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Lesson 4.2

The document discusses key features of spreadsheets including formulas, functions, recalculation, and what-if analysis. Formulas use cell references to perform calculations. Functions are pre-built formulas that perform common tasks. Recalculation automatically updates values when data changes. What-if analysis allows users to model scenarios by changing inputs. The document also describes using templates, multi-dimensional linking of spreadsheets, and creating charts to visualize numeric data.

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Travelers Family
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137 views

Lesson 4.2

The document discusses key features of spreadsheets including formulas, functions, recalculation, and what-if analysis. Formulas use cell references to perform calculations. Functions are pre-built formulas that perform common tasks. Recalculation automatically updates values when data changes. What-if analysis allows users to model scenarios by changing inputs. The document also describes using templates, multi-dimensional linking of spreadsheets, and creating charts to visualize numeric data.

Uploaded by

Travelers Family
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Lesson 4.

2: Formulas, Functions, and


Creating Charts

Why has the spreadsheet become so popular? The reasons lie in the features
known as formulas, functions, recalculation, and what-if analysis.
• Formulas: Formulas are instructions for calculations; they define how
one cell relates to other cells. For example, a formula might be =
A5+A15), meaning “add the numbers in the cells with cell addresses A5
and A15.”
• Functions: Functions are built-in formulas that perform common
calculations. For instance, a function might average a range of numbers
or round off a number to two decimal places.
• Cell referencing: Cell addresses can also be typed in the formula bar.
The application will consider the value contained within the particular
cell address. There are two types of cell referencing: relative
referencing and absolute referencing. Relative referencing adjusts the
cell addresses as you are dragging the auto-fill handle while filling in
certain cells. On the other hand, absolute referencing locks on to the
particular cell address as you are filling in the cells. This is done by
inserting the dollar sign ($) in the cell address, as in, $A$1, $B$25, and
$F$4.
• Recalculation: After the values have been entered into the worksheet,
the formulas and functions can be used to calculate outcomes.
However, what was revolutionary about the electronic spreadsheet was
its ability to easily do recalculation. Recalculation is the process of
recomputing values, either as an ongoing process as data is entered or
afterward, with the press of a key. With this simple feature, the hours of
mind-numbing work required to manually rework paper spreadsheets
has become a thing of the past.
• What-if analysis: The recalculation feature has opened up whole new
possibilities for decision making. In particular, what-if analysis allows
the user to see how changing one or more numbers changes the
outcome of the calculation. That is, you can create a worksheet, putting
in formulas and numbers, and then ask, “What would happen if we
change that detail?”–and immediately see the effect on the bottom line.
Worksheet Templates. You may find that your spreadsheet software makes
worksheet templates available for specific tasks. Worksheet templates are
forms containing formats and formulas custom-designed for particular kinds of
work. Examples are templates for calculating loan payments, tracking travel
expenses, monitoring personal budgets, and keeping track of time worked on
projects. Templates are also available for a variety of business needs –
providing sales quotations, invoicing customers, creating purchase orders, and
writing a business plan.
Multidimensional Spreadsheets. Most spreadsheet applications are
multidimensional, meaning that you can link one spreadsheet to another. a
three-dimensional spreadsheet, for example, is like a stack of spreadsheets all
connected by formulas. A change made in one spreadsheet automatically
affects the other spreadsheets.
Working with Formulas and Functions

Formulas and functions help with speeding up calculations especially if there


is so much numerical data. Cell referencing is usually utilized along with
formulas and functions so that any recalculations are reflected instantly. The
auto-fill handle is also used to fill adjacent cells automatically with a formula or
function. If cell referencing was used, the cell addresses will also be adjusted.
Formulas
Formulas begin with the equal (=) sign. It can be used when computing with
actual numbers, as in Figure 1. However, its efficiency is displayed when it’s
being used together with cell referencing. In Figure 2, relative referencing is
used. Just use the cell addresses in the computation in place of the actual
numbers. When there is a lot of the same computation to be done in contiguous
cells, the auto-fill handle can be dragged. This method automatically adjusts
the cell addresses similarly based on the relationship between the cell
addresses of the first highlighted cells.

Figure 1. Formula is being used to compute two numbers


The auto-fill
handle

Drag the auto-


fill handle

Figure 2. How to use relative referencing in formulas

When filling cells, there will be occasions when you do not want a cell reference
to alter. Unlike relative references, when copied or filled in, absolute references
do not change. To hold a row/column constant, place a dollar sign preceding
the row or column that you want to stay the same, as in $A$2, A$2, or $A2.
Functions
Formulas tend to have limited capability when performing the more advanced
computations. Such advanced computations can be simplified by the use of
functions. Electronic spreadsheets come with a set of functions that needs
parameters in order for it to perform the computation. For example, instead of
using a formula to computer for the sum of multiple numbers, one can simply
use the sum function which produces the same result. In Figure 3, the SUM
function needs numbers separated by a comma in order to calculate the sum
of these numbers. Different functions require different sets of parameters. For
example, the IF function requires three parameters separated by a comma.
The first one is a logical expression that will be evaluated. When the logical
expression is true, the second parameter will be shown on the cell. But when
the expression is false, the third parameter will be reflected. Cell referencing
can also be used together with functions which makes it all the more powerful.

Figure 3. A function needs parameters to perform its task

Analytical Graphics: Creating Charts

You can use spreadsheet packages to create analytical graphics, or charts.


Analytical graphics, or business graphics, are graphical forms that make
numeric data easier to analyze than it is when organized as rows and columns
of numbers. Whether viewed on a monitor or printed out, analytical graphics
help make sales figures, economic trends, and the like easier to comprehend
and visualize. In Excel, you enter your data to the worksheet, select the data,
and use the Chart wizard to step through the chart type and various options.
Examples of analytical graphics are column charts, bar charts, line graphs, pie
charts, and scatter charts. If you have a color printer, these charts can appear
in color. In addition, they can be displayed or printed out so that they look three-
dimensional. Spreadsheets can even be linked to more exciting graphics, such
as digitized maps.

Figure 4. Bar charts, line graphs, and pie charts are used to display numbers in graphical form.

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