Student Guide

40571A
Microsoft Excel expert 2019
Module 4: Analyzing data
 Analyzing data

Contents
Contents ................................................................ 2 Warm-up ....................................................... 22
Module overview .............................................. 4 Topic 1: Use the PMT function ............ 23
Description ...................................................... 4 Create a PMT function manually ... 23
Scenario ............................................................ 5 Create a PMT function by using the
Cornerstone .................................................... 6 Function Arguments dialog box .... 24

Lesson 1: Forecasting data ........................... 7 Activity: Discuss and learn ................ 26

Overview .......................................................... 7 Try-it: Use the PMT function ........... 26

Warm-up .......................................................... 7 Try-it 1 ....................................................... 26

Topic 1: Use logical operations ............. 8 Try-it 2 ....................................................... 27

What is a nested IF? ............................... 8 Try-it 3 ....................................................... 28

Create a nested IF function by Topic 2: Use the NPER function .......... 28

entering it yourself ................................. 9 Create an NPER function manually
Create a nested IF function by using ...................................................................... 28
the Function Arguments dialog box Create an NPER function by using
...................................................................... 10 the Function Arguments dialog box
Activity: Discuss, demo, and learn 12 ...................................................................... 29

Try-it: Use logical operations .......... 12 Activity: Tell a story .............................. 31

Try-it 1 ....................................................... 12 Try-it: Use the NPER function ......... 31

Try-it 2 ....................................................... 13 Try-it 1 ....................................................... 31

Try-it 3 ....................................................... 13 Try-it 2 ....................................................... 32

Topic 2: Create a forecast sheet ......... 14 Try-it 3 ....................................................... 32

Forecast sheet options ...................... 17 Wrap-up ........................................................ 33

Activity: Show and tell ........................ 19 Lesson 3: Performing a what-if analysis

................................................................................ 35
Try-it: Create a forecast sheet ........ 19
Overview........................................................ 35
Try-it 1 ....................................................... 19
Warm-up ....................................................... 35
Try-it 2 ....................................................... 20
Topic 1: Perform a goal seek ............... 36
Wrap-up ........................................................ 21
Use Goal Seek ........................................ 36
Lesson 2: Analyzing financial data ......... 22
Activity: Tell a story .............................. 37
Overview ....................................................... 22
Try-it: Perform a goal seek ............... 38

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Try-it 1 ....................................................... 38 Treemap chart ........................................ 53

Try-it 2 ....................................................... 38 Waterfall chart ....................................... 54
Topic 2: Use the Scenario Manager.. 39 Sunburst chart ........................................ 55
Create a scenario .................................. 39 Pareto chart ............................................. 55
Create a summary report ................. 41 Box-and-whisker chart ....................... 56
Activity: Remind, explain, and learn Map ............................................................. 57
...................................................................... 43 Which chart to choose? ..................... 58
Try-it: Use the Scenario Manager . 43 Modify a chart ........................................ 58
Try-it 1 ....................................................... 43 Activity: Team research ...................... 63
Try-it 2 ....................................................... 44 Try-it: Create and modify charts .... 63
Try-it 3 ....................................................... 44 Try-it ........................................................... 64
Wrap-up ........................................................ 45 Wrap-up ........................................................ 65
Lesson 4: Creating advanced charts...... 47 Glossary .............................................................. 66
Overview ....................................................... 47 Cornerstone ...................................................... 67
Warm-up ....................................................... 47 Overview........................................................ 67
Topic 1: Create dual-axis charts ......... 48 Objectives ..................................................... 67
Add a secondary axis .......................... 49 Duration ......................................................... 67
Activity: Discuss and learn................ 50 Instructions ................................................... 68
Try-it: Create dual-axis charts ......... 51 Tasks ................................................................ 68
Try-it 1 ....................................................... 51 File 1:
Try-it 2 ....................................................... 51 Cornerstone_sweetcorn_analysis_sta
Topic 2: Create and modify charts .... 52 rter.xlsx ...................................................... 68

Create a chart ......................................... 52 File 2:

Cornerstone_sweetcorn_scenarios_st
Funnel chart ............................................ 53 arter.xlsx .................................................... 69

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Module overview
Description
In Module 3, you learned about validating and auditing data. In this module, you’ll learn
various techniques to analyze and predict data, including nested functions, Forecast
Sheet, Goal Seek, and the Scenario Manager. The skills that you learn in this module
will help you in the future, should you decide to take out a bank loan or make an
investment. You can use Goal Seek to find the correct value you need to use to get the
correct output, taking away the guesswork you would otherwise need to make.
The Scenario Manager can store several versions of values for your formulas, which you
can display at any time for quick reference. You can even use the Scenario Manager to
create a summary report to easily compare different values in one worksheet. In the final
lesson, you’ll create and modify charts. It’s always advisable to be able to present your
data in a graphic form, if possible. As usual, the module will conclude with a
Cornerstone project to consolidate your skills.
At any time during this module, take a few minutes to review the video on making
predictions with data. This video will help orient you toward using basic data analysis by
stating goals, gathering data, ensuring that the data is usable, and then using software
tools to develop predictive models.

Video
To review the video on making predictions with data, go to: Making
predictions with data

Lesson Learning objective Exam objective(s)

Forecasting Use the IF and AND functions and create a • 3.4.3

data forecast sheet to predict data.

Analyzing Analyze data by using the PMT and NPER • 3.4.3

financial data functions. • 3.4.4

Performing a Use Goal Seek and Scenario Manager to • 3.4.2

what-if reach various results from existing data.
analysis

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Lesson Learning objective Exam objective(s)

Creating Add a secondary axis to a chart and create • 4.1.1

advanced and modify various types of charts. • 4.1.2
charts

Cornerstone: Forecast and analyze data. • 3.4.2

Deciding • 3.4.3
whether to • 3.4.4
produce • 4.1.2
more sweet
corn

Table 1: Objectives by lesson

Scenario
Every year, Munson’s Pickles and Preserves Farm sells out of sweet corn, disappointing
many potential customers, including a local food-processing chain. They are considering
increasing the number of acres devoted to sweet corn.
There are a few givens: they can purchase land at $4,500 per acre, or they can rent it at
$80 per acre per month. If they buy land at $4,500 per acre, the interest will be 5.4
percent on a five-year loan. Before Munson’s management team decides to spend
money to plant more sweet corn, they must answer the following questions:
• How much more corn will we have to sell to be able to buy or rent the land?
• How much will it cost per month, depending on various interest rates, loan amounts,
and loan periods?
• Will we have to increase the sweet corn retail price?
• What should the retail price be to increase the forecast profit?
• Will the extra crop revenue cover the loan repayment?
• If we increase corn planting initiatives by 5 percent, that will increase production
costs (seeds, fertilizer, hydration) and increase yield at the end of the season. Will this
help pay off the loan?

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Cornerstone
This module concludes with a Cornerstone project, in which you’ll use logical operations
and charts, and analyze different scenarios to find the most profitable outcome for
Munson’s corn-planting initiative. During the Cornerstone, you’ll:
• Edit the PMT function.
• Create a nested IF AND function.
• Use Goal Seek.
• Modify a chart.
• Create scenarios for analysis.
• Create a summary report.

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Lesson 1: Forecasting data

Overview
In this lesson, you’ll forecast data by using logical operations and the Forecast Sheet
command. You can use a forecast to help predict things such as future sales, inventory
requirements, future costs, or consumer trends.

Warm-up
Ask your neighbor what they enjoyed the most about the previous modules. Do they
remember how to create an IF function? After a brief discussion, use the following
questions to find out what you already know about this lesson’s topics:
1. To which of the following categories do the IF, AND, OR, and NOT functions
belong?
Select the correct option.
a. Statistical
b. Financial
c. Logical
d. Text
2. Which of the following commands can you use to help predict trends?
Select the correct option.
a. Subtotal
b. Forecast Sheet
c. Filter
d. Advanced Filter
3. When a formula contains another formula within it, it is known as a Select here to
enter text. function.
Fill in the blank space.
4. You can find the Forecast Sheet command on the Select here to enter text. tab, in
the Select here to enter text. group.
Fill in the blank spaces.

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Topic 1: Use logical operations

If you took the Microsoft Excel associate course, you’ll be familiar with basic IF
functions. In this lesson, you’ll learn about nesting an AND function into an IF function.
Nesting functions will help you perform many kinds of analysis, and in this lesson, it’ll
help with forecasting data.

What is a nested IF?

You can use an IF function to ask one question of your data, and the result will be either
true or false. If you need to ask more than one question, for which the result will be
either true or false, you’ll need to add other function(s) to the IF. For example, you could
add OR, AND, NOT, or VLOOKUP. This is known as a nested formula.
If you nest an AND into an IF function, it’s like getting a result for, as an example, “If this
condition is true, and this condition is true, and this condition is true, then do this. If not,
do that.” The do-this or do-that choices are up to you. The choices might be to return a
text string, return a value. or perform a further calculation.

Did you know?

The AND and OR functions can accommodate up to 255 conditions.
Let’s hope that you never have to create a formula that has 255
conditions!

As you’ve learned in previous lessons, you can create any function:

• By entering it yourself.
• By using the Insert Function, next to the Formula Bar or on the Formulas tab, and
then locating the function there.
• By using the Formulas tab and selecting the category the function belongs to.
The syntax for IF is IF(Logical_test, [Value_if_true], [Value_if_false]). Anything within
square brackets is optional.
The syntax for IF with a nested AND is IF(AND(Logical1, Logical2,...)[Value_if_true],
[Value_if_false]).

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Create a nested IF function by entering it yourself

To nest an AND into the IF, you start by entering =IF(AND(, in the cell you want the
result in, and then perform the following steps:

Figure 1: The IF with AND function

1. Enter your question.

2. Enter a comma and ask your second question.
3. Repeat this process until you have asked all your questions.
4. Enter a closed parenthesis, ( ) ), to close off the AND function.

Figure 2: The IF with AND function, continued

5. Enter a comma and then let Excel know what should happen if all your questions are
true. You can do this by entering text in quotes, entering a value, or inserting a
formula for calculations using different cells.
6. Enter another comma and let Excel know what should happen if the answers to all
your questions are false. The following screenshot is an example.

Figure 3: The IF with AND function true and false values

7. Finish the function with a closed parenthesis.

The following snippets depict a few examples of nested IF functions:
=IF(AND(A10>=100,A11>=200),"Good","Poor")
The above example translates as, “If the value in cell A10 is greater than 100 and the
value in cell A11 is greater than 200, then the result is good; otherwise the result is
poor.”
=IF(AND(B10<100,C10<100,D10>100),A10*5%,A10*2%)
This example translates as, “If the value in cell B10 is less than 100, the value in cell C10
is less than 100, and the value in cell D10 is greater than 100, then multiply A10 by 5
percent; otherwise multiply A10 by 2 percent.”

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Create a nested IF function by using the Function

Arguments dialog box
To create a nested IF function by using the Function Arguments dialog box, perform
the following steps:
1. Select the Insert Function box, which is next to the Formula Bar. In the Insert
Function dialog box, in the Select a function section, select the IF function, and
then select OK. The Function Arguments dialog box displays.
Note: You can also open the Function Arguments dialog box by going to the
Formulas tab, and then, in the Function Library group, selecting Logical, and then
selecting IF.
2. Before entering anything into the Logical_test box in the Function Arguments
dialog box, go to your spreadsheet. Select the Name Box drop-down list directly
beneath the ribbon. The following screenshot depicts this step.

Figure 4: The Name Box drop-down list

3. Select AND if it is listed. If not, select More Functions and then, in the Insert
Function dialog box, in the Select a function section, select AND, and then select
OK.

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4. The Formula Bar will display =IF(AND()). You can now ask your first question in the
Logical1 box, which the following screenshot depicts.

Figure 5: The Formula Bar and Function Arguments dialog box

5. Enter your second question into Logical2 and continue in Logical3, Logical4, and
others if you have further questions. Excel automatically provides more boxes for you
to enter your questions.
6. When you’ve asked all your questions, select the IF formula directly in the Formula
Bar.
7. The Function Arguments box will return to the IF function where you can enter the
value_if_true and then the value_if_false.
8. Select OK or select Enter to complete the function.
Note: When you’re using the Function Arguments dialog box to edit a nested function,
when you select the function name directly in the Formula Bar, the Function
Arguments dialog box will open the corresponding dialog box for that part of the
formula. For example, in Figure 5, the AND part is selected. If you select the IF part, then
the IF function dialog box will open. Select the AND part again and you will be returned
to the AND dialog box.

Video
To review the video on using IF with AND, go to: Using IF with AND,
OR and NOT functions

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Did you know?

There’s an exciting new addition in Excel! Instead of creating a nested
IF, you can use the IFS function. Of course, if you were paying
attention during Module 2, you know that already. If you have extra
time, why not try nesting an IFS with an AND or an OR function?
How much fun would that be?

Activity: Discuss, demo, and learn

Your teacher will start a discussion about the formulas that are already in a workbook
containing sample test results. The teacher will then demonstrate how to create a nested
IF function and how to edit a nested IF with AND function.

Resources required
You’ll need the following resources for this activity:
• Open L1_T1_act_soil_report_starter.xlsx in this lesson’s Learning Activity Resources.

Activity instructions
Participate in the activity by following these instructions:
1. Examine the formula in cell G2 on the Samples worksheet.
2. Think about the question “Could the formula be written in any other way?”
3. Follow the demonstration on how to create the same formula in cell G3.
4. Examine the formula in cell F2 on the Trace Elements worksheet.
Is the formula correct?
5. Follow the teacher’s demonstration on how to edit the formula.

Try-it: Use logical operations

In this leveled try-it activity, you’ll examine a nested function, describe the
intention of a nested function, or create a nested function.

Try-it 1
Use an existing function to help create another function.

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Resources
You’ll need the following resources for this try-it:
• Open L1_T1_try1_results_starter.xlsx in this lesson’s Learning Activity Resources.

Instructions
The following are the general tasks that you must perform during this try-it:
1. Examine the formula in cell C5.
2. Create a similar formula in cell C6 that asks if the value in cell B6 is less than 200 and
less than the Potassium value in B2. If so, that is ideal. If not, the result must be
retested. (You can copy the formula and then edit the cells if you want.)
3. Save the file as the same filename plus your initials.

Try-it 2
Enter a description next to a few functions to help your classmates understand what the
formula does.

Resources
You’ll need the following resources for this try-it:
• Open L1_T1_try2_results_starter.xlsx in this lesson’s Learning Activity Resources.

Instructions
The following are the general tasks that you must perform during this try-it:
1. Examine the formula in cell C5 and enter a description of what the formula is
intending to do in cell D5.
2. Examine the formula in cell C15 and enter a description of what the formula is
intending to do in cell D15.
3. Save the file as the same filename plus your initials.

Try-it 3
Create an IF with a nested AND function.

Resources
You’ll need the following resources for this try-it:
• Open L1_T1_try3_results_starter.xlsx in this lesson’s Learning Activity Resources.

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Instructions
The following are the general tasks that you must perform during this try-it:
1. Create a formula in cell C6 that gives a result of Ideal if the sample result for
Magnesium is less than 200 and less than the sample results of Potassium. If not,
the result should be Retest.
2. Fill the formula for Sodium and Sulphur.
3. Save the file as the same filename plus your initials.

Did you know?

Potassium is a mineral that’s important for the heart, kidneys, and
other organs to work normally. Some foods that contain potassium
are bananas, tomatoes, peas, broccoli, and melons.

Topic 2: Create a forecast sheet

If your data contains consistent time-based data, you can use the Forecast Sheet
command to create a new worksheet that can help you forecast data trends in the
future. It’s a great command to experiment with, although you might need a good
dictionary to understand some of the mathematical terminology! To create a forecast
sheet, perform the following steps:
1. Select the cells containing the known dates and data.
Note that if you select more than one row, Excel will use the last selected row to
create the forecast.
2. Select the Data tab and then, in the Forecast group, select Forecast Sheet. A Create
Forecast Worksheet dialog box opens and displays the data as a line chart, as the
following screenshot depicts.

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Figure 6: The Create Forecast Worksheet dialog box

3. Select a line or column chart from the corner of the dialog box.
4. Set the Forecast End date if you need to change it.
5. Select Options to expand the dialog and refine the forecast details.
6. Select Create to proceed to create the forecast sheet.

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7. A separate worksheet will display in your workbook, as the following screenshot

depicts.

Figure 7: A Forecast Worksheet

8. Edit the Forecast, Lower Confidence Bound, or Upper Confidence Bound

headings and figures if you want, because this won’t affect the actual data.

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Forecast sheet options

The following screenshot depicts the Options section in the Create Forecast
Worksheet dialog box, in which you can configure additional settings.

Figure 8: Forecast Sheet options

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The following table describes the settings that you can configure in the Options section
of the Create Forecast Worksheet dialog box.

Forecast Start Set the date for the forecast to begin. If you pick a date before the
end of the historical data, Excel only uses the data prior to the start
date in the prediction. This is sometimes referred to as hindcasting.

Confidence Select or clear the Confidence Interval checkbox to display or hide

Interval it. A smaller interval implies more confidence in the forecast
prediction.

Seasonality Leave this option as Detect automatically if your data is something

like an annual sales cycle with monthly figures. In such cases, Excel
will detect the seasonality as 12. If you select Set manually instead,
avoid setting the value to less than 2 cycles of historical data to help
Excel identify the seasonal components.

Timeline Range Use this option if you need to change the range for your timeline; it
must match the Values Range values.

Values Range Use this option if you need to change the value range; it must match
the Timeline Range values.

Fill Missing Points Use Interpolation to create an average for missing points in your
Using data. You can have up to 30 percent missing data and Excel will still
be able to create a forecast sheet. Use Zeros if you want to treat the
missing data as zeros.

Aggregate If your data contains multiple values with the same date, Excel will
Duplicates Using average the values. You can choose to aggregate duplicates by using
Average, Count, CountA, Max, Median, Min, and Sum.

Include forecast Select this checkbox if you want to add additional statistical data.
statistics Excel will add a table of statistics by using the Forecast.Est.Stat
function.

Table 2: Forecast Worksheet options

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Additional information
For more information on forecast sheets, go to: Create a forecast in
Excel for Windows

Activity: Show and tell

In this activity, you’ll examine a workbook containing a forecast sheet. Follow your
teacher as the teacher creates a forecast for Nuts.

Resources required
You’ll need the following resources for this activity:
• Open L1_T2_act_forecast_starter.xlsx in this lesson’s Learning Activity Resources.

Activity instructions
Participate in the activity by following these instructions:
1. Examine the data on the Sales by Category worksheet and note that the data is not
complete for the entire year.
2. Switch to the Forecast Seeds worksheet and examine the information that has been
created by using the Forecast Sheet command.
3. Follow along as your teacher creates another forecast for Nuts.

Try-it: Create a forecast sheet

In this leveled try-it activity, you’ll create a forecast worksheet or edit the options
for a forecast worksheet.

Try-it 1
Create a forecast worksheet and accept all defaults.

Resources
You’ll need the following resources for this try-it:
• Open L1_T2_try1_forecast_vegetables_starter.xlsx in this lesson’s Learning Activity
Resources.

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Instructions
The following are the general tasks that you must perform during this try-it:
1. From the Sales by Category worksheet, create a forecast sheet for Vegetables by
using the default settings.
2. Rename the new worksheet Forecast Vegetables and move the worksheet after the
Sales by Category worksheet.
3. Save the file as the same filename plus your initials.

Try-it 2
Create a forecast sheet with set specific options.

Resources
You’ll need the following resources for this try-it:
• Open L1_T2_try2_forecast_vegetables_starter.xlsx in this lesson’s Learning Activity
Resources.

Instructions
The following are the general tasks that you must perform during this try-it:
1. From the Sales by Category worksheet, create a forecast sheet with a column chart
for Vegetables with the forecast end date in four months and a confidence level of
80%.
2. Accept all other default settings.
3. Rename the new worksheet Forecast Vegetables and move the worksheet behind
the Sales by Category worksheet.
4. Save the file as the same filename plus your initials.

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Wrap-up
Record why you might need to nest a formula. Hand in your answer before leaving the
classroom. You can then use the following questions to check what you learned in this
lesson:
1. Instead of creating a nested IF function, what single function can you use if you have
multiple criteria to meet?
Select the correct option.
a. AND
b. IFS
c. OR
d. NOT
2. Which type of chart can you use when using the Forecast Sheet command?
Select all that apply.
a. Pie
b. Bar
c. Column
d. Line
3. How many conditions can you have within an AND function?
Select the correct option.
a. 255
b. 64
c. 1
d. 8
4. A Select here to enter text. interval implies more confidence in the forecast
prediction when you’re using the Forecast Sheet command.
Fill in the blank space.

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Lesson 2: Analyzing financial

data
Overview
In this lesson, you’ll use the PMT and NPER functions to analyze financial data. You can
use the PMT function to calculate how much of the loan repayments will be based on
the interest rate and the amount loaned, and how often the repayments are made. You
can use the NPER function to calculate the number of payments you’ll need to make to
reach a set target, based on the amount you want to reach and the interest rate.

Warm-up
Do you have any concerns about the last lesson? Make sure that you note your concern
and share it with the class to ask for their assistance. Use the following questions to find
out what you already know about this lesson’s topics:
1. What is PMT an abbreviation of?
Select the correct option.
a. Interest paid
b. Periodic interest
c. Payment
d. Previous coupon data
2. What does NPER stand for?
Select the correct option.
a. Net present value
b. Net future value
c. Nominal interest rate
d. Number of periods

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3. Which of the following categories does the NPER function belong to?
Select the correct option.
a. Logical
b. Financial
c. Text
d. Math & Trig
4. In the PMT function, Rate refers to the Select here to enter text. rate per period for
a loan.
Fill in the blank space.

Topic 1: Use the PMT function

The PMT function calculates the payment for a loan, based on constant regular
payments and a constant interest rate. Imagine having to borrow money from a bank
and you wanted to know how much it would cost you to repay per month. The PMT
function can help you work it out; however, you’ll need to gather some facts first, such
as:
• What is the interest rate?
• What is the interest term period?
• How much money do you want to borrow?

Create a PMT function manually

You can create a PMT function by using the Insert Function or by selecting the
Formulas tab on the Ribbon, then selecting Financial and then PMT. Alternatively, you
can create a PMT function manually, which is a bit more work. To create a PMT function
manually, perform the following steps:
1. Enter =PMT( in the cell in which you want to make the calculation.
2. Enter the interest rate per period, followed by a comma, such as 5%/12.
3. Enter the number of periods over which you’ll make the payment, followed by a
comma, such as 120 or 10*12.
4. Enter the amount of money that you are borrowing.
5. If you want to have no balance left and make payments at the end of each month,
close the function by using a closed parenthesis, ), and then select Enter to complete
the function. If not, enter a comma.

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6. Enter the future value if you would like to leave a balance outstanding, followed by a
comma.
7. Enter 1 for payment at the beginning of the period or 0 for payment at the end of
the period.
8. Enter a closed parenthesis, ), to finish the formula, and then select Enter to complete
the function.

Create a PMT function by using the Function

Arguments dialog box
Rather than creating a PMT function manually, why not take advantage of a little
assistance from the Function Arguments dialog box? To do so, perform the following
steps:
1. On your worksheet, select the Insert Function next to the Formula Bar, locate the
PMT function, and then select OK. Alternatively, you can select the Formulas tab,
select Financial in the Function Library group, and then select PMT.
2. In the Function Arguments dialog box, in the Rate box, enter the interest rate.
3. In the Nper box, enter the number of payments that you will make over the entire
loan period. Note that as you select each part of the formula, a description will result
that you might find helpful.
4. In the Pv box, enter the amount loaned.
5. In the Fv box, enter the balance that you would like to remain at the end of the loan
period. Leave it empty if you would like no balance left.
6. Finally, in the Type box, enter 1 if the payment will be made at the beginning of the
period. Leave the Type box blank or enter 0 if the payment will be made at the end
of the period.
7. Select OK or select Enter to complete the function.
In the following screenshot, the amount loaned is $40,000 over a period of 10 years at
an interest rate of 5 percent annually. In this example, the calculation is monthly.
Therefore, the loan period and interest rates should be adjusted accordingly.

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Figure 9: The PMT Function Arguments dialog box

The syntax for PMT is PMT(rate, nper, pv, [fv], [type]). The following table describes
these arguments.

Rate The interest rate per period for the loan. For example:
• Quarterly would be B1/4 or 5%/4.
• Monthly would be B1/12 or 5%/12.

Nper The total number of payments for the loan. For example:
• Quarterly would be B2*4 or 10*4.
• Monthly would be B2*12 or 10*12 or 120.

Pv The present value (the total amount that a series of future payments
is worth now).

Fv This value is optional. It is the future value, or a cash balance you

want to reach after the last payment is made. If you leave this blank,
the assumption is that a balance of zero is required.

Type This value is optional. Enter 1 for payment at the beginning of the
period. Leave this value blank or enter 0 if payment is at the end of
the period.

Table 3: PMT arguments

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Did you know?

You can easily switch a result from a negative result to a positive
result by inserting a minus after the equals. For example, the PMT
function gives a result that is negative by default because it is a debit
rather than credit. If you edit the beginning of the formula to =-
PMT(…), the result will be positive.

Additional information
For more information on the PMT function, go to: PMT function

Activity: Discuss and learn

In this activity, your teacher will initiate a discussion about the PMT function.

Resources required
You’ll need the following resources for this activity:
• Open L2_T1_act_tractor_price.xlsx in this lesson’s Learning Activity Resources.

Activity instructions
Participate in the activity by following these instructions:
1. Select cell B5.
2. Select Insert Function next to the Formula Bar.
3. Follow the teacher’s explanation of the formula.
4. Consider why this function might be useful to you in the future. For example, what
might you, your friends, or family need a loan for?

Try-it: Use the PMT function

This is a leveled try-it, in which you’ll edit an existing PMT function or create one
from scratch.

Try-it 1
In this try-it, you’ll edit cells that will affect the monthly repayment amount.

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Resources
You’ll need the following resources for this try-it:
• Open L2_T1_try1_tractor_price_starter.xlsx in this lesson’s Learning Activity
Resources.

Instructions
The following are the general tasks that you must perform during this try-it:
1. Examine the formula in cell B5.
2. Edit the annual interest rate to 7% and note the monthly repayment result in cell G3.
3. Edit the annual interest rate to 6% and note the monthly repayment result in cell G4.
4. Edit the annual interest rate to 5% and edit the loan period to 8 years.
5. Note the monthly repayment result in cell G5.
6. Save the file as the same filename plus your initials.

Try-it 2
Create a PMT formula that will calculate the monthly repayment amount for a loan over
five years, and then calculate the loan’s amount for one year.

Resources
You’ll need the following resources for this try-it:
• Open L2_T1_try2_tractor_price_starter.xlsx in this lesson’s Learning Activity
Resources.

Instructions
The following are the general tasks that you must perform during this try-it:
1. Examine the PMT function in cells B5 and B14.
2. Create a PMT function in cell B24 that will calculate the monthly repayment if the
annual interest is 5%, the loan period is 5 years, and the amount of loan is 100000.
Also include the price of a loader and backhoe, which is listed in the table.
3. Calculate the annual payment total for a year in cell B25.
4. Save the file as the same filename plus your initials.

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 Analyzing data

Try-it 3
Create a PMT function from scratch in a blank workbook for a loan that’s paid off
quarterly over five years.

Resources
You’ll need the following resources for this try-it:
• Open a blank workbook.

Instructions
The following are the general tasks that you must perform during this try-it:
1. Enter the following information into the worksheet:
a. In cell A1, enter Loan amount, and in B1, enter 5000.
b. In cell A2, enter Interest rate, and in B2, enter 4.5%.
c. In cell A3, enter Loan period, and in B3, enter 20.
d. In cell A4, enter Quarterly repayment.
2. In cell B4, create a PMT function that will calculate the monthly repayment by using
the contents of cells B1, B2, and B3.
3. Change the result to a positive number.
4. Save the file as Loan_calculation_plus your initials.

Topic 2: Use the NPER function

The NPER function is similar to the PMT function, except that it refers to an
investment rather than a loan. Use the NPER function to determine the number of
periods for an investment if you’re making constant payments periodically at a constant
interest rate. As with the PMT function, you can create it yourself or use Insert Function
to help you.

Create an NPER function manually

You can create an NPER function by using the Insert Function or by selecting the
Formulas tab on the Ribbon, then selecting Financial and then NPER. To create an
NPER function manually, perform the following steps:
1. Enter =NPER( in the cell in which you want to make the calculation.
2. Enter the interest rate per period followed by a comma, such as 5%/12,.

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3. Enter the amount you are paying as a negative number followed by a comma, such
as -100,.
4. Enter the amount that you have paid to date, followed by a comma, such as 2000,.
5. Enter 1 to calculate the payment from the beginning of the month, or 0 to pay at the
end of the month, as in 120 or 10*12.
6. Enter the target amount you want to reach, followed by a comma, such as 20000,.
7. Enter 1 for payment at the beginning of the period or 0 for payment at the end of
the period.
8. Enter a closed parenthesis, ), to finish the formula, and then select Enter to complete
the function.

Create an NPER function by using the Function

Arguments dialog box
When you create an NPER function by using the Function Arguments dialog, you
might observe similarities with the PMT function. As you select each part of the formula,
a description will result that you might find helpful.
1. On your worksheet, select the Insert Function next to the Formula Bar, locate the
NPER function, and then select OK. Alternatively, you can select the Formulas tab,
select Financial in the Function Library group, and then select NPER.
2. In the Function Arguments dialog box, in the Rate box, enter the interest rate.
3. In the PMT box, enter the amount to pay per period.
4. In the Pv box, enter the amount saved to date.
5. In the Fv box, enter the amount that you want to save.
6. Finally, in the Type box, enter 1 if the payment will be made at the beginning of the
period. Leave the Type box blank or enter 0 if the payment will be made at the end
of the period.
7. Select OK or select Enter to complete the function.
In the following screenshot, which depicts the Function Arguments dialog box for
NPER, the amount to save is $10,000 with an interest rate of 1% annually. An amount of
$100 is paid monthly, and $1,500 has been saved to date. The interest rate needs to be
divided by 12 to make it monthly. To reach the target of $10,000, it will take 81 months.

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Figure 10: The NPER function dialog box

The syntax for the NPER function is =NPER(rate, pmt, pv, [fv], [type]). Note the
similarities with the PMT syntax. The following table describes these arguments.

Rate The interest rate for each period for the investment.

Pmt The payment that you’ll make for each period. Note that you cannot
change this for the life of the investment. You usually enter this value
as a negative number.

Pv The present value or lump sum (the amount that a series of future
payments is worth now). You usually enter this value as a negative
number.

Fv This value is optional and specifies the future value, or a cash balance
that you want to achieve after making the last payment. If you leave
this blank, the assumption is that a balance of zero is required.

Type This value is optional. Enter 1 if you’ll pay at the beginning of the
period. Leave it blank or enter 0 if you’ll pay at the end of the period.

Table 4: NPER arguments

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Additional information
For more information on the NPER function, go to: NPER function
For more information on the financial functions available in Microsoft
Excel 2019, go to: Financial functions (reference)

Activity: Tell a story

In this activity, your teacher will tell a story about monthly investments that Fernando
Vasquez, the Munson’s beekeeper, is making to save for some new beekeeping
equipment.

Resources required
You’ll need the following resources for this activity:
• Open L2_T2_act_investment.xlsx in this lesson’s Learning Activity Resources.

Activity instructions
Participate in the activity by following these instructions:
1. Examine the contents of cell B7.
2. Consider how long the investment would be if the interest rate was higher, if
Fernando paid more money per month, or if the future value was changed.

Try-it: Use the NPER function

In this leveled try-it, you’ll examine an NPER function and edit it, or create one
from scratch.

Try-it 1
Edit the monthly investment amount and note the new investment period value.

Resources
You’ll need the following resources for this try-it:
• Open L2_T2_try1_investment_starter.xlsx in this lesson’s Learning Activity
Resources.

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Instructions
The following are the general tasks that you must perform during this try-it:
1. Edit the contents of cell B5 to -150.
2. Enter the new value for the investment period in cell B13.
3. Edit the contents of cell B5 to -200.
4. Enter the new value for the investment period in cell B14.
5. Save the file as the same filename plus your initials.

Try-it 2
Edit an NPER function to set the payment to be due at the beginning of the month.

Resources
You’ll need the following resources for this try-it:
• Open L2_T2_try2_investment_starter.xlsx in this lesson’s Learning Activity
Resources.

Instructions
The following are the general tasks that you must perform during this try-it:
1. Select cell B7 and use the Insert Function to change the payment to be due at the
beginning of the month.
2. Save the file as the same filename plus your initials.

Try-it 3
Create an NPER function, with the payment due at the end of each month. The aim is to
save $2,000 with an annual interest rate of 1.5 percent, paying $50 per month.

Resources
You’ll need the following resources for this try-it:
• Open L2_T2_try3_investment_starter.xlsx in this lesson’s Learning Activity
Resources.

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Instructions
The following are the general tasks that you must perform during this try-it:
1. Examine the formula in cell B7.
2. Insert a new worksheet and rename it My Investment Plan.
3. Enter the following data into the new worksheet:
a. Enter Annual interest rate in cell A1 and 1.5% in cell B1.
b. Enter Total to reach in A2 and 2000 in cell B2.
c. Enter Present value in A3 and 500 in cell B3.
d. Enter Monthly investment in cell A4 and -50 in cell B4.
e. Enter Length of Investment in cell A5.
4. Create a formula in cell B5 that calculates the length of the investment by using the
data in cells B1, B2, B3, and B4 with the payment due at the end of each month.
5. Save the file as the same filename plus your initials.

Wrap-up
Discuss with your classmates when you think you might need the NPER or PMT
function in the future. If you could save money, what would you like to invest in? What
expenditure would you take out a loan for? After your discussion, use the following
questions to check what you learned in this lesson:
1. Which of the following must you complete when creating an NPER function?
Select all that apply.
a. Rate
b. Pmt
c. Pv
d. Fv
2. The PMT function returns a Select here to enter text. value by default.
Fill in the blank space.
3. If a function’s syntax contains brackets ([ ]) around any segment of the function (for
example, [pv]), that means that segment is Select here to enter text.
Fill in the blank space.

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4. What’s the order of the syntax for the PMT function?

Indicate the correct sequence by adding numbers 1-5 next to the following items.
a. Fv
b. Pv
c. Rate
d. Type
e. Nper

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Lesson 3: Performing a what-if

analysis
Overview
Have you or a friend ever wondered "what if this happened?" or "what if that
happened?" when you’re thinking about a financial or numerical calculation? Well, Excel
can help answer questions like that. In this lesson, you’ll perform a what-if analysis by
using Goal Seek and Scenario Manager.

Warm-up
Use these questions to find out what you already know about this lesson’s topics:
1. Which of the following belongs to the what-if analysis tools?
Select all that apply.
a. Data Tables
b. Scenario Manager
c. Goal Seek
d. Data Validation
2. Which of the following describes what you can do with Goal Seek?
Select the correct option.
a. Find the correct input for the value you want.
b. Create different groups of values or scenarios.
c. Display the results of multiple inputs at the same time.
d. Choose from a list of rules to limit the type of data that people can enter.

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3. Which of the following statements are false?

Select all that apply.
a. Goal Seek can replace one value at a time.
b. Goal Seek can replace multiple values at the same time.
c. You can use Goal Seek to limit the type of data that people can enter.
d. Goal Seek can create different groups of values.
4. You can find Scenario Manager on the Select here to enter text. tab, in the Select
here to enter text. group.
Fill in the blank spaces.

Topic 1: Perform a goal seek

Goal Seek is a command that you can use when you know the result that a formula
should provide, and you want to know the value an item must to give that result. You
could keep guessing what the value should be and you might get to the result you want;
however, Goal Seek can do the work for you much faster.

Use Goal Seek

In Goal Seek, you can only use one variable input and the variable item must be in the
existing formula. If you need to use multiple variable inputs, Excel has an excellent
Solver add-in that you can activate via File > Options > Add-ins. To use Goal Seek,
perform the following steps:
1. Create the formula that you need in your worksheet.
2. Select the Data tab, and then, in the Forecast group, select What-If Analysis.
3. Select Goal Seek.
4. In the Goal Seek dialog box, in the Set cell box, enter the cell that you want to set.
5. In the To value box, enter the value that you want the result to be.
6. In the By changing cell box, enter the cell to be changed.
7. Select OK to finish.
In the following screenshot, the PMT function is used and the desired result is 400 per
month. You could change the interest rate, the length of the loan period, or the amount
loaned because all of these are in the result cell.
Note: The value entered is -400 because the current result is a negative number.

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Figure 11: Goal Seek dialog box

If you aren’t satisfied with the changes to your data, you can select Undo on the Quick
Access Toolbar (or Ctrl + Z) to return to the original values. You can then run Goal
Seek again to change a different variable.

Additional information
For more information on Goal Seek, go to: Use Goal Seek to find the
result you want by adjusting an input value
For more information on Solver, go to: Define and solve a problem by
using Solver

Activity: Tell a story

In this activity, your teacher will continue the story of Fernando’s investment plans, and
how Goal Seek can be useful in performing an analysis.

Resources required
You’ll need the following resources for this activity:
• Open L3_T1_act_investment.xlsx in this lesson’s Learning Activity Resources.

Activity instructions
Participate in the activity by following these instructions:
1. Examine the formula in cell B7, as a reminder of how the NPER function works.
2. Your teacher will demonstrate using Goal Seek to find the best interest rate to pay
off the loan within 30 months.

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3. Your teacher will split the class into two groups. One group will guess the amount to
save monthly to be able to pay off the loan within 30 months. The other group will
guess what the future value will be to pay off the loan within 30 months.
4. Perform the Goal Seek to get the actual value. How close where you in guessing the
correct value?
5. What would your preferred solution be if you were Fernando?

Try-it: Perform a goal seek

In this leveled try it activity, you’ll use Goal Seek to reduce the monthly
repayment to $40 for a new drone.

Try-it 1
The maximum amount that you can afford to pay for a new drone is $40 per month. Use
Goal Seek to help reduce the monthly repayment value down to -40 to keep within
your budget.

Resources
You’ll need the following resources for this try-it:
• Open L3_T1_try1_drone_payment_starter.xlsx in this lesson’s Learning Activity
Resources.

Instructions
The following are the general tasks that you must perform during this try-it:
1. Use Goal Seek to reduce the monthly repayment value to -40 by changing the
amount you borrow.
2. Save the file as the same filename plus your initials.

Try-it 2
The maximum amount that you can afford to pay for a new drone is $40 per month. Use
Goal Seek to help reduce the monthly repayment value to -40. You aren’t sure if you
should try to find a lower interest rate, reduce the loan amount, or increase the loan
period. You decide to note three values to discuss with your colleagues before you
make a final decision.

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Resources
You’ll need the following resources for this try-it:
• Open L3_T1_try2_drone_payment_starter.xlsx in this lesson’s Learning Activity
Resources.

Instructions
The following are the general tasks that you must perform during this try-it:
1. Use Goal Seek to calculate the best interest rate to reduce the monthly repayment
value to $40.
2. Note the value suggested in cell B9, and then undo the solution.
3. Repeat for the loan period and note the value in cell B10.
4. Repeat for the loan amount and note the value in cell B11.
5. Save the file as the same filename plus your initials.

Topic 2: Use the Scenario Manager

Have you ever created multiple worksheets that contain versions of the same data,
with minor differences, and then find yourself switching from sheet to sheet to compare
results? Well, the Scenario Manager could be just the tool for you. The tool will not
only save time but also will keep everything in one place and enable you to easily switch
between different sets of data when necessary.

Create a scenario
The scenario in the following example is a simple one based on changing one cell. You
can change as many cells as you need to in each scenario you create. To create a
scenario, perform the following steps:
1. Select the Data tab, and then, in the Forecast group, select What-If Analysis.
2. Select Scenario Manager.
3. In the Scenario Manager dialog box, select Add to create a new scenario.
4. In the Add Scenario dialog box, in the Scenario name box, enter a suitable name
for the scenario.

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Figure 12: The Add Scenario dialog box

5. In the Changing cells box, enter the cell(s) to be changed. You can do this by
entering their cell reference or by selecting the cells on the worksheet.
6. Add a comment in the Comment box if you want to, and then select OK. The
Scenario Values dialog box displays, as depicted in the following screenshot.

Figure 13: The Scenario Values dialog box

7. In the Scenario Values dialog box, select OK. The values that are currently in the
cells will be entered automatically.
8. Repeat the above steps until you have created all the scenarios that you need.

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9. Select OK to return to the Scenario Manager dialog box, which the following
screenshot depicts.

Figure 14: Scenario Manager dialog box

10. In the Scenario Manager dialog box, select any scenario in the Scenarios box, and
then select Delete to remove it or Edit to make alterations.
11. To switch to a different scenario, select any scenario, and then select Show. Your
data will update to that scenario.
12. Select Close to close the dialog box.
At any time, you can access the Scenario Manager and switch to a different scenario,
edit existing scenarios, and delete scenarios. You can also merge scenarios from another
workbook.

Create a summary report

When you’ve created multiple scenarios, you might decide to create a report that will
summarize the data for every scenario. To do this, you can create a summary report by
performing the following steps:
1. Select the Data tab, and then, in the Forecast group, select What-If Analysis.
2. Select Scenario Manager.

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3. In the Scenario Manager dialog box, select Summary, and then the Scenario
Summary dialog box, which is depicted in the following screenshot, in the Results
cells box, enter the cell on which to base the report. (In most cases, it will be the
total value cell.)

Figure 15: The Scenario Summary dialog box

4. Select OK.
A Summary report will be created in a separate worksheet for easy comparison, as
depicted in the following screenshot.

Figure 16: A Summary report

5. Edit the references in the report to make it easier to understand if you want to. For
example, in Figure 16, $G$1 could be edited to Predicted Percentage Increase.

Additional information
For more information on the Scenario Manager, go to: Switch
between various sets of values by using scenarios

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Activity: Remind, explain, and learn

In this activity, your teacher will remind you about a few formulas that you learned in
Module 2. You’ll then create several scenarios, with your teacher’s help.

Resources required
You’ll need the following resources for this activity:
• Open L3_T2_act_forecast_starter.xlsx in this lesson’s Learning Activity Resources.

Activity instructions
Participate in the activity by following these instructions:
1. Examine the formulas in cells I8, I9, and I10.
2. What does each formula calculate? Prepare to share with the class if you’re asked.
3. Consider the following questions:
a. What if you wanted the summary for different months and seasons?
b. What if the forecast value was different?
c. Imagine creating different worksheets to summarize different values or having to
create lots of different formulas to get the answers you want. You might end up
duplicating a lot of work and losing track of where you are. How would you avoid
this?
4. Follow the teacher’s instructions to create several scenarios.

Try-it: Use the Scenario Manager

In this leveled try-it, you’ll either edit an existing scenario or create new scenarios.

Try-it 1
Rename an existing scenario, edit a scenario value, and display the results.

Resources
You’ll need the following resources for this try-it:
• Open L3_T2_try1_sales_forecast_starter.xlsx in this lesson’s Learning Activity
Resources.

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Instructions
The following are the general tasks that you must perform during this try-it:
1. Edit the scenario named Farm Shop to Farm Shop Autumn and change the current
value in the last scenario value to November.
2. Show the Farm Shop Autumn scenario.
3. Save the file as the same filename plus your initials.

Try-it 2
Create two additional scenarios and display a scenario result.

Resources
You’ll need the following resources for this try-it:
• Open L3_T2_try2_sales_forecast_starter.xlsx in this lesson’s Learning Activity
Resources.

Instructions
The following are the general tasks that you must perform during this try-it:
1. Create a new scenario named Wholesale Winter that stores the contents in cells H2,
H5, H6, and H7:J7 as they currently exist.
2. Create an additional scenario named Wholesale Summer that changes the cells as
follows:
o H2 to 4%
o H5 to Wholesale Summary (unchanged)
o H6 to Summer
o H7 to June
o I7 to July
o J7 to August
3. Show the Wholesale Summer scenario.
4. Save the file as the same filename plus your initials.

Try-it 3
Create two new scenarios and create a summary report.

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Resources
You’ll need the following resources for this try-it:
• Open L3_T2_try3_sales_forecast_starter.xlsx in this lesson’s Learning Activity
Resources.

Instructions
The following are the general tasks that you must perform during this try-it:
1. Create a new scenario named Wholesale Winter that stores the contents in cells I2,
I6, and I7:K7 as they currently exist.
2. Create an additional scenario named Wholesale Spring that changes the cells as
follows:
o I2 to 3%
o I6 to Spring
o I7 to March
o J7 to April
o K7 to May
3. Show the Wholesale Spring scenario.
4. Create a Summary report based on cells I2, I10, J10, and K10.
5. Rename the summary worksheet as Wholesale Summary.
6. Save the file as the same filename plus your initials.

Wrap-up
Ask your neighbor if there is anything they don’t understand from today’s lesson, and
then help them if possible. If you’re unable to assist, help your neighbor note down the
problem for the mud puddle or parking lot. Then, use these questions to check what
you learned in this lesson:
1. Which of the following commands are available in the Scenario Manager dialog
box?
Select all that apply.
a. Merge
b. Summary
c. Add
d. Show All

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2. Which of the following statements are correct?

Select all that apply.
a. The cell changed when you use Goal Seek does not need to be a precedent of
the value you want to set.
b. The cell changed you use Goal Seek must be a precedent of the value you want
to set.
c. The cell changed when you use Goal Seek must be a dependent of the value you
want to set.
d. The cell changed when you use Goal Seek does not need to be a dependent of
the value you want to set.
3. Which of the following command categories is Goal Seek part of?
Select the correct option.
a. What-If Analysis
b. Formula Auditing
c. Calculation options
d. Financial functions
4. Which of the following steps isn’t required to delete an existing scenario in a
workbook?
Indicate the incorrect step by marking it as false.
a. Select What-If Analysis.
b. Select Scenario Manager.
c. Select the scenario to delete.
d. Select Delete.
e. Select OK.
f. Select Close.

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Lesson 4: Creating advanced

charts
Overview
In this lesson, you’ll create dual-axis charts and an advanced chart. Sometimes, you
might need to display several categories in a chart that have vastly different numerical
values. For example, one series might contain values between 50 and 100, another series
might contain values between 1000 and 2000, and another might contain values that are
all less than 10. If you were to display all the categories on one axis, it would make the
lower number very difficult to understand. If the series containing numbers between
1000 and 2000 were plotted against a different axis in the same chart, it would be much
easier to understand.

Warm-up
Use these questions to find out what you already know about this lesson’s topics:
1. When a chart combines two or more types of charts, what is it known as?
Select the correct option.
a. Doughnut
b. Combo
c. 3D bar
d. Surface
2. To display progressively smaller steps, which of the following charts would you use?
Select the correct option.
a. Sunburst
b. Scatter
c. Radar
d. Funnel

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3. Which of the following are types of charts?

Select all that apply.
a. Waterfall
b. Win/Loss
c. Box-and-whisker
d. 3D map
4. How many series of data can you use in a pie chart?
Select the correct option.
a. A maximum of 6
b. A maximum of 3
c. 2
d. 1

Topic 1: Create dual-axis charts

Have you ever observed a chart that uses a wide range of data, thereby making it
difficult for you to understand the data? For example, in a column chart, some columns
might be very small when compared to other columns that are huge. Such data might
be perfect for a dual-axis chart, also known as a secondary axis chart. The following
screenshots contain a few examples. Which one can you understand better?
The following is a column chart with totals alongside the categories.

Figure 17: A column chart

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The following is a combo chart displaying the totals as a line against a secondary axis.

Figure 18: A combo chart with secondary axis

Add a secondary axis

To add a secondary axis to a chart, perform the following steps:
1. Select the chart that you want to edit.
2. On the Chart Tools contextual tab, select the Design tab.
3. In the Type group, select Change Chart Type.
4. In the Change Chart Type dialog box, in the navigation pane, select Combo.

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Figure 19: A Change Chart Type dialog box

5. In the Secondary Axis column, select the check box against the series that you want
to display against a secondary axis.
6. If you also want to change the chart type, in the Chart Type column, select the drop-
down list, and then select a different type of chart, for example, Line with Markers.
7. Select OK to close the dialog box.

Video
To review the video on dual-axis charts, go to: Add or remove a
secondary axis in a chart in Excel
To review the video on data visualization, go to: Data visualization

Activity: Discuss and learn

This activity is student driven. You or one of your classmates will use the teacher’s
computer to edit an existing chart.

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Resources required
You’ll need the following resources for this activity:
• Open L4_T1_act_sales_starter.xlsx in this lesson’s Learning Activity Resources.

Activity instructions
Participate in the activity by following these instructions:
1. Volunteer to add the totals per quarter to the existing chart on the teacher’s
computer, which will be projected on-screen. You could also offer assistance to your
classmate.
2. After including the totals, determine if there is anything unusual about the chart.
3. Consider what could help make the chart easier to understand.
4. Be prepared to share your thoughts with the class.

Try-it: Create dual-axis charts

In this leveled try-it, you’ll change a chart to a combo chart and add a secondary
axis.

Try-it 1
Change an existing chart to a combo chart with a secondary axis.

Resources
You’ll need the following resources for this try-it:
• Open L4_T1_try1_average_price_starter.xlsx in this lesson’s Learning Activity
Resources.

Instructions
The following are the general tasks that you must perform during this try-it:
1. Display the Fresh sweetcorn category as a Line with Markers chart against a
secondary axis.
2. Save the file as the same filename plus your initials.

Try-it 2
Add a data series to an existing chart and change it to a combo chart, with one series
plotted on a secondary axis.

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Resources
You’ll need the following resources for this try-it:
• Open L4_T1_try2_average_price_starter.xlsx in this lesson’s Learning Activity
Resources.

Instructions
The following are the general tasks that you must perform during this try-it:
1. Add Fresh sweetcorn to the existing chart.
2. Display the Canned and Frozen sweet corn categories as a Line with Markers chart
type.
3. Display the Fresh sweetcorn category as an Area chart against a secondary axis.
4. Save the file as the same filename plus your initials.

Topic 2: Create and modify charts

Have you observed how many types of charts are available in Excel 2019? There are
loads of chart types that you can try out. Maybe on a rainy day, you can practice
creating and modifying them! In the meantime, why not review the video on Data
visualization that demonstrates how data can come to life when you create various kinds
of charts? Of course, maybe you’ve reviewed it already!

Create a chart
If you took the Excel associate course, you probably created many different types of
charts, such as column, line, pie, or bar charts. In this topic, you’ll create some of the
newer, more specialized charts, such as a box-and-whisker, combo, funnel, histogram,
map, sunburst, and waterfall chart.
To create a chart, perform the following steps:
1. Select the data that you want to include in the chart.
2. On the Insert tab, in the Charts group, select the category of chart that you would
like to create.

Figure 20: The Charts group on Insert tab

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3. Select the chart from the gallery.

4. A chart will immediately load into the current worksheet.

Funnel chart
You typically use a funnel chart for values across phases in a process. However, you can
use it for any single series of data. This type of chart is more effective to sort the values
in descending or ascending order. That way, the chart will resemble a funnel. The
following screenshot indicates that the Development phase will cost the most and that
the Testing phase will cost the least.

Figure 21: A funnel chart

Additional information
For more information on Funnel charts, go to: Create a funnel chart

Treemap chart
A treemap chart is useful when you have a lot of data that is organized hierarchically
within a few categories. It displays proportions within hierarchal levels in squares or
rectangles. In the following screenshot, the chart indicates that vegetables have the
biggest proportion of sales, with summer and autumn sales nearly equal. Nuts comprise
the smallest proportion of sales, particularly in winter. There are no variations on a
treemap chart.

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Figure 22: A treemap chart

Waterfall chart
You typically use a waterfall chart to help understand the breakdown of a running total;
for example, cash coming in and cash going out. Positive values usually display in blue
and negative values display in red or orange. This might vary if you are using a theme
other than the Office theme in your workbook. You can change the colors by using the
Change Colors command on the Design tab. You could also, as with all other charts,
select an individual value or the whole series and change the color on the Format tab.
The following screenshot indicates that from a starting point of zero, the final amount is
approximately 400. Money going out displays downward and money coming in displays
upward.

Figure 23: A waterfall chart

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Sunburst chart
A sunburst chart is a hierarchical chart like a treemap chart, except that the data displays
in rings. A ring displays each level, with the innermost ring being the top level. The outer
rings or segments are the breakdown of the inner ring. The following screenshot
indicates the seasonal sales by category, with vegetables comprising the largest
segment of the innermost ring.

Figure 24: A sunburst chart

Pareto chart
The Pareto chart belongs to the histogram category of charts. Pareto charts are ideal for
representing frequencies within a list of values. Imagine a list of temperatures across all
U.S. states for the month of January. A histogram chart can depict how many times
temperatures fall within set ranges. For example, it can depict the number of
occurrences between 0C and 5C, or between 22F and 34F.
Columns are called bins and the line in a Pareto chart represents the aggregate total
percentage. You can edit the number of bins to display, and set the width (range) of the
bins, the overflow value, and the underflow value. Values between the overflow or
underflow range will not display.

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The image indicates that donations within the range 17 to 32 are the most frequent
amounts and donations within the range 77 to 92 are the least frequent.

Figure 25: A Pareto chart

Additional information
For more information on Pareto charts, go to: Create a Pareto chart

Box-and-whisker chart
You can use a box-and-whisker chart to display variations with a set of data that is
arranged from lowest to highest. You can use the box-and-whisker chart with multiple
sets of related data. In this chart type, the whiskers are the lines that stick out of the
boxes. These lines depict the variability outside the upper and lower quartiles. An outlier
is any point that is outside the whisker.
The following screenshot indicates the time that visitors spent at the farm in one day.
The mean (average) in each hour block is marked with a line inside each block, and there
are three outliers that are outside the upper and lower quartiles.

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Figure 26: A box-and-whisker chart

Additional information
For more information on box-and-whisker charts, go to: Create a box
and whisker chart

Map
If your data contains values with geographical labels, a map chart is ideal. You’ll need to
accept that your data will be shared with Bing, and you’ll need internet access. You
format the map to display only regions with data, by country/region, by multiple
countries/regions, and even by the entire world. The following screenshot indicates the
number of bee colonies in the United States, with California having the most colonies,
followed by Texas and Florida.

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Figure 27: A map chart

Which chart to choose?

In most cases, this decision is objective and is totally up to you. However, to get your
message across, you might sometimes need to give your chart selection a little more
consideration. When deciding which chart to use, ask yourself two questions:
• Which chart would be the best type to represent my data?
• Is the data prepared well enough to effectively use the chart that I want to choose?

Additional information
For more information on the types of charts available in Office 2019,
go to: Available chart types in Office

Modify a chart
When you’ve created a chart, you can use the Chart Tools contextual tabs (Design and
Format) to make any alterations that you need. On the Chart Tools contextual Design
tab, you can:
• Select Add Chart Element in the Chart Layouts group to add or remove chart
elements, such as labels, gridlines, and chart and axis titles. The following screenshot
depicts this option.

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Figure 28: The Add Chart Element button

• Apply quick layout styles for quick formatting by using Quick Layout in the Chart
Layouts group.
• Select Change Colors in the Chart Styles group to apply a colorful or
monochromatic color scheme.
• Select any of the options in the Chart Styles group to apply different styles.
• Reselect the data used to create the chart by using Select Data in the Data group.
You can also simply drag the current area inward or outward to redefine the area
used in the current chart.
• Select Change Chart Type in the Type group to apply a different chart type to an
existing chart.
• Move the chart to a different location in the same workbook by using Move Chart in
the Location group.
Depending on the chart type, you might also be able to:
• Transpose the chart by selecting Switch Row/Column in the Data group.
• Remove a series from the chart.
• Add a series to the chart.
• Add a trendline by using Add Chart Element in the Chart Layouts group.
The following screenshot depicts the Design tab within the Chart Tools contextual tab,
which appears when you select a chart.

Figure 29: The Chart Design tab

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Depending upon the type of chart that you have created and what elements you’ve
selected within the chart, you can use the Chart Tools contextual Format tab to:
• Apply styles to whatever you have selected within the chart.
• Format elements within the chart by using the options in the Shape Styles group.
• Apply formatting if you select text in the chart and use an option in the WordArt
Styles group. You can also do this by using options in the Font group on the Home
tab.
• Add a description for the chart by using Alt Text in the Accessibility group.
• Resize the chart to an exact width and height by using the options in the Size group.
• Open the Selection Pane in the Arrange group. This is very helpful when you have a
lot of data or objects on screen.
• Select any of the dialog-box launchers on the groups on the Format tab. This will
open the format pane for detailed editing options that are not available on the
ribbon.

Figure 30: Format tab

Alternatively, you can perform the following steps:

1. Select the chart and then select the Chart Elements plus button (+) on the side of
the chart to add or remove chart elements.
2. Select the arrow on the side of each element listed for further options.
3. As an example, like the following screenshot depicts, you can open the Format Data
Labels pane by selecting the arrow next to Data Labels, and then selecting More
Data Label Options.

Figure 31: Chart Elements

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You could also select the chart and then select Chart Styles (paintbrush) on the side of
the chart to apply a different style to the chart or color scheme.

Figure 32: Chart Styles

You can also:

1. Double-click any element within the chart to open the format pane. You can also
right-click or activate the context menu for the element, and then select the
formatting option. For example, if you have selected the Chart Title, you’ll open the
Format Chart Title pane.

Figure 33: The Format Chart Title pane

2. Select any of the tabs on the format pane to switch between options.

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3. Select the drop-down list at the top of the format pane to select a different chart
area. For example, you can switch from Chart Title to Plot Area. These options are
also available on the Chart Elements drop-down list in the Current Selection group
on the Format tab. Both of these methods are very helpful if you’re having difficulty
selecting specific elements within the chart.

Figure 34: Title options on the Format Chart Title pane

4. Select Close (the X in the corner of the pane) to close it.

Another option is to right-click or activate the context menu for the chart element that
you want to edit, and then select the option for formatting that particular element.
As with many of the fantastic Excel features, the best way to learn about charts is to go
ahead and create one—and don’t be afraid to experiment! Remember, depending upon
the type of chart that you have used and the element you have selected within that
chart, the modifications you can make will differ.

Did you know?

There are many types of color blindness. However, Microsoft has a
Color filter tool that can help! Select Start, select Settings, and then
search for color filters. Why don’t you give it a try? Using the tool
might make your charts and other graphics easier to understand.

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Video
To review the video on adding a trendline to a chart, go to: Add a
trend or moving average line to a chart

Activity: Team research

In this activity you’ll be given a chart type to research. Partner with anyone who has the
same chart type as you have, and then work together to find out as much as possible
about it.

Resources required
You’ll need the following resources for this activity:
• Open L4_T2_act_charts.xlsx in this lesson’s Learning Activity Resources.

Activity instructions
Participate in the activity by following these instructions:
1. Partner with anyone who has the same chart type as you have.
2. Use any method available to research the chart type that you have been allocated.
3. Use L4_T2_act_charts.xlsx if you want, for reference or to use any data that you
have access to.
4. Consider these questions while researching:
a. What type of formatting can be applied?
b. Are there any important things to prepare within the data before creating the
chart?
c. Is there anything unique or special about the chart?
5. You’ll get a chance to create the chart that you have researched in the try-it.

Try-it: Create and modify charts

In this standalone try-it activity, you’ll remain in the same group and work
together to create and modify a chart.

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Try-it
Create and modify the chart that your team researched. If you perform this try-it by
yourself, instead of with a team, make sure to compare your chart with everyone who
has selected the same chart type as you have.

Resources
You’ll need the following resources for this try-it:
• Open L4_T2_try_charts_starter.xlsx in this lesson’s Learning Activity Resources.

Instructions
The following are the general tasks that you must perform during this try-it:
1. Select the worksheet labeled with the chart that you have been researching, then do
one of the following as appropriate:
a. Funnel: Create a funnel chart that displays all the data in an upside-down funnel.
Change the gap width between each series to 5%. Apply Quick Layout 2. Enter
the chart title Estimated Production Costs.
b. Treemap: Create a treemap chart that displays all the data with Season as the
top level. Display the value on each segment and the Category name. Apply
Quick Layout 6. Enter the chart title Seasonal Sales.
c. Sunburst: Create a sunburst chart that displays all the data with Season as the
top level. Apply Quick Layout style 3. Move the legend to the bottom and enter
the chart title Seasonal Sales.
d. Waterfall: Create a waterfall chart for all the data. Apply Quick Layout 4 and
remove connector lines. Set the series gap width to 60% and enter the chart
title Cashflow.
e. Pareto: Create a Pareto chart that displays the frequency of all the donations.
Change the gap width between each series to 5%. Apply Quick Layout 2. Enter
the chart title Frequency of donation amounts.
f. Box-and-whisker: Create a box-and-whisker chart that displays the time and
number of visitors. Set the Quartile Calculation as the Inclusive Median and
remove the mean markers. Apply Quick Layout 4 and enter the chart title
Number of visitors per hour.
g. Map: Create a map chart for the percentage of bee colonies renovated in the
United States. Apply Quick Layout style 2 and format the data series to display
Map labels for all states. Enter the chart title % of Bee Colonies renovated in
US.

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2. Reposition/resize the chart to ensure that the chart doesn’t cover any data and that
the chart is large enough to display all categories clearly.
3. Add Alt Text describing the chart content. Note: Screen readers read alt-text or
alternative text to help people with low vision understand the images and other
objects in a document.
4. Save the workbook as the same name plus the team name that the team chooses.
5. Compare your chart with other teams if time permits.

Wrap-up
If time permits, create any other chart in the L4_T2_try_charts_starter.xlsx workbook.
Then, use these questions to check what you learned in this lesson:
1. To create a dual-axis chart, which chart type should you use?
Select the correct option.
a. Bar
b. Column
c. Combo
d. Line
2. What is the additional axis on a dual-axis chart also known as?
Select the correct option.
a. Vertical axis
b. Horizontal axis
c. Horizontal (category) axis
d. Secondary vertical (value) axis
3. Which of the following charts would be useful for displaying frequencies?
Select all that apply.
a. Pareto
b. Sunburst
c. Waterfall
d. Histogram

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4. In a box-and-whisker chart, any point outside of the whisker is known as an Select

here to enter text..
Fill in the blank space.

Glossary
Outlier A value outside the quartile range within a box-and-whisker chart.

Quartile A calculation used in a box-and-whisker chart. More detail is

provided in Lesson 4, Topic 2, plus a link to Microsoft Office support.

Stacked An option available within various chart types.

Summary Report A report created automatically on a separate worksheet by using the

Scenario Manager.

Syntax The order of a formula.

Table 5: Glossary terms and definitions

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Cornerstone
Overview
In this Cornerstone, you’ll analyze data by using the PMT function, Goal Seek, Scenario
Manager, and a nested IF with AND. Munson’s management team has been working
on two workbooks, which you’ll analyze further to answer several questions.

Objectives
The following table outlines the Cornerstone objectives and their corresponding
Microsoft Office Specialist (MOS) exam objectives.

Perform a what-if • 3.4.2: Perform a what-if analysis by using Goal Seek and
analysis Scenario Manager.

Forecast data by • 3.4.3: Forecast data by using the AND(), IF(), and NPER()
using nested IF and functions.
AND

Analyze financial • 3.4.4: Calculate financial data by using the PMT()

data function.

Modify a chart • 4.1.2: Create and modify charts including box-and-

whisker, combo, funnel, histogram, map, sunburst, and
waterfall charts.

Table 6: Cornerstone objectives

Duration
50 minutes

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Instructions
1. Complete the tasks for each file.
2. When saving your file, add your name to the end of the filename, for example:
Sweetcorn_Dwayne_Espino.xlsx. Follow your teacher’s directions for where to save
your files.
3. When you’re done with the Cornerstone, assess your completion and enter the
points that you think you earned within the task lists. You can ask your teacher for
help, if required.

Tasks
You’ll work with two files in this Cornerstone. The following are the tasks you must
complete within each file.

File 1: Cornerstone_sweetcorn_analysis_starter.xlsx
Task: Edit a PMT function (2 points)
1. Examine the PMT function on the Buy Land worksheet (cell B5).
2. Edit the function so that it returns the correct result. (2 points) (Exam objective 3.4.4)
Points scored: Select here to enter text. / 2

Task: Create a nested IF AND function (4 points)

• In cell B19 on the Rent Land worksheet, create a nested function that will calculate if
E9 minus C9 is greater than B4 on the Rent Land, and if E12 minus C12 is greater
than B7 on the Buy Land worksheet, return the value No, otherwise return the value
Yes. (4 points) (Exam objective 3.4.3)
Points scored: Select here to enter text. / 4

Task: Perform a goal seek (2 points)

• On the Buy Land worksheet, use Goal Seek to calculate how much the retail price
for sweet corn should increase if the forecast profit (E16) is raised to 24000. (2
points) (Exam objective 3.4.2)
Points scored: Select here to enter text. / 2

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Task: Modify the chart (4 points)

1. On the Forecast Chart worksheet, edit the data source to display the Forecast Buy
Land data instead of the Forecast Rent Land data. (2 points) (Exam objective 4.1.2)
2. Sort the table so that the chart resembles a funnel. (1 point) (Exam objective 4.1.2)
3. Apply the Monochromatic Palette 3 color scheme to the chart. (1 point) (Exam
objective 4.1.2)
Points scored: Select here to enter text. / 4
FILE 1 TOTAL POINTS: ______ /12

File 2:
Cornerstone_sweetcorn_scenarios_starter.xlsx
Task: Create three scenarios (7 points)
1. Create a scenario named 4% - 4 years as follows:
a. Change B2 to 4%
b. Change B3 to 4 years
c. Change B4 to $4000 (2 points) (Exam objective 3.4.2)
2. Create a scenario named 4.5% - 5 years as follows:
a. Change B2 to 4.5%
b. Change B3 to 5 years
c. Change B4 to $5000 (2 points) (Exam objective 3.4.2)
3. Create a scenario named 5% - 4 years as follows:
a. Change B2 to 5%
b. Change B3 to 4 years
c. Change B4 to $4500 (2 points) (Exam objective 3.4.2)
4. Show the 5% - 4 years scenario and close the Scenario Manager dialog box. (1
point)
Points scored: Select here to enter text. / 7

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Task: Create a summary report (3 points)

1. Create a summary report based on the cells B5 and B6. (2 points) (Exam objective
3.4.2)
2. Rename the new worksheet Loan Scenarios. (1 points)
Points scored: Select here to enter text. / 3
FILE 2 TOTAL POINTS: Select here to enter text. / 10

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