Business Mathematics with Excel

Term 2
Excel Shortcut
Keys
Excel Shortcut
Keys
Excel Shortcut
Keys
Using calculation operators in Excel formulas
• . Excel follows general mathematical rules for calculations,
which is Parentheses, Exponents, Multiplication and Division,
and Addition and Subtraction, or the acronym PEMDAS (Please
Excuse My Dear Aunt Sally).
• Using parentheses allows you to change that calculation order.
ARITHMETIC OPERATORS
SUM Function
• To sum a range of cells, use the SUM function.
AVERAGE
• The AVERAGE function in Excel calculates the average
(arithmetic mean) of a group of numbers. The AVERAGE
function ignores logical values, empty cells and cells that
contain text.
Multiply
• To multiply numbers in Excel, use the asterisk symbol (*) or the
PRODUCT function.
MAX
• To find the maximum value in Excel, use the MAX function.
MIN
• To find the minimum value, use the MIN function.
Probability Definition in Math
• Probability is a measure of the likelihood of an event to occur.
Many events cannot be predicted with total certainty.
• We can predict only the chance of an event to occur i.e., how
likely they are going to happen, using it.
• Probability can range from 0 to 1, where 0 means the event to
be an impossible one and 1 indicates a certain event.
• Probability for Class 10 is an important topic for the students
which explains all the basic concepts of this topic.
• The probability of all the events in a sample space adds up to 1.
Probability Definition in Math
• Probability is a measure of the likelihood of an event to occur.
Many events cannot be predicted with total certainty.
• We can predict only the chance of an event to occur i.e., how
likely they are going to happen, using it.
Basic Formula for Probability

𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑓𝑎𝑣𝑜𝑢𝑟𝑎𝑏𝑙𝑒 𝑒𝑣𝑒𝑛𝑡𝑠

𝑃(𝐴) =
𝑇𝑜𝑡𝑎𝑙 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑒𝑣𝑒𝑛𝑡𝑠
Basic Problem-1
• 1. 𝐹𝑖𝑛𝑑 𝑡ℎ𝑒 𝑝𝑟𝑜𝑏𝑎𝑏𝑖𝑙𝑡𝑦 𝑜𝑓 ℎ𝑒𝑎𝑑 𝑖𝑛 𝑡ℎ𝑒 𝑡𝑜𝑠𝑠 𝑜𝑓 𝑎 𝑓𝑎𝑖𝑟 𝑐𝑜𝑖𝑛.
• Answer:
• Mutually Exclusive Events
• Exhaustive Events
• 𝑆 = 𝐻, 𝑇
1
• 𝑃 𝐻𝑒𝑎𝑑 = = 0.5
2
Basic Problem-2
• 2. 𝐹𝑖𝑛𝑑 𝑡ℎ𝑒 𝑝𝑟𝑜𝑏𝑎𝑏𝑖𝑙𝑡𝑦 𝑡ℎ𝑎𝑡 𝑎 𝑡ℎ𝑟𝑜𝑤 𝑜𝑓 𝑑𝑖𝑐𝑒 𝑟𝑒𝑠𝑢𝑙𝑡𝑠 𝑖𝑛:
• An Ace Number (1)
• An Even Number
• Multiple of 3
1
• 𝑃 𝐴𝑛 𝐴𝑐𝑒 𝑁𝑢𝑚𝑏𝑒𝑟 = = 0.167
6
• Answer: 3
• 𝑃 𝐴𝑛 𝐸𝑣𝑒𝑛 𝑁𝑢𝑚𝑏𝑒𝑟 = = 0.5
• 𝑆 = 1, 2, 3, 4, 5, 6 6
2
• 𝑃 𝑀𝑢𝑙𝑡𝑖𝑝𝑙𝑒 𝑜𝑓 3 = = 0.333
6
Additional Theorem of Probability
• Additional Theorem
𝑃 𝐴∪𝐵 =𝑃 𝐴 +𝑃 𝐵 −𝑃 𝐴∩𝐵
Additional Theorem Problem-1
• A management executive committee consists of 5 members Their profiles
are as follows:-
• 1) Male 49 years
• 2) Female 36 years
• 3) Female 26 years
• 4) Male 28 years
• 5) Male 39 years
• A chair person is to be elected for the committee among the above 5
members. What is the probability that the chair person is a female or aged
above 30years.
Additional Theorem Problem-1 - Answer
• Event A: Chairperson is Female
• Event B: Chairperson is aged above 30 years
2𝐶1 2
• 𝑃 𝐴 = =
5𝐶1 5
3𝐶1 3
• 𝑃 𝐵 = =
5𝐶1 5
1𝐶 1
• 𝑃 𝐴∩𝐵 = 1 =
5𝐶1 5
• 𝑃 𝐴∪𝐵 =𝑃 𝐴 +𝑃 𝐵 −𝑃 𝐴∩𝐵
2 3 1 4
• 𝑃 𝐴 ∪ 𝐵 = + − = = 0.8
5 5 5 5
Additional Theorem Problem-2
• In an examination 73% of the students passed in Accounts and 67% of
students passed in economics if 57% of students passed in both the
subjects. Find the probability that a student selected at random
passed in at least one of these 2 subjects.
• Event-A : Passing in Accounts
• Event-B : Passing in Economics
• 𝑃 𝐴 = 0.73
• 𝑃 𝐵 = 0.67
• 𝑃 𝐴 ∩ 𝐵 = 0.57
• 𝑃 𝐴∪𝐵 =𝑃 𝐴 +𝑃 𝐵 −𝑃 𝐴∩𝐵
• 𝑃 𝐴 ∪ 𝐵 = 0.73 + 0.67 − 0.57 = 0.83
Multiplication Theorem
• 𝑃 𝐴∩𝐵∩𝐶 =𝑃 𝐴 ×𝑃 𝐵 ×𝑃 𝐶
Multiplication Theorem Problem
• A man wants to marry a girl having qualities:
• White Complexion – the probability of getting such a girl is one
in twenty.
• Financial Well Being – the probability of getting this one in fifty
• Westernized manners and etiquettes – the probability is one in
hundred.
• Find out the probability of his getting married to such a girl when
the possession of these three attributes are independent.
Multiplication Theorem Answer
• Probability of a girl with White Complexion = 1/20 = 0.05
• Probability of a girl with Financial Well Being = 1/50 = 0.02
• Probability of a girl with Westernized manners and etiquettes =
1/100 = 0.01
• Probability of him getting married to such a girl where
possession of these three attributes are independent =
1 1 1 1
• × × = = 0.00001
20 50 100 100000
Excel
Charts

Charts are visual representations of data used to make it more

understandable.

Commonly used charts are:

• Pie chart
• Column chart
• Line chart
Creating a Chart in Excel

Step 1 Step 2 Step 3

Creating Another Chart in
Excel
Step 1

Step 2 Step 3
 Excel
Bar Charts
Charts
Pie Column Clustered
Stacked bar
chart chart bar
100% stacked
Line chart bar

Stacked Bar Column

Charts Charts
Clustered Stacked
column column
100%
Stacked
 Stacked Column Pie
Charts Charts
2-D pie Doughnut

Line Stacked Line

Charts Charts
Line with
Line
Markers
Stacked
Stacked Line
Line
with Markers
100% Stacked 100% Stacked Line with
Line Markers
 100% Stacked Radar
Line Charts
Rada Radar with
r markers
Filled
radar
Chart Customization
Customization Options
Resizing Legend Axi
Moving Charts
Charts s s
Changing The Chart Data
Grid lines
Title labels
Styling and
formatting
Excel Bar
Charts
Bar charts show the data as vertical bars.

Step 1 Step 2 Step 3

Excel Stacked Bar
Charts
Stacked bar charts are used to highlights the total amount of contribut
For each category.

Step 1 Step 2 Step 3

100% Stacked Bar
Chart
100% Stacked Bar is used to highlights the proportion of contribution
for
each data column in a category.
Step 1 Step 2 Step 3
Excel Column
Charts
Column charts show the data as vertical
bars.
Clustered Column
Chart
Clustered Column charts are used when the value of data is
important
but the order is not.
Step 1 Step 2 Step 3
Example With Two Data
Columns
Now let's do the same for generation 2 Pokemons and compare
the results with the last example.
Step 1 Step 2 Step 3
Excel Stacked Column
Charts
Stacked Column charts are used to highlights the total amount of
contribution for each category.
Step 1 Step 2 Step 3
100% Stacked Column
Chart
100% Stacked Column is used to highlights the proportion of contribu
for each data column in a category.

Step 1 Step 2 Step 3

Excel Pie
Charts
Pie charts arrange the data as slices in a circle.

Excel has two types of pie charts:

• 2-D pie ( )

• Doughnut ( )
2-D Pie
Chart
Pie charts arrange the data as slices in a
circle.
Step 1 Step 2 Step 3
Doughnut
Chart
Doughnut charts arrange the data as slices in a circle with hollow
center.
Step 1 Step 2 Step 3
Excel Line
Charts
Line charts show the data as a continuous
line.

Excel has six types of line

charts:
• Line ( )
• Line with Markers ( )
• Stacked Line ( )
• Stacked Line with Markers ( )
• 100% Stacked Line ( )
• 100% Stacked Line with Markers( )
Lin
eine charts are used for showing data ordered from low to
L
high. Step 1

Step 2 Step 3 Step 4

Line with
Markers
Line with markers highlights data points with markers on a line
chart.
Step 1 Step 2 Step 3
Excel Stacked Line
Charts
Stacked Line charts show the contribution to trends in the
data.
Step 1 Step 2 Step 3
Stacked Line with
Markers
Stacked line with markers highlights data points with markers on a
stacked
line chart.
Step 1 Step 2 Step 3
Excel 100% Stacked Line
Charts
100% Stacked Line charts show the proportion of contribution to
trends in the data.

Step 1 Step 2 Step 3

100% Stacked Line with
Markers
100% stacked line with markers highlights data points with markers
on a 100% stacked line chart.

Step 1 Step 2 Step 3

Excel Radar
Charts
Radar charts show multivariate data as values relative to a center
point.

Radar charts can only show data that can be ordered from low to high, and suited fo
showing similarities and outliers in the data.
Excel has three types of radar
charts:
•Radar ( )

•Radar with markers ( )

•Filled radar ( )
Radar
Radar charts show data as as vertices on a
polygon.
Step 1 Step 2 Step 3
Radar With Markers
Radar with Markers is similar to radar chart. The only difference is tha
the data points are highlighted with markers.

Step 1 Step 2 Step 3

Filled Radar
Filled radar is similar to radar chart. The only difference is that inside
the charts are filled with color.

Step 1 Step 2 Step 3

Radar With Markers
Radar with Markers is similar to radar chart. The only difference is that
the data points are highlighted with markers.

Step 1 Step 2 Step 3

Filled Radar
Filled radar is similar to radar chart. The only difference is that inside
the charts are filled with color.

Step 1 Step 2 Step 3

Example (The Extreme
Case)
Let's compare the stats for Bulbasaur evolutions to Ivysaur and
Venusaur.
Step 1 Step 2 Step 3
Excel Chart
Customization
Charts in Excel can be customized.
Moving Charts
Excel charts can be moved around the
spreadsheet.
Step 1 Step 2
Resizing Charts
Excel charts can be resized, Resizing will scale all the elements in the
chart except the text.
Step 1 Step 2
Changing The Chart
Title
The default chart title in Excel is "Chart Title". This is not informative.
The title should describe the chart
Step 1 Step 2 Step 3 Step 4
Customization
Options
Charts can be customized in different ways, here are some elements
you can change:
• Legends

• Axis

• Data labels

• Grid lines

• Styling and formatting

What is a Gauge
Chart?
Gauge charts, also referred to as Dial charts or Speedometer charts, use a pointer or a needle to show
information as a reading on a dial. A Gauge Chart shows the minimum, the maximum and the current value
depicting how far from the maximum you are. Alternatively, you can have two or three ranges between the
minimum and maximum values and visualize in which range the current value is falling.
Creating a Gauge
Chart

Step 1 Step 2
Creating a Simple Gauge
Chart
Step 1 Step 2

Step 3
Gauge Chart with Multiple
Ranges

Step 1 Step 2
Creating Gauge Chart with Multiple
Ranges
Step 1 Step 2 Step 3 Step 4

Step 5 Step 6 Step 7 Step 8

Step 9 Step 10 Step 11

How to Calculate Break-Even Points in
Excel?
Ms. Sujit has undertaken a project of producing two-wheeler tires for two years. She has to spend ₹150 for each tire to
make one tire. Her fixed cost per month is around ₹35,000, and another miscellaneous cost is ₹5,000 per month. She
wants to sell each tire at ₹250 per tire.

Now, she wants to know what should be per month’s production to achieve the break-even point for her business.

We need to enter all these details given above into the worksheet area from this information. Below, we have listed the
same.
To find the break-even point, Ms. Suji must put in some formula to find the total cost.

Step 1:
We should enter the formula as Total Cost = (Fixed + Other) + (Variable * Units).as Total Cost = (Fixed + Other) +
(Variable * Units).
Step 2:
To find the sales value, we must enter one more formula, i.e., Units * Sale Value.

Step 3:
Now, enter the formula for BEP, i.e., Sale Value – Total Cost.
We need to find the number of tires Ms. Suji wants to produce to zero the break-even point value.

Step 4:
We can find this by manually entering numbers in the “Units Required” cell. For example, now we will enter the value
as 200 and see what the BEP is.

We got a break-even point of -20,000. Suppose we keep entering until we get the break-even point amount as 0. It
will take a lot of time. But, we can use the “Goal Seek” tool to identify the number of units required to achieve the
break-even point.
Next, we will open the Goal Seek tool from the
DATA tab.

For the first option of Goal Seek (Set cell), choose the cell BEP cell i.e., B10.
The second option of “Goal Seek” is “To value.” We must enter zero because the “Set cell“(BEP cell) value should
equal zero, which is our goal.

The final option is “By changing cell,”i.e., by changing the cell, we want to make the BEP cell (Set cell) value zero
(To value).

So, by finding the “Units Required” cell, we need to achieve the goal of BEP = 0, so we select cell B7.
Now, click on “OK.” As a result, “Goal Seek” will calculate to set the Excel break-even point cell to
zero.

“Goal Seek” has found the “Units Required” to get the “BEP” as zero. So, Ms. Suji must produce 400 tires in a month
to achieve the Break-Even Point
.

Say thanks to “Goal Seek” Ms. Sujit!!!!

Example
#2
Mr. Suji must know what units are needed for the different variable costs per unit. For this, we must create a table
like the one below.

For E3 cells, give a link to the BEP cell and B10 cell.
Now, we must select the newly created table, as shown
below.

We will go to the “DATA” tab” What-If-Analysis in excel >>> Data Table.

Now, we can see the below option.

For the “Row input cell,” we must choose the ” Variable Cost Per Unit
cell i.e., B4 cell.

We have selected the B4 cell because we have put different “Variable Cost Per Unit” row-wise in the newly created
table. Accordingly, we have chosen the “Variable Cost Per Unit” as the “Row input cell.”
For the “Column input cell,” we must choose the “Units Required” cell because unit data are shown in columns in
the newly created table.

Click on Ok; we may get the data table in Excel like the below one.

So, now we will look at the green-colored cells in the table. For example, if the variable cost per unit is 144, Ms. Suji
must produce 380 tires monthly. Similarly, if the price is 150, she must make 400 tires. Finally, if the cost price is 155,
then she must produce 422 tires in a month to achieve BEP.