Differences between PivotTables and PivotCharts:

PivotTable

 Format: Tabular structure, displaying organized and summarized data.

 Purpose:
oAnalyze large datasets interactively.
oQuickly calculate sums, averages, counts, and other statistics.
oIdentify patterns and trends within the data.
oGroup and compare data across different categories.
 Features:
o Filtering and sorting data.
o Creating custom calculations.
o Drilling down to more detailed information.

PivotChart

 Format: Visual representation of a PivotTable's data, using charts and graphs.

 Purpose:
oEnhance understanding of data relationships through visual cues.
oCommunicate insights effectively to audiences.
oHighlight trends, patterns, and outliers more clearly.
 Features:
o Variety of chart types (column, bar, line, pie, scatter, etc.).
o Interactive elements for exploring data (e.g., zooming, panning).
o Customizable formatting options for visual appeal.

Key Differences:

Feature PivotTable PivotChart

Format Table Chart/Graph
Purpose Data analysis Data visualization
Interactivity Limited interactivity within the More interactive exploration through visual
table elements
Communication Effective for detailed data Effective for communicating insights
analysis quickly and visually
When to Use Which:

 Use a PivotTable when you need to analyze data in detail, perform calculations, and
compare values across different categories.
 Use a PivotChart when you want to visualize data patterns, trends, and relationships
for clearer communication and understanding.
Difference between Absolute vs Relative reference

Relative References:

 Definition: They use references like A2, where A is the column and 2 is the row.
 Behaviour when copied: When you copy a formula containing relative references to
another cell, the references shift relative to the original position. For
example, copying a formula from A2 to B3 changes the references to B3 and B4.
 Advantage: Great for quickly adapting formulas to surrounding cells when copied.
 Disadvantage: Can become inaccurate if copied across large distances or complex
layouts.

Absolute References:

 Definition: They use dollar signs to "lock" the specific cell. Examples include
$A$2, where both column and row are absolute.
 Behaviour when copied: No matter where you copy an absolute reference, it always
points to the same cell.
 Advantage: Ensures consistency and accuracy, especially when dealing with specific
values or calculations.
 Disadvantage: Less flexible than relative references; requires manual adjustments if
surrounding cells need to change.

Here's a table summarizing the key differences:

Feature Relative Reference Absolute Reference
Reference format A2, B3, etc. $A$2, $B$2, etc.
Copying behavior References shift relative to the original position References stay fixed
regardless of the new
position
Advantage Quick adaptation to surrounding cells Consistency and accuracy
for specific values
Disadvantage Can become inaccurate with complex layouts Less flexible; requires
manual adjustments
Difference between Formula vs Function

Formula in Excel Function in Excel

The user writes a formula. A function is pre-existing in the excel spreadsheet.

Functions cannot be customised. A user can choose
You can use any operation within a formula to
from numerous functions available to perform the
calculate whatever values you need.
calculations.

Formulas can be used to calculate values within a Functions can be used to find maximum or
 minimum values throughout the spreadsheet. Few
other functions include – finding the lowest or
range of cells or a single cell.
highest digit or arranging values in ascending or
descending order and for many other functions.
A Formula cannot be modified according to your But a function can be modified based on the
requirements. developer’s requirements.
A formula cannot be used as a function. A function can be used as a formula.
Simple calculations can be performed manually While complex calculations using a function are
using a formula. more difficult to do.
Whereas, Functions follow a particular syntax in
Formulas do not have a particular syntax in excel.
excel. Syntax has to be followed in order.
Predefined parameters are not relevant to a Functions have their own set of pre-designed
formula. parameters on which to operate to get outcomes.

What is What-if-Analysis? Explain the different tools used in what-if-analysis.

What-if Analysis is a technique used to explore how different values or scenarios affect the
outcome of a model or calculation. It's a valuable tool for decision-making, planning, and
risk assessment in various fields, including finance, business, engineering, and science.
Here are the common tools used in What-if Analysis:

1. Scenario Manager:

o Allows you to create and compare multiple scenarios, each with different
input values.
o Useful for analyzing "what-if" questions like "What if sales increase by 10%?"
or "What if costs decrease by 5%?"
o Excel has a built-in Scenario Manager tool.

Example of Scenario Manager in Excel:

Let's imagine you're running a lemonade stand and want to use Scenario Manager to
analyze your potential profit under different circumstances. Here's how you would set it up:

1. Create your spreadsheet:

 Label columns for variables like "Lemonade Price," "Cups Sold," "Cost per Cup," and
"Profit."
 Fill in your base assumptions like price = $0.50, cups sold = 100, cost per cup = $0.20.
 Use a formula in the "Profit" column like (Lemonade Price - Cost per Cup) * Cups
Sold.
2. Open Scenario Manager:

 Go to the "Data" tab and click "What-If Analysis" > "Scenario Manager".

3. Add Scenarios:

 Click "Add" and name your first scenario "Best Case."

 In the "Changing cells" list, select the "Lemonade Price" and "Cups Sold" cells.
 Enter optimistic values for these cells in the "Scenario Values" table, like price =
$0.75 and cups sold = 200.
 Create additional scenarios like "Worst Case" with lower values, or "Average Case"
with moderate values.

4. Analyze Results:

 Click "Show" to see a summary of each scenario's impact on your profit.

 You can also use Scenario Manager to:
o Create charts comparing different scenarios.
o Switch between scenarios on the fly to see their respective formulas and
outputs.

2. Goal Seek:
o Works in reverse compared to Scenario Manager.
o Instead of changing input values to see the impact on an output, you specify
a desired output and Goal Seek finds the input value that achieves it.
o Example: "What sales volume is needed to reach a profit of $100,000?"
Example 1: Calculating Required Sales Volume:

 Suppose a company wants to determine the sales volume needed to reach a target
profit of $100,000.
 They have a spreadsheet with formulas for revenue, costs, and profit.
 They can use Goal Seek to adjust the sales volume cell until the profit cell reaches
$100,000.
Example 2: Finding Loan Payment:

 A person wants to calculate the monthly payment needed to pay off a loan within a
certain time frame.
 They have a spreadsheet with loan details (principal, interest rate, term) and a
formula for monthly payment.
 Goal Seek can find the payment amount that results in a zero balance at the end of
the loan term.
3. Data Tables:
o Create a table that systematically substitutes different values into one or two
variables in a formula and displays the resulting calculations.
o Helps visualize the impact of different input values on multiple output values
simultaneously.
o Excel has built-in Data Table functionality.

Example : A small business owner wants to analyze how different loan interest rates and
loan amounts will affect their monthly payments.

Steps:

1. Set up the spreadsheet:

o Create columns for:
 Loan Amount
 Interest Rate
 Monthly Payment
o Enter a formula in the Monthly Payment cell to calculate the payment using a
financial function like
=PMT(interest_rate/12, loan_term_in_months, loan_amount).
2. Create a Data Table:

o For a One-Variable Data Table:

 Enter a range of interest rates in a column below the formula cell
(e.g., 4%, 4.5%, 5%, etc.).
 Select the entire range of interest rates and the formula cell.
 Go to the Data tab, click What-If Analysis, and select Data Table.
 In the Row Input Cell box, leave it blank.
 In the Column Input Cell box, select the cell containing the loan
amount.
 Click OK.
3. Analyze Results:
o The Data Table will fill with calculated monthly payments for each
combination of interest rate and loan amount, allowing the owner to
visualize the impact of different scenarios.

4. Sensitivity Analysis:
 o Examines how sensitive the model's output is to changes in individual input
variables.
o Identifies the most critical factors affecting results.
o Helps prioritize efforts for data collection and accuracy.
5. Simulation:
o Uses random number generators to create a large number of possible
scenarios based on probability distributions of input variables.
o Provides a range of potential outcomes and their likelihoods, rather than just
a single result.
o Excel has built-in tools like Random Number Generation and Analysis ToolPak
for simulations.
How to insert charts and tables in Excel:

Inserting a Chart:

1. Select the data you want to chart:

o Click and drag to highlight the cells containing the data.
o Include headers if you want them to appear in the chart.
2. Go to the Insert tab:
o Click the "Charts" group.
3. Choose a chart type:
oExcel offers various chart types, each suited for different data visualizations.
oHover over a chart type to preview how your data will look in that format.
oClick on your preferred chart type to insert it.
4. Customize the chart (optional):
o Chart Elements: Add, remove, or reposition chart elements like
titles, legends, and data labels.
o Chart Styles: Change the overall look and feel of the chart.
o Filters: Focus on specific data subsets within the chart.
o Format: Adjust colors, fonts, and other visual aspects of the chart elements.

Inserting a Table:

1. Select the data you want to include in the table:

o Click and drag to highlight the cells.

2. Go to the Insert tab:

o Click the "Tables" group.
o Click the "Table" button.

3. Confirm the table range (optional):

o If Excel correctly identifies your data range, click "OK."
 o If not, adjust the range in the dialog box.
4. Customize the table (optional):
o Table Styles: Apply a pre-designed style to format the table quickly.
o Table Tools: Access options for filtering, sorting, and totaling data within the
table.
o Formatting: Use standard Excel formatting tools to customize
fonts, colors, borders, and alignment.
How to add, edit and delete the comments.
comment:
To add a cell comment:
1. Select the cell where you want to add the comment.
2. Press Shift+F2.
3. Type your comment in the comment box.
4. Press Enter to save the comment.
Shortcut key: Shift+F2
To edit a cell comment:
1. Double-click the cell with the comment.
2. Make your changes to the comment in the comment box.
3. Press Enter to save the changes.
Shortcut key: Double-click the cell
To delete a cell comment:
1. Right-click the cell with the comment.
2. Select Delete Comment.
Shortcut key: Ctrl+Shift+C

You can also use the following shortcut keys to navigate between cell comments:
 Ctrl+Shift+N - Next comment
 Ctrl+Shift+P - Previous comment
 Ctrl+Shift+End - Last comment
 Ctrl+Shift+Home - First comment

Cell comments can be a helpful way to add additional information to your spreadsheets.
They can also be used to collaborate with others on spreadsheets.
Here are the significant benefits of using comments in Excel:
Clarity and Explanation:

 Clarify formulas and calculations: Explain complex formulas or logic behind

calculations, making them easier to understand for yourself and others.
 Provide context for data: Add background information or interpretations of
data, enriching its meaning.
 Highlight assumptions and limitations: Note any assumptions made in the model or
limitations of the data, ensuring transparency and accuracy.
Collaboration and Communication:

 Facilitate teamwork: Leave notes for colleagues or team members to enhance

collaboration and understanding.
 Track changes and discussions: Document discussions or decisions related to specific
cells, aiding in version control and knowledge transfer.
 Provide instructions or feedback: Guide users through worksheets or offer feedback
on their work.
Knowledge Preservation:

 Preserve institutional knowledge: Retain valuable information about formulas, data

sources, or processes even if people leave the organization.
 Facilitate knowledge transfer: Help new employees or team members quickly grasp
the content and logic of spreadsheets.

Functions:
IF, IFS, Sum, Average,NPV,IRR,XIRR, MIRR, DATE, DAY,YEAR, Concatenate,
Lookup, Choose, Index, Match, Transpose,Text Functions.
Logical Functions in Excel are used to make decisions and perform different actions
based on whether a given condition is true or false. Here are the most common
logical functions:

1. IF Function:

 Purpose: Returns one value if a condition is true, and another value if it's
false.
 Syntax: IF(logical_test, value_if_true, value_if_false)
 Example: IF(A1>50, "Pass", "Fail")
2. IFS Function:

 Purpose: Evaluates multiple conditions and returns a corresponding value for

the first true condition.
 Syntax: IFS(condition1,value1,condition2,value2, ...,
[else_value])
 Example: IFS(A1>80,"Excellent",A1>60,"Good",A1>40,"Fair",
"Poor")
3. AND Function:

 Purpose: Returns TRUE only if all arguments are TRUE.

 Syntax: AND(logical1, [logical2], ...)
 Example: AND(A1>5, B1<10)
4. OR Function:

 Purpose: Returns TRUE if any argument is TRUE.

 Syntax: OR(logical1, [logical2], ...)
 Example: OR(A1="Yes", B1="Maybe")
5. NOT Function:

 Purpose: Inverts the logic of its argument, returning TRUE if the argument is
FALSE, and FALSE if the argument is TRUE.
 Syntax: NOT(logical)
 Example: NOT(A1=0)

Mathematical and Statistical Functions in Excel are used to perform a wide range of
calculations, from basic arithmetic to complex statistical analysis.

1. Future Value (FV): Financial Function in Excel

If you want to find out the future value of a particular investment which has a constant
interest rate and periodic payment, use the following formula –

=FV (Rate, Nper, [Pmt], PV, [Type])

 Rate = It is the interest rate/period

 Nper = Number of periods
 [Pmt] = Payment/period
 PV = Present Value
 [Type] = When the payment is made (if nothing is mentioned, it’s assumed that the
payment has been made at the end of the period)

FV Example
A has invested the US $100 in 2016. The payment has been made yearly. The interest rate is
10% p.a. What would be the FV in 2019?
Solution: In excel, we will put the equation as follows –

= FV (10%, 3, 1, – 100)
= US $129.79
2. FVSCHEDULE: Financial Function in Excel
This financial function is important when you need to calculate the future value with
the variable interest rate. Have a look at the function below –

FVSCHEDULE = (Principal, Schedule)

 Principal = Principal is the present value of a particular investment
 Schedule = A series of interest rate put together (in case of excel, we will use
different boxes and select the range)

FVSCHEDULE Example:
M has invested the US $100 at the end of 2016. It is expected that the interest rate will
change every year. In 2017, 2018 & 2019, the interest rates would be 4%, 6% & 5%
respectively. What would be the FV in 2019?
Solution: In excel, we will do the following –

= FVSCHEDULE (C1, C2: C4)

= US $115.752
3. Present Value (PV): Financial Function in Excel

If you know how to calculate FV, it’s easier for you to find out PV. Here’s how –

PV = (Rate, Nper, [Pmt], FV, [Type])

 Rate = It is the interest rate/period
 Nper = Number of periods
 [Pmt] = Payment/period
 FV = Future Value
 [Type] = When the payment is made (if nothing is mentioned, it’s assumed that the
payment has been made at the end of the period)
PV Example:
The future value of an investment in the US $100 in 2019. The payment has been made
yearly. The interest rate is 10% p.a. What would be the PV as of now?
Solution: In excel, we will put the equation as follows –
= PV (10%, 3, 1, – 100)
= US $72.64

4. Net Present Value (NPV): Financial Function in Excel

Net Present Value is the sum total of positive and negative cash flows over the years. Here’s
how we will represent it in excel –

=NPV (Rate, Value 1, [Value 2], [Value 3]…)

 Rate = Discount rate for a period
 Value 1, [Value 2], [Value 3]… = Positive or negative cash flows
 Here, negative values would be considered as payments, and positive values would
be treated as inflows.

5. XNPV: Financial Function in Excel

This financial function is similar to the NPV with a twist. Here the payment and income are
not periodic. Rather specific dates are mentioned for each payment and income. Here’s how
we will calculate it –

=XNPV(Rate, Values, Dates)

 Rate = Discount rate for a period
 Values = Positive or negative cash flows (an array of values)
 Dates = Specific dates (an array of dates)

XNPV Example

Here is a series of data from which we need to find NPV –

 Details In US $ Dates

Rate of Discount 5%

Initial Investment -1000 1st December 2011

Return from 1st year 300 1st January 2012

Return from 2nd year 400 1st February 2013

Return from 3rd year 400 1st March 2014

Return from 4th year 300 1st April 2015

Solution: In excel, we will do as follows –

=XNPV (5%, B2:B6, C2:C6)

= US$289.90

6. Internal Rate of Return (IRR): Financial Function in Excel

To understand whether any new project or investment is profitable or not, the firm uses
IRR. If IRR is more than the hurdle rate (acceptable rate/ average cost of capital), then it’s
profitable for the firm and vice-versa. Let’s have a look, how we find out IRR in excel –
IRR = (Values, [Guess])
 Values = Positive or negative cash flows (an array of values)
 [Guess] = An assumption of what you think IRR should be

IRR Example
Here is a series of data from which we need to find IRR –

Details In US $

Initial Investment -1000

Return from 1st year 300

Return from 2nd year 400

Return from 3rd year 400

Return from 4th year 300

Find out IRR.
Solution: Here’s how we will calculate IRR in excel –

= IRR (A2:A6, 0.1)

= 15%

7. XIRR: Financial Function in Excel

Here we need to find out IRR, which has specific dates of cash flow. That’s the
only difference between IRR and XIRR. Have a look at how to calculate XIRR in
excel financial function –

XIRR = (Values, Dates, [Guess])

 Values = Positive or negative cash flows (an array of values)
 Dates = Specific dates (an array of dates)
 [Guess] = An assumption of what you think IRR should be
XIRR Example
Here is a series of data from which we need to find XIRR –

Details In US $ Dates

Initial Investment -1000 1st December 2011

Return from 1st year 300 1st January 2012

Return from 2nd year 400 1st February 2013

Return from 3rd year 400 1st March 2014

Return from 4th year 300 1st April 2015

Solution: Let’s have a look at the solution –

= XIRR (B2:B6, C2:C6, 0.1)

= 24%

8. Modified Internal Rate of Return (MIRR): Financial Function in Excel

The Modified Internal Rate of Return is one step ahead of the Internal Rate of Return. MIRR
signifies that the investment is profitable and is used in business. MIRR is calculated by
assuming NPV as zero. Here’s how to calculate MIRR in excel –

MIRR = (Values, Finance rate, Reinvestment rate)

 Values = Positive or negative cash flows (an array of values)
 Finance rate = Interest rate paid for the money used in cash flows
 Reinvestment rate = Interest rate paid for reinvestment of cash flows
MIRR Example
Here is a series of data from which we need to find MIRR –

Details In US $

Initial Investment -1000

Return from 1st year 300

Return from 2nd year 400

Return from 3rd year 400

Return from 4th year 300

Finance rate = 12%; Reinvestment rate = 10%. Find out IRR.
Solution: Let’s look at the calculation of MIRR –

= MIRR (B2:B6, 12%, 10%)

= 13%

Some common Date and Time functions in Excel:

1. Creating Dates:
 TODAY(): Returns the current date.
 NOW(): Returns the current date and time.
 DATE(year, month, day): Combines year, month, and day values to create a date.
2. Extracting Parts of Dates:
 YEAR(date): Returns the year from a date.
 MONTH(date): Returns the month number (1-12) from a date.
 DAY(date): Returns the day of the month from a date.
 WEEKDAY(date, [return_type]): Returns the day of the week as a number (1-7) or
text string.
Text Functions in Excel:
1. Joining Text:
 CONCATENATE(text1, [text2], ...): Combines multiple text strings into a single string.
 TEXTJOIN(delimiter, ignore_empty, text1, [text2], ...): Joins text strings with a
specified delimiter, optionally ignoring empty cells.

LOOKUP
Excel - Using the VLOOKUP and HLOOKUP Functions
This document explains the functions of VLOOKUP and HLOOKUP and how to use them in a
spreadsheet. It can be used in all versions of Microsoft Excel.
VLOOKUP and HLOOKUP are functions in Excel that allow you to search a table of data and
based on what the user has supplied and give appropriate information from that table.
If you have a table of Student ID numbers, Student Names and Grades, you can set up Excel
so that if a Student ID number is supplied by the user, it will look through the table and
output the student's name and grade.

VLOOKUP allows you to search a table that is set up vertically. That is, all of the data is set
up in columns and each column is responsible for one kind of data. In the Student Record
example, there would be a separate column of data for Student Names, one for Student ID
numbers, etc.

HLOOKUP is the exact same function, but looks up data that has been formatted by rows
instead of columns.

The format of the VLOOKUP function is:

VLOOKUP(lookup_value,table_array,col_index_num,range_lookup).

The lookup_value is the user input. This is the value that the function uses to search on.
The table_array is the area of cells in which the table is located. This includes not only the
column being searched on, but the data columns for which you are going to get the values
that you need.

The col_index_num is the column of data that contains the answer that you want. If your
table is set up as: column 1 - Student ID Number, column 2 - Student Names, column 3 -
Grades and you inputted a Student ID Number and you want to retrieve the grade that was
received for that person, the col_index_num would be 3. 3 is the column number of the
data column for the ANSWER that you are trying to look up.

Range_lookup is a TRUE or FALSE value. When set to TRUE, the lookup function gives the
closest match to the lookup_value without going over the lookup_value. When set to FALSE,
an exact match must be found to the lookup_value or the function will return #N/A. Note,
this requires that the column containing the lookup_value be formatted in ascending order.

To use the Function Wizard to insert a VLOOKUP function:

1. Select the cell that will contain the answer to the VLOOKUP and access the Insert
Function dialog, which depends upon the version of Excel that you are using:
o For Excel 2007 and 2010: Go to the Formula tab on the ribbon, and
choose Insert Function.
o For Excel 2003 and earlier: Select Insert -> Function...

2. Under the Function Category, choose either All or Lookup & Reference.

3. Under the Function Name, select VLOOKUP, and hit OK.

4. The Function Wizard for VLOOKUP will then display. The 4 values talked about above
(lookup_value, table_array, col_index_num, range_lookup) are required by the
function. Each line for each value required. If you put the cursor into the first line for
lookup_value, down below it explains what the lookup_value is for your reference.
Similar information is displayed when the cursor is in any of the other fields.
 5. Enter in the lookup_value either by typing in the number for the cell, or, by selecting
the cell on the worksheet.

6. Enter in the table_array by typing in the numbers for the cells, or, by selecting the
group of cells on the worksheet.

7. Enter in the number for column which contains the data that you wish to obtain in
the col_index_num area.

8. Enter into the range_lookup field the value TRUE if the function should accept the
closest value to your lookup_value without going over or FALSE if an exact match is
required.

9. Hit OK when ready.

Short Notes

Macros

 Macros are small programs or sets of instructions that automate repetitive tasks in
Excel.
 They're created using a programming language called Visual Basic for Applications
(VBA).
 Macros can record your actions in Excel and then replay them as needed.
 You can create custom macros to execute complex tasks, calculations, and
formatting that aren't easily achievable with standard formulas and functions.

Key Benefits of Using Macros:

  Automation: Save time and effort by automating repetitive tasks.
 Efficiency: Increase productivity by streamlining complex processes.
 Accuracy: Reduce errors by ensuring consistent execution of tasks.
 Customization: Create tailored solutions for specific needs.
 Enhanced Functionality: Add features and capabilities beyond Excel's built-in
functions.

How to Create a Macro:

To record a macro, do the following –

 Click the VIEW tab on the Ribbon.

 Click Macros in the Macros group.

 Select Record Macro from the dropdown list

The Record Macro dialog box appears.

 Type MyFirstMacro in the Macro name box.

 Type A Simple Macro in the Description box and click OK.

Remember that whatever key strokes and mouse clicks you do, will be recorded now.

Click in the cell B2.

 Create the table.

 Click in a different cell in the worksheet.

 Click the VIEW tab on the Ribbon.

 Click Macros.

 Select Stop Recording from the dropdown list.

Conditional Formatting

Conditional Formatting (CF) is a tool that allows you to apply formats to a cell or range of
cells, and have that formatting change depending on the value of the cell or the value of a
formula. For example, you can have a cell appear bold only when the value of the cell is
greater than 100. When the value of the cell meets the format condition, the format you
select is applied to the cell. If the value of the cell does not meet the format condition, the
cell's default formatting is used.

Benefits of Using Conditional Formatting:

 Enhanced Data Visualization: Highlight important information, outliers, and

trends, making your data more engaging and easier to understand.
 Faster Analysis: Quickly identify data points that require further investigation or
action.
 Improved Communication: Present complex data in a clear and concise
way, facilitating effective communication with colleagues or stakeholders.
 Increased Accuracy: Minimize errors by visually highlighting potential inconsistencies
or data issues.