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Formula Fundamentals
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All formulas in Excel begin with an equal sign. The equal sign tells Excel that the succeeding characters constitute a formula. If you omit the equal sign, Excel might interpret the entry as text. To see how formulas work, we ll walk through some rudimentary ones. Begin by selecting blank cell A10. Then type =10+5 and press Enter. The value 15 appears in cell A10. Now select cell A10, and the formula bar displays the formula you just entered. What appears in the cell is the displayed value; what appears in the formula bar is the underlying value, which in this case is a formula.
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Understanding the Precedence of Operators
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Operators are symbols that represent specific mathematical operations, including the plus sign (+), minus sign ( ), division sign (/), and multiplication sign (*). When performing these operations in a formula, Excel follows certain rules of precedence:
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Expressions within parentheses are processed first. Multiplication and division are performed before addition and subtraction. Consecutive operators with the same level of precedence are calculated from left to right.
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Enter some formulas to see how these rules apply. Select an empty cell and type =4+12/6. Press Enter, and you see the value 6. Excel first divides 12 by 6 and then adds the result (2) to 4. If Excel used different precedence rules, the result would be different. For example, select another empty cell and type =(4+12)/6. Press Enter, and you see the value 2.666667. This demonstrates how you can change the order of precedence using parentheses. The formulas
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Part 5: Creating Formulas and Performing Data Analysis
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Microsoft Office Excel 2003 Inside Out in Table 12-1 contain the same values and operators, but note the different results because of the placement of parentheses:
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Table 12-1.
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Placement of Parentheses
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Result
19 24 11.5 5.5 36
Formula
=3*6+12/4-2 =(3*6)+12/(4-2) =3*(6+12)/4-2 =(3*6+12)/4-2 =3*(6+12/(4-2))
If you do not include a closing parenthesis for each opening parenthesis in a formula, Excel displays the message Microsoft Excel found an error in this formula and provides a suggested solution. If the suggestion matches what you had in mind, simply press Enter and Excel completes the formula for you. When you type a closing parenthesis, Excel briefly displays the pair of parentheses in bold. This feature is handy when you are entering a long formula and are not sure which pairs of parentheses go together. Tip When in doubt, use parentheses If you are unsure of the order in which Excel will process a sequence of operators, use parentheses even if the parentheses aren t necessary. Parentheses also make your formulas easier to read and interpret, which is helpful if you or someone else needs to change them later.
Using Cell References in Formulas
A cell reference identifies a cell or group of cells in a workbook. When you include cell references in a formula, the formula is linked to the referenced cells. The resulting value of the formula is dependent on the values in the referenced cells and changes automatically when the values in the referenced cells change. To see cell referencing at work, select cell A1 and type the formula =10*2. Now select cell A2, and type the formula =A1. The value in both cells is 20. If at any time you change the value in cell A1, the value in cell A2 changes also. Now select cell A3, and type =A1+A2. Excel returns the value 40. Cell references are especially helpful when you create complex formulas.
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Part 5: Creating Formulas and Performing Data Analysis
Building Formulas
Entering Cell References with the Mouse
You can save time and increase accuracy when you enter cell references in a formula by selecting them with the mouse. For example, to enter references to cells A9 and A10 in a formula in cell B10, do the following:
1 Select cell B10, and type an equal sign. 2 Click cell A9, and type a plus sign. 3 Click cell A10, and press Enter.
When you click each cell, a marquee surrounds the cell and a reference to the cell is inserted in cell B10. After you finish entering a formula, be sure to press Enter. If you do not press Enter and select another cell, Excel assumes that you want to include the cell reference in the formula. The active cell does not have to be visible in the current window for you to enter a value in that cell. You can scroll through the worksheet without changing the active cell and click cells in remote areas of your worksheet, in other worksheets, or in other workbooks, as you build a formula. The formula bar displays the contents of the active cell, no matter which area of the worksheet is currently visible. Tip Redisplay the active cell If you scroll through your worksheet and the active cell is no longer visible, you can redisplay it by pressing Ctrl+Backspace.
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