 4.5. FIGURE 4.4 Using the Name Tax FIGURE 4.5 The Range B1:E5000 Now Has the Name "Data" Naming Cells and Ranges 33
Afterward, it is possible to use the name for the range to obtain the calculations mentioned above. See Figure 4.6. I did not have to select B1:E5000 or type B1:E5000. I just typed in the word Data. I used the function fx icon to calculate all the other functions. (You may also use ShiftþF3 to get to the Function menu.) See the result in Figure 4.7. As I explained earlier, it is much easier to handle and understand functions when they read ¼SUM(QuarterOneSales) than ¼SUM(B7:B18). It is more meaningful when you calculate a formula to read ¼Jan09 Sales-Dec08 Sales than ¼C7-C6. USING THE NAME MENU TO CREATE NAMES In the following example, I will use the Excel menu to create names. In the sheet Name Menus of Chapter 4's workbook, I would like to create names for the different ranges. See Figure 4.8. In this example, I will call the range C3:C8 Sales, D3:D8 Cost, and the range E3:E8 Profit. The other ranges will also be named. C3:E3 will be named Jan, C4:E4 will be named Feb, C5:C6 will be named Mar, and so on. The header in row 2 and the information in column B will be used to create the range names. As you select the range B2:E8, go to the Formulas ribbon and click on Create from Selection. See Figure 4.9. FIGURE 4.6 Use the Name "Data" Instead of B1:E5000 FIGURE 4.7 Using the Range Name "Data" in Formulas 34 USING EXCEL EFFICIENTLY
When you click on the Create Names from Selection, the menu shown in Figure 4.10 allows you to create the names shown on the top row and the names in the left column of the selected range. Now that you have created these names, you can utilize them in formulas and functions on the same sheet or other sheets in this workbook. To locate the different named ranges you have created, go to the drop-down menu next to the Name box and select any name; the range that it represents will be highlighted on the data range itself. See Figure 4.11. Now you can take advantage of these names and ranges. For example, you can calculate the sum of Sales. Without the name, you would have had to use the formula FIGURE 4.9 Create Name from Selection FIGURE 4.8 Naming the Ranges by the Headers and the Left Column FIGURE 4.10 The Name Menu Naming Cells and Ranges 35
¼SUM(C2:C8). Now you can simply use the formula ¼SUM(Sales) resulting in the sum seen in Figure 4.12. Try other combinations with the created names. Try ¼SUM(Cost). Experiment with ¼SUM(Cost, Profit). Try something else: ¼Cost Feb (¼CostþspaceþFeb.) This will result in the intersection of the Cost and Feb: 26. See Figure 4.13 for the intersection. FIGURE 4.11 Selecting a Range Using the Name Box FIGURE 4.13 Selecting an Intersection of Two Named Ranges FIGURE 4.12 Using the Formula¼SUM(Sales) 36 USING EXCEL EFFICIENTLY
More About Names You can use the Name Manager menu to delete or modify existing names. Just click on the Name Manager and experiment with this menu. See Figure 4.14 for the Name menu. With the Name Manager, you can either click on the Edit button or edit the name or delete any of the names you want to delete. To paste the list of names, simply press the F3 key and choose Paste List. It will list all the names on your spreadsheet. See Figure 4.15. I will be able to demonstrate the advantage of this naming feature later in this book with other applications and examples. This is a very powerful feature of Excel that many people fail to take advantage of. FIGURE 4.14 Managing Names FIGURE 4.15 Paste Name List Menu Naming Cells and Ranges 37
APPENDIX: USING THE NAMES MENU IN EXCEL 2003 AND MAC EXCEL 2011 Excel 2003 In Excel 2003, or previous versions, the Names feature appears under the Insert menu. In the following example, I will use the Excel menu to create names. In the sheet Ranges of the Excel 2003 Chapter 4 workbook, I would like to create names for the different ranges. See Figure 4.16. In this example, I would like to call the range C3:C8 Sales, D3:D8 Cost and the range E3:E8 Profit. The other ranges will also be named. C3:E3 will be named Jan, C4:E4 will be named Feb, C5:E5 will be named Mar, and so on. The header in row 2 and the information in column B will be used to create the range names. As you select the range B2:E8 use: Insert . Name . Create. See Figure 4.17. When you click on Insert . Name . Create, the menu shown in Figure 4.18 allows you to create the names shown on the top row and the names in the left column of the selected range. Now that you have created these names, you can utilize them in formulas and functions on the same sheet or other sheets in this workbook. To change, edit, delete, or modify the names in Excel 2003 or a previous version, Insert . Name . Define. The Define Name menu will allow you to add, edit, or delete any of the names as shown in Figure 4.19. Excel Mac 2011 In Mac Excel 2011, the Names feature appears under the Insert menu. In the fol- lowing example, I will use the Excel menu to create names. It is the same example FIGURE 4.16 The Range for Names to Be Created 38 USING EXCEL EFFICIENTLY
FIGURE 4.18 The Create Names Menu FIGURE 4.19 The Define Name Menu in Excel 2003 FIGURE 4.17 Use: Insert - Name - Create from the Menu Naming Cells and Ranges 39
FIGURE 4.20 Use: Insert - Name - Create from the Menu FIGURE 4.21 The Define Name Menu in Mac Excel 2011 FIGURE 4.22 The Insert Name Icon in Mac Excel 2011 40 USING EXCEL EFFICIENTLY
described in this chapter (the sheet Ranges in the Chapter 4 workbook.) We use: Insert . Name . Create. We use the Create Menu. See Figure 4.20. To change, edit, delete, or modify the names in Excel 2011 or a previous version, Insert . Name . Define. The Define Name menu will allow you to add, edit, or delete any of the names as shown in Figure 4.21. To use the names you can click on the Insert Name icon under Formulas ribbon. See Figure 4.22. REVIEW QUESTIONS You will find these examples in the Excel Chapter 4 file: 1. On the sheet Review of Chapter 4, name the region H4:J11 Statistics. 2. Using the Names menu name C4:C7 Quantity, D4:D7 Price, E4:E7 Revenue, C4:E4 Qrt_1, C5:E5 Qrt_2, C6:E6 Qrt_3, and C7:E7 Qrt_4. 3. Use the names you just created in review problems 1 and 2 to: a. Calculate the sum of the region H4:J11. b. Calculate the sum of all the Quantities C4:C7. Add the Revenues for the second and third quarters using the intersection feature of the name. Naming Cells and Ranges 41
ANSWERS 1. Select the region H4:J11. Type the word "numbers" in the name box and click Enter. See figure. 2. Select B3:E7 and use the Create from Selection menu shown in the figure to create names. 42 USING EXCEL EFFICIENTLY
3. Once you create the names, you can use the names in the formulas. a. ¼ SUM(Numbers) À for the region named in answer 1. b. ¼ SUM(Quantity). ¼SUM(Revenue) À for the names created in answer 2. Naming Cells and Ranges 43
CHAPTER 5 Conditional and Advanced Conditional Formatting in Excel Conditional formatting is just what it says: formatting a cell based on its contents, usually a value. You may want to have a specific color or font type for a specific range of values. Conditional Formatting used to have, in older versions of Excel, up to three format conditions in addition to the default "no format" condition. Starting in Excel 2007 you may use many other features of conditional formatting. This chapter explains most of these features. When using the old versions Excel, all you had to do is go through the menu to Format¼>Conditional Formatting and apply the rules. As mentioned above, you could have up to three formats in a single cell or range of cells. With the newer versions, starting in Excel 2007, conditional formatting became more comprehensive and allows you to be more creative. SIMPLE CONDITIONAL FORMATTING; ADDING A RULE The simplest way to apply a single rule is to select Conditional Formatting under the home Ribbon. Click on "Highlight Cells Rules" and choose one of the rules on the left. Excel has seven rules you may choose from. You also have a choice to create your own personalized rules. See Figure 5.1. FIGURE 5.1 Choose a Conditional Formatting Rule 45
These rule choices are simpler to manipulate than in older versions of Excel. Now you can indicate with two clicks the format a cell will take based on the rule you chose. You may decide, for example, that all cells with a value higher than 5000 will have a predetermined background. You can choose one of the six preprogrammed formats or choose "Custom Format," which brings up the conventional "Format Cells" menu. See Figure 5.2 for a simple rule. The simple conditional formats are straightforward and it may take a couple of trials to make the data look the way you want it to look. Figure 5.3 shows the menu to select a few other rules. NEW CONDITIONAL FORMATTING FEATURES Excel 2010/11 and 2007 allow you to use a set of Top/Bottom Rules within the entire formatted range. The Top/Bottom Rules make it easier to format cells based on the range they are in. FIGURE 5.2 Format All Cells with Values >5000 FIGURE 5.3 Selecting Other Formatting Rules 46 USING EXCEL EFFICIENTLY
You may choose: 1. Top 10 Items 2. Top 10% 3. Bottom 10 Items 4. Bottom 10% 5. Above Average 6. Below Average See Figure 5.4. These basic rules may be further modified later for comparable conditions. For example, use the top 10 percent and modify it to be the top 15 percent or top 15 items. I used the Top 10 Items rule of the sheet named Top Bottom Rules on the Chapter 5 workbook. See the results in Figure 5.5. FIGURE 5.4 Top/Bottom Conditional Formatting Rules FIGURE 5.5 Top 10 Items in the Range Are Formatted with a Gray Background Conditional and Advanced Conditional Formatting in Excel 47
To change the rule and format, for example, the top 15 percent follow three simple steps: 1. Click on Conditional Formatting and choose Manage Rules. 2. Select Edit Rule. 3. Change the Top 10 to be Top 15. See Figure 5.6. Now the range has the top 15 items formatted. See Figure 5.7. FIGURE 5.6 Modify Top 10 Rules to Top 15 Conditional Format FIGURE 5.7 Top 16 Items in the Range Are Formatted with a Gray Background 48 USING EXCEL EFFICIENTLY
ADVANCED CONDITIONAL FORMATTING Excel introduced new conditional formatting features in 2007 and added a few new attributes and icons in Excel 2010. These feature rules include Data Bars, Color Scales, and Icon Sets. See Figure 5.8. Using the Data Bars is intuitive. Excel will format the data based on the values from low to high within the selected range. When we apply the Data Bars conditional formatting, Excel creates the bars within the selected cell using the smallest and highest values in the range to create the bars. I used the same formatting rule here on three different ranges, as you can see in Figure 5.9. Column E uses 1 as the lowest value of reference and 10 as the highest. Column G uses 10 and 100 respectively, so this is why the conditional formatting looks the same as column E. The formatted range in columns I and J use 1 as the lowest and 100 as the highest; this is why it looks the way it does. FIGURE 5.8 Top New Formatting Tools in Excel 2007/10/11 FIGURE 5.9 Understanding Data Bars Formatting Range Conditional and Advanced Conditional Formatting in Excel 49
Starting in Excel 2010 and Mac Excel 2011, the Conditional Formatting has negative bars for negative values. These bars did not exist in 2007. See Figure 5.10. Color Scales lets you detect directions, changes, or areas of specific values in the data set. Once more, Excel applies the conditional formatting to the entire region based on the lowest and highest values in that range. The background colors change according to their values. See Figure 5.11. Now note how in the right two columns, the left range (from À10 to þ10) take the format of the 0 range on its right. You will find the Colors Scales very useful when you try to detect high or low values in an optimization problem. To illustrate this concept I created an area in Excel that calculates a minimum based on the Pythagoraean theorem (it will be part of the case study in Chapter 36). The calculated spreadsheet area and the chart, using the data, are shown in Figure 5.12. You will see later in the chapter that you can change the preset rules with different ranges. Using the Colors Scales can, based on the values, illuminate the point(s) of minimum based on the color intensity. See Figure 5.13. Color Scales clearly call attention to where the minimum or lower values are. Note how the lower values that are lighter on the range correspond to the lower area on the chart in Figure 5.13. The last option of the newer version of Conditional Formatting is the Icon Sets option. Figure 5.14 displays all the Icon Sets for Excel 2010/11. The circled ones are new for 2010/11 and did not appear in Excel 2007. FIGURE 5.10 New Negative Bar Option for Excel 2010 and MAC Excel 2011 FIGURE 5.11 Color Scales Are Based on the Region's Formatted Range of Values 50 USING EXCEL EFFICIENTLY
FIGURE 5.12 Spreadsheet Calculations and the Chart FIGURE 5.13 Color Scales Illustrate the Point or Area of the Lowest Values in the Chart FIGURE 5.14 The Icon Sets for Excel 2010 and Mac Excel 2011 Conditional and Advanced Conditional Formatting in Excel 51
Using the Icon Sets offers more formatting control and a distinctive appearance for the worksheet data area. I formatted the values 1 through 10 on different columns using a few of the Icon Sets so you can get the basic feeling of how they work. See Figure 5.15. Now that the concept is clear, we can apply it to an example. Refer again to the example of Figure 5.12. Apply the Icon Sets and edit the rules with our formatting ranges. These rules and the result worksheet are shown in Figure 5.16. APPENDIX: USING THE CONDITIONAL FORMATTING IN EXCEL 2003 Excel 2003 or previous versions are limited to three conditional formats for a cell or a range of cells. This is in addition to the "no condition" format. To apply the format use Format ¼> Conditional Formatting. You can choose from a number of options. See Figure 5.17. FIGURE 5.15 Icon Sets Applied to the Numbers 1 to 10 FIGURE 5.16 Icon Sets Applied to a Numerical Example 52 USING EXCEL EFFICIENTLY
Use the following example: Apply the following conditions to a cell or range of cells. 1. Apply a green font color if the value is less than 100. 2. Apply a yellow background if the value is less than 50. 3. Apply a red background if the value is less than 25. Use Conditional Formatting as you see in Figure 5.18. REVIEW QUESTIONS Use the data set in the sheet named Review in the chapter's workbook to format the area. The data and its chart are shown here. FIGURE 5.17 Conditional Formatting and Option in Excel 2003 FIGURE 5.18 Conditional Formatting—Applying Three Rules Conditional and Advanced Conditional Formatting in Excel 53
1. Use Color Scales. 2. Use Icons Sets. 3. Use both Color Scales and Icon Sets. 4. Use the Conditional Data Bars to format the data set you will find on the same sheet named Review in the chapter's workbook. 54 USING EXCEL EFFICIENTLY
ANSWERS Conditional and Advanced Conditional Formatting in Excel 55
CHAPTER 6 Excel Charts Charts convey much more information than just reading spreadsheet data. Charts make it easier to see what is hiding behind the numbers. In this chapter, you are going to find out how to generate and format Excel charts. I will demonstrate how to use some of the different types of charts and the common techniques to deal with all Excel charts. QUICK/INSTANT CHART To get a quick/instant chart from data in Excel, select any cell in the data range as shown in Figure 6.1 (alternatively select the entire range B3:E8) and press the F11 key. When you use the F11 key, it generates a clustered column chart (the default chart) on a new sheet. You will find it on the sheet Simple Chart in the Excel file Chapter 6. If you wish to change the default chart type after Excel created it, right-click on an empty space inside the chart, and then select Change Chart Type in the local menu. A window with chart options will pop-up and allow you to select a different chart type. See Figure 6.2. Here is an alternate way to select a different chart type. When you create a chart, Chart Tools appear on the ribbon. This Chart Tools ribbon shows Design, Layout, and Format tabs. Click on the Design tab under Chart Tools; in the Type group click Change Chart Type, and select another chart type. CREATING A CHART USING THE MENU Using the Insert ribbon to insert charts will allow the creation of a variety of charts in a controlled approach. This can be explained with a simple example. The easiest way to create a chart is by arranging the reference data in the way that Excel expects it; namely, position the data or names you want on the X-axis (the horizontal axis) in the first column. This is done by entering the data you want to appear on the X-axis on the left- most column of the reference data. You may arrange it in different ways—but doing so, you may have to go through additional steps to create the desired chart. The example I chose, which you can see in Figure 6.1, lists months' names on the left column of the data set because I want them to be positioned on the bottom or the X-axis of the chart. 57
Using the same data as for the first example, I can create a column chart, the very first chart on the menu. I chose to create a chart using only the first and second columns of the data. Select the first two columns in the data range B2:C8 and click on Columns in the Insert ribbon, as shown in Figure 6.3. Excel will generate the chart shown in Figure 6.4. (An alternate way to create the chart on the same sheet using a shortcut key is selecting the range and using ALTþF1.) FIGURE 6.2 Right-Click to Change Chart Type FIGURE 6.1 The F11 Key Creates an Instant Chart 58 USING EXCEL EFFICIENTLY
When you create a chart, Excel displays the Chart Tools ribbon. You can also access the Chart Tools ribbon at any time when you select a chart. See Figure 6.5. Try some of the features on the ribbon—for example, the design part. Click on the drop-down menu at the far right for more options and choose a different look/ format for your chart. The detailed procedure is illustrated in Figure 6.6. The redesigned chart is shown in Figure 6.7. FIGURE 6.4 Two-Dimensional Column Chart FIGURE 6.3 Insert a Chart Excel Charts 59
You should experiment with the other features of the Chart Tools ribbon to explore the various possibilities. The ribbon can assist you in changing the design, layout, and chart type; selecting different data; or moving the chart to a different location. It is also important to understand the chart elements. When you need to create or modify charts, identifying these elements enables you to create, amend, or design a specific part of the chart. Figure 6.8 identifies these elements. After a chart is created, any of its elements can be individually modified. You may want to change the way that axes are displayed, amend the chart title, move the legend, or display other chart elements. For the axes: You can specify the scale and adjust the interval between the values or categories. You can also add tick marks to make it easier to look at the chart and its scale. For the titles: You may add titles and data labels to a chart. This displays the information in your chart. You can add titles to the chart, axes, and the data labels. FIGURE 6.5 Chart Tools Ribbon FIGURE 6.6 Redesign the Chart Jun Sales Sales 0 1 2 3 4 5 6 7 8 Jul Aug Sep Oct FIGURE 6.7 New Design 60 USING EXCEL EFFICIENTLY
For the legend or data table: You may show or hide a legend, change its location, or even change the legend entries. You can display a data table (the data used to build the chart). The legend keys can be formatted to have the appearance of your chart elements. I will discuss these and other chart options when charts will be used in upcoming chapters. I will discuss them in the context of trend lines, formatting, and other situations. ADDING MORE DATA TO AN EXISTING CHART Look again at the previous example. For reference, it is illustrated once more in Figure 6.9. The chart was created from the two first columns of the data. The Months Jun 0 1 2 3 4 5 6 7 8 Jul Aug Sep Oct X Axis Y Axis Data Point Plot Area Legend Sales Sales Chart Title Chart Area FIGURE 6.8 Chart Parts FIGURE 6.9 The Initial Chart before Adding More Data Excel Charts 61
in the first column are used to show the time progression on the X-axis. The Sales information is in the second data column. It was used for the Y values of the chart. Once you have created a desired chart, you may want to add part or all of the spreadsheet data to the existing chart. In this example, you will want to add the Cost and Profit columns. Proceed using the following steps: Select the data D3:E8, click the Copy icon (or CTRLþC), click anywhere on the chart, and then click the Paste icon (or CTRLþV). Alternatively, it is possible (after data selection) to use the mouse right-click, copy, select a chart area, then paste using the local menu after another right-click. The data will be added to the chart. See Figure 6.10. Very Important Facts about All Excel Charts: Selecting a Series All Excel charts have some common characteristics. All data series (in our example, the sets of columns in the charts) can be selected the same way. If you click on a single column once, all of the columns of that particular series will be marked. (For FIGURE 6.10 Adding Data to a Chart 62 USING EXCEL EFFICIENTLY
example, all of the sales columns will be marked if you click on a single column of the sales series.) If you click on the same column a second time, it marks the individual column only. Use the rule: First click marks all of the points (columns) in a series—the second click marks the individual point (or a single column). See Figure 6.11. Marking a series this way (first click for all the points and second click for the individual point) works in all charts in Excel. The advantage of being able to mark individual columns rather than the entire series is the possibility of formatting the individual column versus the entire series. FIGURE 6.11 Select a Series or a Single Data Point Excel Charts 63
If you wish to format the individual column (say Sales for Jun), you may do so after selecting that column by itself (the second click). If you right-click after the individual selection, it is possible to format that column by itself. Figure 6.12 demonstrates the procedure. This is simple. When an individual column is marked (second click), you can format the individual column by itself. On the local menu, use Format Data Point. To format the entire series, click only once to select the series and repeat the procedure explained in Figure 6.12. The complete series will be formatted as shown in Figure 6.13. MORE ABOUT CHARTS Chart creation in Excel is a powerful tool with many possibilities. I chose to dem- onstrate only a few charts that are frequently used in the business world. I will discuss the difference between a line chart and a scatter chart. I will also demonstrate the use of three-dimensional charts. FIGURE 6.12 Format Chart Menus 64 USING EXCEL EFFICIENTLY
Scatter Charts and Line Charts Scatter charts and line charts are very similar, especially when you create a scatter chart with lines connecting the points—these charts look and feel like a line chart. However, there is a fundamental difference between them. Scatter charts are used to display and compare numeric values, such as statistical data. These charts are helpful to show the relationships among the numeric values of several data series. You can plot two groups of numbers as one series of XY coordinates. Line charts are used to display continuous data over time against a common scale. They are good for showing trends in data at equal intervals. In line charts categorical data is distributed evenly along the horizontal X-axis, and values are distributed evenly along the Y-axis. Choose between the two options using this rule: use line charts if the data has nonnumeric X values—and use scatter charts for numeric X values. The following example will clarify the fundamental difference. On the sheet named Line vs. Scatter of the Excel Chapter 6 file, I selected sales data from 1990 to 2008. I created a line chart and a scatter chart for the same data. The line chart in Figure 6.14 distorts the data since the years, on the X-axis, are not displayed proportionally. Look at the X-axis values: The years' labels are spaced evenly, even though the data (the difference between the periods) is unequal. They are not spaced proportionately. FIGURE 6.13 Formatting a Series Excel Charts 65
The scatter chart, shown in Figure 6.15, tells a different (in this case, more accurate) story. You can see the real picture—underscoring the difference between the line chart and the scatter chart. The latter displays the data as it should, since the X-axis data is not continuous in our example. THREE-DIMENSIONAL CHARTS—COLUMN AND PIE Returning to the data used to create the first chart on the sheet Simple Chart, I will create a three-dimensional column chart, as well as a pie chart. The first example, a FIGURE 6.14 Using a Line Chart Distorts the Results If the Data Is Not Continuous on the X-Axis FIGURE 6.15 The Scatter Chart Is More Accurate for This Data 66 USING EXCEL EFFICIENTLY
3-D column chart, is shown in Figure 6.16. The figure shows the steps to create and move the chart to a new sheet. Excel labels this chart as "Clustered column with a 3-D visual effect." Once you have created the column 3-D chart, you may format it for your pre- sentation. Right-click on an empty area in the chart and choose the 3-D Rotation. The menu enables you to rotate and change the way the chart looks. See Figure 6.17. The chart can be formatted to send a clearer message to your audience. There are many different formatting possibilities and options. Here is one example where I want to compare apples and bananas. I will use the same type of chart just created, however, you can apply this formatting technique to any chart type. We can copy and paste the pictures in a spreadsheet in order to use them in the chart. See the spreadsheet with the data and pictures in Figure 6.18. I will create a 3-D clustered column chart, and will use the pictures selected to obtain a stronger visual effect for this chart. The chart in Figure 6.19 was created with the sales data on the sheet Apples and Bananas. We will use the pictures in Figure 6.18 to "dress" this chart. To enter the apple picture as the Apples data point, I had to select the individual column in the chart. I clicked the first time to select the series and then clicked again on the Apples column to select the individual column. I reverted to the sheet with the pictures, and selected and copied the picture of the apple. After the apple image was copied, I went back to the sheet with my chart, clicked on the Apples column and clicked on the paste icon. The result is shown in Figure 6.20. FIGURE 6.16 Create and Move a Chart to a New Sheet Excel Charts 67
FIGURE 6.18 Pictures to Be Used in Charts FIGURE 6.17 The 3-D View Menu 68 USING EXCEL EFFICIENTLY
I wanted the picture stacked to scale. To do so, I right-clicked on the column and chose the Format Data Point to create the desired effect. The Format Data Point menu allowed me to choose stacking the picture as shown in Figure 6.21 (Fill: Picture or texture fill, Stack and Scale). What is left now is to copy and paste the picture of the banana to the second column (format it to be stacked to scale), copy the fruit store picture and paste it on FIGURE 6.19 3-D Column Chart for Sales Results FIGURE 6.20 Paste the Picture on the Column Excel Charts 69
the wall using the Paste icon, and copy the grass picture and paste it on the floor using the Paste icon. See the result in Figure 6.22. PIE CHARTS To create a simple pie chart, select the data and proceed with the steps of the Chart Wizard as shown in Figure 6.23. FIGURE 6.21 Stacking the Picture FIGURE 6.22 Complete Chart 70 USING EXCEL EFFICIENTLY
I right-clicked on the chart and moved it to a new sheet. The resulting chart is in Figure 6.24. The pie chart—as all the other Excel charts created from a series—can be selected using the same rule we used before: The first click selects the entire series—second click, the individual data point. In the example of Figure 6.24, I clicked the first time on the blue data point representing June sales. I clicked on it a second time—so as to select the individual data point. I was then able to drag it out to put more emphasis on the June sales for my presentation. See Figure 6.26. Try again the other options Excel provides for charts. Right-click and use the 3-D rotations. To enter pictures into a pie wedge, right-click on the data point (June in our example). Choose Format Data Point and use Fill . Picture or Texture Fill. Click on the File icon and select a picture. See Figure 6.26. The resulting chart is shown in Figure 6.27. With the pie chart, you cannot copy and paste pictures as you did with the other charts. With pie charts, you have to "insert" pictures. FIGURE 6.23 Creating a 3-D Pie Chart Sales Jun Jul Aug Sep Oct FIGURE 6.24 3-D Pie Chart Excel Charts 71
Sales Jun Jul Aug Sep Oct FIGURE 6.25 Moving Out One Part of the Chart FIGURE 6.26 Formatting a Pie Chart FIGURE 6.27 Pie Chart with a Picture 72 USING EXCEL EFFICIENTLY
APPENDIX: GENERATING CHARTS IN EXCEL 2003 AND MAC EXCEL 2011 Excel 2003 Creating a Chart Using the Wizard Using the Chart Wizard (or alternatively the Insert menu . Chart) you may create a variety of charts. We start with simple charts. The easiest way to create a chart is by arranging your data in the way that Excel expects it; namely, try to position the data or names you want on the X-axis (the horizontal axis) on the leftmost column of the chart reference data. You may arrange it in different ways—but you will have to go through additional steps to create the chart you desire. Using the same data from the previous example (Figure 6.23), create a column chart using the first and second columns data only. Select the first two columns and click on the Chart Wizard. See Figure 6.28. The data is on the Simple Chart sheet of the Excel file Chapter 6. Select the very first chart type that pops up and proceed by clicking the Next button on the menu. On the left part of Figure 6.29 appears the menu that lets you change the data on the chart. When you click the Next button in the chart window, you get to specify many of the features of the chart. If you ignore or forget any of the steps, you will still be able to access these formatting options when the chart is already completed. The window under the Titles tab allows you to enter the labels for the chart header as well as the names for the X- and Y-axes. See Figure 6.30. The Axes and Gridlines menus allow you to specify their attributes. In Figure 6.31 you see the other options available from the Chart Wizard tabs. The legend tab allows you to specify whether you want a legend and if so, where you would like to position it on the chart. The default position is on the right. FIGURE 6.28 Chart Wizard Excel Charts 73
FIGURE 6.29 The Chart Menus FIGURE 6.30 Chart Features FIGURE 6.31 Chart Options 74 USING EXCEL EFFICIENTLY
The Data Labels menu allows showing the values, the series, and/or category names on the chart. With the Data Table checked you will have the complete data of this chart shown under the chart itself. The last step in creating the chart is to specify the location of the chart. I chose here "As object in" in the same sheet; you also have the option to place the chart "As new sheet" in the active workbook. See Figure 6.32. The result is illustrated in Figure 6.33. If at some time in the future, you wish to change any of the chart features or change the chart's location, you may do so by right-clicking on an empty space on the chart. See Figure 6.34. A local menu allows you to choose your preferences. You may change the chart type, add or delete data within the source Data, or bring back the Chart Options for the different attributes shown in the previous figures. For this chart, we used the months in the first column for the time on the X-axis and the sales information of the second data column for the Y values of the chart. If FIGURE 6.32 Chart Location Options FIGURE 6.33 Finished Chart Excel Charts 75
you wish to add the rest of the data to the chart, the cost and profit columns, proceed using the following steps: 1. Select the data D3:E9; click the Copy icon (or CTRLþC). 2. Click anywhere on the chart and then click the Paste icon (or CTRLþV). The data will be added to the chart. See Figure 6.35. FIGURE 6.34 The Chart Menu FIGURE 6.35 Adding Data to a Chart 76 USING EXCEL EFFICIENTLY
Alternatively, it is possible (after data selection) to use the mouse and drag the data into the chart. The data will be added to the chart. All charts in Excel have some common characteristics. All data series (in our example, the sets of columns) can be marked the same way. If you click on a column once, all the columns in the series will be marked. For example, all of the sales will be marked if you click one of the sales columns. If you click on the same column a second time, it only marks that individual column. Use the rule: First click marks all of the points (columns) in a series—the second click marks the individual point (or a single column). See Figure 6.36. Marking a series this way (first click for all the points and second click for the individual column) works in all charts in Excel. If you right-click after all of the points are marked, you can format the entire series (in the local menu use Format Data Series). If an individual column is marked (second click) you can format the individual column by itself (in the local menu use Format Data Point). See Figure 6.37. More about the Chart Wizard The Chart Wizard can be used for a variety of charts. This section illustrates a few of these options. Three-Dimensional Charts—Column and Pie Using the same data, we will create a three-dimensional column chart and a pie chart. A 3-D column chart is shown in Figure 6.38. This chart is called "Clustered column with a 3-D visual effect." You may go back to the text in this chapter to find out how to paste pictures into the chart. Pie Charts To create a simple pie chart, select the data and continue with the Chart Wizard steps as shown in Figure 6.39. FIGURE 6.36 Selecting a Series or a Data Point FIGURE 6.37 Data Series versus Data Point Formatting Excel Charts 77
FIGURE 6.38 3-D Column Chart FIGURE 6.39 Pie Chart Wizard. Steps to Create a Chart 78 USING EXCEL EFFICIENTLY
Mac Excel 2011 Creating, handling, and formatting charts in Mac Excel 2011 is similar to Windows Excel 2007 or 2010. The difference is the look and feel of the menus. F11, the keyboard shortcut, will create an instant default two-dimensional column chart on a new sheet. The menu for creating charts is on the Charts Ribbon. To create a chart, click on the desired group and choose the desired chart type. See Figure 6.40. You may choose the subtype chart you want to create. The other menus are similar to Excel 2007 or 2010. The menu may look dif- ferent, but they work exactly the same way as described in the beginning of the chapter. Figure 6.41 illustrates the Mac Excel 2011 menu. Given that you followed my steps—this chapter does not need review questions. FIGURE 6.40 The Chart Ribbon and Choosing a Specific Chart with Mac Excel 2011 FIGURE 6.41 The Chart Format Data Series Menu Excel Charts 79
CHAPTER 7 Sparklines and Advanced Topics in Excel Charts Charts were discussed in chapter 6. This chapter first describes the new feature Sparklines in Excel 2010 and Mac Excel 2011, then it will deal with special chart topics, and lastly it will present charts using mathematical formulas in Excel. SPARKLINES Sparklines were introduced in Excel 2010/11. They are micro charts in cells. There are three kinds of Sparklines: Lines, Columns, and Win/Loss. You will find them under the Insert Ribbon for 2010 or the Charts Ribbon in Mac Excel 2011. Figure 7.1 shows a line of data and three different Sparkline types produced from the data. The left side of the figure displays the icons used to create them. Figure 7.2 shows where to find the Insert Sparklines Icons. The following example demonstrates how to use Sparklines. Consider the fol- lowing data for six months. The data is profit or loss for the period of January through June. See Figure 7.3. To create the Line Sparkline first select the cell J2 where you want your Line Sparkline to be. Click on the Insert Sparkline and select the data that will create the FIGURE 7.1 Sparkline Types in Excel 2010 and MAC Excel 2011 81
line D2:I2. See Figure 7.4 for the steps to create the line. See Figure 7.5 for the resulting lines for all projects when you drag the results down. You can create the Column Sparklines and the Win/Loss Sparklines in columns K and L. The results are shown in Figure 7.6. The Loss part on the last column is colored in red. FIGURE 7.2 Insert Sparkline Icon Locations FIGURE 7.3 Data for Six Months FIGURE 7.4 The Steps to Create a Line Sparkline 82 USING EXCEL EFFICIENTLY
In essence the Sparklines are micro charts of similar conventional Excel charts. If you, for example, take the data for Project 1 and create a line chart and a column chart, you will be creating the Line and the Column Sparklines shown in Figure 7.7. You will note that the cells containing the actual Sparklines are empty when you look at the Formula Bar or when you edit the cells. You may take advantage of it and add text or other contents to the cell. See Figure 7.8. The Sparklines has a number of design and other options. I chose to display a couple of design ideas as you can see in Figure 7.9. MORE ABOUT CHARTS Chapter 6 described how to create a variety of charts. In this section we will examine a couple of charts and ideas that can make you understand your data better data and make your presentations look much better. We will demonstrate how to use the Surface Chart and how to animate charts. FIGURE 7.5 Sparklines Results for all Projects FIGURE 7.6 The Complete Example with the Line, Column, and the Win/Loss Sparklines Ϫ5 0 1 2 3 4 5 6 5 10 Ϫ5 0 1 2 3 4 5 6 5 10 FIGURE 7.7 A Line and a Column Chart of Project 1's Data FIGURE 7.8 Add Text to the Sparkline Cell Sparklines and Advanced Topics in Excel Charts 83
Surface Charts To insert a 3-D Surface Chart select the data and follow insert the chart as shown in Figure 7.10. See the different charts it results in. The data for the chart is available in the sheet Surface Charts in the chapter's workbook. There are two more Surface Chart types on the same menu: The Contour and the Wireframe Contour. These are 2-D charts. See Figure 7.11. We will be using these charts in the case study in Chapter 36 and in Chapter 17 for sensitivity analysis. FIGURE 7.10 3-D Surface Charts Increase Row Height Line Line Column Win/Loss Column Win/Loss Line Line Increase Column Width Column Column Add all Markers Add High and Low Markers Win/Loss Win/Loss FIGURE 7.9 Modify Sparklines Design 84 USING EXCEL EFFICIENTLY
I chose one more example you can find on the same sheet in the Chapter 7 workbook. This time the data creates a concave surface. To enhance the presentation of the chart I copied the values of the grid as a picture. Then I pasted the picture on the chart's "floor" (you select the floor and use paste or CTRLþV). Now you can see the Z values corresponding to the values or heights of the points on the chart. See Figure 7.12. You may want to use Conditional Formatting on the grid's values before you paste it on the chart. Animating Charts You may want to dynamically change the data a chart is based on to cause parts of the chart to move and illustrate its impact on your decision-making process. For example, the Break-Even Point changes as you change the input values such as costs, selling price, fixed costs, or any other input. You may want to see the impact of moving your plants on a map on cost in a supply chain distribution problem. I will start with a Break-Even Point chart example. The example used to create the chart is shown in Figure 7.13. The Break-Even Point (BEP) is 6,250 units. In other words, when the number of units sold exceeds 6,250 units this venture is profitable. You will find this example of this chapter's workbook on the sheet Animate a Chart. FIGURE 7.11 Contour and Wireframe Contour Surface Charts FIGURE 7.12 Surface Chart with the Data on the Chart's Floor Sparklines and Advanced Topics in Excel Charts 85
Here the BEP is calculated by dividing the fixed cost by the Unit price minus (–) the cost per unit. In Figure 7.13 the last row reads: "Break-Even Point 6,250¼Fixed_Monthly_Expenses/(Unit_Price-Cost_per_ Unit)" Chapters 16 and 17 show how to find the BEP using the Goal Seek. These chapters also demonstrate how to create sensitivity analysis tables called Data Tables in Excel to calculate the Revenue, Expenses, and Profit as a function on the number of Units Sold. Using the Data Table, we can create a chart. See Figure 7.14. In order to animate the chart, it is best to fix the axis so it doesn't change while the chart parts are moving. If the axis ranges change youmay lose some of the visual effect of the animations. To make sure the axis does not change follow the following steps: Right- click on the axis and choose Format Axis. On the Format Axis menu, make sure that at least the first two, Minimum and Maximum, are selected as Fixed. See Figure 7.15. If you want to change values that will shift and move the lines on the chart, you have to use a scroll bar. Creating a scroll bar is described in detail in Chapter 18. What we want to do on this chart, the BEP chart of Figure 7.14, is vary the two inputs, Cost and Price to visualize in real time their impact on the break even. The Break-Even chart was copied/moved to a new sheet on the workbook Animated Chart. There are two Scroll bars on the left side of the Chart. They were inserted using the Developer Ribbon's Insert Tool Box as described in Chapter 18. The first Scroll Bar will control the Price and the second scroll bar will control the Cost per Unit. See Figure 7.16. To configure the first scroll bar: Right-click on the bar. Choose Format Control. On the Format Control menu enter the information shown on Figure 7.17. The Current Units Sold Revenue 120,000.00 12,000.00 24,000.00 18,000.00 0.00 6,000.00 120,000.00 173,000.00 177,000.00 181,000.00 185,000.00 222,000.00 228,000.00 234,000.00 240,000.00 18,500 19,000 19,500 20,000 49,000.00 0 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2,500 5,000 7,500 10,000 Units Sold Profit Analysis 12,500 15,000 17,500 20,000 51,000.00 53,000.00 55,000.00 33,000.00 37,000.00 41,000.00 25,000.00 29,000.00 15,000.00 (21,000.00) (18,000.00) (17,000.00) (25,000.00) (23,000.00) 1,000 1,500 0 500 Expenses Profit FIGURE 7.14 The Data Table and the Break-Even Point Chart FIGURE 7.13 The Break-Even Point Example 86 USING EXCEL EFFICIENTLY
valueis$12 forthe Unit Price. We would likeittovary from $10 to$20. The incremental change will be $1. Page Change is irrelevant for this example. We are controlling the price as you see on the Cell Link (the cell C2 on the Animate a Chart sheet.) To configure the second scroll bar for the Unit Cost follow a similar process: Right-click on the bar and choose Format Control. On the Format Control you can enter the information as you see in Figure 7.18. The Current value is $8 for the Unit Cost. We would like it to vary from $5 to $15. The incremental change will be $1. Again, Page Change is irrelevant for this example. We are controlling the price as you see on the Cell Link (the cell C3 on the Animate a Chart sheet). Now when you make a presentation you will see the lines moving as you click on the arrows of the scroll bars. The first scroll bar will move the Revenue line up and down. The second scroll bar will move the Expenses line up and down. The Break- Even Point will be changing as the lines are moving. FIGURE 7.15 Fixing the Range of Values of the Axis FIGURE 7.16 The Two Scroll Bars on the Chart Sparklines and Advanced Topics in Excel Charts 87
We can add a Text Box on the chart to show the BEP changing on the chart itself (a dynamic Text Box). To add a Text Box we go to the Insert Ribbon and insert one on the chart. To link the Break-Even Point value to Text Box, making it dynamic, follow these steps: n Select the Text Box. n Click in the Formula Bar. n Type ¼ in the formula bar and click on the Break-Even Point Cell on the Ani- mate a Chart Sheet (it will read: ¼'Animate a Chart'!$C$9). FIGURE 7.17 The Scroll Bar Menu FIGURE 7.18 The Scroll Bar Controlling Cost 88 USING EXCEL EFFICIENTLY
This will result in the BEP being displayed all the time. See Figure 7.19 for how it looks. When you complete the preceding steps, your Break-Even Point will change as the chart changes when you use the scroll bars (!) When the example is completed you may add a shape or Text Box pointing out the BEP. See Figure 7.20 for the completed example. FIGURE 7.19 Creating a Dynamic BEP Value in the Text Box FIGURE 7.20 Complete Example of an Animated Chart with a Dynamic Value BEP Sparklines and Advanced Topics in Excel Charts 89
REVIEW QUESTIONS Use the data set in the sheet named Review in the chapter's workbook to format the area. The data and its chart are shown here. 1. The following data, which you can find in the chapter's workbook, contains Dow Jones Volume and Prices for June 4 through June 12, 2012. Insert a Line and a Column Sparkline for the Volume and the Closing price. 2. Using the data of the Review spreadsheet for the formula Z ¼ X2 þ Y2 , create the four types of Surface Chart. 3. Use the model and the Data Table and Chart on the sheet Review 2 and create two scroll bars to animate the chart. Add a dynamic Text Box that displays the Break-Even Chart as it changes. Sales Units 20,000 $20 $16 $50,000 $400,000 $370,000 $30,000 12,500 Unit Price Cost per Unit Fixed Monthly Expenses Revenue Total Cost Profit Break-Even Point $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 Profit Analysis 0 2,500 5,000 7,500 10,000 Units Sold 12,500 15,000 17,500 20,000 90 USING EXCEL EFFICIENTLY
ANSWERS 1. 2. 0.00 Ϫ3.5 Ϫ3.5 Ϫ3.5 Ϫ2.5 Ϫ1.5 Ϫ0.5 0.5 2.5 1.5 3.5 Ϫ2.5 Ϫ1.5Ϫ0.5 0.5 1.5 2.5 3.5 Ϫ3.5 Ϫ3.5 Ϫ2.5Ϫ1.5Ϫ0.5 0.5 1.5 2.5 3.5 Ϫ2.5Ϫ1.5Ϫ0.5 0.5 1.5 2.5 3.5 Ϫ3.5 Ϫ3.5 Ϫ2.5 Ϫ1.5 Ϫ0.5 0.5 1.5 2.5 3.5 Ϫ1.5 0.5 2.5 Ϫ2.5 Ϫ1.5Ϫ0.5 0.5 1.5 2.5 3.5 Ϫ3.5 Ϫ1.5 0.5 2.5 0.00 5.00 10.00 15.00 20.00 25.00 20.00–25.00 15.00–20.00 10.00–15.00 5.00–10.00 0.00–5.005.00 10.00 15.00 20.00 25.00 20.00–25.00 15.00–20.00 10.00–15.00 5.00–10.00 0.00–5.00 20.00–25.00 15.00–20.00 10.00–15.00 5.00–10.00 0.00–5.00 20.00–25.00 15.00–20.00 10.00–15.00 5.00–10.00 0.00–5.00 3. We used the scroll bars as shown here: Sparklines and Advanced Topics in Excel Charts 91
PART Two IF Functions and Text Manipulations Part Two covers two commonly needed skills: the use of the IF functions, which make Excel a better tool for decision-making purposes, and the Text manipula- tion functions. The IF function can be used when the information you want in a cell is conditional—IF you need to specify two (or more) different answers for a cell based on conditions you determine. For example, if the hourly rates are different for regular and overtime. Or if the commission rates are lower for less than $10,000, are higher for over $10,000, and are much higher for sales over $30,000. The IF function is similar to the statements you may see with software programming. It is similar to the steps you would take when using a computer programming language without coding. Text manipulation in Excel has some powerful tools. The first section in this part will demonstrate how to separate data confined in a single column—spreading it into a number of columns. Data acquired from different sources may come as a text file— or may be separated with spaces, commas, or other delimiters. You will learn how to separate the data into columns. 93