Microsoft Excel Data

Analysis and Business

Modeling (Office 2021
and Microsoft 365)
7th Edition

Wayne Winston

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 MICROSOFT EXCEL DATA ANALYSIS AND BUSINESS MODELING EDITOR-IN-CHIEF
(OFFICE 2021 AND MICROSOFT 365), 7TH EDITION Brett Bartow

Published with the authorization of Microsoft Corporation by: EXECUTIVE EDITOR

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iii

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 Dedication

To Vivian, Jen, and Greg. You are all so great, and I love all of you
so much!

iv

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 Contents at a Glance

About the Author xxiii

Introduction xxv
CHAPTER 1 Basic worksheet modeling 1
CHAPTER 2 Range names 11
CHAPTER 3 Lookup functions 25
CHAPTER 4 The INDEX function 39
CHAPTER 5 The MATCH function 43
CHAPTER 6 Text functions and Flash Fill 51
CHAPTER 7 Dates and date functions 73
CHAPTER 8 The net present value functions: NPV and XNPV 85
CHAPTER 9 The internal rate of return: IRR, XIRR, and MIRR functions 93
CHAPTER 10 More Excel financial functions 101
CHAPTER 11 Circular references 117
CHAPTER 12 IF, IFERROR, IFS, CHOOSE, SWITCH, and the IS functions 123
CHAPTER 13 Time and time functions 149
CHAPTER 14 The Paste Special command 157
CHAPTER 15 Three-dimensional formulas and hyperlinks 165
CHAPTER 16 The auditing tool and the Inquire add-in 171
CHAPTER 17 Sensitivity analysis with data tables 183
CHAPTER 18 The Goal Seek command 197
CHAPTER 19 Using the Scenario Manager for sensitivity analysis 203
CHAPTER 20  he COUNTIF, COUNTIFS, COUNT, COUNTA,
T
and COUNTBLANK functions 209
CHAPTER 21  he SUMIF, AVERAGEIF, SUMIFS, AVERAGEIFS,
T
MAXIFS, and MINIFS functions 217
CHAPTER 22 The OFFSET function 225
CHAPTER 23 The INDIRECT function 239
CHAPTER 24 Conditional formatting 251
CHAPTER 25 Excel tables and table slicers 283

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 CHAPTER 26  pin buttons, scrollbars, option buttons,
S
check boxes, combo boxes, and group list boxes 301
CHAPTER 27 Importing data from a text file or document 315
CHAPTER 28 The Power Query Editor 321
CHAPTER 29 Excel’s new data types 343
CHAPTER 30 Summarizing data with histograms and Pareto charts 363
CHAPTER 31 Summarizing data with descriptive statistics 377
CHAPTER 32 Sorting in Excel 397
CHAPTER 33 Filtering data and removing duplicates 411
CHAPTER 34  ummarizing data with database
S
statistical functions 429
CHAPTER 35 Array formulas and functions 441
CHAPTER 36 Excel’s new dynamic array functions 461
CHAPTER 37 Validating data 473
CHAPTER 38 Using PivotTables and slicers to describe data 483
CHAPTER 39 The Data Model 541
CHAPTER 40 Power Pivot 551
CHAPTER 41 Consolidating data 571
CHAPTER 42 Creating subtotals 577
CHAPTER 43 Basic charting 585
CHAPTER 44 Advanced charting 617
CHAPTER 45 Filled and 3D Maps 643
CHAPTER 46 Sparklines 659
CHAPTER 47 Estimating straight-line relationships 665
CHAPTER 48 Modeling exponential growth 675
CHAPTER 49 The power curve 681
CHAPTER 50 Using correlations to summarize relationships 689
CHAPTER 51 Introduction to multiple regression 697
CHAPTER 52 Incorporating qualitative factors into multiple regression 705
CHAPTER 53 Modeling nonlinearities and interactions 719
CHAPTER 54 Analysis of variance: One-way ANOVA 727
CHAPTER 55 Randomized blocks and two-way ANOVA 733
CHAPTER 56 Using moving averages to understand time series 745

vi Contents at a Glance

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 CHAPTER 57 Ratio-to-moving-average forecast method 749
CHAPTER 58 An introduction to probability 753
CHAPTER 59 An introduction to random variables 763
CHAPTER 60  he binomial, hypergeometric, and negative
T
binomial random variables 769
CHAPTER 61 The Poisson and exponential random variable 777
CHAPTER 62 The normal random variable and Z-scores 781
CHAPTER 63 Making probability statements from forecasts 791
CHAPTER 64  sing the lognormal random variable to model
U
stock prices 795
CHAPTER 65 I mporting past stock prices, exchange rates,
and cryptocurrency prices with the
STOCKHISTORY function 799
CHAPTER 66 An introduction to optimization with Excel Solver 807
CHAPTER 67 Using Solver to determine the optimal product mix 813
CHAPTER 68 Using Solver to schedule your workforce 825
CHAPTER 69  sing Solver to solve transportation or
U
distribution problems 831
CHAPTER 70 Using Solver for capital budgeting 837
CHAPTER 71 Using Solver for financial planning 845
CHAPTER 72 Using Solver to rate sports teams 853
CHAPTER 73 The Winters method and the Forecast Sheet tool 859
CHAPTER 74 Forecasting in the presence of special events 869
CHAPTER 75  arehouse location and the GRG Multistart and
W
Evolutionary Solver engines 877
CHAPTER 76 Penalties and the Evolutionary Solver 889
CHAPTER 77 The traveling salesperson problem 895
CHAPTER 78  eibull and beta distributions: Modeling machine
W
life and duration of a project 901
CHAPTER 79 Introduction to Monte Carlo simulation 907
CHAPTER 80 Calculating an optimal bid 919
CHAPTER 81 Simulating stock prices and asset-allocation modeling 925
CHAPTER 82  un and games: Simulating gambling and
F
sporting-event probabilities 937

Contents at a Glance vii

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 CHAPTER 83 Using resampling to analyze data 947
CHAPTER 84 Pricing stock options 953
CHAPTER 85 Determining customer value 967
CHAPTER 86 The economic order quantity inventory model 973
CHAPTER 87 Inventory modeling with uncertain demand 979
CHAPTER 88 Queuing theory: The mathematics of waiting in line 987
CHAPTER 89 Estimating a demand curve 993
CHAPTER 90 Pricing products by using tie-ins 999
CHAPTER 91  ricing products by using subjectively
P
determined demand 1005
CHAPTER 92 Nonlinear pricing 1011
CHAPTER 93 Use Analyze Data to find patterns in your data 1019
CHAPTER 94 Recording macros 1031
CHAPTER 95  he LET and LAMBDA functions and the
T
LAMBDA helper functions 1049
CHAPTER 96 Advanced sensitivity analysis 1063
Index 1067

viii Contents at a Glance

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 Contents
About the Author . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxiii
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxv

Chapter 1 Basic worksheet modeling 1

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   1
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   9

Chapter 2 Range names 11

How can I create named ranges? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Using the Name box to create a range name . . . . . . . . . . . . . . . . . . . . . 12
Creating named ranges using the Create from Selection option . 13
Creating range names using the Define Name option . . . . . . . . . . . . 15
The Name Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Remarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Chapter 3 Lookup functions 25

Syntax of the lookup functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
VLOOKUP syntax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
HLOOKUP syntax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
XLOOKUP syntax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Chapter 4 The INDEX function 39

Syntax of the INDEX function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

ix

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 Chapter 5 The MATCH function 43
Syntax of the MATCH function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Chapter 6 Text functions and Flash Fill 51

Text function syntax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

Chapter 7 Dates and date functions 73

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

Chapter 8 The net present value functions: NPV and XNPV 85

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

Chapter 9 The internal rate of return: IRR, XIRR,

and MIRR functions 93
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

Chapter 10 More Excel financial functions 101

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

Chapter 11 Circular references 117

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120

x Contents

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 Chapter 12 IF, IFERROR, IFS, CHOOSE, SWITCH,
and the IS functions 123
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143

Chapter 13 Time and time functions 149

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155

Chapter 14 The Paste Special command 157

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163

Chapter 15 Three-dimensional formulas and hyperlinks 165

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169

Chapter 16 The auditing tool and the Inquire add-in 171

Excel auditing options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
Show Formulas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
Error Checking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
Watch Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
Trace Precedents, Trace Dependents, and Remove Arrows . . . . . . . 174
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182

Chapter 17 Sensitivity analysis with data tables 183

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192

Chapter 18 The Goal Seek command 197

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201

Contents xi

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 Chapter 19 Using the Scenario Manager for sensitivity analysis 203
Answer to this chapter’s question . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203
Remarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207

Chapter 20 The COUNTIF, COUNTIFS, COUNT, COUNTA,

and COUNTBLANK functions 209
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211
Remarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214

Chapter 21 The SUMIF, AVERAGEIF, SUMIFS, AVERAGEIFS,

MAXIFS, and MINIFS functions 217
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222

Chapter 22 The OFFSET function 225

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226
Remarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236

Chapter 23 The INDIRECT function 239

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248

Chapter 24 Conditional formatting 251

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278

Chapter 25 Excel tables and table slicers 283

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298

xii Contents

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 Chapter 26 Spin buttons, scrollbars, option buttons,
check boxes, combo boxes, and group list boxes 301
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313

Chapter 27 Importing data from a text file or document 315

Answers to this chapter’s question . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320

Chapter 28 The Power Query Editor 321

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 323
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340

Chapter 29 Excel’s new data types 343

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 362

Chapter 30 Summarizing data with histograms and

Pareto charts 363
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 376

Chapter 31 Summarizing data with descriptive statistics 377

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 378
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 393

Chapter 32 Sorting in Excel 397

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 398
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 409

Chapter 33 Filtering data and removing duplicates 411

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 413
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 428

Contents xiii

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 Chapter 34 Summarizing data with database
statistical functions 429
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 431
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 438

Chapter 35 Array formulas and functions 441

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 458

Chapter 36 Excel’s new dynamic array functions 461

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 461
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 471

Chapter 37 Validating data 473

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 473
Remarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 481
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 481

Chapter 38 Using PivotTables and slicers to describe data 483

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 485
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 536

Chapter 39 The Data Model 541

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 542
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 550

Chapter 40 Power Pivot 551

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 552
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 570

Chapter 41 Consolidating data 571

Answer to this chapter’s question . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 571
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 575

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 Chapter 42 Creating subtotals 577
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 577
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 583

Chapter 43 Basic charting 585

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 586
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 614

Chapter 44 Advanced charting 617

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 618
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 641

Chapter 45 Filled and 3D Maps 643

Questions answered in this chapter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 643
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 657

Chapter 46 Sparklines 659

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 659
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 664

Chapter 47 Estimating straight-line relationships 665

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 667
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 672

Chapter 48 Modeling exponential growth 675

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 676
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 680

Chapter 49 The power curve 681

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 684
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 687

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 Chapter 50 Using correlations to summarize relationships 689
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 691
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 695

Chapter 51 Introduction to multiple regression 697

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 697
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 703

Chapter 52 Incorporating qualitative factors

into multiple regression 705
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 705
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 718

Chapter 53 Modeling nonlinearities and interactions 719

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 719
Problems for Chapters 51–53 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 723

Chapter 54 Analysis of variance: One-way ANOVA 727

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 728
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731

Chapter 55 Randomized blocks and two-way ANOVA 733

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 734
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 742

Chapter 56 Using moving averages to understand time series 745

Answer to this chapter’s question . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 745
Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 747

Chapter 57 Ratio-to-moving-average forecast method 749

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 749
Problem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 752

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 Chapter 58 An introduction to probability 753
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 753
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 759

Chapter 59 An introduction to random variables 763

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 763
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 767

Chapter 60 The binomial, hypergeometric,

and negative binomial random variables 769
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 770
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 775

Chapter 61 The Poisson and exponential random variable 777

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 777
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 780

Chapter 62 The normal random variable and Z-scores 781

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 781
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 789

Chapter 63 Making probability statements from forecasts 791

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 792
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 793

Chapter 64 Using the lognormal random variable

to model stock prices 795
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 795
Remarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 798
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 798

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 Chapter 65 Importing past stock prices, exchange rates,
and cryptocurrency prices with the
STOCKHISTORY function 799
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 799
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 806

Chapter 66 An introduction to optimization with Excel Solver 807

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 807
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 811

Chapter 67 Using Solver to determine the optimal product mix 813

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 813
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 822

Chapter 68 Using Solver to schedule your workforce 825

Answers to this chapter’s question . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 825
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 827

Chapter 69 Using Solver to solve transportation or

distribution problems 831
Answer to this chapter’s question . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 831
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 834

Chapter 70 Using Solver for capital budgeting 837

Answer to this chapter’s question . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 837
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 842

Chapter 71 Using Solver for financial planning 845

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 845
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 850

Chapter 72 Using Solver to rate sports teams 853

Answer to this chapter’s question . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 854
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 856

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 Chapter 73 The Winters method and the Forecast Sheet tool 859
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 859
Remarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 866
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 867

Chapter 74 Forecasting in the presence of special events 869

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 869
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 876

Chapter 75 Warehouse location and the GRG Multistart and

Evolutionary Solver engines 877
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 877
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 887

Chapter 76 Penalties and the Evolutionary Solver 889

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 890
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 893

Chapter 77 The traveling salesperson problem 895

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 895
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 898

Chapter 78 Weibull and beta distributions: Modeling machine

life and duration of a project 901
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 901
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 906

Chapter 79 Introduction to Monte Carlo simulation 907

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 908
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 916

Chapter 80 Calculating an optimal bid 919

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 919
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 922

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 Chapter 81 Simulating stock prices and
asset-allocation modeling 925
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 926
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 934

Chapter 82 Fun and games: Simulating gambling and

sporting-event probabilities 937
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 937
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 945

Chapter 83 Using resampling to analyze data 947

Answer to this chapter’s question . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 947
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 950

Chapter 84 Pricing stock options 953

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 954
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 965

Chapter 85 Determining customer value 967

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 967
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 972

Chapter 86 The economic order quantity inventory model 973

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 973
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 977

Chapter 87 Inventory modeling with uncertain demand 979

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 980
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 985

Chapter 88 Queuing theory: The mathematics of waiting in line 987

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 987
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 992

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 Chapter 89 Estimating a demand curve 993
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 993
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 998

Chapter 90 Pricing products by using tie-ins 999

Answer to this chapter’s question . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 999
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1002

Chapter 91 Pricing products by using subjectively

determined demand 1005
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1005
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1009

Chapter 92 Nonlinear pricing 1011

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1012
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1018

Chapter 93 Use Analyze Data to find patterns in your data 1019

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1020
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1028

Chapter 94 Recording macros 1031

Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1032
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1047

Chapter 95 The LET and LAMBDA functions and the

LAMBDA helper functions 1049
Answers to this chapter’s questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1050
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1060

Chapter 96 Advanced sensitivity analysis 1063

Answer to this chapter’s question . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1063
Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1065

Index 1067

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 About the Author
Wayne L. Winston is Professor Emeritus of Decision
Sciences at the Indiana University School of Business. He has
also taught at the University of Houston and Wake Forest.
He has won more than 40 teaching awards and taught Excel
modeling and analytics at many Fortune 500 companies,
accounting firms, the U.S. Army, and the U.S. Navy. He is a
two-time Jeopardy! champion, and also is a co-developer
of a player tracking system utilized by Mark Cuban and the
Dallas Mavericks.

xxiii

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This page intentionally left blank
 Introduction

W hether you work for a Fortune 500 corporation, a small company, a government
agency, or a not-for-profit organization, if you’re reading this introduction, the
chances are you use Microsoft Excel in your daily work. Your job probably involves sum-
marizing, reporting, and analyzing data. It might also involve building analytic models to
help your employer increase profits, reduce costs, or manage operations more efficiently.

Since 1999, I’ve taught thousands of analysts at organizations such as Abbott Labs,
Booz Allen Hamilton consulting, Bristol-Myers Squibb, Broadcom, Cisco Systems,
Deloitte Consulting, Drugstore.com, eBay, Eli Lilly, Ford, General Electric, General Motors,
Intel, Microsoft, MGM Hotels, Morgan Stanley, NCR, Owens Corning, Pfizer, Proctor &
Gamble, PWC, Sabre, Schlumberger, Tellabs, 3M, the U.S. Army, the U.S. Department of
Defense, the U.S. Navy, and Verizon how to use Excel more efficiently and productively in
their jobs. Students have often told me that the tools and methods I teach in my classes
have saved them hours of time each week and provided them with new and improved
approaches for analyzing important business problems.

I’ve used the techniques described in this book in my own consulting practice to solve
many business problems. For example, I have used Excel to help the Dallas Mavericks and
New York Knickerbockers NBA basketball teams evaluate referees, players, and lineups.
During the last 20 years, I have also taught Excel business modeling and data analysis
classes to MBA students at Indiana University’s Kelley School of Business, the University
of Houston’s Bauer College of Business, and the Wake Forest Professional MBA Program.
(As proof of my teaching excellence, I have won more than 45 teaching awards and have
won the school’s overall MBA teaching award six times.) Also, I would like to note that
95 percent of MBA students at Indiana University took my spreadsheet modeling class
even though it was an elective.

The book you have in your hands is an attempt to make these successful classes avail-
able to everyone. Here is why I think the book will help you learn how to use Excel more
effectively:

■■ The materials have been tested while teaching thousands of analysts working for
Fortune 500 corporations and government agencies.

■■ The book has also been used to teach thousands of MBA’s at Indiana University,
Wake Forest, and the University of Houston.

■■ Material from the book has been used to teach thousands of accountants Excel
and analytics through Becker’s continuing education for accountants.

xxv

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 ■■ I’ve written the book as though I am talking to the reader. I hope this approach
transfers the spirit of a successful classroom environment to the written page.

■■ I teach by example, which makes concepts easier to master. These examples are
constructed to have a real-world feel. Many of the examples are based on ques-
tions sent to me by employees of Fortune 500 corporations.

For the most part, I lead you through the approaches I take in Excel to set up and
answer a wide range of data analysis and business questions. You can follow along with
my explanations by referring to the sample worksheets that accompany each example.
However, I have also included template files for the book’s examples on the companion
website, MicrosoftPressStore.com/Excel365data7e/downloads. If you want to, you can use
these templates to work directly with Excel and complete each example on your own.

Generally, the chapters in this book are short and organized around a single concept.
You should be able to master the content of most chapters with at most two hours of
study. By looking at the questions that begin each chapter, you’ll gain an idea about the
types of problems you’ll be able to solve after mastering a chapter’s topics.

In addition to learning about Excel formulas, you will learn some important math in
a painless fashion. For example, you’ll learn about statistics, forecasting, optimization
models, Monte Carlo simulation, inventory modeling, and the mathematics of waiting
in line. You will also learn about some recent developments in business thinking, such as
real options, customer value, and mathematical pricing models.

At the end of each chapter, I’ve provided a group of practice problems (more than
900 in total) that you can work through on your own. Many of these problems are based
on actual situations faced by business analysts at Fortune 500 companies. These prob-
lems will help you fully understand the information in each chapter. Answers to all prob-
lems are included in files you can download from the book’s companion website.

Most of all, learning should be fun. If you read this book, you will learn how to predict
U.S. presidential elections, how to set football point spreads, how to determine the prob-
ability of winning at craps, and how to determine the probability of a specific team win-
ning an NCAA tournament. These examples are interesting and fun, and they also teach
you a lot about solving business problems with Excel.

Note  To follow along with all chapters, you must have Office 365. For most
of the book, Excel 2016, 2019, or 2021 should suffice. Previous versions of this
book can be used with Excel 2003, 2007, 2010, and 2013.

xxvi Introduction

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 What you should know before reading this book
To follow the examples in this book, you do not need to be an Excel guru. Basically, the
two key actions you should know how to do are the following:

■■ Enter a formula  You should know that formulas must begin with an equals
sign (=). You should also know the basic mathematical operators. For example,
you should know that an asterisk (*) is used for multiplication, a forward slash (/)
is used for division, and the caret key (^) is used to raise a quantity to a power.

■■ Work with cell references  You should know that when you copy a formula that
contains a cell reference such as $A$4 (an absolute cell reference, which is created
by including the dollar signs), the formula still refers to cell A4 in the cells you copy it
to. When you copy a formula that contains a cell reference such as $A4 (a mixed cell
address), the column remains fixed, but the row changes. Finally, when you copy a
formula that contains a cell reference such as A4 (a relative cell reference), both the
row and the column of the cells referenced in the formula change.

These ideas are thoroughly described in Chapter 1.

How to use this book

As you read along with the examples in this book, you can take one of two approaches:

■■ You can open the template file that corresponds to the example you are studying
and complete each step of the example as you read the book. You will be sur-
prised how easy this process is and amazed with how much you learn and retain.
This is the approach I use in my corporate classes.

■■ Instead of working in the template files, you can follow my explanations as you
look at the final version of each sample file.

What’s New in this Edition

This edition contains more new material than any previous edition. New material
includes

■■ Chapter 3 contains discussion of the new XLOOKUP function as well a discussion

of approximate lookups and issues that arise when lookup formulas get confused
about whether cell entries are text or numbers.

Introduction xxvii

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 ■■ Chapter 6 contains a discussion of how Excel deals with special formats such as
phone numbers and leading zeroes.

■■ Chapter 7 contains a discussion of the EOMONTH and EDATE functions.

■■ Chapter 25 contains a discussion of issues that arise when you copy formulas
involving table references.

■■ A completely new Chapter 28 contains an extensive discussion of Power Query.

■■ A completely new Chapter 29 provides complete coverage of Office 365’s new

data types.

■■ Chapter 32 contains a discussion of sorting across columns and sorting based on

the case (lower or upper) of the first character in a cell.

■■ Chapter 33 contains a discussion of sorting based on a selected cell.

■■ Chapter 35 on arrays has been updated to recognize the obsolescence of the

dreaded Ctrl+Shift+Enter keystroke combination which was previously required
to enter array functions and formulas.

■■ A brand new Chapter 36 covers Office 365’s brand new dynamic array UNIQUE,
SORT, SORTBY, FILTER, and SEQUENCE functions.

■■ Chapter 37 uses dynamic array formulas to create nested dropdown boxes.

■■ Chapter 38 uses dynamic arrays to emulate a PivotTable.

■■ Chapter 42 discusses the use of SUBTOTAL functions.

■■ A completely new Chapter 43 contains a comprehensive introduction to Excel’s

most widely used charts. Chapter 44 covers more advanced charting techniques.

■■ A new Chapter 65 discusses Office 365’s amazing STOCKHISTORY function.

■■ Chapter 79 discusses Office 365’s new RANDARRAY function and shows how to
use RANDARRAY to generate a random sample from a data set.

■■ Chapter 93 adds several more examples of recording macros.

■■ A brand new Chapter 94 discusses Office 365’s Analyze Data feature, which with
a single click gives you insights and ideas about your data.

■■ A brand new Chapter 95 contains a brief introduction to custom functions and

Office 365’s LET, LAMBDA, and LAMBDA helper functions.

xxviii Introduction

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 Downloads
This book features a companion website that makes available to you all the sample files,
solution files, and templates you can use in the book’s examples (both the final Excel
workbooks and the starting templates you can work with on your own). The work-
books and templates are organized in folders named for each chapter. The answers to
all chapter-ending problems in the book are also included with the sample files. Each
answer file is named so that you can identify it easily. For example, the file containing the
answer to Problem 2 in Chapter 10 is named S10_2.xlsx.

To work through the examples in this book, you need to copy the book’s sample files
to your computer. These practice files can be downloaded from the book’s download
page, located at

MicrosoftPressStore.com/Excel365data7e/downloads

Display the page in your web browser and follow the instructions for downloading
the files.

Acknowledgments
I am eternally grateful to Jennifer Skoog and Norm Tonina, who had faith in me and
first hired me to teach Excel classes for Microsoft finance. Jennifer, in particular, was
instrumental in helping design the content and style of the classes on which the book is
based. Keith Lange of Eli Lilly, Pat Keating and Doug Hoppe of Cisco Systems, and Dennis
Fuller of the U.S. Army also helped me refine my thoughts on teaching data analysis and
modeling with Excel.

Kate Shoup did an incredible job as Development Editor. David Franson did a
wonderful job technically editing the book. Charvi Aurori did a great job as Sponsoring
Editor. Scout Festa was a thorough copy editor. Senior Production Editor Tracey Croom
assisted me with the Pearson template when I was clueless. As always, Executive Editor
Loretta Yates did a great job shepherding the project to completion and answered many
emails instantly! And finally, the team at codeMantra, lead by Project Manager Vaishnavi
Venkatesan, produced the chapters at breakneck speed, ensuring the book made it into
the hands of readers as soon as possible.

I am also grateful to my many students at the organizations where I’ve taught and
students at the Indiana University Kelley School of Business, Wake Forest, and the Uni-
versity of Houston Bauer College of Business. Many of them have taught me things I did
not know about Excel.

Introduction xxix

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 Alex Blanton, formerly of Microsoft Press, championed this project at the start and
shared my vision of developing a user-friendly text designed for use by business analysts.

Finally, my lovely and talented wife, Vivian, and my wonderful children, Jennifer and
Gregory, put up with my long weekend hours at the keyboard.

Errata, updates, and book support

We’ve made every effort to ensure the accuracy of this book and its companion content.
You can access updates to this book—in the form of a list of submitted errata and their
related corrections—at:

MicrosoftPressStore.com/Excel365data7e/errata

If you discover an error that is not already listed, please submit it to us at the same page.

For additional book support and information, please visit:

MicrosoftPressStore.com/Support

Please note that product support for Microsoft software and hardware is not offered
through the previous addresses. For help with Microsoft software or hardware, go to
http://support.microsoft.com.

Stay in touch
Let’s keep the conversation going! We’re on Twitter:

http://twitter.com/MicrosoftPress

xxx Introduction

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 CHAPTER 4

The INDEX function

Questions answered in this chapter:

■■ I have a list of distances between US cities. How do I write a function that returns the distance
between, for example, Seattle and Miami?

■■ Is there a way I can write a formula that references the entire column containing the distances
between each city and Seattle?

Syntax of the INDEX function

The INDEX function enables you to return the entry in any row and column within an array of numbers.
The most commonly used syntax for the INDEX function is the following:

INDEX(array,row_number,column_number)

To illustrate, the formula =INDEX(A1:D12,2,3) returns the entry in the second row and third column
of the array A1:D12. This entry is the one in cell C2.

Answers to this chapter’s questions

I have a list of distances between US cities. How do I write a function that returns the distance
between, for example, Seattle and Miami?

The file named INDEX.xlsx (see Figure 4-1) contains the distances between eight US cities. The range
C10:J17, which contains the distances, is named distances.

39

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 FIGURE 4-1  You can use the INDEX function to calculate the distance between cities.

Suppose you want to enter in a cell the distance between Boston and Denver. Because distances from
Boston are listed in the first row of the array named distances, and distances to Denver are listed in the
fourth column of the array, the appropriate formula is =INDEX(distances,1,4). The results show that
Boston and Denver are 1,991 miles apart. Similarly, to find the (much longer) distance between Seattle and
Miami, you would use the formula =INDEX(distances,6,8). Seattle and Miami are 3,389 miles apart.

Imagine that the Seattle Seahawks NFL team is embarking on a road trip during which they will play
games in Phoenix, Los Angeles, Denver, Dallas, and Chicago. At the conclusion of the road trip, the
Seahawks will return to Seattle. Can you easily compute how many miles they will travel on the trip?
As you can see in Figure 4-2, you simply list the numbers in the spreadsheet that correspond with the
cities that the Seahawks will visit (8, 7, 5, 4, 3, 2, 8), one number per row, in the order the cities will be
visited, starting and ending in Seattle. Then, copy the formula INDEX(distances,C21,C22) from D21
to D26. The formula in D21 computes the distance between Seattle and Phoenix (city number 7), the
formula in D22 computes the distance between Phoenix and Los Angeles, and so on. The Seahawks will
travel a total of 7,112 miles on their road trip. (Just for fun, I used the INDEX function to determine that
the Miami Heat travel more miles during the NBA season than any other team.)

FIGURE 4-2  Distances for a Seattle Seahawks road trip.

40 Chapter 4  The INDEX function

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 Is there a way I can write a formula that references the entire column containing the distances
between each city and Seattle?

The INDEX function makes it easy to reference an entire row or column of an array. If you set the row
number to 0, the INDEX function references the listed column. If you set the column number to 0, the
INDEX function references the listed row in the array. To illustrate, suppose you want to total the dis-
tances from each listed city to Seattle. You could enter either of the following formulas:

=SUM(INDEX(distances,8,0))

=SUM(INDEX(distances,0,8))

The first formula totals the numbers in the eighth row (row 17) of the distances array; the second
formula totals the numbers in the eighth column (column J) of the distances array. In either case, you
find that the total distance from Seattle to the other cities is 15,221 miles. (Refer to Figure 4-1.)

Problems
1. Use the INDEX function to compute the distance between Los Angeles and Phoenix and the
distance between Denver and Miami.

2. Use the INDEX function to compute the total distance from Dallas to the seven other cities
listed in Figure 4-1.

3. Jerry Jones and the Dallas Cowboys are embarking on a road trip that takes them to Chicago,
Denver, Los Angeles, Phoenix, and Seattle. How many miles will they travel on this road trip?

4. The file named Product.xlsx contains monthly sales for six products. Use the INDEX function to
compute the sales of Product 2 in March. Use the INDEX function to compute total sales during
April.

5. The file named NBAdistances.xlsx shows the distance between any pair of NBA arenas. Sup-
pose you begin in Atlanta, visit the arenas in the order listed, and then return to Atlanta. How
far would you travel?

6. Use the INDEX function to solve Problem 10 of Chapter 3, “Lookup functions.” Here is the prob-
lem again: The file named Employees.xlsx contains the rating (on a 0–10 scale) that each of 35
workers has given to three jobs. The file also gives the job to which each worker is assigned.
Use a formula to compute each worker’s ranking for the job to which the worker is assigned.

Chapter 4  The INDEX function 41

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 Index

Symbols 80–20 rule, 374

95 percent confidence interval, for mean profit, 914
& (ampersand), 54, 212
95 percent service level, 982–985
* (asterisk), 31, 212, 443
[ ] (brackets), 25
^ (caret), 87, 685 A
: (colon), 150
A Date Occurring dialog box, 257
{ } (curly braces), 76, 451
a posteriori probability, 758
$ (dollar sign), 4–5
abandonment options, 964–965
““ (double quotation marks), 211, 451
absolute addressing, 4–5
= (equal sign), 58, 211
Access Web Content dialog box, 323
>= (greater-than-or-equal-to) operator, 212
accounting costs, returning, 121
< (less-than sign), 782
Accountsums.xlsx file, 280
<= (less-than-or-equal-to) operator, 782
accuracy of predictions, 671, 872–876
- (minus) sign, 207
Across worksheet, 407
<> (not equal to) operator, 212
Adagency.xlsx file, 299
. (period), 23
Add Chart Element button, 598, 600, 609, 623, 646, 669
| (pipe character), 61
Add Constraint dialog box, 816–817, 827, 839, 862,
+ (plus sign), 58, 303 896, 897, 933
? (question mark), 31, 213 Add Data Labels button, 590
; (semicolon), 79, 154 Add Filter command, 650
/ (slash), 803 Add option (Paste Special), 162
~ (tilde), 31 Add This Data to Data Model option (PivotTables), 546
_ (underscore), 23 Add Trendline command, 668, 677, 684, 746, 1006
2D Chart button, 654 Add Watch option, 174
2D charts, summarizing 3D maps as, 654 Add-Ins dialog box, 721, 809, 847, 862, 872, 889, 895, 902
2D filled maps Analysis ToolPak, 364, 378, 692, 698, 728, 735
creating, 643–647 Solver Add-In. See Microsoft Excel Solver
labeling, 645–646 addition, with Paste Special command, 162
3D Map button, 648, 656 additive rule, for computing probabilities, 755
3D maps Addresses.xlsx file, 145
animating data in, 651–653 addressing, absolute, 4–5
creating, 647–649 adjustable-rate mortgage (ARM), 113
customizing, 650–651 Advancedfilter.xlsx file, 436
map tours, 649–650 advertising, sales as function of, 682
navigating, 649 age/gender travel expenditure, PivotTables for, 505–509
New York City’s Fourth Avenue subway line example, Ageofmachine.xlsx file, 69
655–656
AGGREGATE function, 135–136
pie charts with labels in, 654
Agingdata.xlsx file, 236
problems for, 657
airline flight, probability of overbooking, 772
summarizing with 2D chart, 654
Airlinemilestemp.xlsx file, 864

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 alerts, error

alerts, error, 474–475 Arrange Windows dialog box, 572

algebra problems, Goal Seek for, 199–200 arrays
AllDifferent constraint, 896 array formulas and functions
alpha, 902, 904 array constants in, 451–452
alternative hypothesis, ANOVA, 727 averaging numbers with, 447–448
Amazon.com, upward trend in revenues in, 745–747 calculating median size of transaction with,
Amazon.xlsx file, 279, 281 452–453
American cash flows, option pricing and, 955 calculating standard deviation with, 453–454
ampersand (&), 54, 212 computing hourly wages with, 442–444
analysis of variance (ANOVA), 728 editing, 452
for multiple-regression analysis, 710 emulating counts, sums, and averages with,
454–457
one-way, 727–732
matching names with, 446
alternative hypothesis, 727
monthly stock return updates with, 444–445
book sales case study, 728–731
overview of, 442
definition of, 727
summarizing data with 2D chart, 448–451
forecasting with, 731
summing second digit of list of integers with,
null hypothesis, 727
444–445
problems for, 731–732
transposing rows/columns with, 444
single factor, 728
Boolean, 450
Two-Factor With Replication, 735
constants, 451–452
Two-Factor Without Replication, 735
of numbers
two-way, 733–743
computing tax rates with, 27–29
forecasting with, 736–737, 740–742
definition of, 25
overview of, 733–734
looking up prices from product ID codes with, 29–30
problems for, 742–743
mismatches between text and numbers in, 34
with replication, 737–742
problems for, 35–37
without replication, 734–736
syntax of, 25–27
Analysis ToolPak, 364, 378, 692, 698, 721, 728, 735
wildcard characters with, 31
Analyze Data, 1019–1029
Arrays.xlsx file
BOM (bill of materials) reports, 1019
Average Those > Median worksheet, 447
overview of, 1019
Creating Powers worksheet, 451
stock market prices, 1022–1024
Matching Names worksheet, 446
Analyze Data button, 1019, 1021, 1022–1024, 1025, 1027
Total Wages worksheet, 442
Analyze group (Data tab), 1000
Transpose worksheet, 444
Analyzesurveydata.xlsx file, 539
ASCIIcharacters.xlsx file, 54
animals, in Excel formulas, 353–354
Asiansales.xlsx file, 228
Animals data type, 354–355
Ask a Question About Your Data, 1021
animating 3D maps, 651–653
assets
annuities, 101–103
asset-allocation modeling, 929–934
Another Summary worksheet, 245
depreciation of, 109–110
ANOVA. See analysis of variance (ANOVA)
Assign Macro dialog box, 1036
antidepressant, determining 99th percentile of demand
assigning employees to workgroups, 890–893
for, 785–786
Assign.xlsx file, 35, 890
Append dialog box, 338–339
Assumption cells (Scenario Manager),
appending tables, 338–340
hiding/showing, 207
Applynames.xlsx file, 20
asterisk (*), 31, 212, 443
area charts, 603–606
Asterisks.xlsx file, 31
ARM (adjustable-rate mortgage), 113
astronomical objects, in Excel formulas, 351

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 binary changing cells

At Each Change In menu commands

Location, 578
B
bakery case study, cost paid to supplier in, 2–5
Name, 580
Bakery1temp.xlsx file, 2–3
athletes, salaries of, 542–543
Bakery2temp.xlsx file, 4
auditing options, 171–182
balloon mortgages, 113
Error Checking, 173–174
band charts, 920–923
Inquire add-in, 179–182
Bandchart.xlsx file, 620
analyzing precedents/dependents with, 182
Bank24.xlsx file, 825
analyzing workbook structure with, 181
banks
analyzing worksheet/workbook
relationships with, 181 daily customer counts, 659–660
cleaning excess cell formatting with, 182 workforce scheduling problem, 825–827
comparing workbooks with, 180 bar charts, 590–591
installing, 179–180 bar graphs, 60–61
for multiple worksheets, 178–179 Barcharts.xlsx file, 590
problems for, 182 base, of series, 859
Remove Arrows, 175, 177 baseball, 923
Show Formulas, 172 lookup functions with, 31–34
Trace Dependents, 174–177 salary information, 46–47
Trace Precedents, 174–175, 177–178 Baseball96.xlsx file, 724
viewing, 172 Baseballproblem7.xlsx file, 49
Watch Window, 174 Baseball.xlsx file, 46–47
Audittwosheets.xlsx file, 178, 181 Basic Model worksheet, 837
auto sales basketball
quarterly predictions for, 705–710 NCAA Final Four, probability of team win in, 942–944
sensitivity analysis of, 203–208 salaries, data-validation example, 473–476
AutoComplete, 18, 1053 Bayes’ theorem, 758–759
AutoComplete feature, 481 bear spread, 144
Automatic data type, 356–357 Best Fit worksheet, 686
Automatic Except for Data Tables option, 187–188 beta, 902
Automatic option (Map Projection menu), 645 beta variable, 901, 904–906
AutoSum function, 3 random variable
AVERAGE function, 2, 18, 212, 751, 788, 793, determining probabilities with, 904–905
855, 861, 862, 871–872, 901, 902, 905, problems for, 906
913, 922, 939, 950 of stocks, 671, 951
average inventory level, 973–975 Betadata.xlsx file, 672
AVERAGEIFS function, 751 BETA.DIST function, 901
examples of, 220–221 Betaresampling.xlsx, 951
syntax of, 218 Beta.xlsx file, 904
averages, moving, 745–747 bias, in forecasts, 792–793
four-period moving average, 745–746 bids, calculating optimal, 919–923
moving-average graphs, 745–746 bidding simulation model, 920–922
ratio-to-moving-average forecasting binomial random variables, 919–920
method for, 749–752 normal random variables, 920
axes, chart problems for, 922
modifying, 612–613 bill of materials (BOM) reports, 1019
secondary, 593–594 binary and integer programming problems for, 841–842
axioms, for event probabilities, 754 binary changing cells, 838
Axis option (Sparkline Tools Design), 661–662

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 BINOM.DIST function

BINOM.DIST function Boolean arrays, 450

examples of, 771–772 bootstrapping, 925–935
overview of, 770 asset-allocation modeling, 929–934
BINOM.DIST.RANGE function problems for, 934–935
examples of, 771–772 stock price simulation, 926–929
overview of, 770 Boxplotmultiple.xlsx file, 392
binomial probabilities, 770–773 boxplots, 389–393
Coke/Pepsi preference example, 771 Boxplottemp.xlsx file, 389
defective elevator rails example, 771–772 braces ({ }), 76
overbooked flight example, 772 brackets ([ ]), 25
Village Deli example, 773 break-even analysis
binomial random variables, 775–776 with Goal Seek command, 198–199
BINOM.DIST function sensitivity analysis of, 189–191
examples of, 771–772 Brent Crude Oil prices, 804
overview of, 770 Bristol-Myers Squibb, Monte Carlo simulation
BINOM.DIST.RANGE function used by, 907
examples of, 771–772 Bstempprotected.xlsx file, 961
overview of, 770 Bstemp.xlsx file, 958, 961
BINOM.INV function, 773 Bubble button, 654
computing probabilities for, 770–773 bubble charts, creating, 608–609
Coke/Pepsi preference example, 771 Bubbledata.xlsx file, 614
defective elevator rails example, 771–772 budgeting, capital, 837–844
overbooked flight example, 772 additional constraints in, 840–841
Village Deli example, 773 binary and integer programming problems for,
841–842
definition of, 770
problems for, 842–844
negative, 774–775
software project selection problem, 837–840
simulating, 919–920
bull spread, 144
Binomialexamples.xlsx file, 770
bundling, price, 1012–1014
Binomialsim.xlsx file, 919
business expenses, data validation for,
BINOM.INV function, 773, 919, 922
475–477
Bitcoin prices
business modeling
Bitcoin worksheet, 802
cost paid to supplier, 2–5
importing, 802
customer estimation, 5–6
PivotTables for, 533–535
demand curve, 7–8
Black, Fischer, 953. See also Black-Scholes option-pricing
employee weekly wages, 1–2
formula
business variables, 846
Black Swan, The (Taleb), 798
correlations between, 689–695
Blackjack worksheet, 139
CORREL function, 692
Black-Scholes option-pricing formula, 798. See also
option pricing Correlation dialog box, 692–693
estimating stock volatility with, 959–961 correlation matrix, 693
implementation of, 957–958 definition of, 689
blank cells in ranges, counting, 214 between monthly stock returns during 1990s,
691–694
blank rows, adding to PivotTables, 501–502
overview of, 689–691
Blink (Gladwell), 1028
problems for, 695
BMI (body mass index), 9
regression toward the mean and, 694–695
BOM (bill of materials) reports, 1019
R-squared value and, 694
BOM.xlsx file, 1021
estimating relationships between, 643–652
book sales, one-way analysis of variance (ANOVA)
of, 728–731 accuracy of predictions, 671

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 cells

dependent variables, 665–666 problems for, 842–844

Format Trendline options, 666–667 software project selection problem, 837–840
independent variables, 665–666 Capitalizefirstletter.xlsx file, 69
intercept of, 672 card counting, 139
monthly production and monthly operating Cardata.xlsx file, 724
costs, 667–670 caret symbol (^), 87, 685
monthly variation in plant-operating costs, Carsumdata.xlsx file, 237
670–671
Carville, James, 710
problems for, 672–673
case of data
R-squared value, 671
named ranges, 12
scatter charts of data points, 666–667
sorting on, 408–409
slope of, 672
Case worksheet, 408
trend curve, 665
Casesensitive.xlsx file, 237
profit-maximizing price analysis, 184–188
cash flows, 96
Buslist.xlsx file, 49
IRR (internal rate of return), 93–99
butterfly spread, 144
calculating with IRR function, 94
buttons, assigning macros to, 1036
definition of, 93–94
buy-and-hold strategy, 127–130
for irregularly spaced cash flows, 96
By Changing Variable Cells (Solver Parameters dialog
lack of, 94–95
box), 816, 820, 821, 839
multiple, 94–95
BYCOL helper function, 1057
problems for, 98–99
BYROW helper function, 1056–1057
scale of project and, 95–96
unique, 95
C NPV (net present value), computing
CAGR (compound annual growth rate), 677–678 for cash flows received at beginning of year, 88
Cakes.xlsx file, 614 for cash flows received at irregular intervals, 88–90
Calccolumns1.xlsx file, 565 for cash flows received at middle of year, 88
Calccolumns2.xlsx file, 568 problems for, 90–91
Calccolumns3.xlxs file, 568 option pricing and, 954–955
Calcitemdata.xlsx, 538 category chart labels, 597–598
CALCULATE function, 567–570 Categorylabels.xlsx file, 597
calculated fields, 515–517 Catsanddogs.xlsx file, 146
calculated items, 519–522 in-cellIn-Cell Dropdown check box (Data Validation
dialog box), 477, 479
calculated measures, 567–570
CELL function, 247
Calculateditem.xlsx file, 519
Cell Reference box (Add Constraint dialog box), 827, 839
calculations
Cell Relationship button (Inquire add-in), 182
Enable Iterative Calculation, 118–120
Cellphonedata.xlsx file, 656
moving results of, 157–159
cells
calendar worksheets, 146
changing with INDIRECT, 240–241
call options, 953, 955–956, 958–959
color, sorting on, 401–402
Candybardata.xlsx file, 482
counting, 209–215
Capbudget.xlsx file
COUNT function, 210, 214
Basic Model worksheet, 837
COUNTA function, 210, 214
If 3 Then 4 worksheet, 840–841
COUNTBLANK function, 210, 214
capital budgeting, 87, 837–844
COUNTIF function, 209–210, 211–213
additional constraints in, 840–841
COUNTIFS function, 210, 213
binary and integer programming problems
for, 841–842 DISTINCT COUNT function, 214, 547–549
problems for, 214–215

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 cells

dependents transportation problem, 831

analyzing with Inquire add-in, 182 Changing Cells option (Solver Parameters), 896
definition of, 175 ChangingAxes.xlsx file, 612–613
tracing, 174–177 Chapter 58 Solutions.docx file, 759
formatting, cleaning excess, 182 Chapter1customers.xlsx file, 5
named ranges Chapter29 problems for.xlsx file, 362
applying to existing formulas, 20 Chapter32Problem5data.xlsx file, 409
AutoComplete capabilities for, 18 Chapter32Problem6data.xlsx file, 409
AVERAGE function, 18 Chapter35data.xlsx file, 458
case insensitivity of, 12 Chapter95data.xlsx file, 1060
creating, 11–16 CHAR function, 54, 61
deleting, 16–17 Chart Design tab, 609
editing, 16–17 Chart Elements list, 610, 637
for entire column, 18 Chart Filters button, 611
errors in, 22 Chart Layouts section (Chart Design tab), 646
examples of, 17–18 Chart Styles group, 375, 629
for last year’s revenues, 21–22 Chartdynamicrange.xlsx file, 234
naming conventions for, 23 charts
noncontiguous, 13 band, 620–621, 923
numbers in, 23 bar, 590–591
pasting list of, 21 based on sorted data, 627–628
problems for, 23 bubble, 608–609
symbols in, 23 category labels, 597–598
for total salary per day, 22 column
for total sales, 17–18 adding images to, 588–589
underscore (_) in, 23 creating, 586–587
workbook/worksheet scope for, 18–19 combination, 591–593
precedents conditional colors in, 628–629
analyzing with Inquire add-in, 182 controlling which series are charted
definition of, 174 with check boxes, 624
tracing, 174–175 with list boxes, 625
result, 203, 206 creating from data tables, 191–192
values, pasting to different part of worksheet, 157–159 data labels, 598–600
centered moving averages, 751 data tables in, 598–600
Central Limit worksheet, 786 deleting points from, 610–611
Ch21p1.xlsx file, 236 dynamic dashboards for, 628–629
Ch50data.xlsx file, 695 dynamic labels for, 620–621, 923
Ch55.xlsx file, 742 elements in, 609–610
Ch56data.xlsx file, 747 funnel, 638–639
Ch78data.xlsx file, 906 Gantt, 626
Change Chart Type dialog box, 592, 593–594 hidden data in, 596–597
Change Colors button, 590 inserting vertical lines into, 628–629
Change Constraint dialog box, 820 line, 603–606
Changeabsolutetemp.xlsx file, 1041–1044 missing data in, 595–596
changing cells, in optimization models modifying axes in, 612–613
bank workforce scheduling problem, 826 Pareto
optimization problems for, 808–809 creating, 374–375
product-mix problem, 815 design options for, 375
software project selection problem, 838 pie, 600–603, 654

1072

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 Companydata.xlsx file

PivotCharts, 498–499, 529–531 Coke/Pepsi preference example, 771

problems for, 614–615, 641–642 collapsing PivotTable fields, 492–493
radar, 607–608 Collegedata.xlsx file, 538
sales-force performance over time, 920–923 colon (:), 150
scatter, 606–607, 666–667, 676 color
Scatter with Smooth Lines, 191, 623, 626, 631, 632 in charts, 628–629
Scatter with Smooth Lines and Markers, 746 color coding
Scatter with Straight Lines, 995 of basketball players’ abilities, 274–275
secondary axis, 593–594 of monthly stock returns, 266–269
stacked area, 603–606 of quarterly corporate revenues, 269–272
for stocks, 639–641 of weekend dates, 272–273
storing as templates, 620–621, 923 filtering by, 421
sunburst, 635–638 sorting on, 401–402
switching rows/columns in, 611–612 Color Scales, 253, 261–263, 643
thermometer, 620–621, 923 Coltsdata.xlsx file, 394
treemap (mosaic), 635–638 column charts
waterfall, 633–635 adding images to, 588–589
Charts section (Insert tab), 191, 586, 593, 603, 604, 608, 644 creating, 586–587
Check Box form control, 307 Column Data Format list (Import Wizard), 319
Checkbox.xlsx file, 307 Column Input Cell (Data Table dialog box), 939, 950, 969,
chemical compounds and elements, in Excel formulas, 1016
351–352 Column option (Sparkline Tools Design), 661
Chemistry data type, 351–352 Column Sparkline worksheet, 662
CHOOSE function, 139–140 Column worksheet, 586
Choosefinal.xlsx file, 139 column_index argument (VLOOKUP function), 25
Cigarettedata.xlsx file, 538 Columncharts.xlsx file
circular references, 117–121 Column worksheet, 586
example of, 117–118 One Book worksheet, 588
pattern of, 117 columns
problems for, 120–121 delimited, 315
resolving, 118–120 fixed-width, 315, 317–319
Circulartemp.xlsx file, 117 named ranges for, 18
Cisco, histogram for, 373–374 sorting across, 407–408
Ciscoexpo.xlsx file, 676–678 switching with rows, 611–612
cities transposing with rows, 159–160
returning distance between, 39–40 Columns option (Series dialog box), 913
sorting on, 405–407 COM Add-Ins dialog box, 179, 552
Cities data type, 347–348 combination charts, creating, 591–593
Citydata.xlsx file, 36 Combinationstemp.xlsx file, 591
Citydistances.xlsx file, 194 Combo Box form control, 313
Clean Excel Cell Formatting button (Inquire add-in), 182 Combobox.xlsx file, 312
CLEAN function, 55, 61 commands. See individual commands
Cleanexample.xlsx file, 61 comments
Clear Rules, 253 creating, 944
clearing data validation, 481 editing, 944
CLT (central limit theorem), 786–787, 796 hiding, 944
Clustered Column chart option, 586, 591, 628, 629 Commodities.xlsx file, 804
Clustered Column - Line chart option, 592, 593 commodity prices, importing past data on, 804–805
cohorts, 968 Companydata.xlsx file, 215

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 complements, law of

complements, law of, 754 nested/dependent drop-down menus, 478–480

compound annual growth rate (CAGR), 677–678 nonnumeric values, 476–478
Compound Interest.xlsx, 111–112 numeric values, 476–477
CONCATENATE function, 54, 57 problems for, 481–482
Conditional Formatting state abbreviations, 477–478
New Rule, 873 time of day, 481
Top/Bottom Rules, 1016 in versions prior to Excel 2010, 481
conditional formatting, 251–281 multiple-worksheet workbooks, 167–169
checking or customizing, 257–258 hyperlinks, 167–169
Clear Rules, 253 number of worksheets, 166
color coding, 266–275 setting up, 165–167
of basketball players’ abilities, 274–275 Consolidate command, 571–575
of monthly stock returns, 266–269 Consolidate dialog box, 573–574
of quarterly corporate revenues, 269–272 consolidating data, 571–575
of weekend dates, 272–273 with Consolidate command, 571–575
Color Scales, 253, 261–263 need for, 571
Conditional Formatting Rules Manager, 257–258 problems for for, 575
Data Bars feature, 253 constants, array, 451–452
creating and customizing, 259–260 constraints
negative, 261 adding, 896
Format Painter feature, 277 AllDifferent, 896
highlighting employee ratings with, 892–893 in project selection problem, 837–840
Highlights Cells feature, 252, 255–257 consulting costs, 121
Icon Sets, 253, 263–266 consumer surplus, 1012
Manage Rules, 253 contingency tables, 757
monthly stock returns, 266–269 continuous compounding, 111–112
New Rule, 253 continuous random variables, 765
for outliers, 383–384 Contoso.xlsx file, 536
overview of, 251–253 Contrateeoq.xlsx file, 976, 977
in PivotTables, 502–504 controls, form
problems for, 278–281 Check Box, 307
Stop If True option, 275–277 Combo Box, 313
of table data, 295–298 Format Control dialog box, 304–306, 313
toggling on/off, 307–312 Option Button, 307
Top/Bottom Rules, 252, 253–255 overview of, 302
Conditional Formatting button, 892–893 problems for, 313–314
Conditional Formatting Rules Manager, 257–258, 259–260 Scrollbar, 307
conditional maximums and minimums, 218, 221–222 Spin Button, 302–307
conditional probability, 756–757 Controls.xlsx file, 301
configuration Convert Text to Columns Wizard, 59–60
data validation criteria Convert to Range button, 543
AutoComplete feature, 481 converting text strings to times, 152
clearing data validation, 481 copper, annual volatility for, 966
custom, 476–477 Copy command (File menu), 2, 910
dates, 475–476 Copyingtableformulas.xlsx, 297
error alerts, 474–475 corporations, in Excel formulas, 349–350
Go To Special dialog box, 481 CORREL function, 692
length of text in cell, 481 Correlation dialog box, 692–693
minimum/maximum, 473–475 Correlationexamples.xlsx, 689

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 Customers.xlsx file

correlations, 689–695 Craps.xlsx file, 938

CORREL function, 692 Create Custom Combo Chart button, 593
Correlation dialog box, 692–693 Create Data Type dialog box, 360
correlation matrix, 693 Create Forecast Worksheet dialog box, 864
definition of, 689 Create from Selection option, 13–15, 20
between monthly stock returns during 1990s, Create PivotTable dialog box, 486, 543, 546, 549, 557, 564
691–694 Create Relationship dialog box, 543–544
overview of, 689–691 Create Sparklines dialog box, 660, 663
problems for, 695 Create Table dialog box, 284, 290
regression toward the mean and, 694–695 CreateTabletemp.xlsx file, 328–329
R-squared value and, 694 Createtable.xlsx file, 328–329
Costestimate.xlsx file, 667 Creating Powers worksheet, 451
costs credit score, interest rates and, 115
capital budgeting, 87, 837–844 Creditunion.xlsx file, 869, 874
additional constraints in, 840–841 Crimedata.xlsx file, 642
binary and integer programming problems for, CRITBINOM function, 773
841–842
CUMPRINC function, 107
problems for, 842–844
cumulative interest payments (CUMIPMT), 107
software project selection problem, 837–840
cumulative principal (CUMPRINC), 107
monthly operating, 697–701
cumulative probability, 770
paid to supplier, 2–5
cumulative units produced, production time and, 683
reciprocal cost allocation, 121
curly braces ({ }), 76, 451
COUNT function, 574
Currencies data type, 350
examples of, 214
currency exchange rates, 803
syntax of, 210
currency ISO codes, 803
COUNTA function
Currency worksheet, 803
examples of, 214
current date, displaying, 76
overview of, 210
current time, displaying, 151
COUNTBLANK function
Custom AutoFilter, 427–428
examples of, 214
Custom Column dialog box, 336
overview of, 210
custom data-validation, 476–477
COUNTIF function, 482, 891, 909, 928, 941, 943
custom functions, creating with LAMBDA, 1051–1055
examples of, 211–213
Custom Lists dialog box, 404
syntax of, 209–210
customer traffic
COUNTIFS function, 449
daily customer counts, sparklines for, 659–660
examples of, 213
forecasting in presence of special events, 869–876
syntax of, 210
factors influencing customer traffic, 869–872
counting cells in ranges, 209–215
forecast accuracy, 872–876
COUNT function, 210, 214
overview of, 869
COUNTA function, 210, 214
problems for, 876
COUNTBLANK function, 210, 214
random errors in, 876
COUNTIF function, 209–210, 211–213
worksheet model for, 5–6
COUNTIFS function, 210, 213
customer value, determining, 967–972
DISTINCT COUNT function, 214, 547–549
cell phone customer case study, 969–971
Countryregion.xlsx file, 724
credit-card customer case study, 967–969
Coupondata.xlsx file, 743
NPV function, 968–969
COVIDcases.xlsx file, 614
problems for, 969–971
craps, modeling, 130, 937–939
willingness to pay, 997
Craps worksheet, 130
Customers.xlsx file, 1065

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 Customize Data Card dialog box

Customize Data Card dialog box, 651 overview of, 689–691

Customize Ribbon option (Excel Options dialog box), 1031 problems for, 695
customizing 3D maps, 650–651 regression toward the mean and, 694–695
R-squared value and, 694
installing/activating, 728
D Data Analysis dialog box, 377, 378, 692, 698. See also
daily customer counts, sparklines for, 659–660 analysis of variance (ANOVA)
daily suggested prices, importing and transforming, Data Analysis Expressions (DAX), 560–562
336–337 Data Bars, 253
Dailydow.xlsx files, 673 creating and customizing, 259–260
Dallas Mavericks basketball statistics, 163, 315–320 negative, 261
dashboards, dynamic, 628–629 data import
data combining data into summary worksheet, 338–340
consolidating, 571–575 combining into single file, 331–333
with Consolidate command, 571–575 daily suggested prices, 336–337
need for, 571 Excel tables
problems for, 575 appending, 338–340
problems for for, 575 creating from flat files, 328–329
in Data Model, 542–543 flattening, 327–328
adding, 546 Get & Transform Data options, 321–322
removing, 543 hardware store data, 331–333
filtering. See filtering NBA player data, 329–331
realigning from column to row, 159–160 Power Query Editor, 322
sorting. See sorting US city population data, 323–327
validating, 473–482 Data Label Range dialog box, 604, 607, 609
AutoComplete feature, 481 Data Model, 541–550
clearing data validation, 481 creating PivotTables with, 542–543, 544–546
custom, 476–477 data
dates, 475–476 adding, 542–543, 546
error alerts, 474–475 removing, 543
Go To Special dialog box, 481 sample, 541–542
length of text in cell, 481 DISTINCT COUNT function, 214, 547–549
minimum/maximum criteria, 473–475 problems for, 550
nested/dependent drop-down menus, 476–480 relationships
nonnumeric values, 476–478 creating, 543–544
numeric values, 476–477 managing, 546–547
problems for, 481–482 worksheets in, 541
state abbreviations, 477–478 Data Selector pane, 345
time of day, 481 data sets
in versions prior to Excel 2010, 481 boxplots, 389–393
Data Analysis, 692, 721. See also analysis of variance comparing, 384–385
(ANOVA)
finding patterns in, 1019–1029
correlations, 689–695
BOM (bill of materials) reports, 1019
CORREL function, 692
daycare late pickups, 1027–1028
Correlation dialog box, 692–693
heights of fathers/sons, 1025–1027
correlation matrix, 693
hospital data, 1024–1025
definition of, 689
overview of, 1019
between monthly stock returns during
problems for, 1028–1029
1990s, 691–694
stock market prices, 1022–1024

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 DATEDIF function

geometric mean, 388–389 Plants, 354

kurtosis, 381 problems for, 362
mean and standard deviation, 379, 382–384 Space, 351
mode, 380–381 Stock, 349–350
outliers, conditional formatting for, 383–384 Terrain, 347–348
percentile rankings within, 385–386 Universities, 351
ranges of cells, 381–382, 388 Yoga, 352–353
ranking numbers in, 387 Data Validation dialog box
sample standard deviation, 381–382 AutoComplete feature, 481
sample variance, 381–382 clearing data validation, 481
second-largest or second-smallest number in, 386–387 custom, 476–477
skewness measure, 381 dates, 475–476
trimmed mean, 387–388 error alerts, 474–475
typical value for, 378–381 Go To Special dialog box, 481
Data tab length of text in cell, 481
Analyze group, 1000 minimum/maximum criteria, 473–475
Get & Transform Data group, 321, 323 nested/dependent drop-down menus, 478–480
Data Table dialog box, 913, 922, 928, 939, 941 nonnumeric values, 476–478
Column Input Cell, 950, 969, 1016 numeric values, 476–477
Row Input Cell, 969, 991 problems for, 481–482
data tables, sensitivity analysis with, 183–195, 598–600 state abbreviations, 477–478
advanced sensitivity analysis, 1063–1065 time of day, 481
break-even year analysis, 189–191 in versions prior to Excel 2010, 481
creating charts from, 191–192 Data worksheet, 720
mortgage payment analysis, 188–189 Databars.xlsx file, 259
one-way data tables database statistical functions, 429–439
creating, 185–186 criteria ranges for, 434–435
definition of, 184 examples of, 431–437
overview of, 183–184 overview of, 429–431
problems for, 192–195 problems for, 438–439
profit-maximizing price analysis, 184–188 Datamodeltemp.xlsx file, 541
spider plots, 1063–1065 Datasources.xlsx file, 344
stock price simulation, 928 Data.xlsx file, 12
Data Tools group, 543 Date Format worksheet, 76, 77, 78
Consolidate command, 571–575 DATE function, 78
Relationships button, 546 date functions, 73–83
data types, 343–362 DATE, 78
Animals, 354–355 DATEDIF, 79
Automatic, 356–357 DATEVALUE, 76
Chemistry, 351–352 MOD, 78–80
Cities, 347–348 NETWORKDAYS, 78
Currencies, 350 NETWORKDAYS.INTL, 78
Foods, 352 TEXT, 80
Geography, 347–348 TODAY, 76, 79
Locations, 347–348 WEEKDAY, 78
Movies, 353–354 WEEKNUM, 80
Music, 353 WORKDAY, 76–77
overview of, 343–346 WORKDAY.INTL, 77
People, 356 DATEDIF function, 79

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 Datedif.xlsx file

Datedif.xlsx file, 79 Define Name option, 15–16

Datelookup.xlsx file, 30 Deletetemp.xlsx file, 610
Datep.xlsx file, 82 deleting
dates, 73–83 named ranges, 16–17
color coding of, 272–273, 274–275 relationships, 546–547
days off, 77 delimited columns, 315, 317–319
determining number of days between two dates, 79 Delldata.xlsx file, 671
displaying current, 76 Dellvol.xlsx file, 956
entering into worksheets, 79 demand constraint, 832–833
extracting day/month/year from, 78 demand curve, 993–998. See also profit-maximizing price
filtering on, 417–420 analysis
holiday dates, excluding, 77 customer’s willingness to pay and, 997
leap years, 74 definition of, 993
problems for, 82–83 elasticity of demand, 994
recovering, 78 estimating, 994–997
returning date of most recent Sunday, 78–80 linear, 994
returning date of next Monday, 81 percentile of, 785–786
returning first/last day of month, 81–82 power, 994–997
returning week of year for, 80 price bundling and, 1013–1014
serial format for, 74–76 problems for, 998, 1006–1008
validating, 473–475 subjectively determined demand, 1005–1010
workdays equation for, 1005
determining date that is x workdays after another example of, 1005–1010
date, 76–77 tie-ins, pricing products with, 999–1003
determining number of workdays between two uncertain demand, inventory modeling with, 979–985
dates, 78 lost-sales approach, 980–981
Dates worksheet, 403 overview of, 979–980
Dates.xlsx file service-level approach, 982–985
Date Format worksheet, 76, 77, 78 worksheet model for, 7–8
Serial Format worksheet, 74 demand points, 831
DATEVALUE function, 76 Deming, W. Edwards, 376
DAX (Data Analysis Expressions), 560–562 Deming.xlsx file, 376
day of the week/month Density worksheet, 779
extracting from dates, 78 dependent variables, 665–666
recovering, 78 Dependentdropdown.xlsx file, 478–480
returning date of next Monday, 81 dependents
returning first/last day of month, 81–82 analyzing with Inquire add-in, 182
daycare late pickups, patterns in, 1027–1028 definition of, 175
Daycaretemp.xlsx file, 1027 tracing, 174–177
days off, excluding, 77 depreciation functions, 109–110
DDB (double-declining-balance depreciation), 109–110 descriptive statistics, 377–395
DDB function, 110 boxplots, 389–393
deactivating relationships, 546–547 comparing data sets with, 384–385
Decadeincome.xlsx file, 393 geometric mean, 388–389
Deciles.xlsx file, 439 kurtosis, 381
decision-making process mean, 379
Monte Carlo simulation for, 911–914. See also Monte mean and standard deviation, 382–384
Carlo simulation
mode, 380–381
option pricing in, 963–964
outliers, conditional formatting for, 383–384

1078

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 dialog boxes

overview of, 377–378 Custom Lists, 404

percentile rankings, 385–386 Customize Data Card, 651
problems for, 393–395 Data Analysis, 377, 378, 692, 698, 728, 735. See also
range, 381–382 analysis of variance (ANOVA)
for ranges of cells, 388 Data Label Range, 604, 607, 609
ranking numbers in, 387 Data Table, 913, 922, 928, 939, 941
sample standard deviation, 381–382 Column Input Cell, 950, 969, 1016
sample variance, 381–382 Row Input Cell, 969, 991
second-largest or second-smallest numbers, 386–387 Data Validation
skewness measure, 381 AutoComplete feature, 481
trimmed mean, 387–388 clearing data validation, 481
typical value for data set, 378–381 custom, 476–477
Descriptive Statistics dialog box, 377, 378 dates, 475–476
deseasonalized observations, 860 error alerts, 474–475
design, table, 283–287 Go To Special dialog box, 481
Developer tab length of text in cell, 481
displaying, 301 minimum/maximum criteria, 473–475
Insert button, 1036 nested/dependent drop-down menus, 478–480
Record Macro button, 1032–1033, 1034, 1038, 1041, nonnumeric values, 476–478
1044, 1046, 1047 numeric values, 476–477
Stop Recording button, 1033 problems for, 481–482
Use Relative References option, 1039 state abbreviations, 477–478
viewing, 1031 time of day, 481
Dget.xlsx file, 435 in versions prior to Excel 2010, 481
Diagonal.xlsx function, 237 Descriptive Statistics, 377, 378
dialog boxdialog box, Format Axis, 612–613 Edit Default Layout, 530
dialog boxes, 16–17, 336, 384, 481, 891, 938, 1016, 1035 Edit Name, 16, 21
A Date Occurring dialog box, 257 Edit Rule, 259–260
Access Web Content, 323 Edit Scenario, 204
Add Constraint, 816–817, 827, 839, 862, 896, 897, 933 Edit Series, 623
Add-Ins, 721, 847, 862, 872, 889, 895, 902 Error Checking, 173
Analysis ToolPak, 364, 698, 728 Evaluate Formula, 49, 172, 229–231, 242, 451, 454
Solver Add-In. See Microsoft Excel Solver Excel Options, 118, 179, 187–188, 847, 862, 889, 895,
Anova: Single Factor, 728 902, 983–985
Append, 338–339 Add-Ins, 815, 1000, 1007
Arrange Windows, 572 Customize Ribbon, 1031
Assign Macro, 1036 File Conversion, 316
Change Chart Type, 592, 593–594 Format Axis, 369
Change Constraint, 820 Format Cells, 67–68, 74, 152, 254, 268, 491, 559, 961,
1034, 1042, 1044
COM Add-Ins, 179, 552
Format Control, 304–306, 307–311, 313, 625
Conditional Formatting Rules Manager, 259–260
Go To, 179, 962
Consolidate, 573–574
Goal Seek, 197–202, 960
Correlation, 692–693
high-school algebra problems for, 199–200
Create Data Type, 360
problems for, 201–202
Create Forecast Worksheet, 864
requirements for, 197
Create PivotTable, 486, 543, 546, 549, 557, 564
Hidden and Empty Cell Settings, 595, 597
Create Relationship, 543–544
Histogram, 365
Create Sparklines, 660, 663
Import Data, 338, 339
Create Table, 284, 290

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 dialog boxes

Insert Calculated Field, 516, 522 Solve, 821, 833

Insert Calculated Item, 521 Subject to the Constraints, 821
Insert Chart, 498, 621 Sort, 401, 403
Insert Function, 560 Sort Warning, 405
Insert Hyperlink, 167 Sparkline Date Range, 662
Insert Pictures, 588 Split Column by Delimiter, 333
Insert Slicers, 500, 516 Split Column by Number of Characters, 333
Macro, 1033 Subtotal, 578–580
Manage Relationships, 543–544, 546–547 Text That Contains, 254
Merge Columns, 325 Top 10 Filter, 496–497
Modify Button, 1037 Value Field Settings, 506, 508, 514, 559
Name Manager, 16–17, 19 From Web, 323
Navigator, 324 Worksheet Analysis Report, 181
New Formatting Rule, 264–266, 270–272, 296, 503, Diner.xlsx file, 642
873, 892–893 discrete random variables, 763–764, 909–910
New Name, 15, 234–235, 245, 1052, 1053 Discretesim.xlsx file, 909
Number Format, 492 Disneyland, price bundling at, 1013
Open, 317 Display Equation on Chart option, 668, 677, 684, 996,
Page Setup, 944 1006
Paste Name, 12 Display R-Squared Value on Chart option, 668, 677, 684
Paste Special distance between cities, returning, 39–40
Paste Link button, 160 DISTINCT COUNT function, 214, 547–549
Transpose option, 159–160, 693 DISTINCT function, 561
Values option, 158 Distinctcounttemp.xlsx file, 547–550
Pivot Column, 328–329 distribution problems for, 831–836
Protect Sheet, 962 definition of, 831
Record Macro, 1032–1033, 1034, 1038, 1041, 1044, demand constraint, 832–833
1046, 1047 demand points, 831
Regression, 698–699 drug-distribution example, 831–834
Input X Range, 712, 721 problems for, 834–836
Input Y Range, 712, 721 specifications for, 831
Save Chart Template dialog, 621 supply constraints, 832
Scenario Manager, 205 supply points, 831
Merge button, 207 Divide option (Paste Special), 160–162
Summary button, 205 Dividebyprice.xlsx file, 145
Scenario Summary, 206–207 dividend rate, 955
Scenario Values, 205 division, with Paste Special command, 160–162
Select Data Source, 595, 597, 623 documents, importing data from, 315–320
Select Files to Compare, 180 problems for, 320
Solver Parameters, 809, 826–827, 849, 855–856, 872, Text Import Wizard, 315–320
889–890, 933, 983–985, 1000–1001, 1007–1008,
dollar sign ($), 4–5
1017–1018
double quotation marks (““), 451
By Changing Variable Cells, 816, 820, 821, 839
double-declining-balance depreciation (DDB), 109–110
Evolutionary Solver, 889–890
Dowdata.xlsx file, 642
Ignore Integer Constraints, 898
down blocks, 662
Make Unconstrained Variables Non-Negative, 817,
821, 833 Dow.xlsx file, 394, 537, 664, 695
Select a Solving Method list, 840 Draftlottery.xlsx file, 393
Set Objective, 816, 821, 839, 897 drilling down, 522
drop-down menus, nested, 478–480

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 EOQ (economic order quantity) inventory model

drug distribution problem, 831–834 Edit Default Layout dialog box, 530
drug sales, forecasts for, 792–793 Edit In Formula Bar option (Error Checking dialog box),
Drugfore.xlsx file, 792 174
Drug.xlsx, 1028 Edit Name dialog box, 16, 21
DSUM function, 429–439 Edit Rule dialog box, 259–260
criteria ranges for, 434–435 Edit Scenario dialog box, 204
examples of, 431–437 Edit Series dialog box, 623
overview of, 429–431 editing
problems for, 438–439 array formulas, 452. See also Power Query Editor
syntax of, 430–431 macros, 1033
Duedates.xlsx file, 278 named ranges, 16–17
dummy variables, 706 PivotTables, 509
duplicates, removing in Excel AutoFilter, 424 queries, 334
Durant, Kevin, 776 relationships, 546–547
duration of activity editor, Power Query. See Power Query Editor
call/put options, 955 Einstein, Albert, 111
modeling, 904–905 elasticity of demand, 994
DVDsales.xlsx file, 237 Electiondata.xlsx file, 673
dynamic array functions, 461–471 Electoralvotes.xlsx file, 657
FILTER, 466–468 elements, chart, 609–610
INDIRECT, 465–466 Eli Lilly, Monte Carlo simulation used by, 907
nested drop-down menus, creating, 478–480 email addresses, creating, 62–64
overview of, 461 email lists, creating from list of names, 62–64
PivotTables compared to, 535–536 Emailproblem.xlsx file, 69
problems for, 471 employees, 667–668
SEQUENCE, 469–470 assigning to workgroups, 890–892
SORT, 464–466 dollar amount of merchandise sold by, 218–221
SORTBY, 464–466 highlighting ratings for, 892–893
UNIQUE, 461–464 length of time worked by, calculating, 152–153, 312–313
dynamic chart labels, 620–621, 923 sales by region, subtotals of, 580–581
dynamic ranges, 232–235 scheduling with Microsoft Excel Solver, 825–829
Dynamiclabelstemp.xlsx file, 622 total salary per day, 22
Dynamicrange.xlsx file, 232–235 weekly wages, 1–2, 22
Employees.xlsx file, 37, 41
empty cells, in PivotTables, 501–502
E Enable Iterative Calculation option, 118–120, 134
earnings before interest and taxes (EBIT), 144 engines (Solver)
East sales, extracting from total US sales, 58–60 overview of, 810–811
EASTER function, 1054–1055 Simplex LP, 817–819, 833
Eastwest.xlsx file, 12 entering times, 150
East.xlsx file, 575 EOB (economic order batch) size, 976–977
EBIT (earnings before interest and taxes), 144 EOMONTH function, 81
economic order batch (EOB) size, 976–977 EOMONTHEDATE.xlsx file, 81–82
economic order quantity inventory model. See EOQ EOQ (economic order quantity) inventory model, 973–978
(economic order quantity) inventory model computer-manufacturing plant case study, 976–977
EDATE function, 81 development of, 973
Edit command (Macro dialog box), 1033 economic order batch (EOB) size, 976–977
Edit Comment button, 944 electronics store case study, 973–975
Edit Data option (Sparkline Tools Design), 661 equations for, 973–975

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 EOQ (economic order quantity) inventory model

problems for, 977–978 assigning employees to workgroups with, 890–892

EOQ Protected worksheet, 975 highlighting employee ratings with, 892–893
Eoq.xlsx file, 975 options for, 889–890
equal sign (=), 58, 211 problems for, 893–894
equation solver. See Goal Seek command tips for success, 889–894
Error Alert tab (Data Validation dialog box), 474–475 Evolutionary Solver engine, 1017
error alerts, 474–475 EXACT function, 237
Error Checking dialog box, 173–174 Excel Add-Ins, 692, 847, 933, 1000, 1007
errors, 95, 481–482 Excel AutoFilter feature
circular references, 117–121 examples of, 413–428
example of, 117–118 clearing, 415
pattern of, 117 Color, 421
problems for, 120–121 Custom AutoFilter, 427–428
resolving, 118–120 Date, 417–420
data validation, 473–482 Location, 413–415
clearing data validation, 481 Name, 420
dates, 475–476 Numbers, 416–417, 421–422
error alerts, 474–475 Reapply option, 425
Go To Special dialog box, 481 Remove Duplicates, 424
minimum/maximum criteria, 473–475 overview of, 411–413
nested/dependent drop-down menus, 478–480 problems for, 428
numeric values, 476–477 Excel Data Analysis feature, 698
problems for, 481–482 Excel Data Model, 541–550
state abbreviations, 477–478 creating PivotTables with, 542–543, 544–546
in versions prior to Excel 2010, 481 data
Error Checking feature, 173–174 adding, 542–543, 546
in forecasts, 876 removing, 543
#N/A, 26, 28, 134–136, 174 sample, 541–542
#NUM!98 DISTINCT COUNT function, 214, 547–549
#SPILL, 22, 349, 464 problems for, 550
#VALUE, 61–62 relationships
Errortrap.xlsx file, 134, 173 creating, 543–544
Errortypes.xlsx file, 136 managing, 546–547
European cash flows, option pricing and, 954–955 worksheets in, 541
European options, 124, 953 Excel Options dialog box, 118, 179, 187–188, 847, 862, 889,
Evaluate Formula dialog box, 49, 172, 229–231, 895, 897, 902, 983–985
242, 451, 454 Add-Ins, 809, 815, 839, 862, 1000, 1007
evaluating forecasts, 792–793 Customize Ribbon, 1031
events Excelfinfunctions.xlsx file, 102
definition of, 754 FV worksheet, 104
forecasting in presence of, 869–876 PMT worksheet, 105
factors influencing customer traffic, 869–872 PV worksheet, 102
forecast accuracy, 872–876 Rate worksheet, 108
overview of, 869 excess cell formatting, cleaning with Inquire add-in, 182
problems for, 876 exchange rates
random errors in, 876 in Excel formulas, 350
independent, 755–756 importing past data on, 803
mutually exclusive, 754–755 exercise date/expiration date, 953
Evolutionary Solver, 810–811, 889–894 exercise price, 125

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 files

EXP function, 679, 723 federal aid, determining 99th percentile of demand for,
expanding PivotTable fields, 492–493 785–786
experience curve, 683, 684–685 Fermat, Pierre de, 776
experiments, 753, 763 Fibonacci sequence, 9
EXPON.DIST function, 779–780 fields, PivotTable
Exponential command (Format Trendline menu), 666, calculated, 515–517
675–678 collapsing/expanding, 492–493
exponential growth, 675–680 filtering, 495–498
CAGR (compound annual growth rate), 675–678 format of, 491–492
Exponential command, 675–678 PivotTable Fields pane, 487–488
GROWTH function, 679–680 sorting, 493–494
modeling, 676–678 File Conversion dialog box, 316
overview of, 675 File menu commands
predictions based on, 679–680 Copy, 910
problems for, 680 Options, 64, 809
S-curve, 678 Paste Special Values, 910
trend curve parameters for, 678–679 files, 41, 49, 249, 634, 672, 676–678, 961
exponential random variable Accountsums.xlsx, 280
computing probabilities for, 779–780 Adagency.xlsx, 299
problems for, 780 Addresses.xlsx, 145
exponential smoothing, Winters method of Advancedfilter.xlsx, 436
equations for, 860–861 Ageofmachine.xlsx, 69
Forecast Sheet tool, 863–866 Agingdata.xlsx, 236
initialization of, 861 Airlinemilestemp.xlsx, 864
level of series, 860–861 Amazon.xlsx, 279, 281
overview of, 859 Analyzesurveydata.xlsx, 539
problems for, 867 Applynames.xlsx, 20
seasonal index for current month, 860–861 Arrays.xlsx, 447
smoothing constants, estimation of, 862–863 Creating Powers worksheet, 451
time series characteristics, 859–860 Matching Names worksheet, 446
trend of series, 860–861 Total Wages worksheet, 442
Exponentialdata.xlsx file, 680 Transpose worksheet, 444
Exponentialdist.xlsx file, 779 ASCIIcharacters.xlsx, 54
extracting hour/minute/second from times, 152 Asiansales.xlsx, 228
EyeColor.xlsx file, 1028 Assign.xlsx, 35, 890
Asterisks.xlsx, 31
Audittwosheets.xlsx, 178, 181
F Bakery1temp.xlsx, 2–3
F4 key, 5 Bakery2temp.xlsx, 4
Faberu.xlsx file, 550 Bandchart.xlsx, 620
FACTORIAL function, 1056 Bank24.xlsx, 825
Fair, Ray, 710 Barcharts.xlsx, 590
father/son heights, patterns in, 1025–1027 Baseball96.xlsx, 724
Fax.xlsx file, 684 Baseballproblem7.xlsx, 49
FCFs (free cash flows), 130 Baseball.xlsx, 46–47
Feasible Solution worksheet, 813, 820 Betaresampling.xlsx, 951
feasible solutions, 811, 813–819, 820 Beta.xlsx, 904
Febcon.xlsx file, 575 Binomialexamples.xlsx, 770
Binomialsim.xlsx, 919

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 files

BOM.xlsx, 1021 Combobox.xlsx, 312

Boxplotmultiple.xlsx, 392 Commodities.xlsx, 804
Boxplottemp.xlsx, 389 Companydata.xlsx, 215
Bstemp.xlsx, 958, 961 Compound Interest.xlsx, 111–112
Bubbledata.xlsx, 614 Contoso.xlsx, 536
Cakes.xlsx, 614 Contrateeoq.xlsx, 977
Calccolumns1.xlsx, 565 Controls.xlsx, 301
Calccolumns3.xlxs, 568 Copyingtableformulas.xlsx, 297
Calcitemdata.xlsx, 538 Correlationexamples.xlsx, 689
Calculateditem.xlsx, 519 Costestimate.xlsx, 667
Candybardata.xlsx, 482 Countryregion.xlsx, 724
Capbudget.xlsx Coupondata.xlsx, 743
Basic Model worksheet, 837 COVIDcases.xlsx, 614
If 3 Then 4 worksheet, 840–841 Craps.xlsx, 938
Capitalizefirstletter.xlsx, 69 CreateTabletemp.xlsx, 328–329
Cardata.xlsx, 724 Createtable.xlsx, 328–329
Carsumdata.xlsx, 237 Creditunion.xlsx, 869, 874
Casesensitive.xlsx, 237 Crimedata.xlsx, 642
Categorylabels.xlsx, 597 Customers.xlsx, 1065
Catsanddogs.xlsx, 146 Dailydow.xlsx, 673
Cellphonedata.xlsx, 657 Databars.xlsx, 259
Ch21p1.xlsx, 236 Datamodeltemp.xlsx, 541
Ch50data.xlsx, 695 Datasources.xlsx, 344
Ch55.xlsx, 742 Data.xlsx, 12
Ch78data.xlsx, 906 Datedif.xlsx, 79
Changeabsolutetemp.xlsx, 1041–1044 Datelookup.xlsx, 30
ChangingAxes.xlsx, 612–613 Datep.xlsx, 82
Chapter 58 Solutions.docx, 759 Dates.xlsx
Chapter1customers.xlsx, 5 Date Format worksheet, 76, 77, 78
Chapter29 problems for.xlsx, 362 Serial Format worksheet, 74
Chapter32Problem5data.xlsx, 409 Daycaretemp.xlsx, 1027
Chapter32Problem6data.xlsx, 409 Decadeincome.xlsx, 393
Chapter35data.xlsx, 458 Deciles.xlsx, 439
Chapter95data.xlsx, 1060 Deletetemp.xlsx, 610
Chartdynamicrange.xlsx, 234 Delldata.xlsx, 671
Checkbox.xlsx, 307 Dellvol.xlsx, 956
Choosefinal.xlsx, 139–140 Deming.xlsx, 376
Cigarettedata.xlsx, 538 Dependentdropdown.xlsx, 478–480
Circulartemp.xlsx, 117 Dget.xlsx, 435
Ciscoexpo.xlsx, 676 Diagonal.xlsx, 237
Citydata.xlsx, 36 Diner.xlsx, 642
Citydistances.xlsx, 194 Discretesim.xlsx, 909
Cleanexample.xlsx, 61 Distinctcounttemp.xlsx, 547–550
Collegedata.xlsx, 538 Dividebyprice.xlsx, 145
Coltsdata.xls, 394 Dowdata.xlsx, 642
Columncharts.xlsx Dow.xlsx, 537, 664, 695
Column worksheet, 586 Draftlottery.xlsx, 393
One Book worksheet, 588 Drugfore.xlsx, 792
Combinationstemp.xlsx, 591 Drug.xlsx, 1028

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 files

Duedates.xlsx, 278 Highlightcells.xlsx, 255–257

DVDsales.xlsx, 237 Historicalinvest2009.xlsx, 376
Dynamiclabelstemp.xlsx, 622 Historicalinvest.xlsx, 279, 394, 459
Dynamicrange.xlsx, 232–235 Hockey.xlsx, 1028
Eastwest.xlsx, 12 Hospitaltemp.xlsx, 1024–1025
East.xlsx, 575 Hospital.xlsx, 537
Electiondata.xlsx, 673 House2.xlsx, 861
Electoralvotes.xlsx, 657 Housepricedata.xlsx, 438
Emailproblem.xlsx, 69 Hr.xlsx, 35
Employees.xlsx, 37 Hypergeom.dist.xlsx, 773–774
EOMONTHEDATE.xlsx, 81–82 Hyperlinkstemp.xlsx, 167
Eoq.xlsx, 975 IDprice.xlsx, 69
Errortrap.xlsx, 134, 173 IFSfinal.xlsx, 138
Errortypes.xlsx, 136 Ifstatement.xlsx, 124, 126, 130
Excelfinfunctions.xlsx, 102 Incomedata.xlsx, 394
FV worksheet, 104 Incomefrequency.xlsx, 69
PMT worksheet, 105 INDEX.xlsx, 39
PV worksheet, 102 Index.xlsx, 49
Rate worksheet, 108 Indirectconsolidate.xlsx, 244
Exponentialdata.xlsx, 680 Indirectinsertrow.xlsx, 242
Exponentialdist.xlsx, 779 Interactions.xlsx
EyeColor.xlsx, 1028 Data worksheet, 720
Faberu.xlsx, 550 Nonlinearity worksheet, 719
Fax.xlsx, 684 IRR.xlsx, 96
Febcon.xlsx, 575 MIRR worksheet, 97
Filledmaptemp.xlsx, 643 XIRR worksheet, 96
Finearts.xlsx, 537 ISFORMULA_TEXT.xlsx, 172
Finmathsolver.xlsx, 848 Jancon.xlsx, 575
Fizzy.xlsx, 723 Jordan.xlsx, 394
Flashfill.xlsx, 62 Kingslineups.docx, 320
Flattentabletemp.xlsx, 327–328 Lagged.xlsx, 236
Footballdata.xlsx, 146 Lambdahelper.xlsx, 1056–1060
FootballProblem8.xlsx, 49 Last year.xlsx, 21
FormattingDDAnum.xlsx, 145 LastSunday.xlsx, 80
Fourthavenuetemp.xlsx, 655 Latitude.xlsx, 482
Fractiondefective.xlsx, 279 Lawdata.xlsx, 951
Galton.xlsx, 614 Lefthandlookup.xlsx, 227
Gamestop.xlsx, 540 Lemonadegs.xlsx, 198
Gasprices507.xlsx, 287 Lemonade.xlsx, 184
Geommean.xlsx, 388 Lenora.xlsx, 56
Globalwarming2011.xlsx, 279, 280 LETandLAMBDA.xlsx, 1050
GNP.xlsx, 280 Lillydata.xlsx, 459
Goals.xlsx, 664 Lineupdata.xlsx, 69
Golfdata.xlsx, 237 Lineupsch27temp.docx, 315–320
Grades.xlsx, 36 Lineupsch27.txt, 316
Grocery.xlsx, 723 Lognormal.xlsx, 797
Hardware.xlsx, 37 Lookupmultiplecolumns.xlsx, 36
Heighttemp.xlsx, 1025 Lookuptwocolumns.xlsx, 69
Hidden.xlsx, 596 Lookup.xlsx, 27, 29

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Machinedates.xlsx, 83 NBA.xlsx, 215, 222

Makeup2007.xlsx, 218–219, 222, 223 Negbinom.dist.xlsx, 774–775
Makeuparray.xlsx, 448 Nfl01.xlsx, 856
Makeupdb.xlsx, 435, 438, 459, 537 NFL2012data.xlsx, 857
Makeupfiltertemp.xlsx, 412, 428 NFLinfo.xlsx, 725
Makeupsortfont.xlsx, 409 Nflpoints.xlsx, 376
Makeupsorttemp.xlsx Nflwinslosses.xlsx, 662
Across worksheet, 407 Nikedata.xlsx, 299
Case worksheet, 408 Nlp.xlsx
Dates worksheet, 403 Nonlinear Pricing Examples worksheet, 1012
Makeup worksheet, 401 Nonlinear Pricing Examples worksheet i, 1011–1012
Makeupsubtotals.xlsx, 577 OnePrice worksheet, 1013
Makeuptimeline.xlsx, 525 Two-Part Tariff worksheet, 1014
Marketbasketdata.xlsx, 249 Noncontigtemp.xlsx, 13
Matchex.xlsx, 44 Normalexamples.xlsx, 783, 786
Matchlist.xlsx, 146 NPVauditscenario.xlsx, 203
Matchthemax.xlsx, 49 NPVspinnerstemp.xlsx, 303
Matchthesecond.xlsx, 215 Numberdv.xlsx, 476
Matchtype1.xlsx, 49 Numbers.xlsx, 215, 223
Matradingrule.xlsx, 127, 128, 236 Nursejackiedata.xlsx, 894
Mavsscores.xlsx, 615 Offsetcost.xlsx, 228–229
Mavs.xlsx, 163 Offsetexample.xlsx, 226–227
Maxifsminifs.xlsx, 221 Oldfaithful.xlsx, 673
Mcdonalds.xlsx, 537 Onewayanovatemp.xlsx, 728, 730
Meanvariance.xlsx, 764 Optionbuttons.xlsx, 311
Medians.xlsx, 452 P23_2.xlsx, 248
MIRR.xlsx, 97–98 P23_3.xlsx, 249
Modefunctions.xlsx, 380 Paretotemp.xls, 374
Monday.xlsx, 81 Pastespecial.xlsx, 157
Monthlysales.xlsx, 615 Paste Special Divide Before worksheet, 160–161
Monthtomonth.xlsx, 526, 528 Paste Special Transpose worksheet, 159
Moore.xlsx, 680 Paste Special Value worksheet, 157
Mostrecent.xlsx, 232 Payback.xlsx, 47
Moviedata.xlsx, 69 Paymentgs.xlsx, 199
Movienumbers.xlsx, 69 Phoneloyalty.xlsx, 969
Movies.xlsx, 229–231 Pinevalley.xlsx, 36
Mrcostest.xlsx, 697–698 Pivotwithslicers.xlsx, 559
Multipleworksheetstemp.xlsx, 169 Poisson.xlsx, 778
Myexample.xlsx, 562 Poker.xlsx, 939
Names.xlsx, 278 Powerpivotexample1.xlsx, 561
Nancybonds.xlsx, 145 PQappendtemp.xlsx, 338
Nba01_02.xlsx, 857 Pqappend.xlsx, 339
Nba02_03.xlsx, 857 PQdatatypestemp.xlsx, 359
Nbadvl.xlsx, 474 PQPROBLEM5DATA.XLSX, 340
NBAfinal.xlsx, 329–331 PQPROBLEM6DATA.XLSX, 341
Nbamiles.xlsx, 899 PQPROBLEM7DATA.XLSX, 341
NBAplayers.xlsx, 37 PQPROBLM4DATA.XLSX, 340
Nbasalaries.xlsx, 279 Priceads.xlsx, 724
NBAtemp.xlsx, 329–331 Problem5_9.xlsx, 50

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Problem6data.xlsx, 894 Qb2013.xlsx, 37

Problem7data.xlsx, 376, 680 Qd.xlsx, 1017
Problem8data.xlsx, 376 Quarterlygnpdata.xlsx, 69
Problem9data.xlsx, 376, 844 Quarterly.xlsx, 867
Problem10data.xlsx, 790 Queuingtemplate.xlsx, 989–990
Problem11data.xlsx, 299 Randarray.xlsx, 916
Problem12data.xlsx, 299 Randdemo.xlsx, 908
Problem13data.xlsx, 299, 673, 725 Randy.xlsx, 629
Problem15data.xsls, 726 Ratioma.xlsx, 750
Problem16data.xlsx, 69, 726 Razorsandblades.xlsx, 999
Problem17datat.xlsx, 394 Redbold.xlsm, 1034
Problem17data.xlsx, 69 Reorderpoint_backorder.xlsx, 980
Problem18data.xlsx, 395 Reorderpoint_lostsales.xlsx, 982
Problem19data.xlsx, 223 Repeatedhisto.xlsx, 60
Problem20data.xlsx, 223, 539 Returnstemp.xlsx, 17
Problem21data.xlsx, 223, 539 Reversed.xlsx, 237
Problem22data.xlsx, 69, 223, 539 Reversenames.xlsx, 69
Problem23_24data.xlsx, 223 Rock.xlsx, 210, 214
Problem23data.xlsx, 69, 539 Rowsnamed.xlsx, 22
Problem24data.xlsx, 69, 539 Salaries.xlsx, 460
Problem25data.xlsx, 69, 540 Salesdata.xlsx, 49, 181
Problem26data.xlsx, 69, 540 Salesfixfinal.xlsx, 331–334
Problem27data.xlsx, 69, 280, 540 Salesfixtemp.xlsx, 331–334
Problem28data.xlsx, 146, 281 Salesstripping.xlsx, 58
Problem30data.xlsx, 281 Salessummary.xlsx, 181
Problem32data.xlsx, 281 Sales.xlsx, 438
Problem33data.xlsx, 281 Sandp.xlsx, 278
Problem34data.xlsx, 146 Satissuper.xlsx, 278
Problem35data.xlsx, 147, 281 Scatter.xlsx, 606
Problem36data.xlsx, 281, 471 Secondaryaxis.xlsx, 593
Problem37data.xlsx, 147 Sequence.xlsx, 469
Problem38data.xlsx, 147 Servicelevelreorder.xlsx, 983
Problem40data.xlsx, 147 Shading.xlsx, 280
Problem41data.xlsx, 147 Sheetnames.xlsx, 18–19
Problem42.xlsx, 147 Showbiz.xlsx, 69
Problem43data.xlsx, 147 Singers.xlsx, 298
Prodmix.xlsx, 820 Sortandsortby.xlsx, 465
Feasible Solution worksheet, 813 Sortday.xlsx, 409
No Feasible Solution worksheet, 820–821 Sortedgraph.xlsx, 627
Set Values Do Not Converge worksheet, 821 Sorticons.xlsx, 409
Productlookup.xlsx, 45, 299 spaces.xlsx, 247
Productmix.xlsx, 182 Sparklines.xlsx, 659
Productpaste.xlsx, 163 Column Sparkline worksheet, 662
Productsalespaste.xlsx, 163 High Low worksheet, 661
Proforma.xlsx, 130 Special Tricks.xlsx, 67
Ptableexample.xlsx, 512 Spiderplottemplate.xlsx, 1063
Ptablepartsdata.xlsx, 538 Sportinglife.xlsx, 614
Ptcustomerstemp.xlsx, 1047 Sports.xlsx, 614
Ptcustomers.xlsx, 495 StartFixMinutestemp.xlsx, 1045

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 files

Statedv.xlsx, 477 USC.xlsx, 794

Stateincome.xlsx, 657 USfilledmapstemp.xlsx, 646
States.xlsx, 16, 17, 552 Valentine.xlsx, 911, 914
Staticdate.xlsx, 79 Varianceanalysis.xlsx, 278
Station.xlsx, 509 Verizondata.xlsx, 236
Stdevif.xlsx, 453 Verizon.xlsx, 237
Stockcorrel.xlsx, 691 Volatility.xlsx, 965
Stockhistoryfinal.xlsx Wagestemp.xlsx, 1–2
Bitcoin worksheet, 802 Walmartdata.xlsx, 752
Currency worksheet, 803 Walmartrev.xlsx, 136
Stocks worksheet, 800 Waterfallpandltemp.xlsx, 633
Stockpricestemp.xlsx, 1022–1024 Weekendformatting.xlsx, 278
Stock.xlsx, 373, 376, 383, 393 WEEKNUM.xlsx, 80
Storesales.txt, 552 Weibullest.xlsx, 901
Sumifrows.xlsx, 222 Weirddata.xlsx, 69
Sumindirect.xlsx, 240 West.xlsx, 571, 575
Superbowlspreads.xlsx, 787–788 Worksheetnames.xlsm, 245
Suppliers.xlsx, 314 Worldball.xlsx, 857
Switchfinal.xlsx, 141 XLOOKUP.xlsx, 31
Tableexampletemp.xlsx, 283–284 Yeartodate.xlsx, 237
Tableexample.xlsx, 298 Fill button, 950
Tablemakeuptemp.xlsx, 289, 299 filled maps
Tablemakeuptotals.xlsx, 291, 292 creating, 643–647
Tablepie.xlsx, 299 labeling, 645–646
Tablestructure.xlsx, 294 Filledmaptemp.xlsx file, 643
Tablexnpvdata.xlsx, 299 FILTER function, 466–468
Teachers.xlsx, 1028 filtering
Teams.xlsx, 376 dynamic array functions for, 466–468
Temperature2020.xlsx, 253 with Excel AutoFilter feature
Test.xlsx, 278 examples of, 413–428
Textandnumbers.xlsx, 34 overview of, 411–413
Textfunctions.xlsx, 52 problems for, 428
Textjoinfinal.xlsx, 65 PivotTable fields, 495–498
Textstylesdata.xlsx, 69 with Quick Access toolbar, 425–427
Threetimes.xlsx, 280 tables, 289–292
Timeseries.xlsx, 603 Filters option (Layer pane), 650
Time.xlsx, 151 Final Four basketball, probability of team win in, 942–944
Top5.xlsx, 280 Finalregression worksheet, 721
Top20.xlsx, 657 financial functions
Toysrusformat.xlsx, 278 CUMIPMT, 107
Toysrus.xlsx, 222 CUMPRINC, 107
Transactiondata.xlsx, 237 DDB, 110
Transport.xlsx, 831–832 FV, 103–105, 111–112
Traveldatatemp.xlsx, 505 interest rate
Treemapbookstoretemp.xlsx, 636 calculating with RATE, 108
Trendandseasonality.xlsx, 1028 compound interest, 111–112
Trimmean.xlsx, 386, 388 cumulative interest payments. See cumulative
Unemployment.xlsx, 376 interest payments (CUMIPMT)
Unique.xlsx, 462 IPMT, 106–107

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 Format Trendline pane

IRR, 94 problems for, 867

MIRR, 97–98 making probability statements from, 791–794
NPER, 108–109 with one-way ANOVA, 731
NPV. See NPV (net present value) in presence of special events, 869–876
PMT, 101–107 factors influencing customer traffic, 869–872
PPMT, 106–107 forecast accuracy, 872–876
problems for, 112–115 overview of, 869
PV, 101–105 problems for, 876
RATE, 108 random errors in, 876
SLN, 109–110 ratio-to-moving-average forecasting method for,
SYD, 109–110 749–752
XIRR, 93–94 seasonal indexes
XNPV, 88–90 interpretation of, 749–750
financial planning, with Solver, 845–851 Toys “R” Us example, 715–718
overview of, 845 Walmart example, 749–750
PMT function, verifying accuracy of, 845 twith wo-way analysis of variance (ANOVA), 740–742
retirement savings, determining, 848–849 with two-way ANOVA, 736–737
Find Errors worksheet, 458 Winters method of
FIND function, 53, 57–58, 59, 61, 482 Forecast Sheet tool, 863–866
Finearts.xlsx file, 537 initialization of, 861
Finmathsolver.xlsx file, 848 level of series, 860–861
first day of month overview of, 859
returning date of next Monday, 81 seasonal index for current month, 860–861
returning first/last day of month, 81–82 smoothing constants, estimation of, 862–863
First Point option (Sparkline Tools Design), 661 time series characteristics, 859–860
five-card draw poker, probability of three of a kind in, trend of series, 860–861
939–942 Foreign column
fixed-width columns, 315, 317–319 Create Relationships dialog box, 544
Fizzy.xlsx file, 723 Data Model, 544
Flash Fill, 62–64, 65 form controls
Flashfill.xlsx file, 62 Check Box, 307
flat files, creating tables from, 328–329 Combo Box, 313
Flat Map button, 654 Format Control, 304–306, 313
flattening Excel tables, 327–328 Option Button, 307
Flattentabletemp.xlsx file, 327–328 overview of, 301
font color, sorting on, 401–402 problems for, 313–314
Foods data type, 352 Scrollbar, 307
Footballdata.xlsx file, 146 Spin Button, 302–307
FootballProblem8.xlsx file, 49 Format Axis dialog box, 369, 612–613
Ford, Gerald, 712 Format Cells dialog box, 67–68, 74, 152, 254, 268, 491,
FORECAST function, 866 559, 961, 1034, 1042, 1044
Forecast Sheet tool, 863–866 Format Control dialog box, 304–306, 307–311, 313, 625
FORECAST.ETS function, 866 Format Data Labels pane, 599, 601, 602, 604, 607, 609,
646
forecasting. See also multiple regression analysis
Format Data Series pane, 589, 602, 622, 637, 645
bias in, 792–793
Format Painter feature, 277
evaluating, 792–793
Format Selection button, 669
forecasting future values of time series, Winters
method of Format Trendline pane, 666–667
equations for, 860–861 Exponential command, 675–678

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 Format Trendline pane

Moving Average option, 746 four-period moving average, 745–746

Number section, 669 Fourthavenuetemp.xlsx file, 655
Polynomial option, 1006 Fractiondefective.xlsx file, 279
Power command, 684 free cash flows (FCFs), 130
Format Values Where This Formula Is True option, 873 Freeze First Column command (Freeze Panes menu), 128
formatting Freeze Panes, 127–128, 306–307
conditional. See conditional formatting Freeze Top Row command (Freeze Panes menu), 128
dates, 74–76 FREQUENCY function, 444–445
excess cell formatting, 182 From Web dialog box, 323
PivotTable fields, 491–492 Fuller, Dennis, 1
times, 150, 151 BETWEEN function, 1053–1054
formatting, conditional. See conditional formatting Function Wizard, 135
FormattingDDAnum.xlsx file, 145 functions, 18, 194, 272, 482, 679–680, 687, 1054–1055
Formula Auditing group, 172 & (ampersand), 54
Error Checking, 173–174 ABVERA, 922
multiple worksheets and, 178–179 AGGREGATE, 135–136
Remove Arrows, 175, 177 AutoComplete capabilities for, 18
Show Formulas, 172 AutoSum, 3
Trace Dependents, 174–177 AVERAGE, 2, 212, 751, 788, 793, 855, 861, 862, 871–872,
Trace Precedents, 174–175, 177–178 901, 902, 905, 913, 939, 950
Watch Window, 174 AVERAGEIF, 751
formulas AVERAGEIFS, 218, 220–221
applying named ranges to, 20 BETA.DIST, 901
cost paid to supplier, 2–5 BETWEEN, 1053–1054
customer estimation, 5–6 BINOM.DIST
locking/unlocking, 961–963 examples of, 771–772
order of operations in, 6–7 overview of, 770
properties and data types in BINOM.DIST.RANGE
animals, 353–354 examples of, 771–772
astronomical objects, 351 overview of, 770
chemical compounds and elements, 351–352 BINOM.INV, 773, 922
corporations, 349–350 CALCULATE, 567–570
exchange rates, 350 CELL, 247
flowers and trees, 353–354 CHAR, 54, 61
geographic locations, 347–348 CHOOSE, 139–140
HR data, 359–361 CLEAN, 55, 61
movies and music, 353–354 CONCATENATE, 54, 57
nutritional characteristics, 352 CORREL, 692
people, 356 COUNT, 574
problems for, 362 examples of, 214
universities, 351 syntax of, 210
weather data, 357–359 COUNTA
weekly wages, 1–2 examples of, 214
Formulas menu commands overview of, 210
Create from Selection, 20 COUNTBLANK
Defined Names, 20 examples of, 214
Enable Iterative Calculation option, 118–120 overview of, 210
Evaluate Formula, 49 COUNTIF, 482, 891, 909, 928, 941, 943
FORMULATEXT function, 2, 172 examples of, 211–213

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 functions

syntax of, 209–210 hedging example with, 125–126

COUNTIFS, 449 IFERROR, 134–136
examples of, 213 moving-average trading rule, 127–130
syntax of, 210 pro forma financial statements, 130–134
CRITBINOM, 773 problems for, 143–147
CUMIPMT, 107 quantity discounts, 124–125
CUMPRINC, 107 summarizing annual revenues with, 136–137
custom, creating with LAMBDA, 1051–1055 IFERROR, 26, 134–136, 622, 631
DATE, 78 IFS, 137
DATEDIF, 79 INDEX, 39–41, 45, 313, 625, 897
DATEVALUE, 76 problems for, 41
DDB, 110 referencing entire row/column of array with, 41
DISTINCT, 561 returning distance between cities with, 39–40
DISTINCT COUNT, 214, 547–549 syntax of, 39
DSUM, 429–439 INDIRECT, 168, 239–249, 465–466, 480, 482
criteria ranges for, 434–435 changing cell references in formulas with, 240–241
examples of, 431–437 creating summary of product sales with, 244–245
overview of, 429–431 creating table of contents with, 247–248
problems for, 438–439 listing monthly sales of product with, 241–242
syntax of, 430–431 listing worksheets in workbook with, 245–247
EDATE, 81 problems for, 248–249
EOMONTH, 81 referencing range names within formulas with,
EXACT, 237 243–244
EXP, 679 simple example of, 239–240
EXPON.DIST, 779–780 totaling values in range with, 242–243
FACTORIAL, 1056 INTERCEPT, 672, 679, 751
FILTER, 466–468 IPMT, 106–107
FIND, 53, 57–58, 59, 61, 482 IRR, 94
FORECAST, 866 IS, 141
FORECAST.ETS, 866 ISBLANK, 141
FORMULATEXT, 2, 172 ISERR, 141
FREQUENCY, 444–445 ISERROR, 141
FV, 103–105, 111–112 ISEVEN, 147
GEOMMEAN, 389 ISFORMULA, 141, 172
GETPIVOTDATA, 523–525, 629, 630 ISNA, 141
GETSTATE, 1054 ISNONTEXT, 141
GROWTH, 679–680, 715–718 ISNUMBER, 141, 476
HLOOKUP, 891 ISTEXT, 141, 482
looking up prices from product ID codes with, LAMBDA, 1051–1060
29–30 creating custom functions with, 1051–1055
syntax of, 26 helper functions, 1056–1060
wildcard characters with, 31 problems for, 1060–1061
HOUR, 152 recursive, 1055–1056
Housedata.xlsx, 671 LARGE, 47, 386
HYPEGEOM.DIST, 773–774 lastyear, 22
HYPERLINK, 168, 247 LEFT, 53, 56, 57–58, 59
IF, 190, 619, 622, 624, 628, 876, 891, 912, 939, 943 LEN, 53, 56, 59, 482
craps, modeling, 130 LET, 1050–1051, 1060
Freeze Panes options and, 127–130 LINEST, 702–703

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 functions

LOGEST, 715–718 syntax of, 87

LOGNORM.DIST, 797–798 OFFSET, 225–237
LOGNORM.INV, 798 computing development costs with, 228–229
lookup, 25–37 dynamic ranges, 232–235
computing tax rates with, 27–29 Evaluate Formula feature, 229–231
definition of, 25 last number in column, finding, 232
looking up prices from product ID codes with, left-hand lookup with, 227–228
29–30 movie example, 229–231
mismatches between text and numbers in, 34 problems for, 236–237
problems for, 35–37 revenue tracking with, 228
syntax of, 25–27 simple example of, 226–227
wildcard characters with, 31 syntax of, 226
LOWER, 54 PDF (probability density function), 765–766, 903, 920
MATCH, 43–50 PERCENTILE, 385–386
investment payback period, returning, 47–48 PERCENTILE.EXC, 385–386
MLB player salaries, returning, 46–47 PERCENTILE.INC, 385–386
nonlinear pricing plan, 1014, 1015 PERCENTRANK, 385–386
problems for, 49–50 PERCENTRANK.EXC, 385–386
product sales per month, returning, 45–46 PERCENTRANK.INC, 385–386
syntax of, 43–45 PMT, 105–107, 188–189, 199
two-way lookups, 46 retirement savings, determining, 848–849
wildcard characters with, 44 verifying accuracy of, 845–848
MAX, 445 POISSON.DIST, 778
Max, 574 PPMT, 106–107
MAXIFS probability mass, 770
example of, 221–222 Problem39data.xlsx, 147
syntax of, 218 PROPER, 54
MID, 53, 57, 59 PV, 101–103
MIN, 445, 912 RAND, 908–909, 912, 923, 940, 943
MINUTE, 152 RANDARRAY, 914–915, 916, 923, 950
MINVERSE, 459 RANDBETWEEN, 923, 926–927, 930, 938, 947
MIRR, 97–98 RANK, 387, 619, 625
MOD, 78–80 RANK.AVG, 387
MODE.MULT, 380 RANK.EQ, 298, 387, 940
NEGBINOM.DIST, 774–775 RATE, 108
nesting, 137 RELATED, 562–567
NETWORKDAYS, 78 REPLACE, 54
NETWORKDAYS.INTL, 78 REPT, 54, 61, 62–64
nonsmooth functions, 810–811 RIGHT, 53, 59, 482
NORM.DIST, 784–785, 793 ROW, 137
NORM.INV, 785–786, 787, 910–911, 942, 943 RSQ, 672
NORM.S.DIST, 957 SEARCH, 53–54
NOW, 151 SECOND, 152
NPER, 108–109 SEQUENCE, 469–470, 950
NPV, 87–90, 968–969 SHEET, 246
for cash flows received at beginning of year, 88 SKEW, 381
for cash flows received at middle of year, 88 SLN, 109–110
how to use, 87 SLOPE, 672, 679, 687, 751, 752
problems for, 90–91 SMALL, 47, 386

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 Get & Transform Data group

SORT, 464–466, 479, 480 syntax of, 25–26

SORTBY, 464–466, 916 wildcard characters with, 31
SQRT, 956–957 WEEKDAY, 78
STDEV, 382, 454, 788 WEEKNUM, 80
STDEV.S, 382, 793, 901, 902, 905, 913, 956–957 WEIBULL.DIST, 901–904
STDEVS, 873 WEIBULLDIST, 904
STOCKHISTORY, 799–806 WORKDAY, 76–77
arguments of, 800 WORKDAY.INTL, 77
importing past Bitcoin prices with, 802 XIRR, 93–94
importing past data on commodity prices with, XLOOKUP
804–805 examples of, 31–34
importing past data on currency exchange rates syntax of, 26–27
with, 803
two-way lookups, 48–49
importing past data on index or mutual funds
wildcard characters with, 31
with, 804
XNPV, 88–90
importing past trading data on stock with,
799–801 funnel charts, 638–639
problems for, 806 Funnel.xlsx file, 638
SUBSTITUTE, 55, 61 future investment value, returning, 103–105
SUBTOTAL, 582–583 future payments, returning value of, 101–105
SUM, 3, 137, 573, 578, 871, 891, 897 FV function, 103–105, 111–112
SUMIF, 218 FV worksheet, 104
copying across columns, 297
examples of, 218–221
syntax of, 218
G
Galton.xlsx file, 614
SUMIFS, 449, 480
gambling and sporting-event probabilities, 937–946
SUMPRODUCT, 443, 454–457, 814–815, 826, 832
craps, 937–939
SWITCH, 140–141
five-card draw poker, 939–942
SYD, 109–110
NCAA men’s basketball Final Four, 942–944
TEXT, 54, 80, 81, 622–623
problems for, 945
TEXTJOIN, 54, 61–65
GameStop stock, 801
TIME, 152
Gamestop.xlsx file, 540
TIMEVALUE, 152
Gantt charts, 626
TODAY, 76, 79, 151
Gasprices507.xlsx file, 287
TRANSPOSE, 444
Gauss-Seidel method, 119
TREND, 714–715
GE stock, price simulation of, 926–929
TRIM, 53, 56, 57
General Motors (GM)
TRIMMEAN, 388
histogram for, 373–374
UNICHAR, 62–64, 65
Monte Carlo simulation used by, 907
UNICODE, 61, 65
geographic locations, in Excel formulas, 347–348
UNIQUE, 461–464
Geography data type, 347–348
UPPER, 54
geometric mean, 388–389
VALUE, 54, 57, 61
GEOMMEAN function, 389
VAR.S, 382
Geommean.xlsx file, 388
VLOOKUP, 134, 244, 312, 313, 751, 871, 927, 941, 943,
949 Get & Transform Data group, 321, 323
avoiding use of, 542 appending tables, 338–340
computing tax rates with, 27–29 combining data into summary worksheet, 338–340
nonlinear pricing plan, 1014 combining files into single file, 331–333
daily suggested prices, 336–337

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 Get & Transform Data options

Excel tables elements in, 609–610

creating from flat files, 328–329 funnel, 638–639
flattening, 327–328 Gantt, 626
hardware store data, 331–333 hidden data in, 596–597
NBA player data, 329–331 inserting vertical lines into, 628–629
Pivot Column command, 328–329 line, 603–606
Unpivot Columns command, 327 missing data in, 595–596
US city population data, importing into Excel, modifying axes in, 612–613
323–327 pie, 600–603, 654
Get & Transform Data options, 321–322 problems for, 614–615, 641–642
Get External Data menu (PowerPivot), 554 radar, 607–608
GETPIVOTDATA function, 523–525, 629, 630 sales-force performance over time, 920–923
GETSTATE function, 1054 scatter, 606–607, 666–667
GET.WORKBOOK macro, 245 secondary axis, 593–594
Gini index, 9 stacked area, 603–606
Gladwell, Malcolm, 1028 for stocks, 639–641
Globalwarming2011.xlsx file, 279, 280 storing as templates, 620–621, 923
GNP.xlsx file, 280 sunburst, 635–638
Go To dialog box, 179, 962 switching rows/columns in, 611–612
Go To Special dialog box, 481 thermometer, 923, 620–621, 923
Goal Seek, 197–202, 971 treemap (mosaic), 635–638
break-even analysis with, 198–199 waterfall, 633–635
high-school algebra problems for, 199–200 histograms
mortgage payment analysis, 199 comparing, 373–374
problems for, 201–202 creating, 363–371
requirements for, 197 multiple-peak, 372–373
Goal Seek command, 960, 965, 970 overview of, 363
Goals.xlsx file, 664 problems for, 376
Golfdata.xlsx file, 237 skewed left (negatively skewed), 372
Gompertz curve. See S-curves skewed right (positively skewed), 371–372
Grades.xlsx file, 36 symmetric, 371
graphics maps
charts 2D filled, 643–647
band, 620–621, 923 3D, 647–649
bar, 590–591 Pareto charts
based on sorted data, 627–628 creating, 374–375
bubble, 608–609 design options for, 375
category labels, 597–598 sparklines, 659–664
column, 586–589 automatically updating, 663–664
combination, 591–593 daily customer counts, 659–660
conditional colors in, 628–629 modifying, 661–662
controlling which series are charted, overview of, 659
624–626
problems for, 664
creating from data tables, 191–192
win/loss, 662–663
data labels, 598–600
graphics, adding to charts, 588–589
data tables in, 598–600
graphs
deleting points from, 610–611
definition of, 895
dynamic dashboards for, 628–629
index funds, importing past data on, 804
dynamic labels for, 620–621, 923
line, 287–289

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 HYPERLINK function

moving-average, 745–746 hiding

greater than or equal to (>=) operator, 212 Assumption cells (Scenario Manager), 207
greeting cards, Monte Carlo simulation of, 911–914 comments, 944
GRG Nonlinear engine, 810 High Low worksheet, 661
Grocery.xlsx file, 723 High Point option (Sparkline Tools Design), 661
grouping PivotTable items, 518–519 Highlightcells.xlsx file, 255–257
growth, exponential, 675–680 Highlights Cells conditional formatting, 252, 255–257
CAGR (compound annual growth rate), 675–678 High-Low-Close chart option, 640
equation for, 675 high-school algebra problems for, Goal Seek command
Exponential command, 675–678 for, 199–200
GROWTH function, 679–680 Histogram dialog box, 365
modeling, 676–678 histograms
overview of, 675 of annual stock returns, 1024
predictions based on, 679–680 comparing, 373–374
problems for, 680 creating, 363–371
S-curve, 678 of father/son heights, 1025–1026
trend curve parameters for, 678–679 multiple-peak, 372–373
GROWTH function, 679–680, 715–718 overview of, 363
problems for, 376
skewed left (negatively skewed), 372
H skewed right (positively skewed), 371–372
Hall, Monty, 759 symmetric, 371
hardware store data historical volatility of stock, 956–957
combining into single file, 334–336 Historicalinvest2009.xlsx file, 376
importing and formatting, 331–334 Historicalinvest.xlsx file, 279, 394, 459
Hardware.xlsx file, 37 HLOOKUP function, 891
Harris, F.973 looking up prices from product ID codes with, 29–30
health club case study, 5–6 syntax of, 26
heat maps, 643. See also filled maps wildcard characters with, 31
hedging, with IF function, 125–126 Hockey.xlsx file, 1028
Hedging worksheet, 126 holiday dates, excluding, 77
heights of fathers/sons, finding patterns in, 1025–1027 Holt, Charles, 859
Heighttemp.xlsx file, 1025 hospital data, patterns in, 1024–1025
Help On This Error option (Error Checking dialog box), Hospitaltemp.xlsx file, 1024–1025
173 Hospital.xlsx file, 537
helper functions, LAMBDA, 1056–1060 hour, extracting from time, 152
BYCOL, 1057 HOUR function, 152
BYROW, 1056–1057 hourly wages, computing, 442–444
ISOMITTED, 1060 House2.xlsx file, 861
MAKEARRAY, 1059–1060 Housedata.xlsx file, 671
MAP, 1057–1058 Housepricedata.xlsx file, 438
problems for, 1060–1061 HR data, in Excel formulas, 359–361
REDUCE, 1058 Hr.xlsx file, 35
SCAN, 1059–1060 HYPEGEOM.DIST function, 773–774
Hidden and Empty Cell Settings dialog box, 595, 597 Hypergeom.dist.xlsx file, 773–774
hidden data, in charts, 596–597 hypergeometric random variables
Hidden.xlsx file, 596 binomial, 775–776
Hide Columns command, 189 definition of, 773–774
Hide Rows command, 189 HYPERLINK function, 168, 247

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 hyperlinks

hyperlinks, 167–169, 181 on stock, 799–801

Hyperlinkstemp.xlsx file, 167 Power Query Editor, 322
from text files, 315–320
problems for, 320
I Text Import Wizard, 315–320
Icon Sets, 253, 263–266, 402–403 US city population data, 323–327
IDprice.xlsx file, 69 Include This Many Sheets option, 166
If 3 Then 4 worksheet, 840–841 income, computing tax rates based on, 27–29
IF function, 190, 619, 622, 624, 628, 876, 891, 912, 939, 943 Incomedata.xlsx file, 394
craps, modeling, 130 Incomefrequency.xlsx file, 69
Freeze Panes options and, 127–130 independent events, 755–756
hedging example with, 125–126 independent random variables, 766
IFERROR, 134–136 independent variables, 665–666
moving-average trading rule, 127–130 INDEX function, 39–41, 45, 313, 625, 897
nesting, 137 problems for, 41
overview of, 123–124 referencing entire row/column of array with, 41
pro forma financial statements, 130–134 returning distance between cities with, 39–40
problems for, 143–147 syntax of, 39
quantity discounts, 124–125 indexes, seasonal
summarizing annual revenues with, 136–137 in forecasting of future product sales, 750–752
if_not_found argument (XLOOKUP function), 26 interpretation of, 749–750
IFERROR function, 26, 134–136, 194, 622, 631 Toys “R” Us example, 715–718
IFS function, 137 Walmart example, 749–750
IFSfinal.xlsx file, 138 INDEX.xlsx file, 39, 49
Ifstatement.xlsx file, 130 Indiana Pacers, minutes played by lineup, 1045–1046
Hedging worksheet, 126 INDIRECT function, 168, 239–249, 465–466, 480, 482
Quantity Discount worksheet, 124 changing cell references in formulas with, 240–241
Ignore Blank check box (Data Validation dialog box), 474, creating summary of product sales with, 244–245
475, 480
creating table of contents with, 247–248
Ignore Error option (Error Checking dialog box), 173
listing monthly sales of product with, 241–242
Ignore Integer Constraints option (Solver), 898
listing worksheets in workbook with, 245–247
implied volatility, 796, 960
problems for, 248–249
Import Data dialog box, 338, 339
referencing range names within formulas with,
importing data 243–244
appending tables, 338–340 simple example of, 239–240
Bitcoin prices, 802 totaling values in range with, 242–243
combining data into summary worksheet, 338–340 Indirectconsolidate.xlsx file, 244
combining into single file, 331–333 Indirectinsertrow.xlsx file, 242
daily suggested prices, 336–337 inferences, resampling, 947–951
Excel tables initialization, of Winters method, 861
creating from flat files, 328–329 Input Message tab (Data Validation dialog box), 475
flattening, 327–328 Input Y Range (Regression dialog box), 712
Get & Transform Data options, 321–322 Inquire add-in, 179–182
hardware store data, 331–333 analyzing precedents/dependents with, 182
NBA player data, 329–331 analyzing workbook structure with, 181
past data analyzing worksheet/workbook relationships with, 181
on commodity prices, 804–805 cleaning excess cell formatting with, 182
on currency exchange rates, 803 comparing workbooks with, 180
on index or mutual funds, 804 installing, 179–180

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 IRR function

Insert Calculated Field dialog box, 516, 522 development of, 973
Insert Calculated Item dialog box, 521 economic order batch (EOB) size, 976–977
Insert Chart dialog box, 498, 621 electronics store case study, 973–975
Insert Column or Bar Chart button, 586, 587, 588, 591, equations for, 973–975
620, 621, 628, 629 problems for, 977–978
Insert Combo Chart button, 593 with uncertain demand, 979–985
Insert Function dialog box, 560 lost-sales approach, 980–981
Insert Hyperlink dialog box, 167 overview of, 979–980
Insert Line or Area Chart button, 603, 605 service-level approach, 982–985
Insert Pictures dialog box, 588 investment returns, uncertainty in, 925–935
Insert Pie or Doughnut Chart button, 601, 602 asset-allocation modeling, 929–934
Insert PivotTable button, 1021 problems for, 934–935
Insert Scatter (X,Y) or Bubble Chart button, 191, 606, 608, stock price simulation, 926–929
623, 626, 631, 632, 667, 676, 746, 995, 1006
Investment Science (Luenberger), 953, 958, 963
Insert Slicers dialog box, 500, 516
investments
Insert tab
beta, 951
Charts, 644
hedging example, 127–130
Charts section, 191, 586, 593, 603, 604, 608
option pricing, 953–966
Insert Waterfall, Funnel, Stock, Surface, or Radar Chart
abandonment options, 964–965
button, 608, 639
American cash flows, 955
Insig worksheet, 730
American options, 953
installing, Microsoft Excel Solver, 809
Black-Scholes formula, 798, 957–958, 959–961
insurance, portfolio, 126
call/put options, 953, 955–956, 958–959
integer constraint, 827
in decision-making process, 963–964
Integer Optimality settings, 842
European cash flows, 954–955
integer programming problems for, 841–842
European options, 953
interactions, 719–726
exercise date/expiration date, 953
definition of, 719–720
historical volatility, 956–957
problems for, 720–723
parameters for, 955
testing for presence of, 720–723
problems for, 965–966
Interactions.xlsx file
real options, 963–964
Data worksheet, 720
volatility of stock, estimating, 956–957
Nonlinearity worksheet, 719
worksheet protection, 961–963
interarrival time, 988
payback period, 47–48
intercept
returning future value of, 103–105
of straight-line relationship predictions, 672
IPMT (interest payment) function, 106–107
of trendlines, 751
IQs
INTERCEPT function, 671, 672, 679, 687, 751
computing probabilities for, 784–785
interdependence of returns, 931
PDF (probability density function) for, 782–784
interest rate
IRR (internal rate of return), 93–99
calculating with RATE, 108
calculating with IRR function, 94
compound, 111–112
definition of, 93–94
computing with IPMT function, 106–107
for irregularly spaced cash flows, 96
cumulative. See cumulative interest payments
(CUMIPMT) lack of, 94–95
internal rate of return. See IRR (internal rate of return) modified internal rate of return, 97–98
inventory modeling multiple, 94–95
EOQ (economic order quantity) model, 973–978 problems for, 98–99
computer-manufacturing plant case study, 976–977 scale of project and, 95–96
IRR function, 94

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 irregularly spaced cash flows

irregularly spaced cash flows dynamic labels for, 620–621, 923

IRR (internal rate of return), 96 pie charts, 654
NPV (net present value), 88–90 trendlines, 669
IRR.xlsx file, 96 for two-way analysis of variance (ANOVA), 738
MIRR worksheet, 97 labor. See employees
XIRR worksheet, 96 lagged independent variables, 708
IS functions, 141 Lagged.xlsx file, 236
ISBLANK function, 141 LAMBDA functions, 1051–1060
ISERR function, 141 creating custom functions with, 1051–1055
ISERROR function, 141 helper functions, 1056–1060
ISEVEN function, 147 BYCOL, 1057
ISFORMULA function, 141, 172 BYROW, 1056–1057
ISFORMULA_TEXT.xlsx file, 172 ISOMITTED, 1060
ISNA function, 141 MAKEARRAY, 1059–1060
ISNONTEXT function, 141 MAP, 1057–1058
ISNUMBER function, 141, 476 problems for, 1060–1061
ISOMITTED helper function, 1060 REDUCE, 1058
ISTEXT function, 141, 482 SCAN, 1059
items, PivotTable problems for, 1060–1061
calculated, 519–522 recursive, 1055–1056
grouping, 518–519 Lambdahelper.xlsx file, 1056–1060
IVolatility.com, 796 LARGE function, 47, 386
last day of month
returning date of next Monday, 81
J returning first/last day of month, 81–82
Jancon.xlsx file, 575 last number in column, finding, 232
JDS Uniphase stock, 965 Last Point option (Sparkline Tools Design), 661
Jelen, Bill, 1031 last year’s revenues, named ranges for, 21–22
Jordan.xlsx file, 394 Last year.xlsx file, 21
LastSunday.xlsx file, 80

K lastyear function, 22
Latitude.xlsx file, 482
Keep Solver Solution option, 819
law of complements, 754
keystroke combinations
law of total probability, 757
Copy command, 2
Lawdata.xlsx file, 951
New Sheet, 166
layouts, PivotTable, 489–490
Paste command, 2
leap years, 74
static dates, 79
learning curve, 683, 684–685
worksheet navigation, 168
least-squares line, 669–670
Kingslineups.docx, 320
LEFT function, 53, 56, 57–58, 59
kurtosis, 381, 920
left-hand lookup, 227–228
Lefthandlookup.xlsx file, 227
L lemonade store case study
break-even analysis, 198–199
labels, chart, 598–600
profit-maximizing price analysis, 184–188
2D filled maps, 645–646
Lemonadegs.xlsx file, 198
category labels, 597–598
Lemonade.xlsx file, 184
creating, 620–621, 923
LEN function, 53, 56, 59, 482
data labels, 598–600

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 lookup functions

length of time worked by employees, calculating, cumulative. See cumulative interest payments
152–153, 312–313 (CUMIPMT)
Lenora.xlsx file, 56 number of periods, determining, 108–109
less-than sign (<), 782 periodic payments, computing, 105–107
less-than-or-equal-to sign (<=), 782 principal payment, 106–107
LET function, 1050–1051, 1060 location
LETandLAMBDA.xlsx file, 1050 filtering by, 413–415
Let’s Make a Deal problem, 759 sorting data by, 580
Lewent, Judy, 963 Location option (At Each Change In menu), 578
lifetime of machine, modeling Locations data type, 347–348
problems for, 906 Locked option, 962
Weibull random variable, 901–904 locking
WEIBULL.DIST function, 901–904 formulas, 961–963
Lillydata.xlsx file, 459 rows, 4–5
line, waiting in. See queueing theory Logarithmic command (Format Trendline menu), 666
line charts, 603–606 Logarithmic Polynomial (Format Trendline menu), 666
line graphs, creating from tables, 287–289 LOGEST function, 715–718
Line option (Sparkline Tools Design), 661 logistic curve. See S-curves
Linear command (Format Trendline menu), 666 lognormal random variables, 795–798, 956
linear demand curve, 994 definition of, 795
linear models, 818 LOGNORM.DIST function, 797–798
linear pricing, 1011 LOGNORM.INV function, 798
linear relationships, 643–652 mean, 795
accuracy of predictions, 671 modeling future prices of stock as, 796–797
dependent variables, 665–666 problems for, 798
Format Trendline options, 666–667 standard deviation, 795
independent variables, 665–666 stock prices following, 796
intercept of, 672 Lognormal.xlsx file, 797
between monthly production and monthly operating LOGNORM.DIST function, 797–798
costs, 667–670 LOGNORM.INV function, 798
monthly variation in plant-operating costs, 670–671 lookup functions, 25–37
problems for, 672–673 computing day/date with, 83
scatter charts of data points, 666–667 computing tax rates with, 27–29
slope of, 672 definition of, 25
trend curve, 665 HLOOKUP
LINEST function, 702–703 looking up prices from product ID codes with,
Lineupdata.xlsx file, 69 29–30
Lineupsch27temp.docx, 315–320 syntax of, 26
Lineupsch27.txt file, 316 wildcard characters with, 31
lipstick-pricing model, 1005–1010 looking up prices from product ID codes with, 29–30
loans mismatches between text and numbers in, 34
computing, 105–107 problems for, 35–37
dependence on credit score, 115 VLOOKUP
future payments, returning value of, 101–103 computing tax rates with, 27–29
interest rate, 108 syntax of, 25–26
calculating with RATE, 108 wildcard characters with, 31
compound, 111–112 wildcard characters with, 31
computing with IPMT function, 106–107 XLOOKUP
examples of, 31–34

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 lookup functions

syntax of, 26–27 weekly changes in sales, 1041–1044

two-way lookups, 48–49 running, 1035–1037
wildcard characters with, 31 Major League Baseball, 923
lookup range argument (MATCH function), 43 lookup functions with, 31–34
lookup value argument (MATCH function), 43 salary information, 46–47
lookup_array argument (XLOOKUP function), 26 Make Unconstrained Variables Non-Negative option, 817,
lookup_value argument 821, 827, 833, 849, 855
VLOOKUP function, 25 MAKEARRAY helper function, 1059–1060
XLOOKUP function, 26 Makeup worksheet, 401
Lookupmultiplecolumns.xlsx file, 36 Makeup2007.xlsx file, 218, 222, 223
lookups, left-hand, 227–228 Makeuparray.xlsx file, 448
Lookuptwocolumns.xlsx file, 69 Makeupdb.xlsx file, 435, 438, 459, 537
Lookup.xlsx file, 27, 29 Makeupfiltertemp.xlsx file, 412, 428
loops, circular references, 117–121 Makeupsortfont.xlsx file, 409
example of, 117–118 Makeupsorttemp.xlsx file
pattern of, 117 Across worksheet, 407
problems for, 120–121 Case worksheet, 408
resolving, 118–120 Dates worksheet, 403
lost-sales approach to reorder points, 980–981 Makeup worksheet, 401
Low Point option (Sparkline Tools Design), 661 Makeupsubtotals.xlsx file, 577, 583
LOWER function, 54 Makeuptimeline.xlsx file, 525
lowercase, sorting on, 408–409 Manage Relationships dialog box, 543–544, 546–547
Luenberger, David G.953, 958, 963 Manage Rules, 253
managing relationships, 546–547
manufacturing, predicted monthly operating costs,
M 697–701
machine life, modeling Map Area menu, 645
problems for, 906 MAP helper function, 1057–1058
Weibull random variable, 901–904 Map Labels button, 645, 654, 656
WEIBULL.DIST function, 901–904 Map Projection menu, 645
Machinedates.xlsx file, 83 map tours, 649–650
machinery, depreciation of, 109–110 MAPE (mean absolute percentage error), 863
Macro dialog box, 1035 Mapping Confidence report, 655
macros maps
assigning to buttons, 1036 2D filled
editing, 1033 creating, 643–647
GET.WORKBOOK, 245 labeling, 645–646
Namedaterelative, 1040 3D
placing on Quick Access Toolbar, 1037 animating data in, 651–653
recording, 1031–1048 creating, 647–649
macros to format a selected range of cells, customizing, 650–651
1031–1048 map tours, 649–650
minutes played by lineup, 1045–1046 navigating, 649
overview of, 1031–1048 New York City’s Fourth Avenue subway line
problems for, 1047–1048 example, 655–656
Record Macro dialog box, 1032–1033 pie charts with labels in, 654
relative references, 1037–1040 summarizing data with 2D chart, 654
step-by-step process for, 1032–1033 heat maps, 643
Top 10 Filter (Customer), 1047 problems for, 657

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 Merton, Robert

Maps button, 644 Evaluate Formula feature, 229–231

Marker Color option (Sparkline Tools Design), 661 last number in column, finding, 232
Markers option (Sparkline Tools Design), 661 left-hand lookup with, 227–228
Marketbasketdata.xlsx file, 249 movie example, 229–231
Marketing Analytics (Winston), 678, 747, 993 problems for, 236–237
master workbooks, consolidating data into, 571–575 revenue tracking with, 228
MATCH function, 43–50 simple example of, 226–227
investment payback period, returning, 47–48 syntax of, 226
MLB player salaries, returning, 46–47 order of operations in, 6–7
nonlinear pricing plan, 1014, 1015 with Paste Special command, 160–162
problems for, 49–50 SUMIF, 218
product sales per month, returning, 43–45 examples of, 218–221
syntax of, 43–45 syntax of, 218
two-way lookups, 46 Matradingrule.xlsx files, 127, 128, 236
wildcard characters with, 44 matrices, correlations, 693
match type argument (MATCH function), 44 matrix multiplication, 459
match_mode argument (XLOOKUP function), 27 Mavsscores.xlsx file, 615
Matchex.xlsx file, 44 Mavs.xlsx file, 163
Matching Names worksheet, 446 MAX function, 445, 574
Matchlist.xlsx file, 146 MAXIFS function
Matchthemax.xlsx file, 49 example of, 221–222
Matchthesecond.xlsx file, 215 syntax of, 218
Matchtype1.xlsx, 49 Maxifsminifs.xlsx file, 221
materials, bill of. See BOM (bill of materials) reports Maximum Change setting (Goal Seek), 199
mathematical functions, 147 Maximum Time Without Improvement option (Solver),
AVERAGEIFS 889
examples of, 220–221 maximum values
syntax of, 218 conditional, 218, 221–222
COUNT, 574 validating, 473–475
examples of, 214 Mcdonalds.xlsx file, 537
syntax of, 210 mean, 382–384, 764–765, 910–911
COUNTA 95 percent confidence interval for, 914
examples of, 214 definition of, 379
overview of, 210 geometric, 388–389
COUNTBLANK lognormal random variables, 795
examples of, 214 MAPE (mean absolute percentage error), 863
overview of, 210 normal random variables, 786
COUNTIF, 482, 891, 909, 928, 941, 943 regression toward, 694–695
examples of, 211–213 of service times, 988
syntax of, 209–210 trimmed, 387–388
COUNTIFS Meanvariance.xlsx file, 764
examples of, 213 Medians.xlsx file, 452
syntax of, 210 Mercator, Gerardus, 645
MAXIFS Mercator option (Map Projection menu), 645
example of, 221–222 Merck, 963, 966
syntax of, 218 Merge button (Scenario Manager dialog box), 207
OFFSET, 225–237 Merge Columns dialog box, 325
computing development costs with, 228–229 Merton, Robert, 953. See also Black-Scholes
option-pricing formula
dynamic ranges, 232–235

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 messages

messages overview of, 853–854

“Set values do not converge”, 820–821 problems for, 856–857
“Solver could not find a feasible solution”, 820–821 reorder points, determining, 983–985
microchip data, PivotTables for, 512–515 retirement savings, determining, 848–850
Microsoft Excel 2019 VBA and Macros (Jelen and Syrstad), running, 809–810, 872
1031 scheduling workforce with, 825–829
Microsoft Excel Solver, 1007 solution engines, 810–811
capital budgeting, 837–844 terminology for, 811
additional constraints in, 840–841 tie-ins, pricing products with, 999–1003
binary and integer programming problems for, transportation or distribution problems for, 831–836
841–842
definition of, 831
problems for, 842–844
demand constraint, 832–833
software project selection problem, 837–840
demand points, 831
determining optimal product mix with, 813–823
drug-distribution example, 831–834
feasible solutions, 813–820
problems for, 834–836
infeasible solutions, 820
specifications for, 831
problems for, 822–823
supply constraints, 832
“Set values do not converge” message, 821–822
supply points, 831
“Solver could not find a feasible solution”
Winters method
message, 820–821
equations for, 860–861
Evolutionary Solver, 889–894
Forecast Sheet tool, 863–866
assigning employees to workgroups with,
890–892 initialization of, 861
highlighting employee ratings with, 892–893 level of series, 860–861
options for, 889–890 overview of, 859
problems for, 893–894 problems for, 867
tips for success, 889–894 seasonal index for current month, 860–861
financial planning with, 845–851 smoothing constants, estimation of, 862–863
overview of, 845 time series characteristics, 859–860
PMT function, verifying accuracy of, 845–848 trend of series, 860–861
problems for, 848–850 Microsoft stock, modeling future price of, 796–797
forecasting in presence of special events, 869–876 Microsoft Word documents, importing data from, 315–320
factors influencing customer traffic, 869–872 problems for, 320
forecast accuracy, 872–876 Text Import Wizard, 315–320
overview of, 869 MID function, 53, 57, 59
problems for, 876 Miller option (Map Projection menu), 645
random errors in, 876 MIN function, 445, 912
how it works, 811 minimum values
installing/activating, 809, 815, 839, 862, 889, 902, 933, conditional, 218, 221–222
983, 1000, 1007–1008 validating, 473–475
Integer Optimality settings, 842 minus (-) sign, in Scenario Manager dialog box, 207
optimization with, 807–811 MINUTE function, 152
optimization models, 808–809 minutes
sample optimization problems for, 807–808 extracting from times, 152
problems for, 811, 827 played by lineup, macro for, 1045–1046
profit-maximizing nonlinear pricing plan, finding, MINVERSE function, 459
1014–1018 MIRR function, 97–98
rating sports teams with, 853–857 MIRR.xlsx file, 97–98
NFL point spreads, setting, 854–856 missing data, in charts, 595–596
nonlinear nature of, 856 MLB player salaries, returning, 46–47

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 Movies data type

MOD function, 78–80 craps, 937–939

mode five-card draw poker, 939–942
definition of, 380 NCAA men’s basketball Final Four, 942–944
MODE.SNGL function, 380 problems for, 945
Modefunctions.xlsx file, 380 greeting-card case study, 911–914
Model worksheet, 684, 989 history of, 907
modeling normal random variables, 910–911
exponential growth, 675–680 problems for, 916–917
CAGR (compound annual growth rate), 675–678 RAND function, 908–909
equation for, 675 RANDARRAY function, 914–915
example of, 676–678 random sample generation, 916
Exponential command, 675–678 sensitivity analysis and, 207
GROWTH function, 679–680 month, sales by
overview of, 675 last day of, returning, 81–82
predictions based on, 679–680 returning date of next Monday, 81
problems for, 680 summarizing with PivotTables, 528–529
S-curve, 678 MONTH function, 78
trend curve parameters for, 678–679 month of year
inventory. See inventory modeling extracting from dates, 78
machine life recovering, 78
problems for, 906 monthly product sales, 45–46
Weibull random variable, 901–904 monthly production
WEIBULL.DIST function, 901–904 accuracy of predictions, 671
nonlinearities and interactions, 719–726 intercept of, 672
definitions of, 719–720 monthly operating costs, predicting, 697–701
problems for, 720–723 monthly payments, worksheet model for, 199
testing for presence of, 720–723 monthly variation in plant-operating costs, 670–671
optimization models, 808–809 relationship with monthly operating costs, 667–670
changing cells, 808–809, 815, 826, 831, 838 R-squared value, 671
problem constraints, 809, 815, 826, 831, 838 slope of, 672
target cells, 808, 815, 826, 831, 838 monthly stock returns
stock prices with lognormal random variables, 795–798 color coding of, 266–269
definition of, 795 correlations between, 691–694
LOGNORM.DIST function, 797–798 Monthlysales.xlsx file, 615
LOGNORM.INV function, 798 months, sorting in chronological order, 403–404
modeling future prices of stock as, 796–797 Monthtomonth.xlsx file, 526, 528
problems for, 798 Moore’s Law, 680
stock prices following, 796 Moore.xlsx file, 680
MODE.MULT function, 380 More Data Table Options button, 600
modified internal rate of return (MIRR), 97–98 mortgage payment analysis
Modify Button dialog box, 1037 with Goal Seek command, 199
modifying sparklines, 661–662 sensitivity analysis of, 188–189
Monday.xlsx file, 81 mosaic charts, 635–638
Monte Carlo simulation, 907–917 most-likely scenarios, for automobile sale, 203–208
95 percent confidence interval for mean profit, 914 Mostrecent.xlsx file, 232
corporate use of, 907–908 Moviedata.xlsx file, 69
as decision-making tool, 911–914 Movienumbers.xlsx file, 69
discrete random variables, 909–910 movies, in Excel formulas, 353–354
gambling and sporting-event probabilities, 937–946 Movies data type, 353–354

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 Movies.xlsx file

Movies.xlsx file, 229–231 Name columns, sorting data by, 580

Moving Average command (Format Trendline menu), Name command (At Each Change In menu), 580
666, 746 Name Manager, 16–17, 19
moving averages, 745–747 named ranges
four-period moving average, 745–746 applying to existing formulas, 19, 20
moving-average graphs, 745–746 AutoComplete capabilities for, 18
moving-average trading rule, 127–130 AVERAGE function, 18
ratio-to-moving-average forecasting method for, case insensitivity of, 12
749–752
creating, 11–16
Mrcostest.xlsx file, 697–698
with Create from Selection option, 13–15
Multiple Consolidation Ranges option, 575
with Define Name option, 15–16
multiple IRRs (internal rates of return), 94–95
with Name box, 12–13
multiple regression analysis
deleting, 16–17
with GROWTH function, 715–718
editing, 16–17
with LOGEST function, 715–718
for entire column, 18
nonlinearities and interactions, 719–726
errors in, 22
definition of, 719–720
examples of, 17–18
problems for, 720–723
for last year’s revenues, 21–22
testing for presence of, 720–723
Name Manager, 16–17, 19
problems for, 718
naming conventions for, 13, 23
qualitative factors, 705–714
noncontiguous, 13
quantitative independent variables in, 705
numbers in, 23
with TREND function, 714–715
pasting list of, 21
multiple worksheets, auditing options for, 178–179
problems for, 23
multiple-peak histograms, 372–373
referencing within formulas, 243–244
multiple-worksheet workbooks
symbols in, 23
hyperlinks in, 167–169
for total salary per day, 22
navigating between, 167–169
for total sales, 17–18
number of worksheets in, 166
underscore (_) in, 23
problems for, 169
workbook scope for, 18–19
setting up, 165–167
workbook/worksheet scope for, 18–19
Multipleworksheetstemp.xlsx file, 169
worksheet scope for, 18–19
multiplication, with Paste Special command, 162
Namedaterelative() macro, 1040
Multiply option (Paste Special), 162
names
Multistart engine, 903
extracting, 62–64
Multistart option, GRG Nonlinear engine, 810
filtering by, 420
music, in Excel formulas, 353–354
Names.xlsx file, 278
Music data type, 353
naming conventions, for named ranges, 23
Mutation Rate options (Solver), 889, 897
Nancybonds.xlsx file, 145
Mutation Rate setting, 1017–1018
navigating
mutual funds, importing past data on, 804
3D maps, 649
mutually exclusive events, 754–755
between worksheets, 167–169
My Table Has Headers check box, 284
Navigator dialog box, 324
Myexample.xlsx file, 562
Navy, BOM (bill of materials) reports for, 1019
NBA player statistics
N Copyingtableformulas.xlsx, 297
data-validation example, 473–476
#N/A error, 26, 28, 134–136, 174, 381
filling and loading into separate rows, 329–331
Name box, defining range names with, 12–13
Nba01_02.xlsx file, 857

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 NPV (net present value)

Nba02_03.xlsx file, 857 Noncontigtemp.xlsx file, 13

Nbadvl.xlsx file, 474 noncontiguous named ranges, 13
NBAfinal.xlsx file, 329–331 nonlinear pricing, 1011–1018
Nbamiles.xlsx file, 899 definition of, 1011
NBAplayers.xlsx file, 37 price bundling, 1012–1014
Nbasalaries.xlsx file, 279 profit-maximizing, 1014–1018
NBAtemp.xlsx file, 329–331 quantity discounts, 1011
NBA.xlsx file, 215, 222 two-part tariff, 1012
NCAA men’s basketball Final Four, probability of team Nonlinear Pricing Examples worksheet, 1011–1012
win in, 942–944 nonlinearities, 719–726
negative binomial random variables, 774–776 definition of, 719–720
negative Data Bars, 261 problems for, 720–723
Negative Points option (Sparkline Tools Design), 661 testing for presence of, 720–723
negatively skewed histograms, 372 Nonlinearity worksheet, 719
NEGBINOM.DIST function, 774–775 nonsmooth functions, 810–811
Negbinom.dist.xlsx file, 774–775 normal random variables, 781–790, 920
nested drop-down menus, validating, 478–480 CLT (central limit theorem), 786–787, 796
nesting computing probabilities for, 784–785
IF function, 137 finding percentiles for, 785–786
subtotals, 580–581 mean, 786
net present value. See NPV (net present value) Monte Carlo simulation of, 910–911
NETWORKDAYS function, 78 NORM.DIST function, 784–785
NETWORKDAYS.INTL function, 78 NORM.INV function, 785–786, 787
New Comment button, 944 PDF (probability density function), 782–784
New Formatting Rule dialog box, 264–266, 270–272, 296, problems for, 789–790
384, 503, 873, 892–893
properties of, 781–784
New Name dialog box, 15, 234–235, 245, 1052, 1053
standard deviation, 786
New Rule command (Conditional Formatting menu),
variance, 786
253, 873
Z-scores, 787–788
New Scene button, 650
Normalexamples.xlsx file, 783, 786
New Sheet icon, 166
NORM.DIST function, 784–785, 793
New Worksheet Ply option, 721
NORM.INV function, 785–786, 787, 910–911, 942, 943
New York City’s Fourth Avenue subway line, 3D map of,
655–656 NORM.S.DIST function, 957
Next option (Error Checking dialog box), 174 North sales, extracting from total US sales, 58–60
NFL point spreads, setting, 854–856 not equal to operator (<>), 212
NFL team wins/losses, sparklines for, 662–663 NOW function, 151
Nfl01.xlsx file, 856 NPER function, 108–109
NFL2012data.xlsx file, 857 NPV (net present value), 85–91, 201, 837, 966, 1063–1064
NFLinfo.xlsx, 725 computing with NPV function, 87–90
Nflpoints.xlsx file, 376 for cash flows received at beginning of year, 88
Nflwinslosses.xlsx file, 662 for cash flows received at middle of year, 88
Nikedata.xlsx files, 299 how to use, 87
Nlp.xlsx file problems for, 90–91
Nonlinear Pricing Examples worksheet, 1011–1012 syntax of, 87
OnePrice worksheet, 1013 computing with XNPV function, 88–90
Two-Part Tariff worksheet, 1014 cost of capital, 87
No Feasible Solution worksheet, 820–821 customer value, determining, 967–972
nonblank cells in ranges, counting, 214 cell phone customer case study, 969–971
credit-card customer case study, 967–969

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 NPV (net present value)

NPV function, 968–969 dynamic ranges, 232–234

problems for, 969–971 Evaluate Formula feature, 229–231
definition of, 86–87 left-hand lookup with, 227–228
sensitivity analysis related to, 203–208 movie example, 229–231
tracing dependents for, 175–177 problems for, 236–237
NPV function, 87–90, 968–969 revenue tracking with, 228
for cash flows received at beginning of year, 88 simple example of, 226–227
for cash flows received at middle of year, 88 syntax of, 226
how to use, 87 Offsetcost.xlsx file, 228–229
problems for, 90–91 Offsetexample.xlsx file, 226–227
syntax of, 87 Oldfaithful.xlsx file, 673
NPVauditscenario.xlsx file, 203 on-base percentage (OPS), 724
NPVspinnerstemp.xlsx file, 303 One Book worksheet, 588
null hypothesis, 727 OnePrice worksheet, 1013
#NUM! error, 90, 95, 98 one-way analysis of variance (ANOVA), 727–732
Number Filters, Excel AutoFilter feature, 416–417, 421–422 alternative hypothesis, 727
Number Format dialog box, 492 book sales case study, 728–731
number of periods (NPER) function, 108–109 definition of, 727
Number section, Format Trendline pane, 669 forecasting with, 731
Numberdv.xlsx file, 476 null hypothesis, 727
numbers problems for, 731–732
arrays of numbers, returning entries in one-way data tables
computing tax rates with, 27–29 creating, 185–186
definition of, 25 definition of, 184
looking up prices from product ID codes with, Onewayanovatemp.xlsx file, 728, 730
29–30 Only Regions with Data option (Map Projection menu),
mismatches between text and numbers in, 34 645
problems for, 35–37 Open 3D Maps command, 648, 656
syntax of, 25–27 Open dialog box, 317
wildcard characters with, 31 Open-High-Low-Close chart option, 640
matching with MATCH function, 43–50 opening new workbooks, 166
investment payback period, 47–48 operating costs
MLB player salaries, returning, 46–47 monthly variation in, 670–671
problems for, 49–50 predicting, 697–701
product sales per month, 45–46 relationship with production, 667–670
syntax of, 43–45 operations, order of, 6–7
two-way lookups, 46 Operations area, Paste Special dialog box, 160–162
wildcard characters with, 44 Operations Research (Winston), 975, 992
in named ranges, 23 operators
ranking in data sets, 387 <= (less-than-or-equal-to), 782
Numbers.xlsx file, 215, 223 <> (not equal to), 212
numeric values, validating, 476–477 = (equal to), 211
Nursejackiedata.xlsx file, 894 >= (greater than or equal to), 212
nutritional characteristics, in Excel formulas, 352 OPS (on-base percentage), 724
optimal bids, calculating, 919–923
bidding simulation model, 920–922
O binomial random variables, 919–920
OFFSET function, 225–237 normal random variables, 920
computing development costs with, 228–229 problems for, 922

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 Pastespecial.xlsx file

optimal product mix, determining with Solver, 813–823 worksheet protection, 961–963
feasible solutions, 813–820 Optionbuttons.xlsx file, 311
infeasible solutions, 820 Options command (File menu), 64, 809
problems for, 822–823 Options dialog box, 179
“Set values do not converge” message, 821–822 Or Select a Place in This Document option (Insert
“Solver could not find a feasible solution” message, Hyperlink dialog box), 167
820–821 order of operations, 6–7
optimal solutions, 811, 819–820 Original Model worksheet, 303
optimization, 808–809 outliers, 383–384, 671
changing cells Outline group, Subtotal command, 577–581
bank workforce scheduling problem, 826 Output Range option, 735, 739
optimization problems for, 808–809 overbooked flight case study, 772
product-mix problem, 815
software project selection problem, 838
transportation problem, 831 P
with Evolutionary Solver, 889–894 p values, 700, 730
assigning employees to workgroups with, P23_2.xlsx file, 248
890–892 P23_3.xlsx fie, 249
highlighting employee ratings with, 892–893 Page Setup dialog box, 944
options for, 889–890 parent/child relationships, 633
problems for, 893–894 Pareto, Vilfredo, 374
tips for success, 889–894 Pareto charts
with Microsoft Excel Solver, 807–811 creating, 374–375
optimization models, 808–809 design options for, 375
sample optimization problems for, 807–808 Paretotemp.xlsx file, 374
problem constraints, 809 Pascal, Blaise, 776
bank workforce scheduling problem, 826 Paste Link button, 160
product-mix problem, 815 Paste List button, 21
software project selection problem, 838 Paste Name dialog box, 12
transportation problem, 831 Paste Special command, 157–163, 187
target cells operations in, 160–162
bank workforce scheduling problem, 826 overview of, 157
optimization problems for, 808 Paste Link button, 160
product-mix problem, 815 problems for, 163
software project selection problem, 838 transposing rows/columns with, 159–160
transportation problem, 831 values of cells, pasting to different part of worksheet,
Option Button form control, 307 157–159
option pricing, 953–966 Paste Special dialog box
abandonment options, 964–965 Paste Link button, 160
American cash flows, 955 Transpose option, 159–160, 693
Black-Scholes formula, 798, 957–958, 959–961 Values option, 158
call/put options, 953, 955–956, 958–959 Paste Special Divide Before worksheet, 160–161
in decision-making process, 963–964 Paste Special Transpose worksheet, 159
European cash flows, 954–955 Paste Special Value worksheet, 157
European options, 953 Paste Special Values command (File menu), 910
historical volatility, 956–957 Pastespecial.xlsx file, 157
parameters for, 955 Paste Special Divide Before worksheet, 160–161
real options, 963–964 Paste Special Transpose worksheet, 159
volatility of stock, estimating, 956–957 Paste Special Value worksheet, 157

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 pattern-recognition technology, Flash Fill

pattern-recognition technology, Flash Fill, 62–64 conditional formatting in, 502–504

patterns, finding with Analyze Data, 1019–1029 creating, 542–543
BOM (bill of materials) reports, 1019 based on existing PivotTable, 531–532
daycare late pickups, 1027–1028 from data in different locations, 529–531
heights of fathers/sons, 1025–1027 with Data Model, 544–546
hospital data, 1024–1025 multiple, 532–533
overview of, 1019 with PowerPivot, 557–559
problems for, 1028–1029 daycare late pickups, 1027
stock market prices, 1022–1024 default settings for, 533
payback period, returning, 47–48 design options for, 491
Payback.xlsx file, 47 drilling down, 522
Paymentgs.xlsx file, 199 dynamic array functions compared to, 535–536
payments, future, 101–105 editing, 509
payroll, weekly, worksheet model for, 1–2 fields
PDF (probability density function), 765–766, 782–784, calculated, 515–517
903, 920 collapsing/expanding, 492–493
PEMDAS order of operations, 6–7 filtering, 495–498
People data type, 356 format of, 491–492
Pepsi/Coke preference example, 771 PivotTable Fields pane, 487–488
PERCENTILE function, 385–386 sorting, 493–494
percentile rankings, 385–386 GETPIVOTDATA function, 523–525
PERCENTILE.EXC function, 385–386 grouping items in, 518–519
PERCENTILE.INC function, 385–386 hiding subtotals in, 501–502
percentiles, for normal random variables, 785–786 inserting, 1021–1022
PERCENTRANK function, 385–386 layouts, 489–490
PERCENTRANK.EXC function, 385–386 modifying empty cells in, 501–502
PERCENTRANK.INC function, 385–386 origins of name, 491
period (.), in named ranges, 23 overview of, 483–485
periodic payments, computing, 105–107 PivotCharts, 498–499
perpetuity, 112 PivotTable and PivotChart Wizard, 529–531
Personal Macro Workbook, 1033 problems for, 536–540
Pfizer, Monte Carlo simulation used by, 907 Reports Filter, 499–500, 532–533
pharmaceuticals, probability statements from forecasts, slicers, 500–501
792–793
station wagon ownership by family size and salary,
phone numbers, formats for, 65–69 509–512
Phoneloyalty.xlsx file, 969 summarizing Bitcoin prices and returns with, 533–535
pie charts, 600–603, 654 summarizing grocery sales with, 485–489
Pinevalley.xlsx file, 36 summarizing sales by month with, 528–529
pipe character (|), 61 summarizing total sales to date with, 526–527
Pivot Column dialog box, 328–329 Timeline feature, 525–526
PivotCharts, 498–499, 529–531 updating calculations in, 504
PivotTable and PivotChart Wizard, 529–531 Pivotwithslicers.xlsx file, 559
PivotTable Fields pane, 487–488, 544–546, 630 Place In This Document option (Insert Hyperlink dialog
PivotTables box), 167
age/gender travel expenditure example, 505–509 plants, in Excel formulas, 353–354
blank rows in, 501–502 Plants data type, 354
calculated items in, 519–522 Play Tour button, 649
chip microchip from different countries/regions, player statistics, filling and loading into separate rows,
512–515 329–331

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 prices and pricing

“Please excuse my dear Aunt Sally” (PEMDAS), 6–7 hardware store data
plus sign (+), 58, 303 combining into single file, 334–336
PMT function, 101–107, 188–189, 199 importing and formatting, 331–334
mortgage payments, determining, 845 NBA player statistics, filling and loading into separate
retirement savings, determining, 845 rows, 329–331
verifying accuracy of, 845 overview of, 321–322
point spreads, setting with Solver, 853–857 queries, editing, 334
example of, 854–856 tables, appending, 338–340
nonlinear nature of, 856 Unpivot Columns command, 327
overview of, 853–854 US city population data, importing into Excel,
323–327
problems for, 856–857
PowerPivot, 551–570
points, 937–946
CALCULATE function, 567–570
deleting from charts, 610–611
calculated measures, 567–570
problem of, 776
creating PivotTables with, 557–559
Poisson random variable, 777–778
DAX (Data Analysis Expressions), 560–562
computing probabilities for, 778
importing data into, 552–557
definition of, 777
installing/activating, 552
POISSON.DIST function, 778
problems for, 570
problems for, 777
RELATED function, 562–567
POISSON.DIST function, 778
slicers with, 559–560
Poisson.xlsx file, 778
Powerpivotexample1.xlsx file, 561
poker, five-card draw, probability of three of a kind in,
939–942 PPMT (principal payment) function, 106–107
Poker.xlsx file, 939 PQappendtemp.xlsx file, 338
policy, reorder-point Pqappend.xlsx file, 339
lost-sales approach, 980–981 PQdatatypestemp.xlsx file, 359
overview of, 979–980 PQPROBLEM5DATA.XLSX file, 340
problems for, 985 PQPROBLEM6DATA.XLSX file, 341
service-level approach, 982–985 PQPROBLEM7DATA.XLSX file, 341
Polynomial option (Format Trendline pane), 1006 PQPROBLM4DATA.XLSX file, 340
population data, importing into Excel, 323–327 pre- and post-merger performance, separating in charts,
628–629
portfolio insurance, 126
precedents
positively skewed histograms, 371–372
analyzing with Inquire add-in, 182
posterior probability, 758
definition of, 174
Power command (Format Trendline menu), 666, 684
tracing, 174–175
power curve, 681–688, 994–997
predictions
equation for, 681
accuracy of, 671, 872–876
learning curve and, 684–685
auto sales, 705–710
problems for, 687–688
based on exponential growth, 679–680
properties of, 683
of presidential elections, 710–714
relationships modeled by, 681–683
straight-line relationship, 672
SSE (sum of squared errors), 685
presidential elections, predictions for, 710–714
trend curve parameters for, 686–687
Previous option (Error Checking dialog box), 174
Power Query Editor, 322, 340–341
price bundling, 1012–1014
daily suggested prices, importing and transforming,
336–337 Priceads.xlsx file, 724
Excel tables prices and pricing
creating from flat files, 328–329 Bitcoin prices, importing, 802
flattening, 327–328 demand curve, 993–998

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 prices and pricing

customer’s willingness to pay and, 997 Bayes’ theorem, 758–759

definition of, 993 binomial, 770–773
elasticity of demand, 994 Coke/Pepsi preference example, 771
estimating, 993–998 defective elevator rails example, 771–772
linear, 994 overbooked flight example, 772
problems for, 998 Village Deli example, 773
subjectively determined demand, 1005–1010 conditional, 756–757
tie-ins, pricing products with, 999–1003 contingency tables for, 757
worksheet model for, 7–8 cumulative, 770
effect on profits, 7–8 events
extracting dollar and cents amounts from, 62–64 definition of, 754
extracting from text strings, 56–58 independent, 755–756
linear, 1011 mutually exclusive, 754–755
looking up from product ID codes, 29–30 experiments, 753
nonlinear, 1011–1018 law of complements, 754
definition of, 1011 law of total probability, 757
profit-maximizing, 1014–1018 making probability statements from forecasts,
quantity discounts, 1011 791–794
two-part tariff, 1012 Monte Carlo simulation, 907–917
option buttons for, 311–312 95 percent confidence interval for mean profit,
914
option pricing, 953–966
corporate use of, 907–908
abandonment options, 964–965
as decision-making tool, 911–914
American cash flows, 955
discrete random variables, 909–910
American options, 953
greeting-card case study, 911–914
Black-Scholes formula, 798, 957–958, 959–961
history of, 907
call/put options, 953, 955–956, 958–959
normal random variables, 910–911
in decision-making process, 963–964
problems for, 916–917
European cash flows, 954–955
RAND function, 908–909
European options, 953
RANDARRAY function, 914–915
exercise date/expiration date, 953
random sample generation, 916
historical volatility, 956–957
for normal random variables, 784–785
parameters for, 955
PDF (probability density function), 765–766, 903, 920
problems for, 965–966
for Poisson random variable, 778
real options, 963–964
a posteriori, 758
volatility of stock, estimating, 956–957
probability mass function, 770
worksheet protection, 961–963
problems for, 759–762
price bundling, 1012–1014
sample space, 753
profit-maximizing price analysis, 184–188, 993–994
Weibull random variable, 906
stock prices
probability density function (PDF), 765–766, 782–784,
lognormal random variables, 795–798
903, 920
simulation, 926–929
probability mass function, 770
tie-ins, pricing products with, 999–1003
problem constraints, in optimization models, 809
principal
bank workforce scheduling problem, 826
cumulative, 107
product-mix problem, 815
PPMT function, 106–107
software project selection problem, 838
pro forma financial statements, 130–134
transportation problem, 831
probability, 753–762. See also forecasting
problem of points, 776
additive rule for computing, 755
Problem5_9.xlsx file, 50
axioms for, 754

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 problems

Problem6data.xlsx file, 894 counting cells in ranges, 214–215

Problem7data.xlsx file, 376, 680 customer value, determining, 969–971
Problem8data.xlsx file, 376 data importing from text files, 320
Problem9data.xlsx file, 376, 844 Data Model, 550
Problem10data.xlsx file, 790 data types, 362
Problem11data.xlsx file, 299 data validation, 481–482
Problem12data.xlsx file, 299 database statistical functions, 438–439
Problem13data.xlsx file, 299, 673, 725 dates, 82–83
Problem15data.xslx file, 726 demand curve, 998
Problem16data.xlsx file, 69, 726 descriptive statistics, 393–395
Problem17datat.xlsx file, 394 dynamic array functions, 471
Problem17data.xlsx file, 69 EOQ (economic order quantity) model, 977–978
Problem18data.xlsx file, 395 Evolutionary Solver, 893–894
Problem19data.xlsx file, 223 Excel AutoFilter feature, 428
Problem20data.xlsx file, 223, 539 exponential growth modeling, 680
Problem21data.xlsx file, 223, 539 financial functions, 112–115
Problem22data.xlsx file, 69, 223, 539 forecasting in presence of special events, 876
Problem23_24data.xlsx file, 223 form controls, 313–314
Problem23data.xlsx file, 69, 539 gambling and sporting-event probabilities, 945
Problem24data.xlsx file, 69, 539 Goal Seek command, 201–202
Problem25data.xlsx file, 69, 540 histograms, 376
Problem26data.xlsx file, 69, 540 hypergeometric random variables, 775–776
Problem27data.xlsx file, 69, 280, 540 IF function, 143–147
Problem28data.xlsx file, 146, 281 INDEX function, 41
Problem30data.xlsx file, 281 INDIRECT function, 248–249
Problem32data.xlsx file, 281 LET function, 1060
Problem33data.xlsx file, 281 lognormal random variables, 798
Problem34data.xlsx file, 146 lookup functions, 35–37
Problem35data.xlsx file, 147, 281 machine life, modeling, 906
Problem36data.xlsx file, 281, 471 maps, 657
Problem37data.xlsx file, 147 MATCH function, 49–50
Problem38data.xlsx file, 147 Microsoft Excel Solver, 827
Problem39data.xlsx file, 147 Monte Carlo simulation, 916–917
Problem40data.xlsx file, 147 multiple regression analysis, 703, 718
Problem41data.xlsx file, 147 problems for, 703
Problem42.xlsx file, 147 negative binomial random variables, 775–776
Problem43data.xlsx file, 147 normal random variables, 789–790
problems NPV (net present value), 90–91
Analyze Data, 1028–1029 OFFSET function, 236–237
auditing options, 182 one-way analysis of variance (ANOVA), 731–732
beta random variable, 906 optimal bids, calculating, 922
binomial random variables, 775–776 optimal product mix, determining with Solver,
bootstrapping, 934–935 822–823
capital budgeting, 842–844 option pricing, 965–966
charts, 614–615, 641–642 Paste Special command, 163
circular references, 120–121 PivotTables, 536–540
conditional formatting, 278–281 Poisson random variable, 777
consolidating data, 575 power curve, 687–688
correlations and, 695 Power Query Editor, 340–341

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 problems

PowerPivot, 570 Productsalespaste.xlsx file, 163

probability, 759–762 profit-maximizing price analysis, 184–188, 1005–1010
queueing theory, 992 95 percent confidence interval for mean profit, 914
random variables, 767 demand curve, 993–998. See also profit-maximizing
recording macros, 1047–1048 price analysis
retirement savings, determining, 845–848 customer’s willingness to pay and, 997
Scenario Manager, 207–208 definition of, 993
sensitivity analysis, with data tables, 192–195 elasticity of demand, 994
sorting, 409 estimating, 994–997
sparklines, 664 linear, 994
sports team ratings, with Solver, 856–857 power, 994–997
STOCKHISTORY function, 806 problems for, 998
straight-line relationships, estimation of, 672–673 subjectively determined demand, 1005–1010
subjectively determined demand, 1006–1008, tie-ins, pricing products with, 999–1003
1009–1010 worksheet model for, 7–8
subtotals, 583 effect of price on, 7–8
text functions, 67–68 nonlinear pricing plan, 1014–1018
times, 155 price bundling, 1012–1014
transportation or distribution problems for, 834–836 profit-maximizing price analysis, 993–994
two-way analysis of variance (ANOVA), 742–743 tie-ins, pricing products with, 999–1003
Winters method, 867 Proforma.xlsx file, 130
worksheet modeling, 9 project duration, modeling, 904–905
Procter & Gamble, Monte Carlo simulation used by, 907 project selection problem
Prodmix.xlsx file, 820 additional constraints in, 840–841
Feasible Solution worksheet, 813 example of, 837–840
No Feasible Solution worksheet, 820–821 PROPER function, 54
Set Values Do Not Converge worksheet, 821 Protect Sheet dialog box, 962
product descriptions, extracting from text strings, 56–58 Protected worksheet, 977
product IDs Ptableexample.xlsx file, 512
extracting from text strings, 56–58 Ptablepartsdata.xlsx file, 538
looking up prices from, 29–30 Ptcustomerstemp.xlsx file, 1047
product sales Ptcustomers.xlsx file, 495
creating summary of, 244–245 Pujols, Albert, 725
forecasting of, 750–752 put options, 125, 953, 955–956, 958–959
per month, returning, 45–46 Put worksheet, 954
Product worksheet, 458 PV function, 101–105
production PV worksheet, 102
accuracy of predictions, 671
cost, as function of number of units produced, 681–682
intercept of, 672 Q
monthly variation in plant-operating costs, 670–671 Qb2013.xlsx file, 37
relationship with operating costs, 667–670 Qbinfo.xlsx file, 725
R-squared value, 671 Qd.xlsx file, 1017
slope of, 672 qualitative factors, in multiple-regression analysis, 705
time, cumulative units produced and, 683 quarterly US auto sales predictions, 705–710
Productlookup.xlsx file, 45, 299 US presidential elections, 710–714
product-mix problem, 813–820 quality ratings, of employees, highlighting with
Evolutionary Solver, 892–893
Productmix.xlsx file, 182
Productpaste.xlsx file, 163

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 range_lookup argument (VLOOKUP function)

quantitative independent variables, in multiple- continuous, 765

regression analysis, 705 definition of, 763
quantity discounts, 124, 125–126, 1011 discrete, 763–764, 909–910
quarterly corporate revenues, color coding of, 269–272 exponential
quarterly US auto sales predictions, 705–710 computing probabilities for, 779–780
Quarterlygnpdata.xlsx file, 69 problems for, 780
Quarterly.xlsx file, 867 hypergeometric
Quarters worksheet, 140 binomial, 775–776
queries, editing, 334 definition of, 773–774
question mark (?), 31, 213 independent, 766
queueing theory, 987–992 lognormal, 795–798, 956
factors influencing, 987–988 definition of, 795
interarrival time in, 988 LOGNORM.DIST function, 797–798
mean and standard deviation of service times, 988 LOGNORM.INV function, 798
number of servers in, 987 mean, 795
overview of, 987 modeling future prices of stock as, 796–797
problems for, 992 problems for, 798
queueing template, 989–991 standard deviation, 795
sensitivity analysis in, 989–991 stock prices following, 796
steady-state characteristics in, 988 mean, 764–765
variability degrading performance of, 988–989 negative binomial, 774–776
Queuingtemplate.xlsx file, 989–990 normal, 781–790, 920
Quick Access toolbar CLT (central limit theorem), 786–787, 796
placing macros on, 1037 computing probabilities for, 784–785
sorting with, 425–427 finding percentiles for, 785–786
quotation marks (“), 211 mean, 786
Monte Carlo simulation of, 910–911

R NORM.DIST function, 784–785

NORM.INV function, 785–786, 787
radar charts, 607–608
PDF (probability density function), 782–784
RAND function, 908–909, 912, 923, 938, 940, 943
problems for, 789–790
RANDARRAY function, 914–915, 916, 923, 950
properties of, 781–784
Randarray.xlsx file, 916
standard deviation, 786
RANDBETWEEN function, 923, 926–927, 930, 938, 947
variance, 786
Randdemo.xlsx file, 908
Z-scores, 787–788
random errors, in forecasts, 876
PDF (probability density function), 765–766, 782–784
random samples, generating, 916
Poisson, 777–778
random variables, 763–767
computing probabilities for, 778
beta
definition of, 777
determining probabilities with, 904–905
POISSON.DIST function, 778
problems for, 906
problems for, 777
binomial, 919–920
problems for, 767
BINOM.DIST function, 770–772
standard deviation, 764–765
BINOM.DIST.RANGE function, 770–772
uniform, 923
BINOM.INV function, 773
variance, 764–765
computing binomial probabilities with, 770–773
Weibull, 901–904
definition of, 770
randomized blocks design, 734–736
negative, 774–775
Randy.xlsx, 629
problems for, 775–776
range_lookup argument (VLOOKUP function), 25–26

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 ranges

ranges, 381–382 real options, 963–964

counting cells in, 209–215 Reapply option, Excel AutoFilter feature, 425
COUNT function, 210, 214 reciprocal cost allocation, 121
COUNTA function, 210, 214 Record Macro button, 1032–1033, 1034, 1038, 1041, 1044,
COUNTBLANK function, 210, 214 1046, 1047
COUNTIF function, 209–210, 211–213 Record Macro dialog box, 1032–1033, 1034, 1038, 1041,
1044, 1046, 1047
COUNTIFS function, 210, 213
recording macros, 1031–1048
DISTINCT COUNT function, 214, 547–549
to format a selected range of cells, 1031–1048
problems for, 214–215
macros to format a selected range of cells, 1031–1048
descriptive statistics for, 388
minutes played by lineup, 1045–1046
dynamic, 232–234
overview of, 1031–1048
named
problems for, 1047–1048
applying to existing formulas, 19, 20
Record Macro dialog box, 1032–1033
AutoComplete capabilities for, 18
relative references, 1037–1040
AVERAGE function, 18
step-by-step process for, 1032–1033
case insensitivity of, 12
Top 10 Filter (Customer), 1047
creating, 11–16
weekly changes in sales, 1041–1044
deleting, 16–17
recreation, gambling and sporting-event probabilities,
editing, 16–17
937–946
for entire column, 18
craps, 937–939
errors in, 22
five-card draw poker, 939–942
examples of, 17–18
NCAA men’s basketball Final Four, 942–944
for last year’s revenues, 21–22
problems for, 945
Name Manager, 16–17, 19
recursive LAMBDA functions, 1055–1056
naming conventions for, 23
redbold macro, 1034
noncontiguous, 13
Redbold.xlsm file, 1034
numbers in, 23
REDUCE helper function, 1058
pasting list of, 21
references
problems for, 23
relative, 1037–1040
referencing within formulas, 243–244
structured, 294–295
symbols in, 23
regional sales
for total salary per day, 22
consolidating data for, 571–575
for total sales, 17–18
with Consolidate command, 571–575
underscore (_) in, 23
need for, 571
workbook/worksheet scope for, 18–19
problems for for, 575
totaling values in, 242–243
subtotals of, 577–583
RANK function, 387, 619, 625
need for, 577
RANK.AVG function, 387
revenue and units sold by region, 577–580
RANK.EQ function, 298, 387, 940
sales by each salesperson, 580–581
ranking numbers, 387
worksheet model for, 169
rate formula, 846
regression, standard error of, 671
RATE function, 108
regression analysis, multiple, 697–703
ratings, of employees, 892–893
accuracy of forecasts from, 702
Ratioma.xlsx file, 750
with GROWTH function, 715–718
ratio-to-moving-average forecasting method for,
with LOGEST function, 715–718
749–752
nonlinearities and interactions, 719–726
razors, profit-maximizing price analysis of, 999–1003
definition of, 719–720
Razorsandblades.xlsx file, 999
problems for, 720–723
Real Best Fit worksheet, 678

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 revenues

testing for presence of, 720–723 problems for, 672–673

predicted monthly operating costs, 697–701 R-squared value, 671
problems for, 703, 718 scatter charts of data points, 666–667
qualitative factors, 705 slope of, 672
quarterly US auto sales predictions, 705–710 trend curve, 665
US presidential elections, 710–714 between workbooks/worksheets, 181
quantitative independent variables in, 705 relative references, 1037–1040
running with LINEST, 702–703 Remove Arrows feature, 175, 177
with TREND function, 714–715 Remove Duplicates, in Excel AutoFilter, 424
Regression dialog box, 698–699 reorder-point policy
Input X Range, 712, 721 lost-sales approach, 980–981
Input Y Range, 712, 721 overview of, 979–980
regression forecasting model, 870 problems for, 985
regression toward the mean, 694–695 service-level approach, 982–985
regularly spaced time intervals, creating, 153–154 Reorderpoint_backorder.xlsx file, 980
Reichheld, Frederick, 969–971 Reorderpoint_lostsales.xlsx file, 982
RELATED function, 562–567 Repeatedhisto.xlsx file, 60
relationships. See also trend curve Replace Current Totals check box, 578
correlations, 689–695 REPLACE function, 54
Correlation dialog box, 689–691 replication
correlation matrix, 693 two-way ANOVA with, 737–742
definition of, 689 two-way ANOVA without, 734–737
between monthly stock returns during 1990s, Report Filter, 532–533
691–694 reports
overview of, 689–691 BOM (bill of materials), 1019
problems for, 695 PivotTable Reports Filter, 499–500
regression toward the mean and, 694–695 Scenario PivotTable Report, 207
R-squared value and, 694 Scenario Summary, 207
Data Model Reps worksheet (Datamodeltemp.xlsx), 541
creating, 543–544 REPT function, 54, 61
managing, 546–547 resampling, 947–951
power curve for, 681–688 residuals, 787–788, 874–876
equation, 681 resolving circular references, 118–120
learning curve and, 684–685 result cells, 203, 206
problems for, 687–688 results of calculations, moving, 157–159
properties of, 683 retention rate (customer), profitability and, 967–969
relationships modeled by, 681–683 Retire worksheet, 848
SSE (sum of squared errors), 685 retirement savings
trend curve parameters for, 686–687 determining, 845–849
straight-line, 643–652 retirement-planning problem, 848–849
accuracy of predictions, 671 returning future value of, 103–105
dependent variables, 665–666 return_array argument (XLOOKUP function), 26
Format Trendline options, 666–667 Returnstemp.xlsx file, 17
independent variables, 665–666 revenues
intercept of, 672 color coding of, 269–272
between monthly production and monthly exponential growth, 675–680
operating costs, 667–670
CAGR (compound annual growth rate), 675–678
monthly variation in plant-operating costs,
equation for, 675
670–671
Exponential command, 675–678

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 revenues

GROWTH function, 679–680 total sales, named ranges for, 17–18

modeling, 676–678 trend and seasonality in, 750–752
overview of, 675 weekly changes in, 1041–1044
predictions based on, 679–680 sales force, effectiveness of
problems for, 680 two-way ANOVA with replication, 737–742
S-curve, 678 two-way ANOVA without replication, 734–736
trend curve parameters for, 678–679 Sales worksheet (Datamodeltemp.xlsx), 541
filtering tables on, 289–292 Salesdata.xlsx file, 49, 181
last year’s, named ranges for, 21–22 Salesfixfinal.xlsx file, 331–334
profit-maximizing price analysis, 184–188 Salesfixtemp.xlsx file, 331–334
subtotals by region, 577–580 sales-force performance over time, charts of, 920–923
summarizing annual, 136–137 Salesstripping.xlsx file, 58
Reversed.xlsx function, 237 Salessummary.xlsx file, 181
Reversenames.xlsx file, 69 sales-transaction data, sorting, 398–401
RIGHT function, 53, 59, 482 Sales.xlsx file, 438
risk-free rate, 955 sample space, 753
Robinson option (Map Projection menu), 645 sample standard deviation, 381–382
Rock.xlsx file, 210, 214 sample variance, 381–382
Ronstadt, Linda, 353 samples, random, 916. See also resampling
ROW function, 137 Sandp.xlsx file, 278
Row Input Cell (Data Table), 969, 991 satisfaction ratings, of employees, 892–893
rows Satissuper.xlsx file, 278
locking, 4–5 Savant, Marilyn vos, 759
transposing with columns, 159–160, 611–612 Save As Template command, 621
Rowsnamed.xlsx file, 22 Save Chart Template dialog box, 621
RSQ function, 672 scale
R-squared value, 671, 672, 677, 694 chart axes, 612–613
Rules Manager, Conditional Formatting, 257–258 projects, 95–96
running macros, 1035–1037 SCAN helper function, 1059
running Microsoft Excel Solver, 809–810 scatter charts, 606–607, 666–667, 676
Scatter with Smooth Lines, 191, 623, 626, 631, 632
Scatter with Smooth Lines and Markers, 746
S Scatter with Straight Lines, 995
safety-stock level. See reorder-point policy Scatter.xlsx file, 606
Salaries.xlsx file, 460 Scenario Manager dialog box, 204, 205, 207
salary Scenario Manager, sensitivity analysis with, 203–208
total salary per day, 22 Assumption cells, hiding/showing, 207
weekly wages, 1–2 example of, 203–208
sales merging scenarios in, 207
consolidating Monte Carlo simulation, 207
with Consolidate command, 571–575 problems for, 207–208
need for, 571 Scenario PivotTable Report, 207
problems for, 575 Scenario Summary reports, 207–208
as function of advertising, 682 Scenario PivotTable Report, 207
listing with INDIRECT, 241–242 Scenario Summary dialog box, 206–207
product sales per month, 45–46 Scenario Values dialog box, 205
summarizing with PivotTables Scene Options pane, 650, 653
sales by month, 528–529 scheduling, traveling salesperson problem
total sales to date, 526–527 definition of, 895, 896–898

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 SKEW function

examples of, 895–896 example of, 203–208

problems for, 898–899 merging scenarios in, 207
Scholes, Myron, 953. See also Black-Scholes Monte Carlo simulation, 207
option-pricing formula problems for, 207–208
scope, of named ranges, 16, 18–19 Scenario PivotTable Report, 207
Scrollbar control, 307 Scenario Summary reports, 207–208
S-curves, 678, 747 SEQUENCE function, 469–470, 950
SEARCH function, 53–54 sequences of times, 153–154
search_mode argument (XLOOKUP function), 26 Sequence.xlsx file, 469
Sears, Monte Carlo simulation used by, 908 sequencing problems
seasonal index for current month, 860–861 job-shop scheduling problems for, 895
seasonality traveling salesperson problem
in forecasting of future product sales, 750–752 definition of, 895, 896–898
in multiple-regression analysis, 705–710 examples of, 895–896
seasonal indexes problems for, 898–899
in forecasting of future product sales, 750–752 sequential numbers, generating list of, 469–470
interpretation of, 749–750 SER (standard error of regression), 671
Toys “R” Us example, 715–718 serial format
Walmart example, 749–750 for dates, 74–76
of series, 860 for times, 149
SECOND function, 152 Serial Format worksheet, 74
secondary axis, 593–594 Series Color section, Format Data Series pane, 645
Secondaryaxis.xlsx file, 593 Series dialog box, 913
second-largest number in data set, finding, 386–387 servers, number of, 987
seconds, extracting from times, 152 service-level approach, to reorder points, 982–985
second-smallest number in data set, finding, 386–387 Servicelevelreorder.xlsx file, 983
Select a Solving Method command, 810, 817, 840, 847, Set Objective option (Solver Parameters), 816, 821, 839,
862, 896, 933 896, 897
Select a Solving Method list, 897 “Set values do not converge” message, 821–822
Select Data button, 996 Shading.xlsx file, 280
Select Data Source dialog box, 595, 597, 623 shapes, histogram, 371–373
Select Files to Compare dialog box, 180 SHEET function, 246
Select Unlocked Cells option, 962 Sheetnames.xlsx file, 18–19
semicolon (;), 79, 154 shortcut keys, 1033
sensitivity analysis, 989–991 Show Calculation Steps option (Error Checking dialog
with data tables, 183–195 box), 173
advanced sensitivity analysis, 1063–1065 Show Data in Hidden Rows and Columns chart option,
break-even year analysis, 189–191 597
creating charts from, 191–192 Show Formulas feature, 172
mortgage payment analysis, 188–189 Showbiz.xlsx file, 69
one-way data tables, 184, 185–186 Show/Hide Comments button, 944
overview of, 183–184 side-by-side view, 572
problems for, 192–195 sigma, 910–911
profit-maximizing price analysis, 184–188 Signif worksheet, 728
spider plots, 1063–1065 Sim worksheet, 909, 911, 914
spin button for, 302–307 Simplex LP engine, 810, 817–819, 827, 833–834, 849
two-way data tables, 184 simulation, Monte Carlo. See Monte Carlo simulation
with Scenario Manager, 203–208 Singers.xlsx file, 298
Assumption cells, hiding/showing, 207 SKEW function, 381

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 skewness measure

skewness measure, 381, 920 songs longer than average length, 212
skewed left histograms, 372 songs not sung by a particular singer, 212
skewed right histograms, 371–372 songs of minimum length, 212
slash (/), 803 songs of specific length, 213
slicers, table, 292–294, 500–501, 559–560 songs of specific length by specific singer, 213
SLN (straight-line depreciation), 109–110 songs played after a certain date, 213
SLN function, 109–110 songs played before a certain date, 213
slope songs sung by a particular singer, 211
in ratio-to-moving-average forecasting method, 751 songs sung by singers whose last names being with a
of straight-line relationship predictions, 672 certain letter, 212
of trendlines, 751 songs sung by singers whose last names contain x
letters, 213
SLOPE function, 671, 672, 679, 687, 751, 752
Sort dialog box. See sorting
slugging percentage (SLG), 725
SORT function, 464–466, 479, 480. See also sorting
SMALL function, 47, 386
Sort Warning dialog box, 405
smoothing, Winters method of
Sortandsortby.xlsx file, 465
equations for, 860–861
SORTBY function, 464–466, 916
Forecast Sheet tool, 863–866
Sortday.xlsx file, 409
initialization of, 861
sorted data, charts based on, 627–628
level of series, 860–861
Sortedgraph.xlsx file, 627
overview of, 859
Sorticons.xlsx file, 409
problems for, 867
sorting
seasonal index for current month, 860–861
across columns, 407–408
smoothing constants, estimation of, 861
on a cell or font color, 401–402
time series characteristics, 859–860
by city, 405–407
trend of series, 860–861
dynamic array functions for, 464–466
software project selection problem
on icon sets, 402–403
additional constraints in, 840–841
by lowercase/uppercase, 408–409
example of, 837–840
months in chronological order, 403–404
solution engines, Microsoft Excel Solver, 810–811
PivotTable fields, 493–494
Solver. See Microsoft Excel Solver
problems for, 409
“Solver could not find a feasible solution” message,
820–821 with Quick Access toolbar, 425–427
Solver Parameters dialog box, 809, 826–827, 842, 848, sales-transaction data, 398–401
849, 855–856, 872, 889–890, 891, 933, 983–985, without Sort dialog box, 405
1000–1001, 1007–1008, 1017–1018 South sales, extracting from total US sales, 58–60
Changing Cells option, 896 Space data type, 351
By Changing Variable Cells, 816, 820, 821, 839 spaces, sample, 753
Evolutionary Solver, 889–890 spaces.xlsx file, 247
Ignore Integer Constraints, 898 Sparkline Color option (Sparkline Tools Design), 661
Make Unconstrained Variables Non-Negative, 817, Sparkline Date Range dialog box, 662
821, 833
Sparkline Tools Design tab, 661
Select a Solving Method list, 840
sparklines, 659–664
Set Objective, 816, 821, 839, 896, 897
automatically updating, 663–664
Solve, 821, 833
daily customer counts, 659–660
Subject to the Constraints, 821
modifying, 661–662
songs played on radio, counting, 209–215
overview of, 659
blank cells in ranges, 214
problems for, 664
function syntax for, 209–211
win/loss, 662–663
nonblank cells in ranges, 214

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 Stocks worksheet

Sparklines.xlsx file, 659 statistics, descriptive. See descriptive statistics

Column Sparkline worksheet, 662 STDEV function, 382, 454, 788
High Low worksheet, 661 Stdevif.xlsx file, 453
special formats, 67 STDEV.S function, 382, 793, 901, 902, 905, 913, 956–957
Special Tricks.xlsx, 67 STDEVS function, 873
specifiers, table, 295 steady-state characteristics of queueing system, 988
spider plots, 1063–1065 STEYX function, 671
Spiderplottemplate.xlsx file, 1063 Stock data type, 349–350
#SPILL error, 22, 349, 464 stock volatility, 955
Spin Button form control, 302–307 Stockcorrel.xlsx file, 691
Split Column button, 333 STOCKHISTORY function, 799–806
Split Column by Delimiter dialog box, 333 arguments of, 800
Split Column by Number of Characters dialog box, 333 importing past with, Bitcoin prices, 802
sporting-event probabilities, 937–946 past data, importing
craps, 937–939 commodity prices, 804–805
five-card draw poker, 939–942 currency exchange rates, 803
NCAA men’s basketball Final Four, 942–944 index or mutual funds, 804
problems for, 945 trading data on stoc, 799–801
Sportinglife.xlsx file, 614 problems for, 806
sports team ratings, with Solver, 853–857 Stockhistoryfinal.xlsx file
NFL point spreads, setting, 854–856 Bitcoin worksheet, 802
nonlinear nature of, 856 Currency worksheet, 803
overview of, 853–854 Stocks worksheet, 800
problems for, 856–857 Stockpricestemp.xlsx file, 1022–1024
Sports.xlsx file, 614 stocks
spread of points, around least-squares line, 672 asset-allocation modeling, 929–934
SQRT function, 956–957 beta, 671, 951
squared errors, sum of, 670 charts for, 639–641
SSE (sum of squared errors), 670, 685 modeling as lognormal random variables, 796–797
stacked area charts, 603–606 option pricing, 953–966
Stacked Bar chart option, 626 abandonment options, 964–965
Stacked Column chart option, 587, 652 American cash flows, 955
standard deviation, 381–382, 764–765, 920 American options, 953
lognormal random variables, 795 Black-Scholes formula, 798, 957–958, 959–961
normal random variables, 786 call/put options, 953, 955–956, 958–959
of service times, 988 in decision-making process, 963–964
standard error of regression (SER), 671 European cash flows, 954–955
standard normal, 957 European options, 953
StartFixMinutestemp.xlsx file, 1045 exercise date/expiration date, 953
state abbreviations, validating, 477–478 historical volatility, 956–957
Statedv.xlsx file, 477 parameters for, 955
Stateincome.xlsx file, 657 problems for, 965–966
States.xlsx file, 16, 17, 552 real options, 963–964
static times, entering, 154–155 volatility of stock, estimating, 956–957
Staticdate.xlsx file, 79 worksheet protection, 961–963
station wagon ownership, by family size and salary, prices, finding patterns in, 1022–1024
509–512 stock price simulation, 926–929, 951
Station.xlsx file, 509 STOCKHISTORY function, 799–806
statistical inferences, resampling, 947–951 Stocks worksheet, 800

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 Stock.xlsx file

Stock.xlsx file, 373, 376, 383, 393 sales by each salesperson, 580–581
Stop If True option, 275–277 with Subtotal command, 577–581
Stop Recording button, 1033, 1038, 1044, 1046, 1047 with SUBTOTAL function, 582–583
Store Macro In option, 1033 Subtract option (Paste Special), 162
Storesales.txt file, 552 subtraction, with Paste Special command, 162
storing, 620–621, 923 Suggestion1 worksheet, 1021, 1027
story problems for, Goal Seek for, 199–200 SUM function, 3, 137, 242, 573, 578, 871, 891, 897
straight-line depreciation (SLN), 109–110 sum of squared errors (SSE), 670, 685
straight-line relationships, 643–652 SUMIF function, 218
accuracy of predictions, 671 copying across columns, 297
dependent variables, 665–666 examples of, 218–220
Format Trendline options, 666–667 syntax of, 218
independent variables, 665–666 Sumifrows.xlsx file, 222
intercept of, 672 SUMIFS function, 449, 480
between monthly production and monthly operating Sumindirect.xlsx file, 240
costs, 667–670 summaries of workbooks, 244–245
monthly variation in plant-operating costs, 670–671 summarizing data
problems for, 672–673 3D maps as 2D charts, 654
R-squared value, 671 database statistical functions, 429–439
scatter charts of data points, 666–667 criteria ranges for, 434–435
slope of, 672 examples of, 431–437
trend curve, 665 overview of, 429–431
strings problems for, 431–437
converting to times, 152 descriptive statistics, 377–395
extracting product ID, price, and product description boxplots, 389–393
from, 56–58
comparing data sets with, 384–385
matching with MATCH function, 43–50
geometric mean, 388–389
investment payback period, 47–48
kurtosis, 381
MLB player salaries, returning, 46–47
mean and standard deviation, 379, 382–384
problems for, 44, 49–50
mode, 380–381
product sales per month, 45–46
outliers, conditional formatting for, 383–384
syntax of, 43–45
overview of, 377–378
two-way lookups, 46
percentile rankings, 385–386
structured references, 294–295
problems for, 393–395
Subject to the Constraints list (Solver Parameters dialog
range, 381–382, 388
box), 821
ranking numbers in, 387
subjectively determined demand, 1005–1010
sample standard deviation, 381–382
equation for, 1005
sample variance, 381–382
example of, 1006–1008
second-largest or second-smallest numbers,
problems for, 1006–1008, 1009–1010
386–387
SUBSTITUTE function, 55, 61
skewness measure, 381
Subtotal dialog box, 577–581
trimmed mean, 387–388
SUBTOTAL function, 582–583
typical value for data set, 378–381
subtotals, 577–583
histograms
hiding in PivotTables, 501–502
comparing, 373–374
need for, 577
creating, 363–371
nesting, 580–581
multiple-peak, 372–373
problems for, 583
overview of, 363
revenue and units sold by region, 577–580
problems for, 376

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 tables

skewed left (negatively skewed), 372 flattening, 327–328

skewed right (positively skewed), 371–372 lookup functions
symmetric, 371 computing tax rates with, 27–29
PivotTables, 485–489 definition of, 25
sales by month, 528–529 looking up prices from product ID codes with,
total sales to date, 526–527 29–30
relationships, 695 mismatches between text and numbers in, 34
Summary Below Data option, 579 problems for, 35–37
Summary button (Scenario Manager dialog box), 205 syntax of, 25–27
Summary worksheet, 244 wildcard characters with, 31
sum-of-years’ digits depreciation (SYD), 109–110 PivotTables
SUMPRODUCT function, 443, 454–457, 814–815, 826, 832 age/gender travel expenditure example, 505–509
sunburst charts, 635–638 blank rows in, 501–502
Sundays, returning date of most recent, 78–80 calculated items in, 519–522
Super Bowl outcomes, Z-scores for, 787–788 chip microchip from different countries/regions,
512–515
Superbowlspreads.xlsx file, 787–788
conditional formatting in, 502–504
suppliers, cost paid to, 2–5
creating, 529–533, 542–543, 544–546
Suppliers.xlsx file, 314
default settings for, 533
supply constraints, 832
design options for, 491
supply points, 831
drilling down, 522
surplus, consumer, 1012
dynamic array functions compared to, 535–536
SWITCH function, 140–141
editing, 509
Switch Row/Column chart option, 995
fields, 487–488, 491–499, 515–517
Switchfinal.xlsx file, 141
GETPIVOTDATA function, 523–525
SYD (sum-of-years’ digits depreciation), 109–110
grouping items in, 518–519
SYD function, 109–110
hiding subtotals in, 501–502
symbols, in named ranges, 23
layouts, 489–490
symmetric histograms, 371
modifying empty cells in, 501–502
Syrstad, Tracy, 1031
origins of name, 491
overview of, 483–485
T PivotCharts, 498–499
Table Design tab, 210, 284–287 PivotTable and PivotChart Wizard, 529–531
Table Import Wizard, 554–556 problems for, 536–540
table of contents, creating with INDIRECT, 247–248 Reports Filter, 499–500, 532–533
table_range argument (VLOOKUP function), 25 slicers, 500–501
Tableexampletemp.xlsx file, 283–284 station wagon ownership by family size and salary,
509–512
Tableexample.xlsx file, 298
summarizing Bitcoin prices and returns with,
Tablemakeuptemp.xlsx file, 289, 299
533–535
Tablemakeuptotals.xlsx file, 291, 292
summarizing grocery sales with, 485–489
Tablepie.xlsx file, 299
summarizing sales by month with, 528–529
tables, 283–299
summarizing total sales to date with, 526–527
appending, 338–340
Timeline feature, 525–526
conditional formatting in, 295–298
updating calculations in, 504
contingency, 757
sensitivity analysis with, 183–195
creating from flat files, 328–329
advanced sensitivity analysis, 1063–1065
creating line graphs from, 287–289
break-even year analysis, 189–191
design options for, 283–287
creating charts from, 191–192
filtering, 289–292

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 tables

mortgage payment analysis, 188–189 LOWER, 54

one-way data tables, 184, 185–186 MID, 53, 57, 59
overview of, 183–184 overview of, 51–52
problems for, 192–195 problems for, 67–68
profit-maximizing price analysis, 184–188 PROPER, 54
spider plots, 1063–1065 REPLACE, 54
two-way data tables, 184 REPT, 54, 61
structured references in, 294–295 RIGHT, 53, 59
table slicers, 292–294 SEARCH, 53–54
table specifiers, 295 SUBSTITUTE, 55, 61
Tablestructure.xlsx file, 294 syntax of, 52–56
Tablexnpvdata.xlsx file, 299 TEXT, 54, 80, 81, 622–623
Taleb, Nassim Nicholas, 798 TEXTJOIN, 54, 64–69
target cells, 826 TRIM, 53, 56, 57
target cells, in optimization models UNICHAR, 61, 65
bank workforce scheduling problem, 826 UNICODE, 61, 65
optimization problems for, 808 Unicode characters in, 64–65
product-mix problem, 815 UPPER, 54
software project selection problem, 838 VALUE, 54, 57, 61
transportation problem, 831 Text Import Wizard
tariff, two-part, 1012 importing files with, 315–320
tax rates, computing with VLOOKUP function, 27–29 problems, 320
Teachers.xlsx file, 1028 text strings
teaching evaluation scores, bar graph of, 60–61 converting to times, 152
team wins/losses, sparklines for, 662–663 extracting product ID, price, and product description
Teams.xlsx file, 376 from, 56–58
temperature data, conditional formatting of, 253–255 matching with MATCH function, 43–50
Temperature2020.xlsx file, 253 investment payback period, 47–48
templates MLB player salaries, returning, 46–47
queueing, 989–991 problems for, 49–50
storing charts as, 620–621, 923 product sales per month, 45–46
terminology, for Microsoft Excel Solver, 811 syntax of, 43–45
Terrain data type, 347–348 two-way lookups, 46
testing, for nonlinearities and interactions, 719–720 wildcard characters with, 44
Test.xlsx file, 278 Text That Contains dialog box, 254
text (TXT) files, importing data from, 315–320 Textandnumbers.xlsx file, 34
problems for, 320 Textfunctions.xlsx file, 52
Text Import Wizard, 315–320 TEXTJOIN function, 54, 61–65
Text Encoding option (File Conversion), 316 Textjoinfinal.xlsx file, 65
TEXT function, 54, 80, 81, 622–623 text/number mismatches, 34
text functions, 51–69 Textstylesdata.xlsx file, 69
& (ampersand), 54 thermometer charts, 620–621, 923
CHAR, 54, 61 Thorpe, Edward, 139–140
CLEAN, 55, 61 Three-Color heat maps, 645
CONCATENATE, 54, 57 three-dimensional formulas
FIND, 53, 57–58, 59, 61 multiple-worksheet workbooks
Flash Fill, 62–64 hyperlinks in, 167–169
LEFT, 53, 56, 57–58, 59 navigating between, 167–169
LEN, 53, 56, 59 setting up, 165–167

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 trading data, importing

Threetimes.xlsx file, 280 displaying current, 151

tie-ins, pricing products with, 999–1003 entering, 150
tilde (~), 31 entering sequences of, 153–154
TIME function, 152 extracting hour/minute/second from, 152
time functions formats for, 150, 151
HOUR, 152 length of time worked by employees, calculating,
MINUTE, 152 152–153, 312–313
NOW, 151 problems for, 155
SECOND, 152 regularly spaced time intervals, creating, 153–154
TIME, 152 serial numbers assigned to, 149
TIMEVALUE, 152 static, 154–155
TODAY, 151 time-series data, moving averages of, 745–747
time series four-period moving average, 745–746
base of, 859 moving-average graphs, 745–746
characteristics of, 859–860 Timeseries.xlsx file, 603
forecasting future values of, 859 TIMEVALUE function, 152
forecasting in presence of special events, 869–876 Time.xlsx file, 151
factors influencing customer traffic, 869–872 titles, of straight-line relationship charts, 669
forecast accuracy, 872–876 TODAY function, 76, 79, 151
overview of, 869 Tolerance settings. See Integer Optimality settings
problems for, 876 Top 10 Filter dialog box, 496–497, 1047
random errors in, 876 Top 10 Items dialog box, 1016
moving averages, 745–747 Top5.xlsx file, 280
four-period moving average, 745–746 Top20.xlsx file, 657
moving-average graphs, 745–746 Top/Bottom conditional formatting, 253–255
ratio-to-moving-average forecasting method for, Top/Bottom Rules, 252
749–752 total probability, law of, 757
seasonal indexes Total Wages worksheet, 454–457
in forecasting of future product sales, 750–752 totals
interpretation of, 749–750 subtotals, 577–583
Toys “R” Us example, 715–718 need for, 577
Walmart example, 749–750 nesting, 580–581
seasonality of, 860 problems for, 583
smoothing, Winters method of revenue and units sold by region, 577–580
equations for, 860–861 sales by each salesperson, 580–581
Forecast Sheet tool, 863–866 with Subtotal command, 577–581
initialization of, 861 with SUBTOTAL function, 582–583
level of series, 860–861 total sales
overview of, 859 extracting East, North, and South sales from,
problems for, 867 58–60
seasonal index for current month, 860–861 named ranges for, 17–18
smoothing constants, estimation of, 862–863 summarizing with PivotTables, 526–527
trend of, 860–861 Toys “R” Us, seasonal indexes in, 715–718
Timeline feature, PivotTables, 525–526 Toysrusformat.xlsx file, 278
times, 149–155 Toysrus.xlsx file, 222
computations with, 150–151 Trace Dependents feature, 174–177
converting text strings to, 152 Trace Error option, 174
creating, 152 Trace Precedents feature, 174–175, 177–178
data validation of, 481 trading data, importing, 799–801

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 Transactiondata.xlsx file

Transactiondata.xlsx file, 237 two-bin policy. See reorder-point policy

transactions, filtering. See filtering two-part tariff, 1012, 1014
Transform Data button, 324 two-way analysis of variance (ANOVA), 733–743
transportation problems, 831–836 forecasting with, 736–737, 740–742
definition of, 831 overview of, 733–734
demand constraint, 832 problems for, 742–743
demand points, 831 with replication, 737–742
drug-distribution example, 831–834 without replication, 734–736
problems for, 834–836 two-way data tables. See also sensitivity analysis, What-If
specifications for, 831 Analysis, 184
supply constraints, 832 two-way lookups
supply points, 831 with MATCH function, 46
Transport.xlsx file, 831–832 with XLOOKUP, 48–49
TRANSPOSE function, 444 Type the Cell Reference option (Insert Hyperlink dialog
box), 167
Transpose option, Paste Special dialog box, 159–160
transposing rows/columns, 159–160, 444
travel expenditures, age/gender breakdown of, 505–509
U
Traveldatatemp.xlsx file, 505
uncertain demand, inventory modeling with, 979–985
traveling salesperson problem (TSP)
lost-sales approach, 980–981
definition of, 895, 896–898
overview of, 979–980
examples of, 895–896
service-level approach, 982–985
problems for, 898–899
uncertainty. See also random variables
treemap charts, 635–638
bootstrapping approach to, 925–935
Treemapbookstoretemp.xlsx file, 636
asset-allocation modeling, 929–934
trend curve, 860
problems for, 934–935
exponential growth, 678–679
stock price simulation, 926–929
in forecasting of future product sales, 750–752
inventory modeling with uncertain demand, 979–985
power curve, 686–687
lost-sales approach, 980–981
straight-line relationships, 665
overview of, 979–980
TREND function, 714–715
service-level approach, 982–985
Trendandseasonality.xlsx file, 1028
Monte Carlo simulation, 907–917
trendlines
95 percent confidence interval for mean profit,
creating, 668 914
estimating demand with, 1005–1010 corporate use of, 907–908
Format Trendline options, 666–667 as decision-making tool, 911–914
intercept of, 751 discrete random variables, 909–910
linear greeting-card case study, 911–914
creating, 667–670 history of, 907
labeling, 669 normal random variables, 910–911
overview of, 665–670 problems for, 916–917
slope of, 751 RAND function, 908–909
TRIM function, 53, 56, 57 RANDARRAY function, 914–915
TRIMMEAN function, 388 random sample generation, 916
Trimmean.xlsx file, 386, 388 optimal bids, calculating, 919–923
trimmed mean, 387–388 bidding simulation model, 920–922
troubleshooting. See errors binomial random variables, 919–920
TSP. See traveling salesperson problem (TSP) normal random variables, 920
Tufte, Edward, 659 problems for, 922
underscore (_), 23

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 variables, random

Unemployment.xlsx file, 376 numeric values, 476–477

Unfreeze Panes command (Freeze Panes menu), 128 problems for, 481–482
Unhide Columns command, 189 state abbreviations, 477–478
Unhide Rows command, 189 time of day, 481
UNICHAR, 61, 65 in versions prior to Excel 2010, 481
UNICODE, 61, 65 #VALUE error, 61–62
Unicode characters, 64–65 Value Field Settings dialog box, 506, 508, 514, 559
uniform random variables, 923 VALUE function, 54, 57, 61
UNIQUE function, 461–464 Values option, Paste Special dialog box, 158
unique IRRs (internal rates of return), 95 Van Exel, Nick, 316
Unique.xlsx file, 462 variability, in queueing theory, 988–989
unit sales variables, 726
filtering tables on, 289–292 alpha, 904
subtotals by region, 577–580 beta, 901, 904–906
universities, in Excel formulas, 351 determining probabilities with, 904–905
Universities data type, 351 problems for, 906
unlocking formulas, 961–963 discrete random, 909–910
Unpivot Columns command (Transform tab), 327–328 dummy, 706
up blocks, 662 lagged independent, 708
UPPER function, 54 lognormal random, 956
uppercase, sorting on, 408–409 normal random, 910–911, 920
US city population data, importing into Excel, 323–327 qualitative, 705
US presidential elections, predictions for, 710–714 quantitative independent, 705
US T-bill interest rates, 160–162 Weibull, 901–904
USC.xlsx file, 794 variables, business. See business variables
Use a Formula option (New Formatting Rule dialog box), variables, random, 763–767
270–271 binomial, 919–920
Use a Formula to Determine Which Cells to Format BINOM.DIST function, 770–772
option, 873, 892–893
BINOM.DIST.RANGE function, 770–772
Use Automatic Scaling option, 848
BINOM.INV function, 773
Use Function menu commands, 1–2
computing binomial probabilities with, 770–773
Use Multistart option (Solver), 984
definition of, 770
Use Relative References option, 1039
negative, 774–775
USfilledmapstemp.xlsx file, 646
problems for, 775–776
continuous, 765
V definition of, 763
discrete, 763–764
Valentine.xlsx file, 911, 914
exponential
validating data, 473–482
computing probabilities for, 779–780
AutoComplete feature, 481
problems for, 780
clearing data validation, 481
hypergeometric
custom, 476–477
binomial, 775–776
dates, 475–476
definition of, 773–774
error alerts, 474–475
independent, 766
Go To Special dialog box, 481
lognormal, 795–798
length of text in cell, 481
definition of, 795
minimum/maximum criteria, 473–475
LOGNORM.DIST function, 797–798
nested/dependent drop-down menus, 478–480
LOGNORM.INV function, 798
nonnumeric values, 476–478
mean, 795

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 variables, random

modeling future prices of stock as, 796–797 volatility

problems for, 798 historical, 956–957
standard deviation, 795 implied, 796
stock prices following, 796 of stock, 955, 956–957, 960
mean, 764–765 Volatility.xlsx file, 965
negative binomial, 774–776 Volume-High-Low-Close chart option, 640
normal, 781–790 Volume-Open-High-Low-Close chart option, 641
CLT (central limit theorem), 786–787, 796
computing probabilities for, 784–785
finding percentiles for, 785–786 W
mean, 786 wage*hours function, 22
NORM.DIST function, 784–785 wages
NORM.INV function, 785–786, 787 hourly, 442–444
PDF (probability density function), 782–784 total salary per day, 22
problems for, 789–790 weekly, 1–2
properties of, 781–784 Wagestemp.xlsx file, 1–2
standard deviation, 786 wait time. See queueing theory
variance, 786 waiting in line. See queueing theory
Z-scores, 787–788 Walmart
PDF (probability density function), 765–766, 782–784 ratio-to-moving-average forecasting method for,
750–752
Poisson, 777–778
seasonal indexes in, 749–750
computing probabilities for, 778
summarizing annual revenues for, 136–137
definition of, 777
Walmartdata.xlsx file, 752
POISSON.DIST function, 778
Walmartdata.xlsx file, 752
problems for, 777
Walmartrev.xlsx file, 136
problems for, 767
Watch Window feature, 174
standard deviation, 764–765
waterfall charts, 633–635
variance, 764–765
Waterfallcashtemp.xlsx file, 634
variance, 381–382, 764–765, 786. See also analysis of vari-
ance (ANOVA) Waterfallpandltemp.xlsx file, 633
Varianceanalysis.xlsx file, 278 weather data, in Excel formulas, 357–359
VAR.S function, 382 week of year, 80
VBA (Visual Basic for Applications), 1031 WEEKDAY function, 78, 272, 482
Verizondata.xlsx file, 236 weekend dates, color coding of, 272–273
Verizonindirectdata.xlsx file, 249 of basketball players’ abilities, 274–275
Verizon.xlsx file, 237 Weekendformatting.xlsx file, 278
vertical lines, adding to charts, 628–629 weekly changes in sales, macro for, 1041–1044
View Side by Side command (Window group), 572 weekly wages, worksheet model for, 1–2
View tab, Freeze Panes option, 127–128 WEEKNUM function, 80
Village Deli case study, 773 WEEKNUM.xlsx file, 80
Visual Basic for Applications (VBA), 1031 Weibull random variable, 901–904
VLOOKUP function, 134, 244, 312, 313, 751, 871, 927, 941, WEIBULL.DIST function, 901–904
943, 949 WEIBULLDIST function, 904
avoiding use of, 542 Weibullest.xlsx file, 901
computing tax rates with, 27–29 Weirddata.xlsx file, 69
#N/A errors, 134–136 Westinghouse Corporation, 973
nonlinear pricing plan, 1014 West.xlsx file, 571, 575
syntax of, 25–26 What-If Analysis. See data tables, sensitivity analysis with;
wildcard characters with, 31 Goal Seek

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 worksheets

wildcard characters, 31, 44 consolidating data in

willingness to pay, demand curve and, 997 with Consolidate command, 571–575
Win Loss worksheet, 662 need for, 571
Window group commands, 572 hyperlinks in, 181
Win/Loss option (Sparkline Tools Design), 661 multiple-worksheet
win/loss sparklines, 662–663 changing number of worksheets in, 166
Winters, Peter, 859 hyperlinks in, 167–169
Winters method navigating between, 167–169
equations for, 860–861 number of worksheets in, 166
Forecast Sheet tool, 863–866 problems for, 169
initialization of, 861 setting up, 165–167
level of series, 860–861 opening new, 166
overview of, 859 scope, 18–19
problems for, 867 WORKDAY function, 76–77
seasonal index for current month, 860–861 WORKDAY.INTL function, 77
smoothing constants, estimation of, 862–863 workdays
time series characteristics, 859–860 determining date that is x workdays after another
trend of series, 860–861 date, 76–77
wizards determining number of workdays between two dates, 78
Convert Text to Columns Wizard, 59–60 workforce. See employees
Function Wizard, 135 workgroups, assigning employees to, 890–892
PivotTable and PivotChart Wizard, 529–531 Worksheet Analysis Report dialog box, 181
Table Import Wizard, 554–556 worksheet models
Text Import Wizard cost paid to supplier, 2–5
importing files with, 315–320 customer estimation, 5–6
problems for for, 320 demand curve, 7–8
WKRP radio station, counting songs on employee weekly wages, 1–2
blank cells in ranges, 214 order of operations in, 6–7
function syntax for, 209–211 problems for, 9
nonblank cells in ranges, 214 total salary per day, 22
songs longer than average length, 212 Worksheet Relationship button (Inquire add-in), 181
songs not sung by a particular singer, 212 worksheet scope, for named ranges, 18–19
songs of minimum length, 212 Worksheetnames.xlsm file, 245
songs of specific length, 213 worksheets. See also individual worksheets
songs of specific length by specific singer, 213 analyzing relationships between, 181
songs played after a certain date, 213 auditing options for, 171–182
songs played before a certain date, 213 Error Checking, 173–174
songs sung by a particular singer, 211 Inquire add-in, 179–182
songs sung by singers whose last names being with a multiple worksheets, 178–179
certain letter, 212 Remove Arrows, 175, 177
songs sung by singers whose last names contain x Show Formulas, 172
letters, 213 Trace Dependents, 174–177
Workbook Analysis button (Inquire add-in), 181 Trace Precedents, 174–175, 177–178
Workbook Relationship button (Inquire add-in), 181 viewing, 172
workbooks. See also individual workbooks Watch Window, 174
analyzing relationships between, 181 dates. See dates
analyzing structure of, 181 hyperlinks in, 167–169, 181
comparing, 180 inserting into workbooks, 165–167
listing, 245–247

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 worksheets

multiple-worksheet workbooks examples of, 31–34

hyperlinks in, 167–169 syntax of, 26–27
navigating between, 167–169 two-way lookups, 48–49
problems for, 169 wildcard characters with, 31
setting up, 165–167 XLOOKUP.xlsx file, 31
navigating between, 167–169 .xlsx extension, 320
number of, 166 XNPV function, 88–90
Paste Special Divide Before, 160–161
Paste Special Transpose, 159
Paste Special Value, 157 Y
viewing side by side, 572 years
World option (Map Projection menu), 645 extracting from dates, 78
Worldball.xlsx file, 857 leap years, 74
worst-case scenario, for automobile sale, 203–208 recovering, 78
Yeartodate.xlsx file, 237
Yoga data type, 352–353
X
XIRR function, 93–94
XLOOKUP function Z
Z-scores, 787–788

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