Wednesday, February 11, 2009

Essentials Of Formulas And Functions In Excel 2007

By Andrew Whiteman

In order to create an Excel formula, begin by typing an equal sign: this distinguishes it from other types of data. A formula consists of groups of expressions. There are three key elements in these expressions: arithmetic operators, such as add and subtract; functions; and references to worksheet.

To create a formula which returns the total of two of the numbers in a spreadsheet (say 24 and 12), you simply type "=24 + 12". When you press the Enter key, you would get the correct result. However, the formula would not be linked to the two cells containing the numbers. If the entry in either of the cells were to change, the formula would still give the old result.

Obviously, the solution is to ensure that our formula contains a reference to the two cells in question. The simplest way of doing this is to click on the first cell having typed "=". Excel then automatically creates a reference to that cell. Next type the plus sign and click on the second cell. Excel creates a reference to the second cell and we then confirm the formula either by clicking on the Enter button (on the left of the formula bar) or pressing the Enter key on the keyboard.

Once your formula contains a reference to these two cells, any time the contents of the cells change, the result produced by formula will be updated.

If this were the only way of performing calculations in Excel, formulas would become very long and extremely complex. To avoid this situation, we can use Excel's built-in functions. Functions carry out complex mathematical calculations without the user having to worry about how the result is reached.

For example, let's say that we wanted to total the contents of a hundred different cells. If we relied purely on the plus sign, we would end up creating a formula with a hundred different arguments; in other words, a reference to each an every cell. Instead, we can simply use the SUM function.

To insert a function into a formula, type an equal sign followed by the name of the function. Next, type open parentheses and enter the arguments of the function. The arguments of a function are the parameters required by that function in order to return a result. When using the SUM function, the arguments are the references of the cells contain the numbers we want to total. We can generate these references by clicking or dragging across the cells in question.

When you have entered a reference to all cells containing numbers that we want to total, you can confirm entry of the formula by pressing the Enter key. You don't even need to close the brackets. Excel will close them for you.

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