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Data Analytics Using Microsoft Excel

The document is a textbook titled 'Data Analytics Using Microsoft® Excel®: With Accounting and Finance Datasets' by Joseph M. Manzo, published by FlatWorld in 2020. It covers various aspects of data analytics using Excel, including techniques, mathematical outputs, scenario and exception analytics, and data visualization. The book is structured into chapters that provide practical applications and assignments to enhance learning.

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Data Analytics Using Microsoft Excel

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Data Analytics Using Microsoft®

Excel®
With Accounting and Finance Datasets
Version 2.0
Joseph M. Manzo

978-1-4533-9521-9

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Data Analytics Using Microsoft® Excel®: With Accounting and
Finance Datasets
Version 2.0
Joseph M. Manzo

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© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Brief Contents

About the Author

Acknowledgments
Dedication
Preface
Chapter 1 Introduction to Data Analytics and Microsoft Excel 2016
Chapter 2 Essential Skills for Basic Data Analytics Projects
Chapter 3 Data Analytics Techniques for Basic Projects
Chapter 4 Using Mathematical Outputs for Analytics
Chapter 5 Scenario Analytics
Chapter 6 Exception Analytics
Chapter 7 Summarizing Exception Analytics
Chapter 8 Working with Big Datasets Case: Investigating Fraud
Chapter 9 Charts for Presentations and Data Visualization
Index

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Contents

About the Author 1

Acknowledgments 3

Dedication 5

Preface 7

Chapter 1 Introduction to Data Analytics and Microsoft Excel 2016 9

1.1 A Working Model for Data Analytics 9

What Is Data Design? 10
The DATA Analytics Framework 11
Conducting a Data Audit 12
Establishing Data Internal Controls 12
The Data Analytics Model 13
Limitations of Data Analytics 13
1.2 A Review of Excel 2016 14
Launching Microsoft Excel 2016 15
The Excel Workbook 18
Navigating Excel Worksheets 19
The Excel Ribbon 20
Quick Access Toolbar and Right-Click Menu 21
The Backstage View 23
Saving Workbooks (Save As) 25
Saving and Sharing Workbooks in the Cloud 26
Worksheet Headers and Footers 31
Page Layout for Printing Worksheets 33
Printing Worksheets 35
Excel Help 35
Keyboard Only Commands 36
1.3 Chapter Assignments and Tests 38

Chapter 2 Essential Skills for Basic Data Analytics Projects 43

2.1 Entering and Managing Data 43

Basic Data Audit 44
Entering Data 46
Cut, Copy, and Paste 47
Auto Fill 48
Moving Data 50
Deleting Data and the Undo Command 51
Editing Data 53

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Hiding Columns and Rows 54
Inserting Columns and Rows 57
Deleting Columns and Rows 58
Adjusting Columns and Rows 60
Inserting and Deleting Worksheets 63
2.2 Formatting Worksheets 67
Wrap Text 68
Center Alignment 69
Merge Cells 70
Entering Multiple Lines of Text 72
Formatting Data and Cells 73
Borders (Adding Lines to a Worksheet) 77
Formatting Worksheet Tabs 80
2.3 Chapter Assignments and Tests 83

Chapter 3 Data Analytics Techniques for Basic Projects 91

3.1 Introduction to Data Visualization 91

The Treemap Chart 92
Changing the Title of a Chart 94
The Chart Sheet 95
Sorting Data (Single Level) 97
Sorting Data (Multi-Level) 101
3.2 Introduction to PivotTables and PivotCharts 103
Creating a PivotTable 104
Sorting a PivotTable 107
Formatting a PivotTable 110
Creating a PivotChart 115
Moving and Resizing Charts 117
Adding a PivotChart Filter 118
Basic Data Internal Controls 120
3.3 Chapter Assignments and Test 122

Chapter 4 Using Mathematical Outputs for Analytics 131

4.1 Formulas 131

Freeze Panes 132
Cell References 134
Relative References 136
Formulas 137
Paste Formulas 139
Complex Formulas 142
Auditing Formulas 144
4.2 Basic Statistics Functions 147
SUM Function 148
Absolute References 151
AVERAGE Function 155
MAX and MIN Functions 158
COUNTA and COUNT Functions 162

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Conditional Formats for Data Visualization 164
Conditional Formats for Data Internal Controls 168
4.3 Chapter Assignments and Test 174

Chapter 5 Scenario Analytics 185

5.1 Loan and Lease Scenarios 185

Loan Concepts and Terms 186
PMT Function for Loans 187
Referencing Data Between Worksheets 195
Dates and EOMONTH (End of Month) Function 197
The YEAR Function 201
The TEXT Function 202
Data Audit for Loan Amortization Schedule 205
PMT Function for Leases 208
Worksheet Protection for Data Internal Control 211
5.2 Investment Scenarios 217
Time Value of Money Terms and Concepts 217
The FV (Future Value) Function 219
Evaluating Scenarios with Goal Seek 224
The PV (Present Value) Function 227
5.3 Chapter Assignments and Test 232

Chapter 6 Exception Analytics 245

6.1 Logical Functions 245

Adding Capacity to Functions 246
The Logical Test 248
IF Function 250
Nested IF Function 254
The AND Function 257
The OR Function 262
6.2 Lookup Functions 266
VLOOKUP Function 266
HLOOKUP Function 273
Data Visualization for Exception Analytics 278
Data Internal Controls Using the ISBLANK and IF Functions 281
6.3 Chapter Assignments and Test 285

Chapter 7 Summarizing Exception Analytics 293

7.1 Statistical IF Functions 293

The COUNTIF Function 294
The AVERAGEIF Function 297
The SUMIF Function 299

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
7.2 Statistical IFS Functions 305
The COUNTIFS Function 306
The AVERAGEIFS Function 311
The SUMIFS Function 314
The CONCATENATE Function 319
7.3 Chapter Assignments and Test 321

Chapter 8 Working with Big Datasets Case: Investigating Fraud 329

8.1 Using the DATA Analytics Framework 329

Case: Investigating Fraud 329
Assessing the Case 330
8.2 Data Audit Using PivotTables 332
Navigating Big Datasets with the Keyboard 333
PivotTables for Basic Data Audits 335
PivotTable Outputs 337
PivotTable Filters 341
PivotTable Calculated Fields 348
8.3 Analyzing the Data 352
RIGHT Text Function 353
WEEKNUM Function 355
Using the IF Function to Eliminate Repeating Values 357
The ABS (Absolute Value) Function 360
The ISERROR Function 362
Solving the Case 363
8.4 Summarizing Big Datasets in Custom Reports 370
Excel Spell Check 370
Adding Comments to Cell Locations 373
Using Functions with Big Datasets 375
Selecting Data with Statistical IF and IFS Functions 376
Mixed References 381
8.5 Establishing Data Internal Controls 385
READ ME Worksheet 386
Setting Capacity Alerts 388
Worksheet Protection 390
8.6 Chapter Assignments and Test 391

Chapter 9 Charts for Presentations and Data Visualization 397

9.1 Chart Types 397

Line Charts for Time Series Trends 398
Adjusting the Y Axis Scale 402
Line Charts for Trend Comparisons 404
Pie Charts for Percent of Totals 406
Stacked Column Chart for Percent of Total Trends 411
Adding Series Lines and Annotations 414
Column Charts for Frequency Distributions 420
Frequency Comparison: Controlling Values Assigned to X and Y Axes 422

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
9.2 Formatting Enhancements for Charts 429
Formatting the X and Y Axis Values 429
Formatting the Chart Legends and Titles 431
Adding X and Y Axis Titles 434
Data Series Formats and Labels 437
Visual Enhancements for the Plot and Chart Areas 440
9.3 Using Charts in PowerPoint and Word 443
Creating a Chart Link Between Excel and Powerpoint 443
Pasting a Chart Image into Word 446
9.4 The Scatter Chart and Motion Data Visualization 450
Scatter Chart for Supply and Demand 450
Changing the Scale of the X and Y Axes 456
Adding a Trendline and Equation 459
9.5 Chapter Assignments and Test 463

Index 471

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
About the Author

Joseph M. Manzo
Joseph M. Manzo (CMA and MBA Lehigh University) is a Professor of Practice in
Accounting at Lehigh University’s College of Business. He started teaching at
Lehigh in fall 2002 where he developed and ran the Microsoft Excel Competency
program for all first year business students. He went on to teach several courses
in both the undergraduate and graduate programs in the College of Business and
since 2010 has taught Introduction to Financial Accounting and Introduction to
Managerial Accounting. In addition to teaching, he is a former director of the
Rauch Center for Business Communications and also former acting Associate
Dean and Director of Undergraduate Programs for the College of Business. Prior
to Lehigh, Professor Manzo worked in apparel manufacturing, retail, and wealth
management industries. His industry practice had a heavy emphasis on data
analytics and corporate strategic planning. He has written several textbooks
addressing practical applications for Microsoft Office that teach students how to
use such applications for professional and personal needs.

This book would not have been possible without the support of Lindsey Kaetzel. Her outstanding
project management skills are extremely appreciated in helping me stay on track and finish my
largest work in 12 years.
I would also like to thank Sean Wakely for his work and enthusiastic support in getting this
project started. I have enjoyed our many strategic conversations. Additionally, a sincere thank you
to my assistant Dylan Condon. I appreciate his outstanding work ethic and reliability throughout
the 2019–20 academic year.
Finally, I would like to thank my wife, Julie, and my children Isaac and Stella. I am extremely
lucky to have such a wonderful, fun, and supportive family.
I would also like to thank the following reviewers whose comprehensive feedback and sugges-
tions for improving the material helped make this a better textbook:
• Lynn D. Blankenship, University of Tennessee Chattanooga
• Ling Zhu, Long Island University Post Campus
• Wiley Allen White, Bacone College
• Terri L. Holly, Indian River State College
• Linda Kropp, Prof. of Accounting and Computers, Modesto Junior College
• David C. Kimball, Elms College
Thanks also to the reviewers of the previous version of this textbook.
• Steve Borga, Ohio State University, Lima Campus
• Paul Dominguez, Long Island University, C.W. Post Campus
• Richard W. Evans, Rhode Island College
• David Eve, Massachusetts College of Liberal Arts
• Jane Hammer, Valley City State University
• Heith Hennel, Valencia Community College
• Irene Joos, La Roche College
• Linda Lau, Longwood University
• Audrey Lawrence, Palm Beach State College
• Frederick Lawrence, Queens College, The City University of New York
• Steven Leventhal, Queens College, The City University of New York
• Charles Lundin, Richland College
• Orin Marvin, John Carroll University
• Stephen Pomeroy, Norwich University
• Leonard Presby, William Paterson University
• Leslie Rist, Ed.D, Lewis-Clark State College
• Jeffrey Rufinus, Widener University
• Elaine Stredney, Kent State University
• Priscilla Truesdell, Palo Alto College

For my children Isaac and Stella

With hard work and passion, anything is possible

Data Analytics Using Microsoft Excel provides students with a strong foundation of skills that are
needed to become proficient in data analytics. Microsoft Excel is the ideal platform for students
who are in the early stages of learning the fundamentals of data analytics. The ability to visually
observe the architecture of several datasets in Excel is a great advantage when learning how to
use data analytics techniques to produce solutions for both professional and personal projects.
Having an understanding and the ability to visualize a variety of data architectures is vital for stu-
dents who intend to go on to study other data analytics platforms beyond Excel. Extensive datasets
included in the book are drawn from accounting and finance scenarios and provide students with
a basis for conceptualizing and designing data analytics projects with the highest level of integrity.
As a result, this textbook is suitable as either a core text for using Excel in an introductory data
analytics course or as a supplement to many basic through intermediate accounting or finance
courses. This textbook may also be assigned to students who need exposure or a refresher on how
to use the Excel application in general. This clear, easy-to follow text prepares students to master
advanced Excel skills and places a heavy emphasis on how to efficiently navigate big datasets by
using the keyboard to access commands during the design process. In addition, data visualization
is presented throughout the textbook as a powerful data analytics technique as well as a method
for communicating data using a variety of charts. Author-narrated videos embedded throughout
the digital reader explain concepts and operations, adding an engaging audio and visual richness to
the written explanations and exercises.
Key features include:
• Early chapters explain how to conceptualize, design, and maintain the integrity of data analyt-
ics projects in any context, not just finance or accounting.
• Compatible with general technology courses that are not content specific.
• Can be used stand-alone or as a supplemental resource depending on the context.
• Datasets and projects are compatible with many accounting and finance courses, but can also
support an interdisciplinary focus.
• Clearly and simply walks students through core concepts. No prior accounting or finance
coursework is required.
• Provides students with a framework and model for conducting data analytics projects in any
platform, not just Excel.

What’s New in Version 2.0?

• Updated to align with Excel 2016.
• Expanded to nine chapters in length due to expanded coverage of data analytics and new
datasets.
• Over twenty new Excel skills and features covered.
• New skills and features include:
• PivotTables and PivotCharts
• Chart Filters
• Dates and Date Functions

• IS Functions
• Conditional Formatting: Color Scales
• Conditional Formatting: Icon Sets
• Worksheet Protection
• Author-generated instructional videos have all been re-recorded from scratch with new
screenshots and voice overs.
• New framework and model for conducting data analytics projects using any platform is pre-
sented and applied throughout the textbook.
• The concept of data visualization as a data analytics technique and way of presenting data is
reinforced throughout the textbook.
• Capstone chapter where students investigate a fraud case by analyzing over 30,000 rows of
data.

Supplements
• Test Item Files: Each comprehensive Test Item File includes several multiple-choice and short
answer questions. The items have been written specifically to reinforce the major chapter top-
ics.
• FlatWorld Homework: Provided in an easy-to-use interface, homework for this title includes
multiple choice and fill-in-the-blank question types which are all auto-gradable. Students who
complete these questions with success should see their performance transfer to examinations
that are given using the Test Item File questions provided to adopters of this textbook.
• Online Quizzes: Carefully written quiz questions are available by section and by chapter in the
online eBook. Students can test themselves on their comprehension as they move through the
textbook or once they have completed a chapter.
• Instructor’s Manual: This component includes an outline that reviews the major points of the
textbook.
• PowerPoint Slides: These slides provide a concise outline for the chapter and include key terms.
Instructors can use the slides as composed to support lectures or augment and customize
them to suit their particular needs and interests.
• Other Supplements: All of the Text Files that students will need to use as follow along files and
the End of Chapter solutions are also included as supplemental material.

Introduction to Data Analytics

and Microsoft Excel 2016

Data analytics skills are highly valued in many professional environments. Put simply, data
data analytics
analytics is the ability to analyze data to produce information that can be used to make decisions.
A comprehensive process
While there are many tools that can be used to analyze data, Microsoft Excel is perhaps the most to analyze data and
common. Having the ability to use Excel is a tremendous asset for anyone seeking employment or produce outputs that can
looking to advance to higher positions in a variety of careers. In addition to its value in professional inform decision making.
environments, Excel also provides significant personal value. From managing simple household
budgets to complex investment portfolios, Excel can provide the same analytical powers used by
professionals for personal needs. The purpose of this chapter is to develop a working model for data
analytics and to provide an overview of Microsoft Excel 2016.

1.1 A Working Model for Data

Analytics

Learning Objectives

1. Establish the relationship between data design and data analytics.

2. Define the DATA Analytics Framework.
3. Identify the role of data audits when using an existing dataset or spreadsheet.
4. Define the concept of data internal controls for shared spreadsheets.
5. Review the complete Data Analytics Model.
6. Highlight the limitations of data analytics.

Excel is perhaps the most widely used analytics and decision making tool for both professional
and personal tasks. A critical success factor for getting the best results from Excel is to establish a
working model for data analytics that can be used for any project. Data analytics is not just about
crunching numbers. It is a comprehensive process that can change the way you think about deci-
sions in both professional and personal situations. The Data Analytics Model shown in this chapter
will establish a process that will be used throughout the textbook.

What Is Data Design?

Follow Along File: None
data design For the purposes of this textbook, data design will address the data you have and how it is
The data that exists in a arranged in a spreadsheet. The design of a spreadsheet will have significant ramifications for com-
spreadsheet and the way pleting any analytics project using Microsoft Excel. There are many benefits for storing data in an
in which the data is electronic format, many of which will be explored in this textbook. However, it is important to
arranged.
understand that the way in which this data is entered into a spreadsheet will dictate what analyti-
data presentation cal tasks you can perform. This is not to be confused with data presentation. Data presentation is
the way in which data is presented or visualized to an audience to explain circumstances and deci-
The way in which data is
presented or visualized to sions in professional settings. Data presentation and visualization will be explored later in the
an audience to explain textbook. To illustrate the importance of data design, Figure 1.1 shows a simple spreadsheet that
circumstances and
could be used to analyze sales data for a small company. Suppose an analyst using this data has the
decisions in professional
settings. following goals:
1. Evaluate at least two or more years of sales data to decide when the company might need to
borrow money from a bank.
2. Decide if the company has sufficient inventory depending on sales trends.

FIGURE 1.1 Data Design Example

The Data Design Example shows that data and how the data is arranged can hinder the ability
to accomplish the goals identified for this project. For example, the first goal states that the analyst
would like to analyze at least two or more years of data. For this project, the analyst will likely accu-
mulate data in a spreadsheet for a few years. Placing the Totals row (Row 15) at the bottom of the
dataset is an inconvenient choice because blank rows will have to be added above this row when
new data is added to the spreadsheet. In addition, as more data is added, you will have to scroll
down to the bottom of the spreadsheet to see the totals, which is also inconvenient. Placing a Totals

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 1 Introduction to Data Analytics and Microsoft Excel 2016 11

row above the dataset would be a better choice. Also, notice that there is no column to designate the
year for each month. This column would have to be added to the spreadsheet if more than one year
of data is going to be analyzed. Finally, the second goal states that the analyst will need to evaluate
the inventory needs of the company. However, there is no inventory data in the spreadsheet. This
data will need to be added in order to complete the project.

The DATA Analytics Framework

Follow Along File: None
When using Excel to work on a data analytics project, there are many data design choices that
have to be made. Establishing an analytics framework for a project will help you make these design
choices and ultimately help produce the best possible outputs in Excel. While there are many views
as to what steps should be taken to conduct an effective data analytics project, this textbook will
simplify the process into four steps which spell the acronym DATA. Each step of the DATA Analyt-
ics Framework is explained below.
1. Decisions: What decisions do you intend to make as a result of the analytical outputs? Depend-
ing on the project, whether personal or professional, certain decisions need to be made. For
example, in a professional situation you may have to decide how much inventory to purchase,
how many people to hire, or how much money needs to be raised to start a new company. In
personal situations you might want to know how to improve your personal spending habits, or
how much money is needed to buy a house. However, not every project will result in a concrete
decision. For some projects, the decision may be to conduct more research or analysis based on
a discovery that was revealed by the analysis.
2. Acquisition: What data must be acquired to inform the decisions you plan to make? Once you
know what decisions you are trying to make, you will have a better idea of the data that is
required to inform these decisions. For example, if you are trying to decide how to decrease
personal spending, you might need to collect all the key items that you spend money on such
as rent, utility bills, food bills, etc. In the Data Design Example (Figure 1.1), the analyst needed to
decide if the company was maintaining the proper amount of inventory. Therefore, inventory
data for the company must be acquired.
3. Time: Over what period of time do you intend to collect and analyze data to support your deci-
sion? The purpose of this step is to determine the amount of data that will be required for a
project over a certain period of time. As in the Data Design Example, if the analyst is intending
to study a few years of sales and inventory data, the spreadsheet should be designed so that it
is convenient to add new rows of data. Totals and summaries of the data could be placed above
the dataset or in an entirely new spreadsheet.
4. Analysis: How will you analyze the data? This is perhaps the most complex component of the
framework. This will require additional project specific questions to be asked. For example, in
the case of a personal budget you might ask “Am I spending too much money on restaurants?”
or “How much money do I spend a month?” These questions can lead to a few analytical possi-
bilities. Each month we could analyze how much money is spent on restaurants as a percent to
total spending for the month. We might also look at how much money is spent on restaurants
for the year and see what months make up the highest percentage of the annual spend for this
category. This step of the framework helps to identify calculations and analytical processes
that need to be conducted to produce the most relevant outputs that can inform the decisions
being made.
The DATA Analytics Framework will serve as the central component of the overall Data Ana-
lytics Model and should be used at the very beginning of a project. A summary of the framework is
shown in Table 1.1.

TABLE 1.1 DATA Analytics Framework Summary

DATA Analytics Framework

1. Decision: What decisions need to be made?
2. Acquisition: What data must be acquired?
3. Time: Over what time period, or how long will data be collected?
4. Analysis: How should the data be analyzed?

Conducting a Data Audit

Follow Along File: None
data audit The use of the DATA Analytics Framework is relevant for projects that are started from a blank
The process of evaluating spreadsheet and when working with spreadsheets that are already created. Professionals often
the design, scope, and begin a data analytics project with a dataset that has been given to them on a spreadsheet. The
integrity of a dataset to DATA Analytics Framework is especially valuable when working with existing spreadsheets as it
ensure reliable outputs can
be produced to inform provides the necessary guidelines to conduct a data audit. A data audit uses the DATA Analytics
decisions. Framework to evaluate the data and the data design of an existing spreadsheet to determine if the
data can be used to accomplish the goals of an analytics project. Data audits also verify the scope
of the data in a spreadsheet and its integrity to produce reliable outputs. Data audits are especially
critical when working with big datasets as it is not possible to visually inspect the data for errors.

Integrity Check

Data Audit
It is critical to conduct a data audit on any existing spreadsheet you did not create or on any
dataset that is provided to you. The DATA Analytics Framework should be used to guide the data
audit to verify the scope and validity of the dataset before conducting any analytics project. Fail-
ure to conduct a data audit may result in erroneous outputs and poor decisions.

Establishing Data Internal Controls

Follow Along File: None
data internal controls It is common for professionals to create Excel spreadsheets that will be used by other cowork-
Instructions and features ers. In fact, several professionals may contribute to and use the same Excel workbook using the
added to a spreadsheet OneDrive cloud network featured on Microsoft Excel 2016. While this creates a very efficient way to
that decreases or build comprehensive datasets that can provide significant decision making benefits, it can also lead
eliminates the risk of an
analysis becoming corrupt to errors and possible data corruption. When you create a spreadsheet for an analytics project, you
or distorted by errors will know what can and cannot be done with the data. If you do not have a way of communicating
incurred by other users of these potential pitfalls to your coworkers, you increase the risk of your analysis producing erro-
a shared spreadsheet.
neous outputs. Placing data internal controls into a spreadsheet decreases or eliminates the risk
of your analysis becoming corrupt or distorted when other people use your spreadsheet. The DATA
Analytics Framework should be used to identify what data internal controls are needed in your
spreadsheet. The fourth step of the framework helps you identify how data should be analyzed to
produce the outputs required for making decisions. The conditions that exist in each project pro-

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 1 Introduction to Data Analytics and Microsoft Excel 2016 13

vides guidance as to what data internal controls should be in place to prevent another person from
distorting or corrupting the outputs in your spreadsheet.
There are many tools that Excel provides that can serve as effective internal controls. For
example, if a project contains many complex calculations that should not be tampered with, those
cells can be password protected. If necessary, entire Excel worksheets or workbooks can be pass-
word protected. Some data internal controls can be as simple as typing instructions or warnings
at the top of a spreadsheet. These data internal controls, as well as several others, will be explored
throughout this textbook.

The Data Analytics Model

Follow Along File: None
The four components of the working model for data analytics that have been defined are the
DATA Analytics Framework, data audit, data design, and data internal controls. The DATA Analyt-
ics Framework can be viewed as the engine that provides guidance as to how a data audit should
be conducted, how a spreadsheet should be designed, and what data internal controls should be
established. The diagram below provides a visual depiction as to how the DATA Analytics Frame-
work informs these three components of the Data Analytics Model.

FIGURE 1.2 Data Analytics Model Diagram

Limitations of Data Analytics

Follow Along File: None
While data analytics can be a powerful tool when making professional or personal decisions, it predictive analytics
is not a perfect system. The analysis and corresponding decisions you make are only as good as the Using data analytics to
data you have. If there are problems with the validity or accuracy of the data used in a project, the predict what might happen
outputs will not be effective in making good decisions. Another limitation is that data is always in the future.

changing and therefore difficult to predict. For example, we don’t know what the price of a certain
stock will be tomorrow, next week, next month, etc. The same goes for sales in any given company.

Data analytics can help us make good guesses as to what we think the data might be in the future,
but we will not know for sure until the data becomes a historical record. Most data analytics
projects begin with data that occurred in the past. It is this past data that can help us predict
the future. This is often referred to as predictive analytics. If the data used for a certain project
is mostly consistent over a long period of time, the results of predictive analytics can be very
reliable. However, data that drastically changes over time can completely change the results of a
project that are used to make decisions. It is these extreme changes that are very difficult to pre-
dict. However, we can still evaluate these potential changes by conducting “what-if” analyses. For
example, someone analyzing a stock portfolio might conduct a scenario analysis to see how much
money would be lost if a stock were to fall 20%, or 50%. The results of this analysis may not help to
understand if a particular stock is in fact going to drop a significant amount, but could establish a
risk profile that could lead to other decisions being made to minimize losses in case that scenario
were to occur. Even though there are limitations as to the predictive powers of data analytics, it can
still produce valuable information that can help you make good decisions.

Key Takeaways

• The data you have and the way it is arranged is critical to successfully completing an analyt-
ics project.
• There are four steps to the DATA Analytics Framework that should be used prior to each
project: What decisions do you need to make, what data do you need, how long will you
analyze the data, and how will the data be analyzed?
• The DATA Analytics Framework is the central component of the data analytics working model
and informs data design, data audits, and data internal controls.
• You should always conduct a data audit on a spreadsheet that you are using but did not
create or on a dataset that has been provided to you.
• To prevent corruption to your data or analysis, data internal controls should be added to your
spreadsheet if it is going to be shared with other people.
• Data analytics is limited in predicting drastic changes that might happen in the future.
• Exercises such as “what-if” scenarios can be used to understand risks that might occur if
drastic changes occur to the data you are analyzing.

1.2 A Review of Excel 2016

Learning Objectives

1. Learn how to launch Microsoft Excel 2016 and open a new workbook.
2. Become familiar with the Excel workbook and worksheets.
3. Learn how to navigate worksheets.
4. Understand the use of keyboard shortcuts and Key Tips.
5. Define cell addresses and cell ranges.
6. Review the Excel Ribbon.
7. Become familiar with the Quick Access Toolbar and Right-Click Menu.
8. Examine the Backstage View and software default settings.
9. Learn how to save workbooks on your computer.
10. Learn how to save and share workbooks on the OneDrive cloud.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 1 Introduction to Data Analytics and Microsoft Excel 2016 15

11. Learn how to add headers and footers to a printed worksheet.

12. Review Page Layout commands to prepare a worksheet for printing.
13. Become familiar with Excel help features.

This section will introduce and review the features of Microsoft Excel 2016. These skills are neces-
sary to begin working in Excel whether you are staring a project from scratch or working with an
existing Excel file. This section will also cover features for storing and sharing Excel workbooks on
the cloud.

Launching Microsoft Excel 2016

Follow Along File: None
There are a few different ways in which you can launch Microsoft Office Excel 2016 on your PC.
The following demonstrates three ways in which Excel can be launched. Any program that is cur-
rently open on your PC should be closed or minimized. You should be able to see your desktop in
its entirety before starting.
1. Click the Start button on the lower left corner of your computer screen.
2. Click and drag the scroll bar down until the Excel icon is visible as shown in Figure 1.3. The pro-
grams are listed in alphabetical order, so you will have to scroll down to the letter E.

FIGURE 1.3 Start Menu in Microsoft Windows 10

3. Click the Excel 2016 icon from the list of programs on the Start Menu. This will launch Excel.
4. Excel 2016 can also be launched by clicking the Excel icon pinned to the Start Menu. To pin
Excel to the Start Menu, right click the Excel icon on the programs list as shown in Figure 1.4.
Select the Pin to Start option from the Right-Click Menu.

FIGURE 1.4 Pinning Excel to the Start Menu

Once Excel is pinned to the Start Menu, you can launch it by clicking the icon as shown in Fig-
ure 1.5.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 1 Introduction to Data Analytics and Microsoft Excel 2016 17

FIGURE 1.5 Launching Excel from Pinned Icon on Start Menu

5. You can also launch Excel by double clicking the shortcut icon on your desktop as shown in
Figure 1.6. If you have an Excel shortcut, you can launch Excel right from your desktop. To add
an Excel shortcut to your desktop, click and drag the Excel icon shown in Figure 1.5 or Figure
1.4 onto your desktop.

FIGURE 1.6 Launching Excel from the Desktop Shortcut

The Excel Workbook

Follow Along File: None
Once Excel is launched, you will see the Excel Start screen as shown in Figure 1.7. Click the
blank workbook option and a blank workbook will be opened on your screen.

FIGURE 1.7 The Excel Start Screen

A workbook is an Excel file that contains one or more worksheets (also referred to as spread-
workbook
sheets). Excel will assign a file name to the workbook, such as Book1, Book2, Book3, and so on,
An Excel file that contains
one or more worksheets. depending on how many new workbooks are opened. Figure 1.8 shows the appearance of a blank
workbook.

FIGURE 1.8 Blank Worksheet in a New Excel Workbook

When a new Excel workbook is opened it will contain one worksheet as shown in Figure 1.8.
worksheets
Worksheets are used for storing and analyzing data. Additional worksheets can be added to a
May also be referred to as
a spreadsheet and workbook by clicking the plus sign next to the worksheet tab as shown in Figure 1.8.
contains several rectangles
called cells for entering
numeric and non-numeric
data.

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Chapter 1 Introduction to Data Analytics and Microsoft Excel 2016 19

Navigating Excel Worksheets

Follow Along File: None
Data that is entered into an Excel worksheet can be analyzed to produce the outputs necessary cell
for making decisions. Each rectangle on an Excel worksheet is called a cell and can be used for Specific location on a
entering data or showing a variety of outputs. Each cell in a worksheet is assigned a cell address worksheet where data is
which is defined by a column letter and row number. For example, the cell that is currently acti- entered and stored.

vated in Figure 1.8 is A1. This would be referred to as cell location A1, or if used in a formula for
cell address
producing computational outputs, cell reference A1. The following steps provide additional meth-
A column letter followed by
ods and techniques for navigating worksheets.
a row number used to
1. To activate cell E6, move the mouse pointer to column E row 6 and click. When the mouse identify specific cells on a
worksheet. Also referred to
pointer is moved over the cells in a worksheet, the arrow will change to a white plus sign. as the cell location.
2. To verify that a cell is activated, you will see a dark green bold outline around the cell. You
should also see the column letter and row number slightly darkened in gray as shown in Figure cell reference
1.9. When cell locations are
used in formulas, Excel will
reference the data that is
FIGURE 1.9 Activating a Cell Location entered into the cell.

3. Move the mouse pointer over to cell A1.

cell range
4. Click and hold the left mouse button and drag the mouse pointer back to cell E6. Any group of contiguous
5. Release the left mouse button. You should see several cells highlighted, as shown in Figure 1.10. cell locations; a cell range
is noted as two cell
This is referred to as a cell range and is documented as follows: A1:E6. Any two cell locations locations separated by a
separated by a colon is known as a cell range and it represents a group of contiguous cells in a colon.
worksheet. The first cell is the top left corner of the range and the second cell is the lower right
corner of the range.

FIGURE 1.10 Highlighting a Range of Cells

6. Click the plus sign at the bottom of the workbook next to the Sheet1 worksheet tab. This will
add a new worksheet to the workbook.
7. Click the Sheet1 worksheet tab at the bottom of the worksheet to return to the original work-
sheet.

The Excel Ribbon

Follow Along File: None
Ribbon Excel’s features and commands can all be found in the Ribbon, which is the upper area of the
The upper area of the Excel screen with several tabs running across the top. Each tab provides access to a different set of
Excel screen that contains Excel commands. Figure 1.11 shows the commands available in the Home tab of the Ribbon.
several tabs running
across the top. Each tab
provides access to a FIGURE 1.11 The Home Tab of the Excel Ribbon
different set of Excel
commands.

The Ribbon shown in Figure 1.11 is on the Show Tabs and Commands setting. The benefit of
having the Ribbon in this setting is that the commands are always visible while you are developing
a worksheet. However, depending on the screen dimensions of your computer, you may find that
the Ribbon takes up too much vertical space on your worksheet. If this is the case, you can click the
button shown in Figure 1.11 labeled Ribbon Display Options. This will open a menu of three display
options for the Ribbon. As mentioned, the Ribbon will already be on the Show Tabs and Commands

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 1 Introduction to Data Analytics and Microsoft Excel 2016 21

setting. You can change this to Auto-hide Ribbon or Show Tabs. The Auto-hide will hide the Ribbon
completely. In this setting, you must click at the very top of the workbook to reopen the Ribbon.
Once you click back onto a cell in the worksheet, the Ribbon will be hidden again. The Show Tabs
option will hide all of the commands and just show the tabs of the Ribbon. When a tab is clicked,
the commands for that tab will be displayed. When you click back to a cell on the worksheet, the
commands will be hidden again.
Table 1.2 provides a brief description of the commands that can be found in each of the Ribbon
tabs.

TABLE 1.2 Command Overview for Each Tab of the Ribbon

Tab Description of Commands

Name

File Also known as the Backstage View of the Excel workbook. Contains all commands for
opening, closing, saving, and creating new Excel workbooks. Includes print commands,
document properties, emailing options, and help features. The default settings and
options are also found in this tab.

Home Contains the most frequently used Excel commands. Formatting commands are found in
this tab along with cut, copy, paste, and inserting and deleting rows and columns.

Insert Used when inserting objects such as charts, pictures, shapes, PivotTables, Internet links,
symbols, or text boxes.

Page Contains commands used to prepare a worksheet for printing. Also includes commands
Layout used to show and print the gridlines on a worksheet.

Formulas Includes commands for adding mathematical functions to a worksheet. Also contains
tools for auditing mathematical formulas.

Data Used when working with external data sources such as Microsoft Access, text files, or
the Internet. Also contains sorting commands and access to scenario tools.

Review Includes Spelling and Track Changes features. Also contains protection features to
password protect worksheets or workbooks.

View Used for adjusting the visual appearance of a workbook. Common commands include
the Zoom and Page Layout view.

Developer Contains features that allow you to record and write Visual Basic macros. Can also add
active objects to your worksheet such as list boxes and option buttons.

Quick Access Toolbar and Right-Click Menu

Follow Along File: None
The Quick Access Toolbar is found at the upper left side of the Excel screen above the Ribbon, Quick Access
as shown in Figure 1.12. This area provides access to the most frequently used commands such as Toolbar
Save and Undo. You also have the ability to customize the Quick Access Toolbar by adding com- Found at the upper left
mands that you use on a regular basis. By placing these commands in the Quick Access Toolbar, side of the Excel screen
above the Ribbon which
you do not have to navigate through the Ribbon to find a command. To customize the Quick Access provides access to
Toolbar, click the down arrow, as shown in Figure 1.12. This will open a menu of commands that you frequently used
can add to the Quick Access Toolbar. If you do not see the command you are looking for on the list, commands.
select the More Commands option.

FIGURE 1.12 Customizing the Quick Access Toolbar

In addition to the Ribbon and Quick Access Toolbar, you can also access commands by right
clicking anywhere on the worksheet. Figure 1.13 shows an example of the commands available in
the Right-Click Menu.

FIGURE 1.13 Right-Click Menu

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Chapter 1 Introduction to Data Analytics and Microsoft Excel 2016 23

The Backstage View

Follow Along File: None
The Backstage View contains a variety of commands that include saving and renaming work-
books, opening existing workbooks, starting new workbooks, printing worksheets, sharing work-
books on the cloud, and providing access to the Options menus for Excel. The Options menus
provide the ability to change the appearance and default settings of Excel.
To open the Backstage View, click the File tab which is to the left of the Home tab on the Rib-
bon. Figure 1.14 highlights commands and features that can be found in the Backstage View.

FIGURE 1.14 Backstage View for Excel 2016

Figure 1.15 and Figure 1.16 show a few windows from the Options button found in the Back-
stage View. The Options window shown in Figure 1.15 can be used to change several of the default
settings for an Excel workbook such as the number of worksheets that appear for a new workbook
or the default font size and style. Figure 1.16 shows how you can customize the Quick Access Tool-
bar from the Options button. Once you have clicked either the OK button or the Cancel button on
the Excel Options window, you will go back to the open worksheet in your workbook. To return to
the Backstage View, click on the File tab.

FIGURE 1.15 Excel Options Window General Settings

FIGURE 1.16 Excel Options Window Quick Access Toolbar Settings

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Chapter 1 Introduction to Data Analytics and Microsoft Excel 2016 25

Saving Workbooks (Save As)

Follow Along File: None
Once you create a new workbook, you will need to change the file name from Book1 and choose
a location on your computer or network to save it. The following steps explain how to save a new
workbook and assign it a file name.
1. If you have not done so already, launch Excel and open a blank workbook.
2. Click the File tab on the Ribbon.
3. Click the Save As button which is on the left side of the Backstage View as shown in Figure 1.14.
This will open a list of options that will appear to the right of the Save As button.
4. Click the Browse option in the Backstage View as shown in Figure 1.17. This will open the Save
As dialog box.

FIGURE 1.17 Save As Options in Backstage View

5. In the Save As dialog box, click in the File Name box as shown in Figure 1.18.
6. Use the BACKSPACE key to remove the current file name of the workbook.
7. Type the file name: Chapter 1 Practice.
8. Click the Desktop button on the left side of the Save As dialog box as shown in Figure 1.18. This
will save the workbook on the desktop of your PC. You can view other locations on your PC or
network to save the file by using the scroll bar as shown in Figure 1.18.
9. Click the Save button on the lower right side of the Save As dialog box. This will rename and
save your workbook.

FIGURE 1.18 Save As Dialog Box

Saving and Sharing Workbooks in the Cloud

Follow Along File: None
OneDrive As previously mentioned, many professionals will share Excel workbooks. This is possible by
Cloud service provided by utilizing cloud storage or sharing networks. Using the cloud can also be convenient when using
Microsoft that allows you Excel for personal use as it allows you to access your workbooks from different computers. The
to store and share Excel cloud service that is provided with Microsoft Excel is called OneDrive. To save a workbook on the
workbooks on a common
cloud network. cloud, click the Save As option in the Backstage View and then click the OneDrive option as shown
in Figure 1.17.
To save workbooks on the cloud, you need to set up an account with Microsoft. You can do this
from the Backstage View by clicking the Sign up link as shown in Figure 1.19. The Sign up link will
take you to the Microsoft OneDrive website where you can open an account for free.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 1 Introduction to Data Analytics and Microsoft Excel 2016 27

FIGURE 1.19 Saving to OneDrive

Once you have a OneDrive account, you can sign in and save your workbook on the cloud by
clicking the OneDrive option in the Backstage View (see Figure 1.19). This will show folders you can
double click to store your workbook on the cloud. Note that double clicking any of your cloud fold-
ers will open the Save As dialog box. You can also sign into OneDrive right from the Ribbon of an
Excel workbook as shown in Figure 1.20.

FIGURE 1.20 Sign In and Share from the Ribbon

After your workbook is saved on the cloud, you can share it with other people. The following
demonstrates how to share a workbook by sending an email invitation.

1. Click the Share button on the Ribbon as shown in Figure 1.20. This will open the Share window
pane on the right side of your workbook.
2. Type the email address of the person you want to share the workbook with in the Invite people
box as shown in Figure 1.21. Excel might show a message that states there are no suggestions
found. To remove this message, just click anywhere in the worksheet.

FIGURE 1.21 Entering an Email Address for Sending a Share Invitation

3. Check the email address you typed into the Invite People box as shown in Figure 1.22. It should
be underlined. If you do not see the underline, your email will not be sent. Clicking anywhere
on the worksheet or in the optional message box should put a line under the email address.
4. Type a message in the message box (this is optional) and click the Share button as shown in
Figure 1.22.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 1 Introduction to Data Analytics and Microsoft Excel 2016 29

FIGURE 1.22 Sending an Invitation to Share a Workbook

Figure 1.23 shows how the recipient will see the invitation you have sent from your Excel work-
book. The person who receives this invitation can open the workbook in a web browser by clicking
the workbook name or the “View in OneDrive” button. When using this method, the recipient must
have a OneDrive account and will be prompted to sign in before opening the workbook.

FIGURE 1.23 Recipient’s Invitation Email

Why…

Do Sharing Recipients Need to Open a OneDrive Account?

If you are sending an email invitation to share an Excel workbook (as shown in Figure 1.22), the
recipient must have a OneDrive account and will need to sign in before opening the workbook. To
share a workbook with someone who does not have a OneDrive account, use the “Get a Sharing
Link” option as shown in Figure 1.22. When you click this option you can select a link that can be
pasted into an email that will give the recipient permission to make edits or to read-only. If you
use this method, the recipient will not have to open a OneDrive account.

Figure 1.24 shows how the workbook will appear after the recipient clicks the link from the
invitation email. Notice the workbook is in Read-Only mode and the Ribbon is not visible. For the
recipient to modify and edit the workbook, the Edit Workbook button must be clicked as shown in
Figure 1.24.

FIGURE 1.24 Read-Only Shared Workbook in Web Browser

Figure 1.25 shows the appearance of the workbook if you select the Edit in Browser option
after clicking the Edit Workbook button shown in Figure 1.24. The appearance of the Ribbon will be
slightly different when editing a workbook in a web browser. The person who is sharing the work-
book with you can now make changes which will then be saved in your OneDrive account.

FIGURE 1.25 Edit Mode Shared Workbook in Web Browser

Another way to share workbooks with other people is to click “Get a sharing link” at the bottom
of the Share window pane as shown in Figure 1.22. This feature will generate a link that can be
pasted into an email. The recipient of the email can then click the link to access the workbook on
your OneDrive account. Depending on the link you choose, the recipient may only be able to view
the workbook or can edit the workbook. It is important to note that anyone who has access to the
link will be able to either view or edit the Excel workbook on your OneDrive account depending

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 1 Introduction to Data Analytics and Microsoft Excel 2016 31

on the type of link you send. When using this method to share a workbook, the recipient does not
need a OneDrive account.

Worksheet Headers and Footers

Follow Along File: None
Excel has the ability to add custom headers and footers to a worksheet which is commonly headers
used for printed worksheets. Information found in the header or footer could include the date, page Space at the top of a
number, file name, company name, your name, and so on. The following steps explain how to add printed worksheet that can
headers and footers to a worksheet. be customized to show
information such as the
1. If you do not have the Chapter 1 Practice workbook open (started at the beginning of this sec- date, page number, file
name, company name,
tion), open a new workbook. The Sheet1 worksheet should be open.
and so on.
2. Click the Insert tab of the Ribbon.
3. Click the Header & Footer button in the Text group of commands as shown in Figure 1.26. footers
Space at the bottom of a
printed worksheet that can
FIGURE 1.26 Insert Tab of the Ribbon be customized to show
information such as the
date, page number, file
name, company name,
and so on.

4. After clicking the Header & Footer button, the worksheet will switch from Normal view (shown
in Figure 1.26) to Page Layout view as shown in Figure 1.27. You will also see the Design tab
added to the Ribbon; this is used for creating headers and footers for the open worksheet. Click
in the center header section of the Sheet1 worksheet as shown in Figure 1.27.
5. Type your name in the center section of the Header.
6. Click the left header section of the Sheet1 worksheet as shown in Figure 1.27.

FIGURE 1.27 Adding Headers to a Worksheet

7. Click the Current Date in the Design tab of the Ribbon. This will add the current date to the
left header section. The date will appear when you click onto any cell in the worksheet while
in Page Layout view. Note that the Design tab will disappear when a cell on the worksheet is
clicked. Just click any section of the header or footer and the Design tab will reappear.
8. Click the Go to Footer button as shown in Figure 1.27. If you do not see the Design tab, click any
section of the header.
9. Click the far right section of the footer as shown in Figure 1.28.
10. Click the File Name button in the Design tab of the Ribbon as shown in Figure 1.28.

FIGURE 1.28 Adding Footers to a Worksheet

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 1 Introduction to Data Analytics and Microsoft Excel 2016 33

11. Click any cell location on the worksheet and you will be able to view the worksheet as it will
Status Bar
appear when printed. You can use the scroll bar on the right side of the worksheet to view the
Located below the
headers at the top. Note that the Design tab for creating headers and footers will disappear. worksheet tabs on the
12. Click the Normal view button in the lower right side of the Status Bar (see Figure 1.28) to exit Excel screen; it displays a
variety of information and
the Page Layout view. tools, such as CAPS
Note that headers and footers must be set for each worksheet in your workbook. The headers LOCK, the screen
magnification or zoom
and footers demonstrated here will only apply to Sheet1. slider, and view modes
such as Normal or Page
Layout.

Page Layout for Printing Worksheets

Follow Along File: None
As shown in Table 1.2, the commands in the Page Layout tab in the Ribbon are used to adjust
the printed appearance of worksheet. For example, the orientation of the worksheet can be printed
in either landscape or portrait, the margins can be adjusted, or you may need to adjust the scale of
the worksheet. The following steps demonstrate how these commands are used to a create a desir-
able appearance for a printed worksheet.
1. If you do not have the Chapter 1 Practice workbook open (started at the beginning of this sec-
tion), open a new workbook. The Sheet1 worksheet should be open.
2. Click the Page Layout tab of the Ribbon.
3. Click the Margins button in the Page Setup group of commands. This will open a dropdown
list of preset options for setting the margins of the open worksheet (see Figure 1.29).
4. Click the Narrow option from the Margins dropdown list as shown in Figure 1.29.
5. Click the Orientation button.
6. Click the Landscape option.

FIGURE 1.29 Page Layout Tab of the Ribbon

7. Click the down arrow to the right of the Width button.

8. Click the 1 Page option from the dropdown list.
9. Click the down arrow to the right of the Height button.
10. Click the 1 Page option from the dropdown list. This step along with step 8 will automatically
reduce the worksheet so that it fits on one piece of paper.

Why…

Use Page Layout Settings

It is good practice to select the appropriate print settings in the Page Layout tab even if you do
not intend to print the worksheets in a workbook. As previously mentioned, it is common for pro-
fessionals to share Excel workbooks. It can be frustrating for recipients of a workbook who wish
to print worksheets to find that necessary print settings have not been selected.

Note that the Page Layout settings must be set for each worksheet in your workbook. The Page
Layout settings shown in Figure 1.29 will only apply to Sheet1.

TABLE 1.3 Page Setup Commands in the Page Layout Tab of the Ribbon

Command Purpose How to:

Margins Sets the top, bottom, right, and left margin 1. Click the Page Layout tab of the
space for the printed document. Ribbon.
2. Click the Margins button.
3. Click one of the preset margin options
or click Custom Margins.

Orientation Sets the orientation of the printed 1. Click the Page Layout tab of the
document to either portrait or landscape. Ribbon.
2. Click the Orientation button.
3. Click one of the preset orientation
options.

Size Sets the paper size for the printed 1. Click the Page Layout tab of the
document. Ribbon.
2. Click the Size button.
3. Click one of the preset paper size
options or click More Paper Sizes.

Print Area Used for printing only a specific area or 1. Highlight the range of cells on a
range of cells on a worksheet. worksheet that you wish to print.
2. Click the Page Layout tab of the
Ribbon.
3. Click the Print Area button.
4. Click the Set Print Area option from the
dropdown list.

Breaks Allows you to manually set the page breaks 1. Activate a cell on the worksheet where
on a worksheet. the page break should be placed. Breaks
are created above and to the left of the
activated cell.
2. Click the Page Layout tab of the
Ribbon.
3. Click the Breaks button.
4. Click the Insert Page Break option from
the dropdown list.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 1 Introduction to Data Analytics and Microsoft Excel 2016 35

Command Purpose How to:

Background Adds a picture behind the cell locations in a 1. Click the Page Layout tab of the
worksheet. Ribbon.
2. Click the Background button.
3. Select a picture stored on your
computer or network.

Print Titles Used when printing large datasets that are 1. Click the Page Layout tab of the
several pages long. This command will Ribbon.
repeat the column headings at the top of 2. Click the Print Titles button.
each printed page.
3. Click in the Rows to Repeat at Top
input box in the Page Setup dialog box.
4. Click any cell in the row that contains
the column headings for your worksheet.
5. Click the OK button at the bottom of
the Page Setup dialog box.

Printing Worksheets
Follow Along File: None
After making the desired settings using the commands in the Page Layout tab of the Ribbon,
you are ready to preview and print the worksheet. To print a worksheet, go to the Backstage View
by clicking the File tab on the Ribbon. Select the Print option as shown in Figure 1.14. This will open
up a list of options that will allow you to preview and print the open worksheet or all worksheets
in your workbook. You will also be able to choose a specific printer.
You can also print from the Quick Access Toolbar; however, you will need to add the print com-
mand (see Figure 1.14). When printing from the Quick Access Toolbar, the current print settings and
printer that is selected in the Backstage View will be used.

Why…

My Headers, Footers, and Page Layout Settings Only Appear for One Worksheet
Headers, footers, and Page Layout settings must be applied to each worksheet in your work-
book. When you make any Page Layout adjustments to a worksheet, it will not automatically be
applied to other worksheets in your workbook. You must open each worksheet and adjust the
Page Layout settings as well as add any desired headers and footers.

Excel Help
Follow Along File: None
The Tell Me help feature provides extensive information about Excel 2016. Although some of
this information may be stored on your computer, the help feature can automatically connect to
the Internet to provide you with resources that can answer most of your questions. You can access
the Excel help feature by typing in the Tell Me box which is in the Ribbon under the workbook
name. As soon as you start typing what you want to do, Excel will guess commands that you can

access right from a suggested list as shown in Figure 1.30. If you just want information about a par-
ticular command, Excel gives you the option to open the Help window (see Figure 1.30). This will
provide a written description of the command or feature you are researching. You can also have
Excel research a topic on the Internet by clicking the Smart Lookup option.

FIGURE 1.30 Excel Tell Me Feature

Keyboard Only Commands

Follow Along File: None
keyboard shortcuts So far we have used the mouse to navigate around an Excel worksheet, but this can also be
A way to activate Excel accomplished by just using the keyboard. Using the keyboard to navigate worksheets and access
commands by holding and commands will be very important when working with large datasets. It will allow you to work far
or tapping a combination more efficiently compared to just using the mouse to point and click. Throughout the textbook
of keys on the keyboard.
there will be a summary feature labeled Keyboard Only. This feature will show you how to execute
Key Tips the skills and commands in each chapter by using keyboard shortcuts and Key Tips. The keyboard
shortcuts allow you to directly execute Excel commands from your keyboard. The Key Tips allow
A way to navigate and
select commands from the you to navigate the Excel Ribbon by using the keyboard. If you tap the ALT key on your keyboard
Ribbon by tapping letters you will see letters appear on the Ribbon. You can use your keyboard to navigate and select com-
or numbers that appear on
mands by tapping the letters that appear on the Ribbon on your keyboard. The keyboard shortcuts
the Ribbon after tapping
the ALT key on the and Key Tips will also be referred to as “Knock Out” commands as it allows you to execute, or “knock
keyboard. out,” several Excel commands very quickly.

Keyboard Only

Basic Worksheet Navigation

• Use the arrow keys on your keyboard to activate cells on the worksheet.
• Hold the SHIFT key and press the arrow keys on your keyboard to highlight a range of
cells on a worksheet.
• Hold the CTRL key while pressing the PAGE DOWN or PAGE UP keys to open other work-
sheets in a workbook.
Inserting Blank Worksheets
• Hold the SHIFT key and tap the F11 key on your keyboard.
Open a New Workbook
• Hold the CTRL key and tap the N key on your keyboard.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 1 Introduction to Data Analytics and Microsoft Excel 2016 37

Toggle the Ribbon between Show Tabs and Commands and Show Tabs
• Hold the CTRL key down and press the F1 key to go from Show Tabs and Commands to
Show Tabs.
• Hold the CTRL key down and press the F1 key again to go back to Show Tabs and Com-
mands.
Open Backstage View
• Hold the CTRL key and tap the O key on your keyboard.
Save As
• Tap the F12 key on your keyboard. Use the TAB and arrow keys to navigate the Save As
dialog box. Use the ENTER key to make a selection.
• Tap the ALT key on your keyboard. Then tap the F and A keys one at a time. This will open
the Save As dialog box. Use the TAB and arrow keys to navigate the Save As dialog box.
Use the ENTER key to make a selection.
Save
• Hold the CTRL key and tap the S key on your keyboard.
Tell Me
• Tap the ALT key on the keyboard and then tap the Q key. This will open the Tell Me box
and you can start typing. Use the ARROW keys to select an item from the help list.
Excel Help Window
• Press the F1 key on your keyboard.

Key Takeaways

• Excel can be launched from the Start Menu or by double clicking the shortcut icon on the
desktop.
• A continuous block of cells is referred to as a cell range.
• Keyboard shortcuts and Key Tips allow you to execute Excel commands by just using the
keyboard.
• All of the commands in Excel can be found in the Ribbon.
• The Quick Access Toolbar can be customized to access the most frequently used com-
mands.
• Workbooks that have already been created can be opened through the Backstage View.
• The Backstage View can be used to open a OneDrive account and save workbooks on the
cloud.
• Workbooks can be shared on the OneDrive cloud by sending email invitations or sharing
links.
• The commands in the Page Layout tab of the Ribbon are used to prepare a worksheet for
printing.
• Headers and footers are added to a worksheet to show key information such as page num-
bers, the date, the file name, your name, and so on.
• Print settings and a preview of a printed worksheet is found in the Backstage View.

1.3 Chapter Assignments and Tests

Data Analytics (Skills Review)

Sports Analytics for Recruiting Athletes (Data Analytics Model Review)

Starter File Name: Chapter 1 DA Exercise 1

Digital Downloads

Chapter 1 DA Excercise 1.xlsx

https://catalog.flatworldknowledge.com/a/31995/Chapter_1_DA_Excercise_1-f8a8.xlsx

Difficulty: Level 2
Data analytics plays a big role in the assessment and recruitment of athletes for both college and
professional sports. The purpose of this exercise is to review the DATA Analytics Framework and
data design for a project intended to recruit a college level quarterback. Read the short case
below carefully and open the file named Chapter 1 DA Exercise 1.
The University of Data State is recruiting a quarterback for their football team. The recruiter will
need to study the performance of several athletes to determine who should be invited to campus
for a visit and workout. Each athlete will be evaluated for at least two games during the college
football season in the months of September and October. Below is a list of items the recruiter will
need to assess.
• Distance on passes completed. The recruiter needs to know how far the quarterback can
throw the football.
• Number of passes completed versus the number of passes thrown incomplete. The
recruiter would like to see if the quarterback can complete most of the passes thrown to
a teammate.
• Number of touchdown passes. How often was the quarterback able to throw a pass that
resulted in points scored for the team?
• What quarter of the game were the passes completed? This will help the recruiter deter-
mine how consistent the quarterback is throwing throughout the game. For example, a
quarterback that completes a lot of passes at the beginning of the game (1st quarter) but
very few towards the end (4th quarter) may lack stamina.
• Situation analysis to determine the quarterback’s ability to complete passes on specific
downs. A team only has 4 downs or chances to go 10 yards. If the team moves the ball 10
yards in 4 tries or less, they get another 4 tries to go another 10 yards. This can help the
recruiter assess how the quarterback deals with pressure. For example, if the quarterback
fails to complete a pass on 4th down to reach the 10-yard mark, the opposing team gets
the ball.
The Excel worksheet shown in Figure 1.31 was completed by the recruiter. Table 1.4 provides
an explanation for each column of data on the worksheet. Review the figure and the table before
answering the questions.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 1 Introduction to Data Analytics and Microsoft Excel 2016 39

FIGURE 1.31 Recruiter’s Excel File to Assess Quarterbacks

TABLE 1.4 Data Descriptions for The Recruiter’s Excel Worksheet

Column Name Explanation

Date The date when the athlete played a game and

was evaluated by the recruiter.

Quarter A football game is played for 60 minutes and

is broken down into 4 quarters that are 15
minutes long. The 1st quarter is the first 15
minutes of the game and the 4th quarter is the
last 15 minutes.

Down A team has 4 chances, called downs, to move

the football 10 yards. If the team moves the
ball 10 yards in 4 downs or less, they get
another 4 downs to move the ball another 10
yards. The process repeats until the team
scores. If a team fails to gain 10 or more yards
on their 4th try, or 4th down, the opposing
team gets the ball.

Yards to Go This is how many yards the team must

advance the ball to get another 4 chances, or
downs. For example, if a team is on its 3rd
down and has 5 yards to go, they must
advance the ball 5 yards. If the team advances
the ball 5 yards, they will go back to 1st down
and have another 4 downs to move the ball 10
yards.

Column Name Explanation

Completion This column indicates if the quarterback

successfully threw the football to a receiver.
The receiver must catch the football in order
for the pass to be considered complete. A
value of 1 indicates the pass was complete. A
value of 0 indicates the pass was thrown but
not caught by a receiver.

Distance in Yards If the pass was complete (shown as a 1 in the

Completion column), this column will show
how many yards the ball was thrown by the
quarterback. If the pass was incomplete
(shown as a 0 in the Completion column),
there will be a zero in this column.

Answer the following questions on the AnswerSheet worksheet in the Chapter 1 DA Exercise 1
DATA Analytics Framework
1. What decision does the recruiter need to make?
2. Determine the data that is required to inform the decision the recruiter will make based on
the facts presented in the case. Are there any data missing? If so, what columns should
be added to the recruiter’s worksheet?
3. How long will the recruiter be collecting data?
4. Based on the facts presented in the case, how should the recruiter analyze the data? Hint:
Can the recruiter obtain the information needed to make a decision by simply looking at
the worksheet? Are there any calculations, summaries, or comparisons that would trans-
form the data into valuable information?
Data Design
5. Does the design of the recruiter’s worksheet make sense based on the results of the DATA
Analytics Framework? Provide a brief explanation as to why you believe the design is or is
not appropriate.
6. Are there any columns that should be added to improve the design of the worksheet?
7. Is there anything on the worksheet that should be changed, moved, or eliminated that
would improve the design of the worksheet?
Data Audit
8. Are there any values on the recruiter’s worksheet that are invalid or irrelevant? Briefly
explain if there are any values that should be removed or not used from the worksheet.
Hint: Look carefully at the values in the Total row.
Data Internal Controls
9. If the recruiter plans to share this analysis with other coworkers, what could be done to
prevent the analysis from producing erroneous outputs or from being corrupted? Hint: Are
there any columns of data that should not be summed? What should the recruiter do if the
analysis should only be viewed but not altered by a coworker?

Integrity Check

Starter File Name: Chapter 1 DA Exercise 2

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 1 Introduction to Data Analytics and Microsoft Excel 2016 41

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Chapter_1_DA_Excercise_2-a471.xlsx

Difficulty: Level 2
A data audit is a critical activity that must be done at the beginning of any analytics project when
you are working with an existing workbook or are given a dataset from another person. The pur-
pose of this exercise is to conduct a data audit on a worksheet that contains sales data for a
hypothetical apparel retailer.
The data shown in the file named Chapter 1 DA Exercise 2 contains data that was provided to
you by a coworker. The Excel file should contain sales data for two years by month. You intend to
use this data to evaluate the company’s sales trend by season. In addition, you will need to ana-
lyze the average price per month to determine if there are months where customers are spending
more money for each item purchased. The data should contain sales in units and dollars. For any
given month, the sales in units multiplied by the average price should equal the sales in dollars.
Open the file named Chapter 1 DA Exercise 2. Audit the data in the Sheet1 worksheet. Record
any problems you find in the dataset in the AnswerSheet worksheet. Note that there are more
rows to document problems in the dataset than are needed.

Chapter Skills Test 1

Starter File Name: None

Difficulty: Level 1
Answer the following questions by executing the skills on your Excel workbook. Answer each
question in the order it appears. If you do not know a question, skip it and go to the next ques-
tion.
1. Open a new Excel workbook.
2. Save the workbook on your desktop or network and change the file name to Chapter 1 Skills
Test.
3. Insert two new worksheets in your workbook.
4. Open the Sheet1 worksheet.
5. Activate cell A1.
6. Type “Original Worksheet” and press the ENTER key on your keyboard.
7. Insert a header to Sheet1. Type your name into the center section of the header.
8. Add the current date to the left section of the header.
9. Go to the footer section. Add the file name to the left section of the footer.
10. Click any cell in the worksheet so the left section of the footer is not active, then switch the
worksheet view to Normal.
11. Set the margins for the Sheet1 worksheet to the preset Wide option.
12. Change the orientation for the Sheet1 worksheet to print Landscape.
13. Change the scale settings so the Sheet1 worksheet prints on one page.
14. Activate cell A1.
15. Click into the Tell Me box in the Sheet1 worksheet and type “how do I change the color of
text”.
16. Use the Font Color command from the Tell Me box to change the color of the text in cell A1
to blue.
17. Highlight the range C7:G10.

18. Save the workbook.

19. Close the workbook but leave Excel open.
20. Exit Excel.

Chapter Skills Test 2

Starter File Name: None

Difficulty: Level 2
Answer the following questions by executing the skills on your Excel workbook. Answer each
question in the order it appears. If you do not know a question, skip it and go to the next ques-
tion. Questions that are preceded with the letters KO indicate you must only use your keyboard
and not your mouse to execute the required skill.
1. Open a new Excel Workbook.
2. KO Save the workbook on your desktop or network and change the file name to: Chapter 1
Skills Test 2.
3. KO Insert two new worksheets in your workbook.
4. KO Open the Sheet1 worksheet.
5. KO Type the text: “Original Worksheet” in cell A1 in the Sheet1 worksheet and press the
ENTER key.
6. KO Open the Sheet2 worksheet.
7. KO Type the text: “Second worksheet added” in cell G5 of the Sheet2 worksheet and press
the ENTER key.
8. KO Open the Sheet3 worksheet.
9. KO Type the text: “Third worksheet added” in cell B10 of the Sheet3 worksheet and press
the ENTER key.
10. KO Open the Sheet1 worksheet.
11. KO Highlight the range E5:J12 on the Sheet1 worksheet.
12. KO Open the Tell Me help box.
13. KO Type the text: “Cell Color” into the Tell Me help box.
14. KO Tap the DOWN arrow key on your keyboard to activate the Fill Color command under
the Tell Me help box.
15. KO Tap the RIGHT arrow key on your keyboard to select a green color from the color palette
and press the ENTER key on your keyboard.
16. KO Save the workbook.
17. Close the workbook and exit Excel.

Essential Skills for Basic Data

Analytics Projects

The purpose of this chapter is to demonstrate essential Excel skills that are required to set up a
basic data analytics project and to show how to apply the Data Analytics Model. The project will
be started in this chapter and will be completed in the following chapter. The essential Excel skills
covered in this chapter include entering, managing, and formatting data in a worksheet. The para-
meters of the project will be defined using the DATA Analytics Framework and each component of
the entire Data Analytics Model will be addressed by the end of the following chapter.

2.1 Entering and Managing Data

Learning Objectives

1. Learn how to apply the DATA Analytics Framework for a basic project.
2. Learn how to conduct a basic data audit.
3. Review how data is entered, edited, moved, and deleted in a worksheet.
4. Review the Cut, Copy, and Paste commands.
5. Examine how Auto Fill is used when entering data into a worksheet.
6. Review the use of the Undo command.
7. Learn how to hide columns and rows in a worksheet.
8. Learn how to insert and delete columns and rows in a worksheet.
9. Examine how the width of columns and height of rows can be adjusted.
10. Learn how to insert new worksheets and delete worksheets from a workbook.

The project used in this chapter, called the Basic Data Analytics Project, involves the analysis of
sales data for a small apparel retail company. In order to fully develop the scope and requirements
for this project, each component of the DATA Analytics Framework is defined as follows:
• Decision: The decision that will be made for this project relates to the management of cash.
A key driver for a retailer’s receipt of cash is revenue. During months where revenue is at its
lowest point of the year, cash may need to be borrowed to cover expenses such as employee
salaries. When revenue increases in later months, these loans can be repaid to the bank. For the
purposes of this project, cash must be borrowed if revenue falls below $40,000 for any given
month.
• Acquisition: Data that must be acquired to inform this decision are total company sales dollars
by month. The month and year in which the sales occurred are also required.
• Time: The project will start off with one year of data by month from the year 2017 which is pro-
vided in the Sheet1 worksheet (see Figure 2.1). Data will be added for the year 2018 to establish a
two-year trend that can be used to make cash borrowing decisions for 2019. Data will continue
to be added each year to support decisions that need to be made for three years following 2019.

FIGURE 2.1 Basic Data Analytics Project: Starting Dataset

• Analysis: To see what months have the lowest level of sales revenue, sales for each year by
month should be displayed such that months with the lowest sales revenue are easily identi-
fied. A comparison of each month by year should also be shown to see if sales are increasing
or decreasing. This will help determine if the amount of cash borrowed should be increased or
decreased.

Basic Data Audit

Follow Along File: Data Analytics Project 1

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Data Analytics Project 1.xlsx

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Data_Analytics_Project_1-b3a7.xlsx

As identified in the Data Analytics Model, a data audit should be conducted at the beginning of
any project. The project for this chapter assumes that data has been provided from the company’s
Information Technology (IT) department. The data audit should be used to verify the validity and
accuracy of this dataset. The data should contain twelve months of company sales data from the
year 2017. In 2017, the company achieved total sales revenue of $780,750.
When you are provided with data for a project, a critical part of the data audit is to understand
exactly what data has been provided. Notice that the column headings shown in row 1 in Figure
2.1 do not describe what data is provided in each column or field. The following provides a definition
for each of the columns in the worksheet:
• CY: Calendar year in which the sales occurred.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 2 Essential Skills for Basic Data Analytics Projects 45

• M: Month of the year.

• TSU: Total sales in units for the month.
• AP: Average price for the units sold during the month.
• TSD: Total sales dollars for the month.

Integrity Check

Obtain Clear Definitions for Existing Datasets

If you are using a dataset that was provided by another person, it is critical to find accurate infor-
mation regarding the purpose of the data and the definitions for each column or field. Column
descriptions found on a worksheet may be misleading or inadequate in defining the data that is
being used for a project.

The next step of the data audit is to confirm that the file contains the necessary data to sup-
port the decisions of the project as defined in the DATA Analytics Framework. The TSD column
contains the sales revenue in dollars which is required for this project. The dataset also contains
columns for the month (M) and calendar year (CY) showing when the sales revenue was obtained.
The three columns, TSD, CY, and M will provide the necessary data to satisfy the decision require-
ments of the project.
The final step of the data audit is to confirm the validity and integrity of the data provided.
For small datasets, some data audits can be accomplished visually. For example, by looking at the
dataset in Figure 2.1, the CY (calendar year) column clearly shows the data is from 2017. It is also easy
to observe that all twelve months of the year are provided in the worksheet. However, it is difficult
to look at the TSD (total sales dollars) column to determine if the values add up to $780,750. The fol-
lowing steps demonstrate how this can be done.
1. Highlight the range E2:E13.
2. Look at the status bar to see the sum of the values in the highlighted range (see Figure 2.2).

FIGURE 2.2 Using the Status Bar to View Data Statistics

The status bar can be a valuable tool when auditing small datasets. In addition to confirming
that the Sum of the total sales dollars is $780,750, the status bar also shows a Count of 12 values.
This confirms that there are twelve months of data provided.

Entering Data
Follow Along File: Data Analytics Project 1 continued.
After confirming the validity and integrity of the data provided by conducting a data audit,
additional data will be added to the worksheet. As stated in the DATA Analytics Framework, the
sales trend must be evaluated for at least two years. The following steps explain how to add sales
data for the year 2018 for the Basic Data Analytics Project:
1. Click cell A14 in the Sheet1 worksheet.
2. Type “2018” and tap the RIGHT arrow key on the keyboard. Cell B14 should now be activated.
Using the arrow keys is helpful when you are entering data across a row in a worksheet.
3. Type the letters “Ja”. Excel will guess that the word you are trying to type is January since this
word already exists in this column in cell B2.
4. Press the ENTER key on your keyboard. This should place the word “January” in cell B14, and
cell B15 should now be activated. When entering data vertically down a column, it is convenient
to tap the ENTER key after each entry.
5. Type the letter “F”. Excel will guess that the word you are trying to type is February since this
word already exists in this column in cell B3.
6. Press the ENTER key on your keyboard. This should place the word “February” in cell B15, and
cell B16 should now be activated.
7. Click cell E14.
8. Type the number 62950 and press the ENTER key. Cell E15 should now be activated.
9. Starting in cell E15 type the following numbers: 56850, 65200, 48400, 51300, 21000, 18500, 50700,
80000, 102000, 109000, and 120000. After each number press the ENTER key on your keyboard.
This will advance the active cells vertically down the column.
10. Audit your own data entry values by highlighting the range E14:E25 (see Figure 2.3). Check the
status bar to ensure the Sum in this range is 785,900.

Why…

No Formatting Symbols When Entering Numbers

When typing numbers into an Excel worksheet, it is best to avoid adding any formatting symbols
such as dollar signs and commas. Although Excel allows you to add these symbols while typing
numbers, it slows down the process of entering data. It is more efficient to use Excel’s formatting
features to add these symbols to numbers after you type them into a worksheet.

Figure 2.3 shows how the Sheet1 worksheet should appear after entering the data for 2018.
Check the numbers in column E carefully to make sure they are accurately entered into the work-
sheet.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 2 Essential Skills for Basic Data Analytics Projects 47

FIGURE 2.3 Basic Data Analytics Project 2018 Sales Data

Integrity Check

Data Entry
It is very important to proofread your worksheet carefully, especially when entering numbers.
Transposing numbers when entering data manually into a worksheet is a common error. For
example, the number 516 could be transposed to 561 when typed into a worksheet. Such errors
can seriously compromise the integrity of your project.

Cut, Copy, and Paste

Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.01.
The Cut, Copy, and Paste commands are frequently used when developing an analytics project
in Excel. These commands are useful when there is a need to duplicate and manipulate data on a
worksheet. The following steps demonstrate how these skills are used for the Basic Data Analytics
Project:
1. Click cell A14.
2. Click the Copy button in the Home tab of the Ribbon (see Figure 2.1).
3. Highlight the range A15:A25.
4. Click the Paste button in the Home tab of the Ribbon (see Figure 2.1). Do not click the arrow at
the bottom of the Paste button as this will open a menu of paste options instead of pasting the
item that was copied.
Figure 2.4 shows the year 2018 duplicated for each row where sales data was entered into col-
umn E. The moving dotted line around cell A14 indicates that it has been copied. To remove the
dotted line, tap the ESC key on your keyboard.

FIGURE 2.4 Copying and Pasting Data

5. Highlight the range C1:C13.

6. Click the Cut command in the Home tab of the Ribbon (see Figure 2.4).
7. Click cell F1.
8. Tap the ENTER key on your keyboard. The ENTER key is another way to paste data that has
been copied or cut. Cutting and pasting is one way in which you can move data to different
locations on a worksheet.

Auto Fill
Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.02.
Auto Fill The Auto Fill feature is a valuable tool when entering data into a worksheet. This feature has
Excel feature used to many uses, but it is most beneficial when entering data in a defined sequence such as the numbers
complete data in either a 2, 4, 6, 8, etc. or non-numeric data such as the days of the week or months of the year. The following
quantitative or qualitative steps demonstrate how Auto Fill can be used to complete the months of the year in column B for
sequence; can also be
used to copy and paste the Basic Data Analytics Project:
data on a worksheet.
1. Highlight the range B14:B15
Fill Handle 2. Move the mouse pointer over to the lower right corner of cell B15. You will see a small square
A small square in the lower in this corner of the cell which is called the Fill Handle (see Figure 2.5). When the mouse
right corner of an activated pointer gets close to the Fill Handle, the white block plus sign will turn into a black plus sign.
cell. When the mouse
pointer gets close to the
Fill Handle, the white block
plus sign turns into a black
plus sign.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 2 Essential Skills for Basic Data Analytics Projects 49

FIGURE 2.5 The Fill Handle

3. Click and drag the Fill Handle down to cell B25. Notice that the Auto Fill tip box indicates what
month will be placed into each cell (see Figure 2.6). Release the left mouse button when the tip
box reads “December.”

FIGURE 2.6 Completing a Data Series Using Auto Fill

Once you release the left mouse button, all twelve months of the year should appear in the cell
range B14:B25. You will also see the Auto Fill Options button as shown in Figure 2.7. The following
demonstrates how this can change the output of the Auto Fill feature.

4. Click the Auto Fill Options button (see Figure 2.7).

FIGURE 2.7 Auto Fill Options Menu

5. Click the Copy Cells option. This will change the output in the range to just the original two
months typed which are January and February.
6. Click the Auto Fill Options button again.
7. Click the Fill Months option and the months of the year will return to the range B14:B25. The
Fill Series option will provide the same result.

Moving Data
Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.03.
As demonstrated earlier, the Cut and Paste commands can be used to move data around a
worksheet. Data can also be moved by dragging it to a new location. When moving data over many
columns or rows, it is best to use the Cut and Paste commands. If data is being moved to a location
a few columns or rows from its orginal place, dragging the data can be a more efficient technique.
The following steps demonstrate how data can be dragged to a new location for the Basic Data Ana-
lytics Project:
1. Highlight the range D1:D13.
2. Bring the mouse pointer to the right edge of cell D1. You will see the white block plus sign
change to cross arrows (see Figure 2.8). This indicates that you can left click and drag the data
to a new location.
3. Click and drag the mouse pointer to cell G1.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 2 Essential Skills for Basic Data Analytics Projects 51

FIGURE 2.8 Moving a Range of Cells

Deleting Data and the Undo Command

Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.04.
During the process of developing a worksheet, or working with data in an existing worksheet,
you may need to delete data. For example, the data provided in the Basic Data Analytics Project
contains columns of data that are not needed for the analysis. These columns can be deleted. In the
event you delete data by mistake, you can use the Undo command to get that data back. The Undo
command as well as a few methods for deleting data are demonstrated in the following steps:
1. Click cell F1.
2. Tap the DELETE key on your keyboard. This will remove the contents in the cell.
3. Highlight the range F2:F13.
4. Place the mouse pointer over the Fill Handle in cell F13 (see Figure 2.9).
5. Click and drag the Fill Handle up to cell F2. Release the left mouse button when the Fill Handle
reaches cell F2. This will remove all of the data in the range.

FIGURE 2.9 Using Auto Fill to Remove Data

6. Click the Undo button in the Quick Access Toolbar (see Figure 2.9). This should replace the data
in the range F2:F13.
7. Click the Undo button again. This should replace the data in cell F1.
8. Highlight the range F1:F13.
9. Click the Clear button in the Home tab of the Ribbon (see Figure 2.10). This will open a list of
options that will allow you to delete specific attributes such as formats, comments, or hyper-
links.
10. Click the Clear All option from the dropdown menu.

FIGURE 2.10 The Clear Command

11. Click the Undo button to restore the data in the range F1:F13.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 2 Essential Skills for Basic Data Analytics Projects 53

Editing Data
Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.04.
Data that has been entered in a cell can be changed by double clicking the cell location or using Formula Bar
the Formula Bar. When data is typed into a cell location it will be visible in the Formula Bar. The The area just above the
Formula Bar can be used for entering data into cells as well as editing data that already exists in a column letters on a
cell. For this project, the column headings in row 1 do not provide an adequate description for the worksheet; can be used
for entering data into cells
data in the worksheet. The following steps illustrate how to edit the column headings in the work- as well as editing data that
sheet: already exists in cells.

1. Double click cell A1.

2. Tap the BACKSPACE key on your keyboard twice.
3. Type the word “Year” and tap the ENTER key.
4. Click cell B1.
5. Move the mouse pointer up to the Formula Bar. You will see the mouse pointer turn into an
insertion point cursor (see Figure 2.11).
6. Click the Formula Bar next to the letter M.

FIGURE 2.11 The Formula Bar

7. Type the letters “onth”.

8. Click the check mark to the left of the Formula Bar (see Figure 2.11). This will change the col-
umn heading to the word “Month”.
9. Click cell E1.
10. Click into the Formula Bar between the letter T and S.
11. Type the letters “otal” and tap the SPACE BAR on your keyboard.
12. Tap the RIGHT arrow on your keyboard. This will advance the insertion cursor to the right
between the letters S and D.
13. Type the letters “ales” and tap the SPACE BAR on your keyboard.
14. Tap the RIGHT arrow on your keyboard. This will advance the insertion cursor to the right of
the letter D.
15. Type the letters “ollars”.
16. Tap the ENTER key on your keyboard. The column heading should now read Total Sales Dol-
lars. The heading will not be completely visible because the column width is too narrow. This
will be adjusted later.

Hiding Columns and Rows

Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.05.
Hiding columns and rows is a useful technique for hiding data that you are not currently using,
but might need at a later stage in an analytics project. It also makes the worksheet easier to use
since it reduces a dataset to only the columns or rows that you are currently using. The following
steps demonstrate hiding columns and rows for the Basic Data Analytics Project:
1. Highlight the range F1:G1.
2. Click the Format button in the Home tab of the Ribbon.
3. Place the mouse pointer over the Hide & Unhide option from the dropdown menu (see Figure
2.12).
4. Click the Hide Columns option. This will hide columns F and G. As previously mentioned, these
columns are not required for the project. However, if you believe the data might be helpful in
the future, you can hide the columns.

FIGURE 2.12 Hide Columns and Rows

Integrity Check

Look for Hidden Columns and Rows

Before using a workbook developed by someone other than yourself, always check for hidden
rows and columns. You can quickly see whether a row or column is hidden if a row number or
column letter is missing.

5. Highlight the range E1:H1. You will not see columns F and G since they are hidden (see Figure
2.13).
6. Click the Format button in the Home tab of the Ribbon.
7. Place the mouse pointer over the Hide & Unhide option from the dropdown menu.
8. Click the Unhide Columns option (see Figure 2.13). Columns F and G should now be visible.

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Chapter 2 Essential Skills for Basic Data Analytics Projects 55

FIGURE 2.13 Show Hidden Columns

9. Highlight the range A2:A13.

10. Click the Format button in the Home tab of the Ribbon.
11. Place the mouse pointer over the Hide & Unhide option from the dropdown menu.
12. Click the Hide Rows option. Only the 2018 data should be visible on the worksheet. Hiding rows
is a useful technique if you want to examine a specific part of the dataset you are using.
13. Highlight the range A1:A14. Note that rows 2 through 13 are not visible because they are hidden
(see Figure 2.14).
14. Click the Format button in the Home tab of the Ribbon.
15. Place the mouse pointer over the Hide & Unhide option from the dropdown menu.
16. Click the Unhide Rows option. Rows 2 through 13 should now be visible.

FIGURE 2.14 Show Hidden Rows

Skill Refresher: Hide Columns and Rows

1. Activate at least one cell in the row(s) or column(s) you are hiding.
2. Click the Home tab of the Ribbon.
3. Click the Format button.
4. Place the mouse pointer over the Hide & Unhide option.
5. Click either the Hide Rows or Hide Columns option.

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Skill Refresher: Unhide Columns and Rows

1. Highlight the cells above and below the hidden row(s) or to the left and right of the hidden
column(s).
2. Click the Home tab of the Ribbon.
3. Click the Format button.
4. Place the mouse pointer over the Hide & Unhide option.
5. Click either the Unhide Rows or Unhide Columns option.

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Chapter 2 Essential Skills for Basic Data Analytics Projects 57

Inserting Columns and Rows

Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.05.
In certain situations you may need to add columns or rows to a worksheet. This technique is
frequently used when additional data needs to be added or if a dataset needs to be rearranged in
a worksheet. The following demonstrates how columns and rows are added to the Basic Data Ana-
lytics project:
1. Click cell A1.
2. Click the down arrow at the bottom of the Insert button in the Home tab of the Ribbon (see
Figure 2.15).
3. Click the Insert Sheet Rows option from the dropdown menu. This will add a blank row above
the activated cell.

FIGURE 2.15 Inserting Rows

4. Repeat steps 2 and 3 to add a second blank row to the worksheet. The Year column heading
should now be in cell A3.
5. Click cell F3.
6. Click the down arrow at the bottom of the Insert button in the Home tab of the Ribbon.
7. Click the Insert Sheet Columns option from the dropdown menu. This will add a blank column
to the left of the activated cell. The column heading TSU should now be in cell G3.

FIGURE 2.16 Inserting Columns

Skill Refresher: Inserting Columns and Rows

1. Activate the cell to the right of the desired blank column or below the desired blank row.
2. Click the Home tab of the Ribbon.
3. Click the down arrow on the Insert button.
4. Click either the Insert Sheet Columns or Insert Sheet Rows option.

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Deleting Columns and Rows

Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.06.
Columns or rows that contain data that is not needed for a project can be deleted. This is
especially useful if a column contains several thousand rows of data. Deleting data from a work-
sheet was previously demonstrated by highlighting a range of cells and using one of a few different
commands to remove the data. This would not be practical if you were working with a very large
dataset. Using the commands to delete an entire column or row would be far more efficient. The
following demonstrates how columns and rows are deleted from the Basic Data Analytics project:
1. Highlight the range G3:H3.
2. Click the down arrow at the bottom of the Delete button in the Home tab of the Ribbon (see
Figure 2.17).
3. Click the Delete Sheet Columns option from the dropdown menu.

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Chapter 2 Essential Skills for Basic Data Analytics Projects 59

FIGURE 2.17 Deleting Columns

4. Highlight the range C3:D3.

5. Click the down arrow at the bottom of the Delete button in the Home tab of the Ribbon.
6. Click the Delete Sheet Columns option from the dropdown menu.
7. Click cell A1.
8. Click the down arrow at the bottom of the Delete button in the Home tab of the Ribbon.
9. Click the Delete Sheet Rows option from the dropdown menu.

Skill Refresher: Deleting Columns and Rows

1. Activate any cell in the row or column that is to be deleted.

2. Click the Home tab of the Ribbon.
3. Click the down arrow on the Delete button.
4. Click either the Delete Sheet Columns option or Delete Sheet Rows option.

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Adjusting Columns and Rows

Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.07.
During the process of arranging data on a worksheet, it is often necessary to adjust the width
of a column or height of a row. For example, some of the months in column B are cut off because
the column is too narrow. The following demonstrates how columns and rows are adjusted for the
Basic Data Analytics project:
1. Bring the mouse pointer between column letters B and C (see Figure 2.18).

FIGURE 2.18 Click and Drag Method to Adjust Column Width

2. When the mouse pointer changes to black arrows, click and drag the mouse to the right. This
Column Width tip
box will increase the width of column B. Increase the width of the column so all of the months are
visible. This should be when the Column Width tip box reaches at least 10 points (see Figure
Box that appears when the
width of a column is being 2.19). The Column Width tip box displays the number of characters that will fit into the column
adjusted using the click using the Calibri 11-point font.
and drag method; displays
the number of characters
that will fit into the column
using the Calibri 11-point
font.

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Chapter 2 Essential Skills for Basic Data Analytics Projects 61

FIGURE 2.19 Column Width Tip Box

3. Bring the mouse pointer between column C and D.

4. Click and drag the mouse to the left. This decreases the width of column C. Decrease the width
of column C until the Column Width tip box is about 4 points.
5. Most or all of the numbers in column C should be replaced with pound signs (###). If a number
is too long to fit into a column, Excel will replace the numbers with pound signs so you do not
think the number is a smaller value (see Figure 2.20). Place the mouse pointer over cell C4 but
do not click it. You should see a tip box appear that shows you what number is in the cell.

FIGURE 2.20 Appearance of Numbers in Narrow Columns

Why…

Pound Signs (###) Appear in Columns

When a column is too narrow for a long number, Excel will automatically convert the number to
a series of pound signs (####). In the case of words or text data, Excel will only show the char-
acters that fit in the column. However, this is not the case with numeric data because it can give
the appearance of a number that is much smaller than what is actually in the cell. To remove the
pound signs, increase the width of the column.

6. Highlight the range A1:C1.

7. Click the Format button in the Home tab of the Ribbon.

8. Click the Column Width option from the dropdown menu. This will open the Column Width
dialog box shown in Figure 2.21.
9. Click in the Column Width dialog box (see Figure 2.21) and type the number 10.
10. Click the OK button on the Column Width dialog box. This will set the column width of
columns A, B, and C to 10 points. This method of adjusting the column width in a worksheet is
best when you want to set several columns in a worksheet to the same width.

FIGURE 2.21 Setting the Column Width for Multiple Columns

11. Bring the mouse pointer between Rows 2 and 3.

12. When the mouse pointer changes to black arrows, click and drag the mouse down. This
increases the height of Row 2. Increase the height of Row 2 until the tip box is about 20 points
(see Figure 2.22).

FIGURE 2.22 Increasing Row Height

13. Highlight the range A1:A2.

14. Click the Format button in the Home tab of the Ribbon.

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Chapter 2 Essential Skills for Basic Data Analytics Projects 63

15. Click the Row Height option from the dropdown menu.
16. Type the number 30. You should see the value of 30 appear in the Row Height dialog box.
17. Click the OK button in the Row Height dialog box. This will increase the height of Rows 1 and
2 based on the values entering into the Row Height dialog box.

Skill Refresher: Adjusting Columns and Rows

1. Activate at least one cell in the row or column you are adjusting.
2. Click the Home tab of the Ribbon.
3. Click the Format button.
4. Click either Row Height or Column Width from the dropdown menu.
5. Enter the Row Height or Column Width into the dialog box.
6. Click the OK button on the dialog box.

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Inserting and Deleting Worksheets

Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.08.
Each worksheet in an Excel workbook can hold a maximum of 1,048,576 rows of data. If needed,
additional worksheets can be added to a workbook. A common reason why additional worksheets
are added to a workbook is to make a copy of the data that is being used for a project. Saving a copy
of your data is useful in the event data is accidentally deleted or becomes distorted. The following
demonstrates how a worksheet can be added for the purpose of storing a copy of the data that is
used for the Basic Data Analytics project:
1. Click the plus sign to the right of the worksheet tabs (see Figure 2.23). This will add a blank
worksheet to the workbook.
2. Click the plus sign again. This will add a second blank worksheet to the workbook.
3. Click the Sheet1 worksheet tab. This will open the worksheet that contains the data for the
project.

FIGURE 2.23 Adding a Blank Worksheet

4. Click the Select All button in the upper left corner of the worksheet (see Figure 2.23).
5. Click the Copy button in the Home tab of the Ribbon.

Why…

Make a Copy of Your Data

When working on any data analytics project, it is a good idea to make a copy of the data you
are using and store it in a separate worksheet in your current workbook, or in a separate work-
book. While the Undo button is helpful to retrieve any data that has been accidentally deleted
or distorted, it will not help if you save and close your file. For example, if you are sharing a file
with someone and they accidentally delete data from the worksheet and then save and close the
workbook, the Undo button will not be able to retrieve that data. However, you can restore the
data if you keep a backup copy.

6. Click the Sheet2 worksheet tab.

7. Click cell A1.
8. Click the Paste button in the Home tab of the Ribbon. A copy of the data from Sheet1 should
now appear in Sheet2.
9. Click the Sheet3 worksheet tab. The worksheet should be blank.
10. Click cell A1.
11. Click the Paste button in the Home tab of the Ribbon. A copy of the data from Sheet1 should
now appear in Sheet3.
12. Click the down arrow below the Delete button in the Home tab of the Ribbon.

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Chapter 2 Essential Skills for Basic Data Analytics Projects 65

13. Click the Delete Sheet option from the dropdown list.
14. Click the Delete button in the Warning box. Once you click the Delete button, the worksheet
will be removed. Note that the Undo button will not be able to restore a worksheet once it is
deleted.

Why…

Be Careful When Deleting a Worksheet That Contains Data!

Be very cautious when deleting worksheets that contain data. Once a worksheet is deleted, you
cannot use the Undo command to bring it back. Deleting a worksheet is a permanent command.

Skill Refresher: Inserting Worksheets

1. Click the Home tab of the Ribbon.

2. Click the down arrow on the Insert button.
3. Select the Insert Sheet option.

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Skill Refresher: Deleting Worksheets

1. Open the worksheet to be deleted.

2. Click the Home tab of the Ribbon.
3. Click the down arrow on the Delete button.
4. Select the Delete Sheet option.
5. Click Delete on the Warning box.

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Keyboard Only

Copy
• Hold the CTRL key and tap the letter C.
Paste
• Hold the CTRL key and tap the letter V.
Cut
• Hold the CTRL key and tap the letter X.
Undo
• Hold the CTRL key and tap the letter Z.
Editing Data
• After clicking on the cell to be edited, tap the F2 key on your keyboard. Use the arrow
keys on the keyboard to move the cursor if needed.
Hide Columns
• Hold the CTRL key and tap the number 0 on your keyboard.
Unhide Columns
• Highlight cells on either side of the hidden column(s). Tap the ALT key on your keyboard.
Then tap the letters H, O, U, and L one at a time.
Hide Rows
• Hold the CTRL key down and tap the number 9 key on your keyboard.
Unhide Rows
• Highlight cells above and below the hidden row(s). Hold the CTRL key and the SHIFT key
and tap the number 9 key on your keyboard.
Insert Rows
• Tap the ALT key on your keyboard. Then tap the letters H, I, and R one at a time.
Insert Columns
• Tap the ALT key on your keyboard. Then tap the letters H, I, and C one at a time. A column
will be inserted to the left of the activated cell.

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Chapter 2 Essential Skills for Basic Data Analytics Projects 67

Delete Columns
• Tap the ALT key on your keyboard. Then tap the letters H, D, and C one at a time.
Delete Rows
• Tap the ALT key on your keyboard. Then tap the letters H, D, and R one at a time.
Column Width
• Tap the ALT key on your keyboard. Then tap the letters H, O, and W one at a time. This
will open the Column Width dialog box. Type the desired width and press the ENTER key
on your keyboard.
Row Height
• Tap the ALT key on your keyboard. Then tap the letters H, O, and H one at a time. This
will open the Row Height dialog box. Type the desired height and press the ENTER key
on your keyboard.
Inserting Blank Worksheets
• Hold the SHIFT key and tap the F11 key on your keyboard.
Deleting Worksheets
• Tap the ALT key on your keyboard. Then tap the letters H, D, and S one at a time. Press
the ENTER key on your keyboard to acknowledge the Warning box and delete the work-
sheet.

Key Takeaways

• A critical component of the data audit is to understand exactly what data has been provided.
• The statistical information found in the Status Bar when a range of cells is highlighted can be
very helpful when conducting a data audit.
• Using symbols such as dollar signs when entering numbers into a worksheet can slow down
the data entry process.
• Worksheets must be carefully proofread when entering data.
• The Clear command can be used to delete specific attributes from a cell or range of cells
such as formats, comments, or hyperlinks.
• The Undo command is a valuable tool for recovering data that was deleted from a worksheet.
• When using a worksheet that you did not create, look carefully for hidden columns or rows.
• A series of pound signs (###) in a cell location indicates that the column is too narrow to
display the number entered. The pound signs can be eliminated by increasing the column
width.
• Once a worksheet is deleted, it cannot be recovered by using the Undo command.

2.2 Formatting Worksheets

Learning Objectives

1. Learn how to stack data vertically in a cell using the Wrap Text command.
2. Review Left, Right, and Center Alignment commands.

3. Explore uses for the Merge Cells command.

4. Learn how to enter multiple lines of text into a cell location.
5. Use formatting techniques to enhance the appearance of a worksheet.
6. Review how lines or borders are added to a worksheet.
7. Learn how to format worksheet tabs.

In this section, formatting techniques will be applied to the Basic Data Analytics Project. Format-
ting techniques enhance the visual appearance of a worksheet and can make the data easier to
read. This is not a trivial step in the development and design of a spreadsheet. Proper formatting
can ultimately increase the quality of the analysis outputs and make a spreadsheet more efficient
for yourself and others who are sharing your workbook.

Wrap Text
Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.09.
Wrap Text The Wrap Text feature allows you to stack long strings of text vertically in a cell location. Excel
Command used to stack will stack or wrap text where a space occurs in a long text string. For example, a descriptive column
long data entries vertically heading can require a few words. Instead of increasing the width of the column to accommodate a
in a cell. long column heading, the Wrap Text feature will stack the column heading vertically in a cell. The
following demonstrates how this feature is used in the Basic Data Analytics Project:
1. Click the Sheet1 worksheet tab.
2. Click cell C2. Notice that the column heading extends past the width of column C.
3. Click the Wrap Text button in the Home tab of the Ribbon (see Figure 2.24). The column head-
ing should now be stacked vertically in cell C2 eliminating the need to increase the width of
column C.

FIGURE 2.24 Wrap Text

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Chapter 2 Essential Skills for Basic Data Analytics Projects 69

Why…

Wrap Text
The benefit of using the Wrap Text command is that it reduces the need to expand the width of
columns to accommodate multiword column headings. The problem with increasing the width of
columns is that it reduces the amount of data that can fit on the visible screen.

Skill Refresher: Wrap Text

1. Activate the cell or range of cells that contain text data.

2. Click the Home tab of the Ribbon.
3. Click the Wrap Text button.

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Center Alignment
Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.10.
The Center Alignment command is one of several options available to change the way data is
oriented in a cell. Data can be centered, left justified, or right justified. Data can also be aligned ver-
tically using the top, middle and bottom align options. The following demonstrates how the column
headings in the Basic Data Analytics Project can be aligned in the center of a cell location:
1. Highlight the range A2:C2 in the Sheet1 worksheet.
2. Click the Center button in the Home tab of the Ribbon (see Figure 2.25).

FIGURE 2.25 Data Alignment

Merge Cells
Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.11.
Merge Cells The Merge Cells command is used to combine several cell locations into one larger cell loca-
Group of commands used tion. This is often done to create a title for a worksheet that is centered over several columns of
to combine several small data. The following demonstrates a few of the Merge Cells commands and shows how to create a
locations into one larger title in the Sheet1 worksheet for the Basic Data Analytics Project:
cell location.
1. Highlight the range F2:I10 in the Sheet1 worksheet.
2. Click the down arrow to the right of the Merge & Center button in the Home tab of the Ribbon
(see Figure 2.26).
3. Click the Merge Across option from the dropdown menu. You will see the cells merged across
each row in the highlighted range. This technique is useful if you need larger cells to type
descriptions or long row headings. It also allows you to merge cells in many rows at the same
time.

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Chapter 2 Essential Skills for Basic Data Analytics Projects 71

FIGURE 2.26 Merge Cells Dropdown Menu

4. While the range F2:I10 is still highlighted, click the down arrow next to the Merge & Center but-
ton.
5. Click the Unmerge Cells option from the dropdown menu. This should return the cell locations
in the range F2:I10 to their original size.
6. Highlight the range A1:C1.
7. Click the Merge & Center button (not the down arrow). The cells in the range A1:C1 should now
be merged into one large cell. Anything typed into this large cell will be center aligned. These
merged cells will be used to add a title for the worksheet.

Skill Refresher: Merge Cells

1. Highlight a range of cells that will be merged.

2. Click the Home tab of the Ribbon.
3. Click the down arrow next to the Merge & Center button.
4. Select an option from the Merge & Center list.

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Entering Multiple Lines of Text

Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.12.
When adding long descriptions to a cell location such as adding a title to a worksheet or
descriptive column headings, you may need to control how the text is stacked vertically. In other
words, there may be a need to control when you want to start a new line of text within a cell
location. The following explains how this is accomplished when adding a title to the Basic Data
Analytics Project:
1. Click the merged cell locations in the range A1:C1 on the Sheet1 worksheet.
2. Type “Basic Data Analytics Project”.
3. Hold the ALT key down and tap the ENTER key on your keyboard. This will allow you to type
a new line of text in the merged cells.
4. Type “Retail Sales by Month”.
5. Press the ENTER key on your keyboard. The title should now appear on the worksheet. The
benefit of merging the cells is that the title will be centered over the three columns of data in
the Sheet1 worksheet (see Figure 2.27).

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Chapter 2 Essential Skills for Basic Data Analytics Projects 73

FIGURE 2.27 Using Merged Cells to Add a Title

Skill Refresher: Entering Multiple Lines of Text

1. Activate a cell location.

2. Type the first line of text.
3. Hold the ALT key down and press the ENTER key.
4. Type the second line of text and press the ENTER key.

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Formatting Data and Cells

Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.13.
Utilizing some of the most basic formatting techniques can make a worksheet easier to read
for yourself as well as other people who are sharing your workbook. The following steps demon-
strate a variety of basic formatting techniques for the Basic Data Analytics project:
1. Highlight the range A2:C2 in the Sheet1 worksheet.

2. Click the Bold button in the Home tab of the Ribbon (see Figure 2.28). Bolding the column head-
ings make them easier to see and helps distinguish where the data begins on a worksheet.
3. Click the down arrow on the Font command in the Home tab of the Ribbon (see Figure 2.28).
Select the Arial option from the dropdown list of font styles. Notice that as you move the
mouse pointer over the font styles listed in the dropdown menu, you can see a preview of how
the text will appear in the highlighted range.

FIGURE 2.28 Font Formatting Commands

4. Increase the width of column C to approximately 12 points (refer to Figure 2.19 if needed). The
entire column heading should now be visible. Different font styles and treatments such as
Bold can increase the size of the text which may require column widths and row heights to be
adjusted.
5. Click the merged cell in the range A1:C1.
6. Click the Bold button in the Home tab of the Ribbon.
7. Click the Italics button in the Home tab of the Ribbon.
8. Click the down arrow next to the Font Size command in the Home tab of the Ribbon (see Fig-
ure 2.28). Select 14 from the dropdown list of font sizes. Notice that as you move the mouse
pointer over the various font sizes you will be able to preview the appearance of the text in the
highlighted cells.
9. Increase the height of row 1 to approximately 36 points (see Figure 2.22 if needed).
10. Click the down arrow next to the Fill Color command in the Home tab of the Ribbon (see Fig-
ure 2.29). This command is used to change the color of the cells on a worksheet.
11. Select the Gold, Accent 4, Lighter 40% option from the color palette. Notice that as you move
the mouse pointer over the color palette you can preview the colors on the highlighted cell
range.

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Chapter 2 Essential Skills for Basic Data Analytics Projects 75

FIGURE 2.29 Color Formatting Commands

12. Click the down arrow next to the Font Color command in the Home tab of the Ribbon (see Fig-
ure 2.29). This command is used to change the color of the text entered into the cell locations
on a worksheet.
13. Select the Blue, Accent 5, Darker 25% option from the color palette. Notice that as you move
the mouse pointer over the color palette you can preview the color of text in the highlighted
cell range.
14. Highlight the range C3:C26.
15. Click the Accounting Number Format button in the Home tab of the Ribbon (see Figure 2.30).
This will add the dollar sign, comma, and two decimal places to the values in the highlighted
range. The down arrow next to the Accounting Number Format button will allow you to select
other currency symbols such as Euro or Chinese Yuan.
16. Click the Decrease Decimal button in the Home tab of the Ribbon twice (see Figure 2.30). This
should remove the two decimal places from the values in the highlighted range.

FIGURE 2.30 Number Format Commands

17. Click the down arrow next to the Number Format command in the Home tab of the Ribbon
(see Figure 2.31). This will open a dropdown menu that contains a variety of number formats

that can be applied to the values in a worksheet such as percentages, date formats, fractions,
and several others.

FIGURE 2.31 Number Format Dropdown Menu

18. Select the More Number Formats option at the bottom of the dropdown menu. This will open
the Format Cells dialog box. This dialog box contains access to all formatting options available
in Excel. The Numbers tab allows to set any number format that is needed and includes the
ability to establish custom formats for the values in a worksheet.
19. Click the Cancel button on the Format Cells dialog box to close it.

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Chapter 2 Essential Skills for Basic Data Analytics Projects 77

FIGURE 2.32 Format Cells Dialog Box

Borders (Adding Lines to a Worksheet)

Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.14.
Adding custom lines to a worksheet is accomplished by using the Borders command in Excel. borders
Borders are different from the grid lines that appear on a worksheet to define the perimeter of cell Lines that are added to a
locations. Excel provides the ability to add various types of lines to a worksheet so it is easier to worksheet to separate the
read when viewing either the electronic file or a printed copy of the worksheet. The following steps data in columns and rows.

demonstrate how borders are added to the Basic Data Analytics Project:
1. Highlight the range A1:C26 in the Sheet1 worksheet.
2. Click the down arrow to the right of the Borders button in the Home tab of the Ribbon (see
Figure 2.33).
3. Left click the All Borders option from the Borders dropdown menu (see Figure 2.33). This will
add vertical and horizontal lines to the range A1:C26.

FIGURE 2.33 Adding Borders to a Worksheet

4. Click the merged cell A1:C1.

5. Click the down arrow to the right of the Borders button in the Home tab of the Ribbon.
6. Click the Thick Outside Borders option from the dropdown menu.
7. Highlight the range A1:C2.
8. Click the down arrow to the right of the Borders button.
9. Click the More Borders option at the very bottom of the dropdown menu. This will open the
Format Cells dialog box.
10. In the Style section of the Borders tab, click the double underline option at the bottom of the
right column of line styles (see Figure 2.34).
11. Click the down arrow next to the Color command.
12. Click the Blue, Accent 1, Darker 25% option from the color palette.
13. Click the bottom line in the Border locator box. This will apply the line to the bottom of the
highlighted range.
14. Click the OK button on the Format Cells dialog box.

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Chapter 2 Essential Skills for Basic Data Analytics Projects 79

FIGURE 2.34 Using the Format Cells Dialog Box to Add Borders to a Worksheet

Skill Refresher: Preset Borders

1. Highlight a range of cells that require borders.

2. Click the Home tab of the Ribbon.
3. Click the down arrow next to the Borders button.
4. Select an option from the preset Borders list.

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Skill Refresher: Custom Borders

1. Highlight a range of cells that require borders.

2. Click the Home tab of the Ribbon.
3. Click the down arrow next to the Borders button.
4. Select the More Borders option at the very bottom of the options list.
5. Select a line style and line color first.
6. Select a placement option.
7. Click the OK button on the dialog box.

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Formatting Worksheet Tabs

Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.15.
Worksheets that are added to a workbook will be assigned the generic name Sheet followed
by a number. These worksheet tabs can be renamed and formatted to define the data that is being
used in a workbook. The following demonstrates how the worksheet tabs are formatted for the
Basic Data Analytics Project:
1. Click the Sheet2 worksheet tab.
2. Click the Format button in the Home tab of the Ribbon.
3. Click the Rename Sheet option from the dropdown list. This will allow you to type a new label
for the worksheet tab.
4. Type “Backup Data”.
5. Tap the ENTER key on your keyboard. The Sheet2 worksheet tab should now be renamed to
Backup Data.
6. Click the Format button in the Home tab of the Ribbon.
7. Place the mouse pointer over the Tab Color option from the dropdown menu. This will open
the color palette (see Figure 2.35). Click the Orange, Accent 2, Lighter 40% option from the color
palette.
8. Click and drag the Backup Data worksheet tab to the left of Sheet1. You can change the order
of the worksheet tabs in a workbook by clicking and dragging.

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Chapter 2 Essential Skills for Basic Data Analytics Projects 81

FIGURE 2.35 Formatting Worksheet Tabs

9. Double click the Sheet1 worksheet tab. This is another way to rename a worksheet tab.
10. Type “Sales Data”.
11. Tap the ENTER key on your keyboard. The Sheet1 worksheet tab should now be renamed to
Sales Data.

Skill Refresher: Renaming Worksheets

1. Double click the worksheet tab.

2. Type the new name.
3. Press the ENTER key.

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Keyboard Only

Wrap Text
• Tap the ALT key on your keyboard. Then tap the letters H and W one at a time.
Center, Left, and Right Alignment
• Tap the ALT key on your keyboard followed by the H key. Then tap the letters A and C
one at a time for center alignment. Tap the letters A and L one at a time for left alignment.
Tap the letters A and R one at a time for right alignment.
Merge Commands
• Merge and Center: Press the ALT key and then the letters H, M, and C one at a time.
• Merge Cells: Press the ALT key and then the letters H, M, and M one at a time.
• Unmerge Cells: Press the ALT key and then the letters H, M, and U one at a time.
Bold Format
• Hold the CTRL key and tap the B key on your keyboard.
Font Style
• Tap the ALT key on your keyboard. Then tap the letters F and F again. Tap the down
arrow key on your keyboard to open the dropdown menu of font styles.
Italics Format
• Hold the CTRL key and tap the I key on your keyboard.
Underline Format
• Hold the CTRL key and tap the U key on your keyboard.
Font Size
• Tap the ALT key on your keyboard. Then tap the letters F and S one at a time. Tap the
down arrow key on your keyboard to open the dropdown menu of font sizes.
Fill Color
• Tap the ALT key on your keyboard. Then tap the letters H and H again. Use the arrow
keys to navigate and select a color from the color palette.
Font Color
• Tap the ALT key on your keyboard. Then tap the letters F and C one at a time. Use the
arrow keys to navigate and select a color from the color palette.
Currency Format (two decimal places with negative values in parentheses)
• Hold the CTRL key and the SHIFT key and tap the number 4 key.
Number Format with Commas (two decimal places with minus sign for negative values)
• Hold the CTRL key and the SHIFT key and tap the number 1 key.
Accounting Number Format
• Tap the ALT key on your keyboard. Then tap the letters H, A, and N. Use the down arrow
to select a currency symbol then tap the ENTER key to apply the format.
Decreasing Decimal Places
• Tap the ALT key on your keyboard. Then tap the letter H followed by the number 9 key.
Increasing Decimal Places
• Tap the ALT key on your keyboard. Then tap the letter H followed by the number 0 key.
Renaming Worksheet Tabs
• Tap the ALT key on your keyboard. Then tap the letters H, O, and R one at a time. Type
the new name of the worksheet tab and press the ENTER key on your keyboard.
Add Border to Perimeter of Cell Range (thin black line)
• Hold the CTRL key and the SHIFT key and tap the number 7 key.

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Chapter 2 Essential Skills for Basic Data Analytics Projects 83

Removing Border from Perimeter of Cell Range

• Hold the CTRL key and the SHIFT key and tap the _ key (this should be to the right of the
zero key).

Key Takeaways

• Using the Wrap Text command allows you to stack multiword column headings vertically in
a cell location, reducing the need to expand column widths.
• Use the Merge & Center command to center the title of a worksheet directly over the
columns that contain data.
• You can control where a new line of data will start in a cell location by using the ALT + ENTER
key on your keyboard.
• Formatting skills are critical for creating worksheets that are easy to read and have a profes-
sional appearance.
• Adding borders or lines will make your worksheet easier to read and help separate the data
in each column and row.

2.3 Chapter Assignments and Tests

Data Analytics (Skills Review)

Budget Analysis for Medical Office (comprehensive review)

Starter File Name: Chapter 2 DA Exercise 1

Digital Downloads

Chapter 2 DA Exercise 1.xlsx

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Difficulty: Level 1
Maintaining and analyzing budgets is one of the most common managerial accounting practices.
Budgets play a critical role in helping any business or household control expenses. In this exercise
you will be working with a budget for a hypothetical medical office. The data shown in the file for
this exercise was extracted from a medical office accounting system and should contain three
years of data from 2017 through 2019. Two additional years of data will be added to this work-
book in the future. The purpose of this project is to monitor office expenses and ensure that each
expense category is at or below the budgeted spend plan. There are eight expense categories
that must be evaluated for each year. If the amount spent in any expense category is higher than
the budget, that category must be investigated to determine why additional funds were spent
above plan. For example, medical supplies is one of the expense categories. If the spend bud-
get for this category is $2,000 for 2017 but the actual spend was $3,000, this category must be
examined to determine why an additional $1,000 was spent above the budget. The total actual
spend dollars for each year is as follows: 2017 = $653,950; 2018 = $703,700; 2019 = $823,950.
Begin the exercise by opening the file named Chapter 2 DA Exercise 1. Questions that are pre-
ceded with the letters KO indicate you must only use your keyboard and not your mouse to
execute the required skill.

1. Open the AnswerSheet worksheet in the Chapter 2 DA Exercise 1 workbook.

2. Define each component of the DATA Analytics Framework in the AnswerSheet worksheet.
Read the assignment description before typing a response for each component of the
framework.
3. The description provided for this assignment states that two additional years of data will
be added to this workbook. When considering the Data Design component of the Data
Analytics Model, where should totals or a summary of the data be placed in this work-
book? Type your answer in the AnswerSheet worksheet.
4. Briefly explain how you would conduct a basic data audit based on the description for this
assignment. Type your answer in the AnswerSheet worksheet.
5. Highlight the range A1:H25 in the Sheet1 worksheet.
6. In the Home tab of the Ribbon, set the font style to Arial and the font Size to 12 points.
7. Set the width of column A to 20 points. Click any cell in column A and use the Format
button in the Home tab of the Ribbon.
8. Insert a column between columns A and B. Click any cell in column B and use the Insert
button in the Home tab of the Ribbon.
9. Type the words "Category Count" into cell B1. This column will be used to conduct a basic
data audit to verify that there are eight expense categories for each year.
10. Type the number 1 in cell B2 and then type the number 2 in cell B3.
11. Highlight cells B2 and B3.
12. Use Auto Fill to complete the number sequence down to the last row for the year 2017
which is cell B9. To use Auto Fill, place the mouse pointer over the Fill Handle in the lower
right corner of cell B3. When the mouse pointer changes to a black plus sign, click and
drag down to cell B9. The value in cell B9 should be the number 8. This shows that there
are eight expense categories for the year 2017.
13. To continue the basic data audit, type the number 1 in cell B10 and the number "2" in cell
B11.
14. Highlight cells B10 and B11. Use Auto Fill as instructed in step 12 to complete the
sequence down to the last row for 2018 which is B17.
15. To complete the basic data audit, type the number 1 in cell B18 and the number "2" in cell
B19.
16. Highlight cells B18 and B19. Use Auto Fill as instructed in step 12 to complete the
sequence down to the last row for 2019 which is B25.
17. Since the basic data audit is complete, column B can be hidden. Click any cell in column
B and then hide the column by using the Format button in the Home tab of the Ribbon.
18. Insert a blank column to the left of column A. Click any cell in column A and use the Insert
tab in the Home tab of the Ribbon.
19. KO Highlight the range D1:D25 and use the Cut command by pressing the CTRL key and
then tapping the X key on your keyboard.
20. KO Use the arrow keys on your keyboard to activate cell A1. To use the Paste command,
press and hold the CTRL key and tap the V key on your keyboard.
21. Insert a new worksheet into the workbook by clicking the plus sign to the right of the
Sheet1 worksheet tab.
22. KO Highlight the range A1:J25 in the Sheet1 worksheet. To get back into the Sheet1
worksheet from the Sheet2 worksheet, press and hold the CTRL key and tap the PAGE
UP key on your keyboard.
23. KO Copy the data in the highlighted range A1:J25 in the Sheet1 worksheet by pressing
the CTRL key and tapping the C key on your keyboard.
24. KO Activate cell A1 in the Sheet2 worksheet by pressing the CTRL key and tapping the
PAGE DOWN key on your keyboard. Paste the data copied in the previous step by press-
ing the CTRL key and tapping the V key on your keyboard.
25. Open the Sheet1 worksheet.

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Chapter 2 Essential Skills for Basic Data Analytics Projects 85

26. Delete columns D and E in the Sheet1 worksheet by using the Delete button on the Home
tab of the Ribbon. Activate any cell in each column first before using the Delete command.
The data in column E is not needed for this project.
27. KO Delete column G in the Sheet1 worksheet. Use the arrow keys to activate any cell in
column G. To delete the column tap the ALT key on your keyboard and then tap the letters
H, D, and C one at a time. This data is not needed for this project.
28. Highlight the range G1:G25. Use the Clear command in the Home tab of the Ribbon to
delete the contents in this range. This data is also not needed for this project.
29. KO Activate cell F1 and delete the contents by tapping the DELETE key on your keyboard.
30. Column F shows the difference between the actual dollars spent and the plan budget for
each expense category. A more descriptive column heading will be added by entering
multiple lines of text into a cell location. Begin by typing the word "Spend" into cell F1.
Start a new line in this cell by pressing the ALT key and tapping the ENTER key on your
keyboard. Type the letters "vs". Start another new line by pressing the ALT key and tap-
ping the ENTER key on your keyboard. Type the word "Budget" and tap the ENTER key
on your keyboard.
31. Activate cell D1. Edit this entry in this cell by clicking in the Formula Bar in front of the
word “Spend”. Type the word "Actual" followed by a space and tap the ENTER key. This
column shows the actual spend for each expense category. Editing the column heading
to Actual Spend provides a better description for this data.
32. KO Edit the entry in cell E1 by using the arrow keys to activate the cell and then tap the F2
key on your keyboard. Tap the SPACE bar, type the word "Budget", and tap the ENTER
key on your keyboard. This column shows the planned budgeted dollars for each expense
category. This column heading provides a better description for this column.
33. Apply the Wrap Text command to the range B1:D1.
34. Apply the Center Alignment command to the range A1:F1.
35. Highlight the range D2:F25. Apply the Accounting format command which is the dollar
sign button ($) in the Home tab of the Ribbon. Reduce the decimal places to zero by click-
ing the Decrease Decimal button in the Home tab of the Ribbon twice.
36. KO Change the width of column F to 12. Activate any cell in column F and then tap the
ALT, H, O, and W keys on your keyboard one at a time.
37. KO Apply the Bold format to the range A1:F1 by pressing the CTRL key and tapping the
B key on your keyboard.
38. Insert a blank row above row 1. Activate any cell in row 1 and use the Insert button in the
Home tab of the Ribbon.
39. Highlight the range A1: F1. Merge the cells in this range by using the Merge & Center but-
ton in the Home tab of the Ribbon.
40. Increase the height of row 1 to 30 by using the Format button in the Home tab of the Rib-
bon.
41. Type the following title for the report into the merged cells in row 1: Expense Plan vs Bud-
get Report.
42. Apply the Middle Align format to the title in row 1.
43. Apply the following formats to the title in row 1: Bold, Italics, font style Arial, font size 16,
and Fill Color Green Accent 6 Lighter 80%.
44. Highlight the range A1:F26. Apply horizontal and vertical borders to this range by clicking
the dropdown arrow next to the Borders button in the Home tab of the Ribbon and select
All Borders.
45. Highlight the range A17:F17. Change the text color in this range to Red. This expense
category exceeded the budget by $50 as shown in the Spend vs Budget column. Identify
other expense categories where the Spend vs Budget is a positive value. Highlight these
rows and change the text color to red.
46. Change the label for the Sheet1 worksheet tab by using the Format button in the Home
tab of the Ribbon. Select the Rename Sheet command, type Expense Analysis, and tap
the ENTER key on your keyboard.

47. Change the color of the Expense Analysis worksheet tab to orange using the Format but-
ton in the Home tab of the Ribbon.
48. Change the label for the Sheet2 worksheet tab by double clicking it. Type the label
"Backup Data" and tap the ENTER key on your keyboard.
49. Use the Save As command in the File tab of the Ribbon to save the workbook by adding
your name in front of the current workbook name (i.e., Your Name Chapter 2 DA Exercise
1).
50. Close the workbook and exit Excel.

Data Analytics (Skills Review)

Divisional Sales Report

Starter File Name: Chapter 2 DA Exercise 2

Digital Downloads

Chapter 2 DA Exercise 2.xlsx

https://catalog.flatworldknowledge.com/a/31995/Chapter_2_DA_Exercise_2-438b.xlsx

Difficulty: Level 2
A corporation might be comprised of large operating divisions. A common analytics exercise is
to track corporate sales by division over several years. This analysis can help managers identify
key emerging trends. The purpose of this exercise is to assemble a report that could be used by
a hypothetical technology company that operates several distinct product divisions. The results
of this analysis will be used to decide which divisions should receive additional investments to
expand or improve product offerings. The data for this report is arranged where the first column
contains the name of each division and each column to the right contains a year of sales data.
When reading the report from left to right, the oldest year appears in the first column next to the
division names and the last column on the right is the most recent year. There are five years of
data and an additional three years of data will be added to this report in the future. This new data
will add columns to the report, not rows.
Begin the exercise by opening the file named Chapter 2 DA Exercise 2. Questions that are pre-
ceded with the letters KO indicate you must only use your keyboard and not your mouse to
execute the required skill.
1. Open the AnswerSheet worksheet in the Chapter 2 DA Exercise 2 workbook.
2. Define each component of the DATA Analytics Framework in the AnswerSheet worksheet.
Read the assignment description before typing a response for each component of the
framework.
3. Open the Sheet1 worksheet. Notice that row 6 is a Totals row which sums the sales data
for each year. When considering the Data Design component of the Data Analytics Model,
is this an appropriate place to sum the data for this analysis? Briefly explain why this is or
is not an appropriate design choice in the AnswerSheet worksheet.
4. Open the Sheet1 worksheet. For columns B through F, the Total row (row 6) is summing
the values in rows 2 through 5. Conduct a simple data audit by using the Sum information
in the Excel Status Bar. Verify that the values in rows 2 through 5 in each column match
the total value that is displayed in row 6. Note any discrepancies from your data audit in
the AnswerSheet worksheet.
5. In the Sheet1 worksheet, type the year 2015 into cell B1.
6. Use Auto Fill to fill the years 2016 to 2019 in the range C1:F1 (hint: you will need to use
the Auto Fill dropdown menu).
7. Change the font style to Arial and the font size to 12 points in the range A1:F6.
8. Insert a blank row above row 1.

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Chapter 2 Essential Skills for Basic Data Analytics Projects 87

9. Merge and center the cells in the range A1:F1.

10. Enter the title for this worksheet into the merged range A1:F1 on two lines. The first line
should read Sales Trend Analysis. The second line should read Annual Sales by Division.
11. Increase the height of Row 1 to 50 points.
12. KO Make the following formatting adjustments to the merged range A1:F1: bold, italics,
change the font style to Arial, and change the font size to 14 points.
13. Set the alignment of the merged range A1:F1 to Middle Align.
14. Change the cell fill color of the merged range A1:F1 to Purple , Accent 4, Lighter 80%.
15. KO Increase the height of Row 7 to 30 points.
16. KO Format the range A7:F7 with bold and italics.
17. Format the values in the range B3:F7 with the Accounting Number Format and reduce the
decimal places to zero.
18. Make the necessary adjustments to remove any pound signs (####) that may have
occurred after formatting the values.
19. KO Increase the width of column A to 25 points.
20. KO Apply the bold format to the range B2:F2.
21. KO Center align the years in the range B2:F2.
22. KO Add a blank worksheet to the workbook.
23. Open the Sheet1 worksheet.
24. KO Copy the data in the range A2:F7 in the Sheet1 worksheet.
25. KO Open the Sheet2 worksheet and activate cell A1.
26. KO Paste the data into the Sheet2 worksheet.
27. Increase the width of columns A through F to 15 in the Sheet2 worksheet.
28. Rename the Sheet2 worksheet to Data Copy.
29. Rename the Sheet1 worksheet to Division Sales.
30. Add vertical and horizontal lines to the range A1:F7.
31. Add a very bold orange border around the perimeter of the range A1:F7.
32. Save the workbook by adding your name in front of the current workbook name (i.e., Your
Name Chapter 2 DA Exercise 2).
33. Close the workbook and Excel.

Chapter Skills Test 1

Starter File Name: Chapter 2 Skills Test 1

Digital Downloads

Chapter 2 Skills Test 1.xlsx

https://catalog.flatworldknowledge.com/a/31995/Chapter_2_Skills_Test_1-b48e.xlsx

Difficulty: Level 2
Answer the following questions by executing the skills on your Excel workbook. Answer each
question in the order it appears. If you do not know the answer to a question, skip it and go to
the next question.
1. Enter the number 14.99 into cell C28 in the Sheet1 worksheet.
2. Enter the number 9500 into cell E28 in the Sheet1 worksheet.
3. Insert a new worksheet into the workbook.
4. Highlight the range E2:E28 in the Sheet1 worksheet.

5. Conduct a basic data audit by identifying the Sum in the Status Bar for the highlighted values
in Sheet1. Enter the Sum identified in the Status Bar into cell A1 in the Sheet2 worksheet.
6. Enter 2019 into cell A17 in the Sheet1 worksheet.
7. Copy cell A17 and paste it into the range A18:A28.
8. Highlight the range B17:B18. Use Auto Fill to complete the months of the year in the range
B19:B28.
9. Delete the Sheet3 worksheet.
10. Enter the word “Year” in cell A1 in the Sheet1 worksheet.
11. Delete column D on the Sheet1 worksheet.
12. Insert a column to the left of column C.
13. Move the data in the range E1:E28 to column C into the range C1:C28.
14. Edit cell B1 so the entry shows the word "Month".
15. Edit cell D1 so the entry shows the words "Average Price".
16. Insert a blank row above row 1.
17. Increase the width of column B to 12 points.
18. Increase the height of row 1 to 39.75 points.
19. Format cell D2 so the text wraps to a second line and does not run into cell E2.
20. Set the horizontal alignment to Center for the column headings in the range A2:D2.
21. Format the data in the range A1:D29 to an Arial font style.
22. Format the values in the range C3:C29 with a comma and zero decimal places.
23. Format the values in the range D3:D29 with the Accounting format.
24. Hide rows 3, 4, and 5.
25. Merge and center the cells in the range A1:D1.
26. Type the following into the merged cell A1: Unit Sales Data, start a second line and type the
words "by Month".
27. Set the vertical alignment for the merged cell A1 to Middle.
28. Format the text in the merged cell A1 to Bold and Italics.
29. Change the font size in the merged cell A1 to 14 points.
30. Change the color of the merged cell A1 to Blue, Accent 5, Lighter 80%.
31. Change the color of the text in the merged cell A1 to Red.
32. Add plain black horizontal and vertical borders to the range A1:D29.
33. Add a double line border to the bottom of the range A1:D2. Make the color of the border
orange.
34. Change the color of the Sheet1 worksheet tab to purple.
35. Change the name of the Sheet1 worksheet to Sales Report.
36. Save the workbook by adding your name in front of the current workbook name (i.e., Joseph
Manzo Chapter 2 Skills Test).
37. Close your workbook and exit Excel.

Chapter Skills Test 2

Starter File Name: Chapter 2 Skills Test 2

Digital Downloads

Chapter 2 Skills Test 2.xlsx

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Difficulty: Level 3

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 2 Essential Skills for Basic Data Analytics Projects 89

Answer the following questions by executing the skills on your Excel workbook. Answer each
question in the order it appears. If you do not know the answer to a question, skip it and go to
the next question. Questions that are preceded with the letters KO indicate you must only use
your keyboard and not your mouse to execute the required skill.
1. KO Insert a blank worksheet into the workbook.
2. KO Highlight the range E2:E28 in the Sheet1 worksheet.
3. KO Conduct a basic data audit by identifying the Sum in the Status Bar for the highlighted
values in Sheet1. Enter the Sum identified in the Status Bar into cell A1 in the Sheet2 work-
sheet.
4. KO Copy cell A17 and paste it into the range A18:A28 in the Sheet1 worksheet.
5. KO Edit cell A1. Enter a space and type the word "Year" after the word “Fiscal”.
6. KO Unhide rows 5, 6, and 7.
7. KO Unhide column C.
8. KO Remove the border around the perimeter of the range B4:E4.
9. KO Cut the data in the range D1:D28 and paste it into the range G1:G28.
10. KO Delete columns C and D.
11. KO Change the font style to Arial for the range A1: E28 to Arial.
12. KO Apply the Wrap Text command to the range A1:E1.
13. KO Increase the column width to 12 points for the range A1:E1.
14. KO Set the horizontal alignment to center for the range A1:E1.
15. KO Bold the text in the range A1:E1.
16. KO Apply the currency format with 2 decimal places in the range E2:E28.
17. KO Apply the number format with commas and 2 decimal places for the range D2:D28.
18. KO Apply the Accounting Number Format to the range D2:D28. Use the US $ currency sym-
bol.
19. KO Format the values in the range D2:D28 to one decimal place.
20. KO Add a thin black border around the perimeter of the range A1:E28.
21. KO Hide rows 2, 3, and 4.
22. KO Change the name of the Sheet1 worksheet to Sales Data
Data.
23. Save the workbook by adding your name in front of the current workbook name (i.e., Joseph
Manzo Chapter 2 Skills Test).
24. Close your workbook and exit Excel.

Data Analytics Techniques for

Basic Projects

The purpose of this chapter is to demonstrate how fundamental data analytics techniques can be
applied to a basic project. These techniques will be used for the Basic Data Analytics Project which
was started in the previous chapter. The Excel skills that will be addressed include Treemap charts
for data visualization, data sorting, PivotTables, and PivotCharts. This chapter will also continue to
highlight the application of the Data Analytics Model with respect to data design and data internal
controls. The parameters for this project were defined using the DATA Analytics Framework in the
previous chapter.

3.1 Introduction to Data Visualization

Learning Objectives

1. Review data design choices for a basic data analytics project.

2. Understand how data visualization can be used to discover patterns and solutions in
datasets.
3. Learn how to create a Treemap chart.
4. Learn how to change the title of an Excel chart.
5. Become familiar with chart sheets.
6. Learn how to sort a dataset using one or many columns.

The skills covered up to this point were used to conduct a basic data audit and establish the data
design for the Basic Data Analytics Project. Similar to the data audit, the data design choices were
guided by the DATA Analytics Framework which was defined for this project in the previous chap-
ter. For example, there are no totals at the bottom of the Sales Data worksheet since the intention
is to add additional rows of data in the future (see Figure 3.1). Additional data design choices will
be made as analytic techniques are applied to develop a solution for the project. Recalling the Deci-
sion component of the DATA Analytics Framework, the goal is to determine which months over the
two-year period have revenue below $40,000. Once these months are identified, the company can
establish borrowing arrangements with banks to ensure there is sufficient cash to satisfy any debt
payments or operational expenses.

FIGURE 3.1 Data Design Choices for the Basic Data Analytics Project

Data visualization will be the first analytics technique applied to the Basic Data Analytics Pro-
data visualization
ject. This is a rather vast field of analyzing data visually to make discoveries and find solutions for
Data analytics technique
used for analyzing data various data projects. What makes data visualization different from traditional forms of charts is
visually to make that it exposes trends and potential solutions very quickly.
discoveries and find
solutions for various data
projects.

The Treemap Chart

Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.16.
Treemap chart The Treemap chart is one of the data visualization tools you can use in Excel. It arranges data
An Excel data visualization in a hierarchy so the largest and smallest components of a dataset can be easily identified. This is
tool that arranges data in a an appropriate technique for the Basic Data Analytics Project since the goal is to determine which
hierarchy so the largest months have the lowest sales volume. The following explains how the Treemap chart is created for
and smallest components
of a dataset can be easily this project:
identified.
1. Highlight the range A2:C26 in the Sales Data worksheet (formerly Sheet1).
2. Click the Insert tab on the Ribbon.
3. Click the Insert Hierarchy Chart button (see Figure 3.2).
4. Click the Treemap option from the dropdown menu. Excel will use the highlighted data to
embed a Treemap chart into the Sales Data worksheet.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 3 Data Analytics Techniques for Basic Projects 93

FIGURE 3.2 Inserting a Hierarchy Chart

5. Look at the Treemap chart and identify the months with the lowest sales dollars for each year.
Figure 3.3 shows the embedded Treemap chart in the Sales Data worksheet. This chart is a good
example of how data visualization can be a powerful analytics technique. The chart organizes the
sales dollars by month for each year. Months with the highest sales dollars are the large rectangles
on the upper left side of the chart. Months with the lowest sales dollars are the small squares on the
lower right side of the chart. The chart clearly identifies that June and July for both years have the
lowest sales dollars. The chart can also be seen as two large squares; the orange square represents
the 2018 sales and the blue square represents the 2017 sales. Since both squares are very similar in
size, we can conclude that the total sales results for each year are also very similar. Consider the
speed at which we are able to make this discovery. It took four steps to create, and the discovery is
made by just looking at the chart. It is the way in which the data is visually displayed that allowed
us to arrive at this conclusion so quickly.

FIGURE 3.3 An Embedded Treemap Chart

Skill Refresher: Creating a Treemap Chart

1. Highlight a range of cells that contain data to be used for the chart.
2. Click the Insert tab of the Ribbon.
3. Click the Insert Hierarchy Chart button from the Insert tab of the Ribbon.
4. Select the Treemap option from the Hierarchy Chart dropdown menu.

Changing the Title of a Chart

Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.17.
The Treemap chart that is embedded in the Sales Data worksheet, shown in Figure 3.3, contains
a generic title. The following explains how this title can be changed to reflect the data and purpose
of the chart:
1. Place the mouse pointer over the words “Chart Title” near the top of the Treemap chart and
right click. This will open the Right Click dropdown menu (see Figure 3.4).
2. Click the Edit Text option from the dropdown menu.

FIGURE 3.4 Editing the Chart Title

3. Type the following: “Sales Dollar Analysis by Month”. This will be the new title for the Treemap
chart.
4. Click anywhere on the chart to close the edit mode for the chart title. The chart should still be
active. You can tell if the chart is active if the round sizing handles appear around the perime-
ter of the chart at the Chart Tools tabs appear on the Ribbon (see Figure 3.4).

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Chapter 3 Data Analytics Techniques for Basic Projects 95

The Chart Sheet

Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.18.
After a chart has been embedded into a worksheet, it can be moved to a separate tab in the chart sheet
workbook called a chart sheet. A chart sheet differs from a worksheet in that it can only contain a A worksheet that can only
chart and no other data can be added. Moving the Treemap chart to a chart sheet is a design choice contain a chart and does
that is in line with DATA Analytics Framework for the Basic Data Analytics Project. Since additional not contain any cell
locations for adding data.
data is going to be added to the workbook in the future, additional charts will likely be created.
Embedding several charts in the same worksheet that contains many rows of data will make view-
ing the charts cumbersome. The following explains how the Treemap chart can be moved to a chart
sheet for the Basic Data Analytics project.
1. Check to make sure the Treemap chart is activated. You should see the round sizing handles sizing handles
around the perimeter of the chart. You should also see the Chart Tools tab in the Ribbon. If Circles around the
you do not see this, click anywhere on the chart to activate it. perimeter of a chart
indicating the chart is
2. Click the Move Chart button in the Design tab of the Ribbon (see Figure 3.5). This will open the activated. Any of the
Move Chart Dialog box. circles can be clicked and
dragged to change the
3. Click the New Sheet option in the Move Chart dialog box (see Figure 3.5). size of a chart.
4. Type the following: “Treemap 2017-18”. This will become the tab label for the chart sheet.
5. Click the OK button on the Move Chart dialog box. This will add a chart sheet to the workbook.

FIGURE 3.5 Moving an Embedded Chart

6. Click the year 2018 in the December block of the Treemap chart (see Figure 3.6). This will acti-
plot area
vate all the labels in the plot area of the Treemap chart.
The center area of a chart
7. Click the Home tab of the Ribbon. that displays data and
labels based on the chart
8. Click the down arrow next to the font size button and select 16 from the dropdown list. This type, i.e., bars, dots,
will increase the font size of the labels on the chart. blocks, etc.
9. Click the Bold button in the Home tab of the Ribbon. This will make the labels in the plot area
of the chart easier to see.

FIGURE 3.6 Chart Sheet

10. Place the mouse pointer over the June and July blocks on the Treemap chart. A tip box will
appear showing the sales dollar value for the month where the mouse pointer is touching (see
Figure 3.7). Identify if the sales dollars for the months of June and July for both years are below
$40,000.

FIGURE 3.7 Chart Tip Box Values

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Chapter 3 Data Analytics Techniques for Basic Projects 97

This example of data visualization demonstrates both its value and shortcomings. Data visu-
alization is great at showing relationships or unique patterns in a dataset. What you don’t see is
numbers. This is what makes data visualization different from common charts. Charts typically
have a quantitative element that show the values of the components in a dataset typically on the Y
(vertical) axis or X (horizontal) axis or both. As shown in Figure 3.7 there is no Y or X axis displaying
quantitative values.

Sorting Data (Single Level)

Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.19.
Using the Treemap chart, we were able to quickly identify that June and July were months sorting
with the lowest sales dollars. However, in order to see if these months had sales dollars below An analytics technique that
$40,000, the mouse pointer had to be placed over each block in the plot area of the chart. Sorting is arranges a dataset in
another analytics technique that can be used to identify the months and the sales dollars that are ascending or descending
order based on the values
lowest in the dataset. The following explains how this technique is used for the Basic Data Analyt- in one or many columns.
ics Project:
1. Click the Sales Data worksheet tab.
2. Highlight the range A2:C26.
3. Click the Data tab of the Ribbon.
4. Click the Sort button in the Data tab of the Ribbon. This will open the Sort dialog box.
5. Check to make sure there is a check mark next to the “My data has headers” check box (see Fig-
ure 3.8). If you do not see a check mark, click the box.
6. Click the down arrow next to the Sort by Column dropdown box (see Figure 3.8).

Integrity Check

Sorting Data
Check the highlighted range of the data you are sorting carefully. It is critical that all columns in
a contiguous range of data are highlighted before sorting. If you do not sort all of the columns in
a contiguous dataset, the data could become corrupted in such a way that may not be fixable.
Excel does not always provide a warning if you are attempting to sort only part of a contiguous
range of data. If you mistakenly sort only part of a contiguous range of data, use the Undo com-
mand to put the data back to its original configuration.

FIGURE 3.8 Using One Column to Sort Data

7. Select the Total Sales Dollars option from the Sort by Column dropdown menu. This is called
a single level sort since the dataset is going to be sorted based on the values in one column.
8. Click the OK button in the Sort dialog box. This will sort the data in the highlighted range of
cells with the smallest values in the top rows and the largest values in last rows.
Figure 3.9 shows the results of sorting the data for the Basic Data Analytics Project. This tech-
ascending order
nique provides the same results shown in the Treemap chart in which June and July have the
Arranging data from lowest
value to highest value. lowest sales dollars. The sorted data also shows that these months have sales below $40,000. Since
the data is sorted in ascending order (lowest value to highest value), we also know that no other
months have sales below $40,000.

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Chapter 3 Data Analytics Techniques for Basic Projects 99

FIGURE 3.9 Sorted Data Based on the Total Sales Dollars Column

9. Click the Treemap 2017-18 chart sheet tab. Notice that sorting the data has changed the visual
appearance of the chart.
Figure 3.10 shows how the Treemap chart became distorted once the data was sorted. The orig-
inal dataset was sorted in chronological order based on the year and month. This kept the Treemap
chart organized by year and within each year the chart organized the months with the highest
sales dollars to the lowest from left to right. Changing the sort sequence of the data disrupts the
arrangement of the Treemap chart. This creates a problem for the Basic Data Analytics Project
because the Treemap chart certainly provides value but only in its original format. This problem
will be solved through the use of PivotTables which is covered in the next section.

Why...

My Treemap Chart Does NOT Make Sense!

Treemap charts are organized based on the way in which a dataset of three or more columns is
sorted. The first column will determine the number of maps that will be created in the plot area
of the Treemap chart. The next columns will determine the labels and arrangement of the chart.
If there are only two columns in a dataset (one column of labels and one column of values), there
is no need to sort it. However, for three or more columns, the hierarchy of the Treemap chart is
established based on the values in the first column (from left to right). If the first column is not
sorted such that like values are not grouped together, the Treemap chart will be distorted. For
example, if using a dataset that includes a Year column followed by a Month column and then
a third column with values, the dataset must be sorted based on the values in the Year column.
The sort order does not matter, i.e., oldest years can be at the top or bottom of the dataset.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
100 Data Analytics Using Microsoft® Excel®

FIGURE 3.10 Distorted Treemap Chart

Skill Refresher: Sorting Data (Single Level)

1. Highlight a range of cells to be sorted.

2. Click the Data tab of the Ribbon.
3. Click the Sort button to open the Sort dialog box.
4. Select a column by clicking the down arrow on the Sort by dropdown box.
5. Select a sort order from the Order dropdown box.
6. Click the OK button on the Sort dialog box.

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Chapter 3 Data Analytics Techniques for Basic Projects 101

Sorting Data (Multi-Level)

Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.20.
While the single level sort technique provided value for helping establish a solution for the
Basic Data Analytics project, it distorted the Treemap chart as shown in Figure 3.10. To restore the
Treemap chart to its original form, a multi-level sort must be applied to the dataset. A multi-level
sort is when a dataset is sorted based on the values in two or more columns. The following demon-
strates how this is accomplished for the Basic Data Analytics project:
1. Click the Sales Data worksheet tab.
2. Highlight the range A2:C26.
3. Click the Data tab of the Ribbon.
4. Click the Sort button in the Data tab of the Ribbon.
5. Click the down arrow next to the Sort by Column box in the Sort dialog box.
6. Select Year from the Sort by dropdown box.
7. Click the Add Level button on the Sort dialog box (see Figure 3.11).
8. Click the down arrow next to the Then by Column box.
9. Select Month from the Then by dropdown box.
10. Click the down arrow for the Order dropdown box in the Then by row (see Figure 3.11).
11. Select Custom List from the Order dropdown box. This will open the Custom Lists dialog box.

FIGURE 3.11 Multi-Level Sort

12. Click the January, February….option in the Custom List dialog box (see Figure 3.12).

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
102 Data Analytics Using Microsoft® Excel®

FIGURE 3.12 Custom Lists Dialog Box

13. Click the OK button on the Custom Lists dialog box.

14. Click the OK button on the Sort dialog box. This will restore the dataset to its original sort
order. This will also restore the Treemap chart to its original form.

Skill Refresher: Sorting Data (Multi-Level)

1. Highlight a range of cells to be sorted.

2. Click the Data tab of the Ribbon.
3. Click the Sort button to open the Sort dialog box.
4. Select a column from the Sort by dropdown list in the Sort dialog box.
5. Select a sort order from the Order dropdown list in the Sort dialog box.
6. Click the Add button in the Sort dialog box.
7. Repeat Steps 4 and 5.
8. Click the OK button on the Sort dialog box.

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Chapter 3 Data Analytics Techniques for Basic Projects 103

Key Takeaways

• A Treemap chart is one of several data visualization tools that can be used to quickly identify
trends and patterns in datasets.
• To use any Excel formatting features on the labels found in the plot area of a chart, click one
label and all labels will be activated for applying formatting features.
• All cell locations in a contiguous range must be highlighted or included before sorting a
dataset. Sorting only part of a contiguous range of cells might permanently corrupt a dataset.
• When creating a Treemap chart for a dataset containing three or more columns, the dataset
must be sorted based on the left most column first.

3.2 Introduction to PivotTables and

PivotCharts

Learning Objectives

1. Understand how PivotTables can be used for the Analysis component of the DATA Analytics
Framework.
2. Learn how to create a PivotTable.
3. Review techniques for sorting and formatting data in a PivotTable.
4. Understand how to add or remove grand totals in PivotTables.
5. Become familiar with applying a design style to a PivotTable.
6. Learn how to create a PivotChart.
7. Review techniques for moving and adjusting the size of Excel charts.
8. Learn how to apply a filter to a PivotChart.
9. Review basic data internal controls that can be added to a worksheet.

The Treemap chart provided valuable discoveries which led to a solution for the Basic Data Analyt-
ics Project. We know that June and July are the two months with the lowest sales for both years.
The sorting technique revealed that these are the only months with sales dollars below $40,000.
However, changing the sort arrangement of the dataset distorted the Treemap chart. Using a Pivot-
Table would allow the dataset to remain in its original arrangement and still provide the ability to
make the same analytical discoveries using data sorting techniques. PivotCharts provide an alter-
native to displaying data visually for the purpose of either data visualization or presentation.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
104 Data Analytics Using Microsoft® Excel®

Creating a PivotTable
Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.21.
PivotTable Through the data sorting technique, we were able to identify the months that had sales dollars
An Excel analytics tool that below $40,000. However, using the DATA Analytics Framework, it was determined that a two-year
can group and aggregate trend must also be examined. A PivotTable is a powerful analytical tool that can be configured to
date to show data evaluate comparisons and trends for a dataset. The following explains how a basic PivotTable is
comparisons and trends.
Data can also be sorted created using the data in the Basic Data Analytics Project:
and specific data points
1. Highlight the range A2:C26.
can be studied by applying
filters. 2. Click the Insert tab of the Ribbon.
3. Click the PivotTable button on the far left side of the Ribbon (see Figure 3.13). This will open
the Create PivotTable dialog box.

FIGURE 3.13 Inserting a PivotTable

4. Click the OK button on the Create PivotTable dialog box. The default settings are appropriate
for this project so there is no need to make any changes. These settings will put the PivotTable
in a separate worksheet in the workbook. This design choice is appropriate given the para-
meters defined in the DATA Analytics Framework for this project. With additional data being
added to the Sales Data worksheet in the future, it would be cumbersome to also work with a
PivotTable in the same worksheet. Therefore it is best to put the PivotTable in a separate work-
sheet.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 3 Data Analytics Techniques for Basic Projects 105

FIGURE 3.14 Create PivotTable Dialog Box

Figure 3.15 shows the appearance of a blank PivotTable. The PivotTable is created by dragging
fields into the PivotTable work area on the lower right side of the worksheet (see Figure 3.15).

FIGURE 3.15 Blank PivotTable

5. Click and drag the Year field into the COLUMNS area (see Figure 3.15). This will set the years as
the column headings of the PivotTable.
6. Click and drag the Month field into the ROWS area. This will set the months as the row head-
ings of the PivotTable.
7. Click and drag the Total Sales Dollars field into the VALUES area. The sales dollars will now be
organized by month into two columns by year. This arrangement provides the ability to evalu-
ate the sales dollars trend between the two years.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
106 Data Analytics Using Microsoft® Excel®

Why…

Column Headings Do Not Appear in PivotTable Fields Section

You must include the column headings when highlighting the range of cells in your dataset before
inserting a PivotTable. Excel will use the first row in your highlighted range for the PivotTable field
names.

FIGURE 3.16 PivotTable Arranging Sales Dollars by Month and Year

Skill Refresher: Creating a PivotTable

1. Highlight range of cells that contain data to be used in the PivotTable (include column
headings).
2. Click the Insert tab of the Ribbon.
3. Click the PivotTable button.
4. Review settings in the Create PivotTable dialog box such as the Table/Range and Pivot-
Table location.
5. Click the OK button on the Create PivotTable dialog box.
6. Click and drag fields from the top of the PivotTable Fields pane to one of the four areas in
the bottom of the PivotTable Fields pane.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 3 Data Analytics Techniques for Basic Projects 107

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Sorting a PivotTable
Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.21.
Once the PivotTable is created, the months in the Row Labels area can be sorted based on
the Total Sales Dollars field which was dragged into the VALUES area of the PivotTable. This will
accomplish the objective of identifying the months with the lowest sales dollars and will also show
if the sales dollars are below $40,000. The following explains how this is accomplished:
1. Click the down arrow next to the Row Labels heading (see Figure 3.17).
2. Click the More Sort Options from the Row Labels dropdown list (see Figure 3.17). This will open
the Sort (Month) dialog box.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
108 Data Analytics Using Microsoft® Excel®

FIGURE 3.17 Row Labels Dropdown Menu

3. Click the Ascending option in the Sort (Month) dialog box (see Figure 3.18).
4. Click the down arrow for the Ascending sort option.
5. Click the Sum of Total Sales Dollars from the dropdown list.
6. Click the OK button on the Sort (Month) dialog box. The months on the PivotTable will now be
sorted from lowest sales dollar value to highest.

FIGURE 3.18 Sort (Month) Dialog Box

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 3 Data Analytics Techniques for Basic Projects 109

Figure 3.19 shows how the PivotTable appears after sorting the months based on the sales dol-
lars. The PivotTable reveals the same solution as the other techniques in that June and July both
have sales below $40,000. However, the PivotTable also shows the sales trends for these months.
Notice that for both months the sales dollars are decreasing from 2017 to 2018.

FIGURE 3.19 PivotTable Sales Trend by Month

Skill Refresher: Sorting PivotTable Row Labels

1. Click the down arrow next to the Row Labels heading.

2. Click More Sort Options from the dropdown menu.
3. Select how the Row Labels will be sorted (Manual, Ascending, or Descending) in the Sort
dialog box.
4. Click the down arrow below the sort method chosen in step 3.
5. Click a column that will be used to sort the row labels.
6. Click the OK button on the Sort dialog box.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
110 Data Analytics Using Microsoft® Excel®

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Formatting a PivotTable
Follow Along File: Data Analytics Project 1 continued. If starting here use Data Analytics Project 1.22.
Formatting enhancements can be added to help make a PivotTable easier to read when evaluat-
ing the data for a project. The following demonstrates how a few formatting features can be added
to the PivotTable that was created for the Basic Data Analytics Project:
1. Double click the Sheet1 worksheet tab. This will allow you to change the label on the work-
sheet tab.
2. Type the following: “Sales PivotTable”.
3. Press the ENTER key on your keyboard.
4. Click cell A3 on the PivotTable. This cell should contain the Sum of Total Sales Dollars field
name.
5. Click the Field Settings button in the Analyze tab of the Ribbon (see Figure 3.20). The Analyze
tab is one of the PivotTable Tools tabs which is added to the Ribbon when a PivotTable is cre-
ated.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 3 Data Analytics Techniques for Basic Projects 111

FIGURE 3.20 Changing the Field Settings on a PivotTable

6. Click the Number Format button on the Value Field Settings dialog box (see Figure 3.21). This
will open the Format Cells dialog box.

FIGURE 3.21 The Value Field Settings Dialog Box

7. Click the Currency option on the left side of the Format Cells dialog box (see Figure 3.22).
8. Click the down arrow for Decimal places until the value is zero.
9. Click the third option in the Negative numbers section. This will display negative values in
parentheses in black font.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
112 Data Analytics Using Microsoft® Excel®

FIGURE 3.22 Number Format Settings Using Format Cells Dialog Box

10. Click the OK button on the Format Cells dialog box.

11. Click the OK button on the Value Field Settings dialog box. This will format the sales dollars on
the PivotTable with the Dollar currency symbol, commas, and zero decimal places.

Why…

Use the Value Field Settings Dialog Box

The Value Field Settings dialog box provides access to many features that allow you to control the
way data is processed on a PivotTable. For example, Excel will typically sum quantitative fields
that are dragged into the VALUES area of the PivotTable. This can be changed using the Value
Field Settings dialog box to count, average, max, etc. Values can also be displayed as a percent-
age of columns or rows. The Value Field Settings dialog box can be used to change the name
of a field or format values in a field, however, it is not required. You can simply click and type a
new field name right on the PivotTable. You can also highlight data and format it using any of the
formatting commands in the Home tab of the Ribbon.

12. Click the Design tab under the PivotTable Tools on the Ribbon.
13. Click the Grand Totals button (see Figure 3.23).
14. Select the On for Columns Only option from the Grand Totals dropdown list. This will remove
the grand totals that appear next to each row. The row grand totals simply add two years of
sales dollars for each month which does not provide any value for the project. The column
totals are summing the total sales dollars for the year. This does provide value since it allows
us to check if the data is accurate. Recall that this was done during the data audit in the previ-
ous chapter.

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Chapter 3 Data Analytics Techniques for Basic Projects 113

FIGURE 3.23 Change the Grand Totals on a PivotTable

15. Click the down arrow next to the PivotTable Styles twice. This is found on the right side of the
Design tab of the Ribbon (see Figure 3.23).
16. Select the Pivot Style Medium 3 preset design style. This will add horizontal lines on the Pivot-
Table which makes it easier to read numbers across each row.

FIGURE 3.24 Preset Design Styles for PivotTables

Figure 3.24 shows the final PivotTable for the Basic Data Analytics Project. While PivotTables
have less visual impact than Treemap charts, they have the capacity to deliver more detailed solu-
tions for a data analytics project. The PivotTable shown in Figure 3.24 satisfies all the requirements
outlined in the DATA Analytics Framework in that the months with sales below $40,000 are easily
identified and the two-year trend for these months are revealed.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
114 Data Analytics Using Microsoft® Excel®

Skill Refresher: PivotTable Value Formats Using the Field Settings

Command

1. Click the field name on the PivotTable that contains the values that will be formatted.
2. Click the Field Settings button in the Analyze tab of the Ribbon.
3. Click the Number Format button at the bottom of the Value Field Settings dialog box.
4. Select the desired number format in the Format Cells dialog box.
5. Click the OK button on the Format Cells dialog box.
6. Click the OK button on the Value Field Settings dialog box.

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Skill Refresher: Add or Remove PivotTable Grand Totals

1. Click anywhere on the PivotTable to activate it.

2. Click the Grand Totals button in the Design tab of the Ribbon.
3. Click the desired option from the dropdown menu.

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Chapter 3 Data Analytics Techniques for Basic Projects 115

Skill Refresher: Add or Remove PivotTable Subtotals

1. Click anywhere on the PivotTable to activate it.

2. Click the Subtotals button in the Design tab of the Ribbon.
3. Click the desired option from the dropdown menu.

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Creating a PivotChart
Follow Along File: Data Analytics Project 1 continued. If starting here Data Analytics Project 1.23.
The PivotTable was used to satisfy the requirements for the Basic Data Analytics Project PivotChart
including the two-year sales trend. However, a PivotChart would be a more effective tool for dis- An Excel analytics tool that
playing and evaluating trends. PivotCharts contain the same processing power as PivotTables, but uses the same data
can also display trends and comparisons in a variety of chart styles. The following explains how a processing features as a
PivotTable but can display
PivotChart is added to the Basic Data Analytics Project. trends and comparisons in
any of the chart types
1. Highlight the range A2:C26 in the Sales Data worksheet.
available in Excel.
2. Click the Insert tab of the Ribbon.
3. Click the PivotChart button in the center of the Insert tab commands on the Ribbon. Do not
click the down arrow on the lower half of the button. Click the upper part of the button.
4. Click the OK button on the Create PivotChart dialog box. This is identical to the Create Piv-
otTable dialog box shown in Figure 3.14. The default settings will create a PivotChart on a
separate worksheet.
Figure 3.25 shows the blank PivotChart that was added to a new worksheet in the Basic Data
Analytics Project workbook. The process of creating a PivotChart is identical to creating a Pivot-
Table. Fields on the far right side of the worksheet are dragged to the areas in the lower right side
of the worksheet which creates the arrangement for the PivotChart.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
116 Data Analytics Using Microsoft® Excel®

FIGURE 3.25 Blank PivotChart

5. Click and drag the Year field into the LEGEND area (see Figure 3.26).
embedded chart
Any chart that is added to 6. Click and drag the Month field into the AXIS area.
an Excel worksheet. 7. Click and drag the Total Sales Dollars field into the VALUES area. Once this step is complete,
Embedded charts can be
moved and resized.
you will see the embedded column chart shown in Figure 3.26. This is considered an embedded
chart because it is created within a worksheet as opposed to being moved to a chart sheet.
The PivotChart in Figure 3.26 clearly shows that June and July are the lowest sales dollar
values in the dataset. The column chart is the default chart type when a PivotChart is created.
However, this can be changed to many different types of charts that are available for PivotCharts
(some chart types, such as hierarchy charts, are not available for PivotCharts). Notice that a Pivot-
Table is also created. Any changes that are made to the PivotTable will also change the PivotChart
and vice versa.

FIGURE 3.26 Column Type PivotChart

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Chapter 3 Data Analytics Techniques for Basic Projects 117

Skill Refresher: Creating a PivotChart

1. Highlight range of cells that contain data to be used in the PivotChart (include column
headings).
2. Click the Insert tab of the Ribbon.
3. Click the PivotChart button.
4. Review settings in the Create PivotChart dialog box such as the Table/Range and Piv-
otChart location.
5. Click the OK button on the Create PivotChart dialog box.
6. Click and drag fields from the top of the PivotChart Fields pane to one of the four areas in
the bottom of the PivotChart Fields pane.

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Moving and Resizing Charts

Follow Along File: Data Analytics Project 1 continued. If starting here Data Analytics Project 1.24.
Once any embedded chart is created in Excel, it can be moved and resized. This will allow the
chart to be coordinated with other elements on a worksheet, such as a PivotTable, and will also
make the chart easier to see. The following explains how the embedded PivotChart for the Basic
Data Analytics Project is moved and resized.
1. Place the mouse pointer in the upper right side of the chart area (see Figure 3.26).
2. Click and drag the chart so the upper right corner of the chart is in the middle of column M.
3. Place the mouse pointer over the middle right sizing handle (see Figure 3.26). Hold the ALT key
on your keyboard and click and drag to the middle of column N. This will widen the chart and
automatically “snap” it into the right edge of column N.
4. Place the mouse pointer over the middle bottom sizing handle (see Figure 3.26). Hold the ALT
key on your keyboard and click and drag down to row 20. This will increase the height of the
chart and “snap” the bottom edge of the chart into the bottom of row 20.

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118 Data Analytics Using Microsoft® Excel®

Why…

Use the ALT Key When Resizing a Chart

Using the ALT key while resizing an embedded chart locks the perimeter of the chart to columns
and rows. This gives you the ability to adjust the chart to precise sizes as you adjust the width
and height of rows and columns.

Skill Refresher: Resizing a Chart

1. Click the chart to activate it (sizing handles should appear around the perimeter of the
chart).
2. Click and drag any of the sizing handles to resize the chart.

View the video online at: http://www.youtube.com/embed/s87334es-FI?rel=0

Adding a PivotChart Filter

Follow Along File: Data Analytics Project 1 continued. If starting here Data Analytics Project 1.25.
Once a PivotChart is created, filters can be applied to examine specific data points on the chart.
With regards to the Basic Data Analytics Project, one of the decision requirements is to study the
sales trend for the months with the lowest sales. The following explains how a filter can be applied
to the PivotChart to display just the months of June and July.
1. Click the Month filter button on the lower left side of the chart area (see Figure 3.26). This will
open up the filter dropdown menu which allows you to choose which months to display on the
chart.
2. Click the check box next to the Select All option in the filter dropdown menu. This will remove
all the checkmarks next to the months in the list.

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Chapter 3 Data Analytics Techniques for Basic Projects 119

FIGURE 3.27 Filter Dropdown Menu for Month Field

3. Click the check box next to the months of June and July. This will reduce the bars displayed
on the chart to June and July.
4. Click the OK button at the bottom of the filter dropdown menu.
5. Change the Sheet1 worksheet tab label to: “Sales Trend Chart”.
Figure 3.28 shows the completed PivotChart. Since the data was filtered to show just the
months of June and July, the trend can be examined. The chart shows that there is a small decline
in sales from 2017 to 2018 for both months. Notice that the filter applied to the PivotChart was also
applied to the PivotTable.

FIGURE 3.28 PivotChart with Filter Applied

Integrity Check

Audit the outputs of PivotTables and PivotCharts

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120 Data Analytics Using Microsoft® Excel®

After a PivotTable or PivotChart is created, new data that is added to your workbook will NOT
be included in the output for these tools. The easiest solution to this problem is to create a new
PivotTable or PivotChart that includes the additional data. You can also change the Table/Range
of cells to include the new data by clicking on the PivotTable or PivotChart and then click the
Change Data Source button in the Analyze tab of the Ribbon. If you are using a workbook that
contains PivotTables or PivotCharts, carefully audit the outputs to make sure all necessary rows
of data are included.

Skill Refresher: PivotChart Filters

1. Click one of the field names on the chart.

2. Click Select All from the filter dropdown menu to deselect all items on the filter list.
3. Click the check box next to the items that are to be displayed on the PivotChart
4. Click the OK button on the filter dropdown menu.

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Basic Data Internal Controls

Follow Along File: Data Analytics Project 1 continued. If starting here Data Analytics Project 1.26.
While this is considered a Basic Data Analytics Project, it includes many sophisticated tools
and techniques for examining data. These tools allowed for a thorough and successful completion
of the project objectives which were defined through the DATA Analytics Framework in the previ-
ous chapter. The months with sales below $40,000 were identified along with the sales trend from
2017 to 2018. The company can now use these results to establish a plan to borrow the appropriate
amount of funds to finance the company’s operations. Additionally, the DATA Analytics Framework
provided guidance as to how data audits were conducted as well as data design choices. To conclude
this project, basic data internal controls will be added so other people who use this workbook in
the future will not mistakenly misinterpret or distort the results. The following explains how basic
warning internal controls are added to the Basic Data Analytics Project:

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Chapter 3 Data Analytics Techniques for Basic Projects 121

1. Open the Sales Data worksheet. Note that the worksheet tab may be hidden as there are now
several worksheets in this workbook. To show the worksheet tab, click the dots to the right of
the Sales Trend Chart worksheet tab.
2. Type the following into cell E3: “The Treemap chart will be distorted if this data is not sorted
by year and month”. This is a basic warning data internal control technique that protects the
integrity of the Treemap chart. This notifies the next person who is using this workbook how
the data must be sorted. Also, if there is a problem with the Treemap chart this explains how
it can be fixed. The location of this warning is an appropriate design choice. As per the DATA
Analytics Framework, there will be additional rows of data added to this worksheet, but not
columns. Putting this warning in cell E3 makes it visible and does not interfere with additional
rows of data being added to the workbook.
3. Format the warning in cell E3 by changing the color to red and applying the bold format.
4. Type the following into cell E27: “Data added here will not be included in the existing Treemap
chart, PivotTable, or PivotChart”. The placement of this warning data internal control is also
an appropriate design choice. As per the DATA Analytics Framework, new rows will be added to
the worksheet which would occur at row 27. Therefore, the warning is placed where the person
who is adding new rows would see it.
5. Format the warning in cell E27 by changing the color to red and applying the bold format.
6. Open the Sales PivotTable worksheet.
7. Type the following into cell E1: “This PivotTable ONLY includes data from the range A2:C26 in
the Sales Data worksheet”.
8. Format the warning in cell E1 by changing the color to red and applying the bold format.
9. Copy the warning in cell E1 and paste it into cell F22 on the Sales Trend Chart worksheet.
10. Edit the warning in cell F22 on the Sales Trend Chart worksheet to change the word “Pivot-
Table” to “PivotChart”.
Figure 3.29 shows one of the warning data internal controls that was added to the Basic Data
Analytics Project. Simple internal controls, such as the warnings that were added to this workbook,
can be very effective in preventing someone from making a poor decision by misinterpreting the
outputs in an Excel workbook. The internal controls that were added to this workbook make it
clear that when data is added, adjustments to the PivotTable and charts will need to be made before
they can be used to make decisions.

FIGURE 3.29 Warning Data Internal Control Added to a Worksheet

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122 Data Analytics Using Microsoft® Excel®

Keyboard Only

Insert Dialog Box (for inserting Rows, Columns, and Cells)

• Hold the CTRL key and SHIFT key and tap the + key.
Delete Dialog Box (for deleting Rows, Columns, and Cells)
• Hold the CTRL key and tap the - key (the minus sign key).

Key Takeaways

• PivotTables are valuable analytics tools that can sort, aggregate, and filter large datasets to
study comparisons and trends.
• Column headings must be included from your dataset when creating a PivotTable. The col-
umn headings in the dataset will be the field names in the PivotTable.
• The Value Field Settings dialog box can be used, but is not required, to format the values on
a PivotTable or change the name of the field.
• Subtotals and grand totals can be turned on or off by using the appropriate buttons in the
Design tab of the Ribbon.
• PivotCharts have the same analytical power as PivotTables and can display data using sev-
eral chart types available in Excel.
• When resizing a chart, locking it into columns and rows using the ALT key will allow you to
change the size of a chart when row heights or column widths are changed.
• Existing PivotTables and PivotCharts will not include data that is added to a workbook. Piv-
otTables and PivotCharts must be carefully audited to ensure new data is being included.
• Warnings are basic data internal controls that can prevent someone from distorting or misin-
terpreting the results of an Excel analytics project.

3.3 Chapter Assignments and Test

Data Analytics (Skills Review)

Analyzing Retail Store Sales (Comprehensive Review)

Starter File Name: Chapter 3 DA Exercise 1

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Difficulty: Level 1
Data analytics can play a very important role in many business planning activities. This exercise
will analyze sales results for the Big General Merchandise retail company which owns and oper-
ates 17 stores. The results of this analysis will be used to determine a high level inventory plan
for each store in the company for one month. Once this plan is established, more details can be
researched with regards to how the total inventory plan should be broken down by product. The
data provided by the company contains the amount of units sold over a two-month period for

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Chapter 3 Data Analytics Techniques for Basic Projects 123

each store. The total units sold by the company in 2019 for the month of October was 55,400
and for the month of November 63,670. Additional data will be added to the workbook to con-
tinue the planning process for future months. Unit sales data can help a retailer determine how
many people a store can attract and how much total inventory will be required to supply the store.
Stores that have the highest amount of units sold will be a critical area of focus. Stores that have
a high volume of unit sales could be in danger of running out of inventory if plans are not properly
arranged. This can lead to lost sales opportunities and disappointed customers.
Begin the exercise by opening the file named Chapter 3 DA Exercise 1. Questions that are pre-
ceded with the letters KO indicate you must only use your keyboard and not your mouse to
execute the required skill.
1. Open the AnswerSheet worksheet in the Chapter 3 DA Exercise 1 workbook.
2. Define each component of the DATA Analytics Framework in the AnswerSheet worksheet.
Read the assignment description before typing a response for each component of the
framework.
3. What data design choices should be considered before starting this project? Type your
response in the AnswerSheet worksheet.
4. What data should you verify by conducting a data audit before starting this project? Read
the assignment description carefully before typing a response in the AnswerSheet work-
sheet.
5. Open the Sheet 1 worksheet.
6. KO Highlight the range A1:D1
7. KO Format the data in the range A1:D1 with a bold font.
8. KO Insert a row above row 1.
9. KO Increase the height of row 1 to 50 points.
10. KO Merge and center the cells in the range A1:D1.
11. KO Type the following in the merged cells A1:D1: “Big Merchandise Unit Sales by Store”
12. KO Set the alignment of the text in the merged cells A1:D1 to center vertical.
13. KO For the text in the merged cells A1:D1 set the font size to 14 points and apply Bold,
Italics, and Underline.
14. KO Format the values in the range D3:D36 to a number with a comma for the thousands
place and two decimal places.
15. Highlight the range A2:D36 in the Sheet1 worksheet.
16. Create a PivotTable by clicking the PivotTable button in the Insert tab of the Ribbon. The
PivotTable should appear in a separate worksheet.
17. Click and drag the Store Number field in PivotTable Fields pane into the Rows area of the
PivotTable. As part of the data audit, you can count the number of stores that appear as
row headings on the PivotTable. The description for the exercise states that the company
owns and operates 17 stores. You should see 17 stores listed on the PivotTable.
18. Click and drag the Month field into the Columns area of the PivotTable.
19. Click and drag the Unit Sales field into the VALUES area of the PivotTable. Another part
of the data audit can be conducted by viewing the column grand totals at the bottom of
the PivotTable. The total unit sales for the company for the month of November should be
63,670 and for the month of October 55,400.
20. Remove the grand totals for the rows in the PivotTable by clicking the Grand Totals button
in the Design tab of the Ribbon. Select the On for Columns Only option.
21. Format the values in the PivotTable by clicking the Field Settings button in the Design tab
of the Ribbon. Click the Number Format button on the Value Field Settings dialog box.
Click the number format on the Format Cells dialog box. Click the box that adds a comma
for every thousandth place and set the decimal places to zero. Click the OK button on the
Format Cells dialog box and then click the OK button on the Value Field Settings dialog
box.
22. Sort the stores by the unit sales values in descending order. Click the down arrow next to
the Row Labels heading. Click the More Sort Options from the menu. Click the Descend-
ing option on the Sort dialog box. Click the down arrow for the Descending sort option

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124 Data Analytics Using Microsoft® Excel®

and select the Sum of Unit Sales option. Stores with the highest unit sales will be at the
top: CA106 and NJ234
23. Change the name of the Sheet2 worksheet tab to “PivotTable Analysis”.
24. Open the Sheet1 worksheet.
25. Highlight the range A2:D36.
26. Sort the data by the Month column and then by the Unit Sales column in descending
order. Click the Sort button in the Data tab of the Ribbon. In the Sort dialog box, click
the down arrow of the Column Sort by box and select Month. Click the Add Level button.
Click the down arrow of the Column Then by box and select Unit Sales. Click the down
arrow of the Order Then by box and select Largest to Smallest. Click the OK button on
the Sort dialog box. Sorting the data also shows that CA106 has the highest unit sales.
27. Highlight the range B2:D36 on the Sheet1 worksheet.
28. Create a Treemap chart by clicking the Insert tab of the Ribbon and then click the Insert
Hierarchy Chart button.
29. Move the Treemap chart to a separate chart sheet by clicking the Move Chart button in
the Design tab of the Ribbon. Select the New Sheet option and type “Treemap Analysis”
in the input box for the chart sheet tab label. Notice that CA106 is the largest box on the
chart indicating this store has the highest unit sales.
30. Increase the font size of the labels in the plot area of the chart to 14 points. Click the word
“November” in the upper left corner of the plot area. This will activate all labels in the plot
area of the chart. Change the font size by using the font button in the Home tab of the
Ribbon.
31. Change the chart title to read “Unit Sales by Store”. Right click over the chart title and click
the Edit Text option from the menu.
32. Open the Sheet1 worksheet and highlight the range A2:D36.
33. Create a PivotChart by clicking the PivotChart button in the Insert tab of the Ribbon.
34. Click and drag the Month field into the Legend area of the PivotChart.
35. Click and drag the Store Number field into the Axis area of the PivotChart.
36. Click and drag the Unit Sales field into the VALUES area of the PivotChart. The PivotChart
is another analytical tool that identifies CA106 and NJ234 as stores with the highest unit
sales.
37. Move the chart by clicking and dragging it so the upper right corner is in the middle of
column M.
38. Resize the chart by clicking and dragging the middle right sizing handle and hold the ALT
key on your keyboard. The right side of the chart should lock into the right side of column
N. Lock the left side of the chart to the left side of column F. Lock the bottom of the chart
to the bottom of row 20.
39. Apply a filter to the chart so only stores CA106 and NJ234 are shown. Click the Store
Number field in the lower left corner of the chart. Click the Select All check box and then
click the check boxes for store CA106 and NJ234. In addition to the unit sales for both
stores, this shows the trend in sales from October to November.
40. Change the Sheet3 worksheet label to “Pivot Chart”.
41. Open the Sheet1 worksheet.
42. Type the following in cell F3: “The Treemap chart will be distorted if this data is not sorted
by Month”. Format the text to bold and change the font color to red. This will serve as a
basic data internal control to prevent the Treemap chart from becoming distorted.
43. Type the following in cell F37: “Data added here will not be included in the Treemap chart,
PivotTable, or PivotChart”. Format the text to bold and change the font color to red. This
will also serve as a data internal control. As stated in the exercise description, additional
data will be added to this workbook. However, this will not appear in the PivotTable,
PivotChart, or Treemap chart. When additional data is added to the workbook, the Pivot-
Table, PivotChart, and Treemap chart will need to be updated or recreated.
44. Save and close the workbook.

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Chapter 3 Data Analytics Techniques for Basic Projects 125

Data Analytics (Skills Review)

Analyzing Stock Market Sectors

Starter File Name: Chapter 3 DA Exercise 2

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Difficulty: Level 3
Analyzing the stock market by sector is a common analytics exercise for anyone who manages
a portfolio of stocks. A sector is a group of companies that operate in the same industry such
as healthcare, technology, consumer goods, etc. The results of this analytics exercise can reveal
sectors that are experiencing rapid growth or decline. This information can then be used to deter-
mine which stocks should be purchased or sold to maximize the overall return of a portfolio. The
purpose of this exercise is to assemble a PivotTable and PivotChart to evaluate the growth trends
for seven sectors of the stock market from the years 2015 through 2018.
Begin the exercise by opening the file named Chapter 3 DA Exercise 2. The data provided shows
the growth rate percentage for each sector by year. A negative value indicates the sector experi-
enced a decline for that year. Questions that are preceded with the letters KO indicate you must
only use your keyboard and not your mouse to execute the required skill.
1. Open the Sector Data worksheet (may already be open when the workbook is opened).
2. KO Increase the width of column B so all the data is visible.
3. KO Apply the Wrap Text format to cell C3.
4. KO Center align the data in the range A3:C3.
5. KO Merge and center the cells in the range A1:C1. Type the following: “Growth Rate by
Stock Market Sector”
6. KO Enter the title for this worksheet in the merged cell range A1:C1 on two lines. The first
line should read “Stock Market Growth”. The second line should read “by Sector”.
7. KO Make the following formatting adjustments to the title in row 1: bold, italics, and
change the font size to 14 points.
8. KO Increase the height of Row 1 so the title is visible.
9. KO Delete Row 2.
10. Create a PivotTable using the data in the Sector Data worksheet. The PivotTable must
appear in a separate worksheet.
11. Construct the PivotTable as follows: Year field for the column headings, Sector field for the
row headings, and the Growth Rate field for the values.
12. Format the values in the PivotTable to a percentage with two decimal places.
13. Since the values in the PivotTable are percentages, the grand totals are not needed.
Remove the grand totals for both the columns and rows.
14. Apply the Pivot Style Medium 6 preset design to the PivotTable.
15. Sort the sectors on the PivotTable in descending order based on the values in the Sum of
Growth Rate field.
16. Change the worksheet tab label to “PivotTable”.
17. What sector or sectors experienced growth for all four years without a decline? Type your
answer in the AnswerSheet worksheet in the open merged cell next to question 17.
18. What was the worst performing sector in 2018? Type your answer in the AnswerSheet
worksheet in the open merged cell next to question 18.
19. Create a PivotChart using the data in the Sector Data worksheet. The PivotChart must
appear in a separate worksheet.
20. Configure the PivotChart so the Values show the data in the Growth Rate field, the Legend
shows the data in the Sector field, and the Axis shows the data in the Year field.

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126 Data Analytics Using Microsoft® Excel®

21. Move and resize the chart so it occupies the range B11:K27.
22. Change the worksheet tab label to “Pivot Chart”.
23. Which sector had the highest annual growth rate and in what year did it occur? Type your
answer in the AnswerSheet worksheet in the open merged cell next to question 23.
24. Apply a filter to the PivotChart that compares the Precious Metals sector and the Technol-
ogy sector for all four years. How many years did the Technology sector provide a greater
return compared to the Precious Metals sector? Type your answer in the AnswerSheet
worksheet in the open merged cell next to question 24.
25. Apply a filter to the PivotChart that shows all sectors for the year 2018. What was the
best and worst performing sector? Type your answer in the AnswerSheet worksheet in the
open merged cell next to question 25.
26. Save and close your workbook.

Applying Data Analytics Skills

Using Data Visualization for the DOW Stock Index (Treemap Charts)
Starter File Name: Chapter 3 ADAS Exercise 3

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Difficulty: Level 3
The Dow Jones Industrial Average is perhaps one of the most widely monitored stock market
indexes in the world. It is comprised of thirty large publicly traded corporations, many of which
are well known brands such as Nike and Coca Cola. Data visualization techniques, such as the
Treemap chart, can be used to easily monitor the number of shares traded for several stocks any
given day. High volume of shares traded could suggest big events such as a new product release
or the announcement of financial performance results. The purpose of this exercise is to con-
struct a Treemap chart to identify companies that have the highest volume of shares traded for
two days. Open the workbook for this exercise and carefully examine the data. Create a Treemap
chart that can be used to analyze both days of trading volume. Your Treemap chart should be
constructed as follows:
1. Place the Treemap chart in a separate Chart Sheet. The Chart Sheet tab label should read
“Treemap Chart”.
2. The title of the chart should read “Dow 30 Trading Volume”.
3. Which day had more shares traded? Briefly explain how you determined which day had
more shares traded. Type your answer in the AnswerSheet worksheet in the open merged
cell next to question 3 and briefly explain how you are able to make this conclusion.
4. Which stock had the lowest amount of shares traded for both days? Type your answer in
the AnswerSheet worksheet in the open merged cell next to question 4.
5. Which company had the most shares traded on February 15, 2019? Type your answer in
the AnswerSheet worksheet in the open merged cell next to question 5.
6. Which company had the most shares traded on March 15, 2019? Type your answer in the
AnswerSheet worksheet in the open merged cell next to question 6.
7. Which company was among the lowest volume of shares traded on February 15, 2019
but was among the highest on March 15, 2019? Type your answer in the AnswerSheet
worksheet in the open merged cell next to question 7.

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Chapter 3 Data Analytics Techniques for Basic Projects 127

Integrity Check

Is This Right?
Starter File Name: Chapter 3 IC Exercise 4

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Item Cost Item Cost Item Cost

Black Flat $35.00 Daisy Print $40.00 Navy Pinstripe $125.00
Bracelet $30.00 Gray Stripe $110.00 Navy Wool $135.00
Brown Pump $25.00 Jersey Knit $80.00 Quartz Watch $80.00

Sandal $45.00 Tan Trench $115.00 Topaz $50.00

Assignment
1. Analyze the data in this workbook carefully. Would you be comfortable using this data in a
professional meeting? Use the AnswerSheet worksheet to briefly list a few concerns you
have with this data.
2. If it is necessary to enter the cost information, enter it into the Sheet1 worksheet. If not,
state why in the AnswerSheet worksheet.
3. Correct any problems and make any adjustments you think are appropriate to improve this
workbook.

Integrity Check

Sales Growth?
Starter File Name: Chapter 3 IC Exercise 5

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128 Data Analytics Using Microsoft® Excel®

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Difficulty: Level 3
The purpose of this exercise is to analyze a worksheet to determine whether there are any
integrity flaws. First, read the scenario below. Then, open the file that is related to this exercise
and analyze the worksheets contained in the workbook. Use the AnswerSheet worksheet for any
written responses required for this exercise.
Scenario
You are sharing an Excel workbook with a coworker. She sends you the workbook as an
attachment in an email and includes the following message: “I added the 4th quarter (October,
November and December) sales numbers from 2018 to 2019 in the Data worksheet. I saw that
you already had a PivotTable created so the entire fiscal year should now be included in the Sales
Report worksheet. It looks like sales grew about $11,000 from 2018 and 2019. I know there were
concerns that sales would decline in 2019, but it looks like our sales actually grew.”
Assignment
1. Analyze the data in this workbook carefully. Do you agree with your coworker’s assess-
ment that sales grew from 2018 to 2019? Use the AnswerSheet worksheet to briefly
explain if you believe there are any issues with your coworker’s conclusion.
2. Adjust the PivotTable in the Sales Report worksheet to verify it includes all of the data in
the Data worksheet.
3. If your analysis reveals that the output on the PivotTable was not accurate based on the
data in the Data worksheet, add the appropriate data internal controls to the workbook to
ensure that would reduce the risk of similar problems occurring in the future.
4. Create a new PivotTable that compares the total sales for the entire year for 2018 and
2019. The worksheet tab should read New PivotTable. Make any appropriate formatting
adjustments.

Chapter Skills Test

Starter File Name: Chapter 3 Skills Test

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Difficulty: Level 2
Answer the following questions by executing the required skills on the starter file listed above.
Answer each question in the order it appears. Questions that are preceded with the letters KO
indicate you must only use your keyboard and not your mouse to execute the required skill.
1. KO Insert two blank worksheets.
2. KO Open the Sheet1 worksheet.
3. KO Change the Sheet1 worksheet tab label to “Main Data”.
4. KO Highlight the range A2:C26.
5. KO Copy the data in the highlighted range A2:C26.
6. KO Open the Sheet2 worksheet.

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Chapter 3 Data Analytics Techniques for Basic Projects 129

7. KO Activate cell B2.

8. KO Paste the data previously copied.
9. KO Increase the width of column C and D to 15 points.
10. KO Change the Sheet2 worksheet tab label to “Single Sort”.
11. Sort the data based on the values in the Year column. The dataset should be sorted in
ascending order, or oldest to newest year.
12. Open the Main Data worksheet (previously Sheet1).
13. Sort the data based on the values in the Year and Month columns. The data should be sorted
with the oldest (or smallest value) year appearing first. Then, the data should be sorted based
on the month in calendar year order.
14. Create an imbedded Treemap chart using the data in the Main Data worksheet.
15. Change the chart title to “Sales by Month Hierarchy”.
16. Move the Treemap chart to a separate chart sheet. The label for the chart sheet tab should
be “Sales Hierarchy”.
17. Change the font size of all the labels in the plot area of the Treemap chart to 12 points.
18. Use the Treemap chart to identify the month with the lowest sales. Type the sales value you
identify in cell A1 in the Sheet3 worksheet.
19. Create a PivotTable using the dataset in the Main Data worksheet. The PivotTable should
appear in a new worksheet.
20. Place the Year field into the column headings area of the PivotTable.
21. Place the Month field into the row headings area of the PivotTable.
22. Place the Total Sales Dollars field into the VALUES area of the PivotTable.
23. Show grand totals on the PivotTable for columns only.
24. Format the values on the PivotTable to U.S. currency, zero decimal places.
25. Sort the months on the PivotTable in Ascending (smallest to largest) order based on the Sum
of Total Sales Dollars.
26. Apply the Pivot Style Light 14 PivotTable design style.
27. Use the PivotTable to identify the month with the lowest sales dollars. Type this month in cell
A2 in the Sheet3 worksheet.
28. Create a PivotChart using the dataset in the Main Data worksheet. The PivotChart should
appear in a new worksheet.
29. Place the Year field into the Legend area of the PivotChart.
30. Place the Month field into the Axis area of the PivotChart.
31. Place the Total Sales Dollars field into the VALUES area of the PivotChart.
32. Resize the chart so the right side of the chart locks into the right side of column M and the
left side of the chart locks into the left side of column F.
33. Resize the chart so the bottom of the chart locks into the bottom of row 18.
34. Add a filter to the PivotChart so only the months of January and February are shown.
35. Add a basic data internal control that will prevent a user from distorting the Treemap chart.

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130 Data Analytics Using Microsoft® Excel®

Using Mathematical Outputs

for Analytics

Data analytics skills that are highly valued in professional environments can also be used for your
own personal benefit. The project featured in this chapter is a personal budget. Establishing and
maintaining a personal spending budget is critical for achieving your financial goals. In construct-
ing this budget, computational features of Excel will be explored through the use of formulas and
statistics functions. These skills are the essential building blocks needed to become proficient in
Excel and data analytics. Data visualization techniques will also be demonstrated through the use
of conditional formatting features. As in previous chapters, the objectives of this project will be
defined using the DATA Analytics Framework. As the project is developed, the other components of
the Data Analytics Model (data audit, data design, and data internal controls), will be addressed.

4.1 Formulas

Learning Objectives

1. Learn how to use Freeze Panes when working with multi-column projects.
2. Understand how cell references are used in mathematical outputs.
3. Become familiar with relative referencing when pasting cell references on a worksheet.
4. Learn how to create formulas to produce mathematical outputs.
5. Review the standard order of mathematical operations and how they can be controlled.
6. Learn Paste commands that do not disrupt border formats on a worksheet.
7. Become familiar with techniques to audit formula outputs.

The project that will be used for this chapter is called the Personal Budget. Maintaining a personal
budget can help modify your spending behavior in order to achieve certain financial goals. The
objectives for this project are identified using the DATA Analytics Framework as follows:
• Decision: The purpose of this project is to identify and monitor how money is being spent personal net income
across several personal expense categories such as rent, grocery bills, utilities, etc. This analysis Amount of money received
will identify any expense category that is exceeding the budget which will help decide areas of after taxes and other
spending that need to be reduced. The budget will also monitor the amount of money saved deductions have been
removed from salary.
each month. For each month, the total budgeted spend dollars is $2,365 which is intentionally
set below the personal net income per month of $2,500. This establishes a savings goal of $135
per month. The purpose of the savings goal is to pay for large, unexpected expenses like car
repairs or large one-time expenses such as vacations.
• Acquisition: Data that must be acquired to inform this decision is the amount of money
spent each month by expense category and the budgeted spend dollars for each month by
expense category. Last year spending by expense category will also be needed to determine if
an expense category is expected to increase or decrease from one year to the next. This will

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
132 Data Analytics Using Microsoft® Excel®

also help to inform the decision of how to control spending based on how trends are increas-
ing or decreasing from one year to the next.
• Time: The budget will be completed for 12 months. Each month requires that actual spend data
by expense category be added to the budget. There are already six months of actual spend data
in the budget. There will be no additional rows or columns added to the worksheet. The work-
sheet contains budget spend by category for 12 months.
• Analysis: For each month, the difference between the actual spend by expense category and
the budget must be calculated. This calculation should show where the actual spend is higher
or lower compared to the budget. In addition, the actual spend will be compared to the amount
spent last year. Last year the total spend for expenses was $28,620. This will identify categories
where spending needs to be reduced or where spending behavior needs to change.
Figure 4.1 shows the Personal Budget. The worksheet contains 42 columns and 19 rows and
template
there will be no additional rows or columns needed. Worksheets that are fixed in design are also
A template is a worksheet
that can be reused by called templates. A template is a worksheet that can be reused by replacing the current data with
replacing the current data new data. Calculations that are used in the worksheet will recalculate new outputs when the data
with new data. is changed. This design technique will allow for two areas of the worksheet to be used to summa-
rize data. Rows 16 through 19 are being used to sum and analyze the budget results for each month.
Columns A through E are being used to show last year’s data and summarize the annual results of
the budget. Notice that this area is to the left of the row headings in column F. This will allow last
year’s data in columns A, B, and C to be compared to each month of budget and actual spend data
as the worksheet is scrolled to the right. This will require the use of the Freeze Panes command
which will be demonstrated first.

FIGURE 4.1 The Personal Budget

Freeze Panes
Follow Along File: Data Analytics Project 2

Digital Downloads

Data Analytics Project 2.xlsx

https://catalog.flatworldknowledge.com/a/31995/

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Chapter 4 Using Mathematical Outputs for Analytics 133

Data_Analytics_Project_2-5847.xlsx

Many of the data analytics projects you encounter will have a large number of rows. However,
there are projects that contain a large number of columns such as the Personal Budget. For projects
that contain many columns, it is necessary to scroll the worksheet right and left to view all the data.
Freezing the column and row headings is helpful so they do not scroll out of view when examin-
ing the data on a worksheet. The following demonstrates how this is accomplished for the Personal
Budget project:
1. As shown in Figure 4.1, the row headings for this project are in column F. This data design
choice was made so the headings can be displayed while viewing columns to the right and
left of column F. Click on cell F3 and tap the RIGHT arrow key on your keyboard to view the
columns in this worksheet. Keep tapping until you see the month of December in column AO
as shown in Figure 4.2. Notice that as you scroll, the row headings in column F disappear.

FIGURE 4.2 Scrolling Through Multi-Column Worksheet

2. Tap the LEFT arrow key to scroll the worksheet back so column A is visible.
3. Activate cell G4. Make sure that column A is visible.
4. Click the View tab of the Ribbon.
5. Click the Freeze Panes button.
6. Click the Freeze Panes option from the dropdown list. This will lock the rows above row 4 and
the columns to the left of column G when the worksheet is scrolled. Tap the RIGHT arrow key
to scroll through the months of the budget. You will see that the column headings in column F
stay locked as you scroll as shown in Figure 4.3.

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134 Data Analytics Using Microsoft® Excel®

FIGURE 4.3 Using Freeze Panes to Lock Row Headings

Skill Refresher: Freeze Panes

1. Activate a cell that is in a row below any column headings and to the right of any row
headings on a worksheet.
2. Click the View tab of the Ribbon.
3. Click the Freeze Panes button.
4. Click the Freeze Panes option from the dropdown menu.

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Cell References
Follow Along File: Data Analytics Project 2 continued. If starting here use Data Analytics Project 2.01.

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Chapter 4 Using Mathematical Outputs for Analytics 135

Using Excel formulas is an essential data analytics skill as the formulas allow you to produce a
cell reference
multitude of mathematical outputs. These mathematical outputs can be used for producing the
Cell addresses used in
desired results of an analytics project, conduct a data audit, or be used for data internal controls. formulas. Excel references
The cell reference is the key building block for creating formulas in Excel. The cell reference takes the values entered into the
whatever value is entered into a cell location and either displays that value or uses that value in cell locations used in
formulas to produce
formulas and functions. The following demonstrates how a cell reference is created and used in the outputs.
Personal Budget:
1. Enter the number 2500 into cell G17. This is the expected monthly net income or actual salary
payment after taxes and other deductions have been removed. Notice that after tapping the
ENTER key, the number is formatted to the Accounting format with zero decimal places.
Establishing number formats is a key design element for templates such as the Personal Bud-
get. When data is entered into the template it should be displayed in the proper format.
2. Activate cell H17 and type an equal sign =.
3. With the mouse pointer, click cell G17. In cell H17 you should now see =G17 as shown in Figure
4.4. This is a cell reference. This means that whatever value is entered into cell G17 will also be
displayed in cell H17.

FIGURE 4.4 Adding a Cell Reference

4. Tap the ENTER key. The value $2,500 should now be displayed in cell H17. This cell reference
was added because we are assuming the monthly salary for our budget is fixed. For any given
month there is no reason to expect that our actual net income would be different from the
budgeted net income so long as we are employed for the entire month.
5. Activate cell G17 and type the number 3000. Notice that the value in cell H17 also changes.
6. Activate cell G17 and type the number 2500. Both G17 and H17 should be back to 2500.

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136 Data Analytics Using Microsoft® Excel®

Relative References
Follow Along File: Data Analytics Project 2 continued. If starting here use Data Analytics Project 2.02.
relative references Relative references pertain to the change in cell references when they are copied and pasted
Excel automatically adjusts to other locations on a worksheet. While this is not a specific Excel command or skill, it is important
a cell reference relative to to know how relative references work. Once a cell reference is created in a cell location, or placed
its original location when it within a formula or function, Excel will change the cell reference relative to its original location
is pasted into new cell
locations. when it is copied and pasted to other locations on your worksheet. The following shows how this is
a valuable feature when building the Personal Budget project:
1. Highlight and copy the range G17:H17.
2. Activate cell J17 and use the Paste command.
3. Double click cell K17. Notice that the cell reference is J17 as shown in Figure 4.5. This is not the
cell reference that was created in cell H17 as shown in Figure 4.4, which was G17. Since cell H17
was copied and pasted three columns to the right, the cell reference was also advanced three
columns. This resulted in G17 being changed to J17.

FIGURE 4.5 Example of Relative Referencing

4. Tap the ENTER key.

5. Click cell J17 and type 3000. This changes the value displayed in cell K17 to 3000 so both the
Budget and Actual Net Income for February are the same. Notice that this does not change
the net income values for January. In this example relative referencing is doing exactly what
is needed for the project. We always want the Budget and Actual Net Income to be the same
for any given month. However, it is possible that Net Income could change at a certain point
in time. For example, what if you receive a raise in the month of February? The Net Income for
February through December will now be higher than January. Having this flexibility is a bene-
fit when constructing a budget.
6. Click J17 and type 2500.
7. Highlight and copy the range J17:K17.
8. Activate cell M17 and click the Paste command in the Home tab of the Ribbon.

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Chapter 4 Using Mathematical Outputs for Analytics 137

9. Use the RIGHT arrow key to activate cell P17. Click the Paste command in the Home tab of the
Ribbon. The mouse pointer should still be over the Paste command from the prior step.
10. Use the RIGHT arrow key to activate cell S17. Click the Paste command in the Home tab of
the Ribbon. This technique of using the arrow key and clicking the Paste command is helpful
when you need to copy and paste data into many cell locations that are not in a contiguous
range.
11. Use the RIGHT arrow key to continue advancing to the following cell locations: V17, Y17, AB17,
AE17, AH17, AK17, and AN17. Use the Paste command when you activate each of these cell loca-
tions as in the previous two steps. Figure 4.6 shows how the last three months of the budget
should appear after completing this step.

FIGURE 4.6 Completed Net Income for Budget and Actual Columns

Formulas
Follow Along File: Data Analytics Project 2 continued. If starting here use Data Analytics Project 2.03.
Formulas are used to produce mathematical outputs using the data in a worksheet. The com- formulas
bination of cell references and formulas creates significant analytical potential for any data Used to calculate a variety
analytics projects. Going back to the Analysis component of the DATA Analytics Framework, com- of mathematical outputs in
parisons need to be made between the actual spend and the budgeted spend for each month. In Excel.

addition, comparisons will be made between the actual spend and the amount spent last year. The
following explains how this is accomplished using formulas:
1. Activate cell C4.
2. Type an equal sign =. When an equal sign is typed first into a cell location, Excel will not display
what is entered. Instead, either a cell reference or computational output will be produced.
3. Click cell A4. This will add a cell reference to the formula. Excel will use whatever value is in
cell A4 when calculating the output of the formula.
4. Type a front slash /. This is the mathematical operator sign for division. Table 4.1 shows the
Excel mathematical operators.

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138 Data Analytics Using Microsoft® Excel®

TABLE 4.1 Excel Mathematical Operators

Symbol Operation
+ Addition
− Subtraction
/ Division
* Multiplication
^ Power/Exponent

5. Type the number 12. This formula will divide the Last Year spend for Rent by 12 showing how
constant
much the expense was per month. In this formula the number 12 is used since it is a constant
Numerical values used in
the construction of that will not change. In other words, there will always be 12 months in a year. Other than uni-
formulas. These values versal constants, such as the number of months in a year, cell references should be used in
should have some formulas. Figure 4.7 shows how the complete formula should appear in cell C4.
universal quality that does
not change, such as days
in a week or minutes in an
hour.
Why…

Only Use Universal Constants in Formulas

If you are using constants, or numerical values, in an Excel formula, they should be universal con-
stants that do not change, such as the number of days in a week, weeks in a year, and so on. Do
not type values that exist in cell locations into an Excel formula. This will eliminate Excel’s cell-ref-
erencing benefits, which is designed to produce new outputs when the values in cell references
are changed.

FIGURE 4.7 Entering a Basic Formula into Cell C4

6. Tap the ENTER key on your keyboard. Excel will display the result of the formula which is
$1,150. This tells us that last year the rent expense was $1,150 per month.

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Chapter 4 Using Mathematical Outputs for Analytics 139

Why…

Use Cell References in Formulas

Cell references enable Excel to produce new outputs when one or more inputs in the referenced
cells are changed. Cell references also allow you to audit how outputs are being calculated in a
formula. As a result, you should never use a calculator to determine a mathematical output and
type it into the cell location of a worksheet. Doing so eliminates Excel’s cell-referencing benefits
as well as your ability to audit a formula to determine how outputs are being produced.

Paste Formulas
Follow Along File: Data Analytics Project 2 continued. If starting here use Data Analytics Project 2.04.
Once a formula is entered into a cell location, it is common to copy and paste it to other loca-
tions on a worksheet especially down a column of a dataset. When a formula is pasted, the cell
references used in the formula will automatically adjust relative to where the original cell loca-
tion was copied. However, there are times when the basic Paste command can distort formatting
features that were applied to a worksheet. In the case of the Personal Budget, the main work-
sheet serves as a template which means many formatting treatments were added before data was
entered. The following demonstrates how formulas can be pasted without changing previously
applied formatting features:
1. Activate cell C4 and click the Copy command.
2. Highlight the range C5:C15 and click the Paste command.
3. Click cell C4. Notice that the bold line that should appear at the bottom of cell C15 has changed
to a regular line (see Figure 4.8). This is because the regular Paste command, using either the
Paste button in the Home tab of the Ribbon or CTRL+C, also pastes any formats that were used
in the cell that was copied. Since cell C4 has a regular line at the bottom, this style was pasted
for every cell in the range C5:C15.

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140 Data Analytics Using Microsoft® Excel®

FIGURE 4.8 Distorted Formats from Pasting Formulas

4. Click the Undo command. This should undo the formulas that were pasted into the range
C5:C15. The bold border at the bottom of cell C15 should also return.
5. Highlight the range C5:C15. Note that cell C4 should still be copied and you should see the dot-
ted lines around the cell location as shown in Figure 4.8. If you do not see the dotted lines
around cell C4, copy it before highlighting the range C5:C15.
6. Click the arrow at the bottom of the Paste button in the Home tab of the Ribbon (see Figure
4.9). This will open a menu of Paste options.
7. Click the Paste Formulas command which is the button in the Paste Options menu with an Fx
(see Figure 4.9). This will paste the formula in cell C4 without changing any of the formats that
were applied in the range C5:C15.

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Chapter 4 Using Mathematical Outputs for Analytics 141

FIGURE 4.9 Paste Commands

Skill Refresher: Paste Formulas

1. Copy a cell location that contains a formula.

2. Activate a cell or range of cells where the formula will be pasted.
3. Click the Home tab of the Ribbon.
4. Click the down arrow below the Paste button.
5. Click the Formulas button from the dropdown menu.

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142 Data Analytics Using Microsoft® Excel®

Complex Formulas
Follow Along File: Data Analytics Project 2 continued. If starting here use Data Analytics Project 2.05.
Virtually any computation required for an analytics project can be done in Excel. As formulas
become more complex, the standard order in which mathematical operations are executed might
need to be changed. The standard order of mathematical operations (shown in Table 4.2) can be
controlled through the use of parentheses. The following demonstrates how parentheses are used
to calculate the percent change of the budget spend and the actual spend for the Personal Budget
project.

TABLE 4.2 Standard Order of Mathematical Operations

Symbol Order
^ First: Excel executes any exponential computations.
* or / Second: Excel performs any multiplication or division computations. When there are
multiple instances of these computations in a formula, they are executed in order from left
to right.
+ or − Third: Excel performs any addition or subtraction computations. When there are multiple
instances of these computations in a formula, they are executed in order from left to right.
() Override Standard Order: Any mathematical computations placed in parentheses are
performed first and override the standard order of mathematical operations. If there are
layers of parentheses used in a formula, Excel computes the innermost parentheses first
and the outermost parentheses last.

1. Use the RIGHT arrow key to activate cell I4.

2. Type the equal sign =, followed by an open parenthesis.
3. Click cell H4 and then type the minus sign -.
4. Click cell G4 and then type a closing parenthesis. By placing the formula H4-G4 in parentheses,
Excel will compute this first. This is calculating the amount of spend that is different between
the budget spend and the actual spend.
5. Type the front slash / for division and then click cell G4. As shown in Figure 4.10, this completes
the formula that will calculate the percent change when comparing the budget spend versus
the actual spend for the first category which is Rent. As per the DATA Analytics Framework,
the Analysis goal is to show any differences between the budget and actual spend. This for-
mula will show how much above or below the actual spend was compared to the budget in
terms of a percentage.
6. Tap the ENTER key on your keyboard. The formula should calculate the output of 0.00%. This
is because the actual spend was the same as the budget spend for the Rent category.
7. Copy cell I4 and use the Paste Formulas command to paste the formula into the range I5:I15.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 4 Using Mathematical Outputs for Analytics 143

FIGURE 4.10 Using Parentheses to Control the Standard Order of Mathematical Operations

8. Highlight and copy the range I4:I15.

9. Activate cell L4 and click the Paste command in the Home tab of the Ribbon. This will add the
percent change formula to the month of February.
10. Use the RIGHT arrow key to activate the following cell locations, O4, R4, U4, and X4. When each
of these cells are activated, use the Paste command to paste the percent change formulas for
each of these months. The percent change formula should be used for each month through
June. The formula is not pasted into the months of July through December since there is
actual spend data for these months. Once the actual spend data is added, the formula can be
copied and pasted from the previous months.

FIGURE 4.11 Pasting the Percent of Change Formula

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144 Data Analytics Using Microsoft® Excel®

Skill Refresher: Formulas

1. Type an equal sign =.

2. Click or type a cell location. If using constants, type a number.
3. Type a mathematical operator.
4. Click or type a cell location. If using constants, type a number.
5. Use parentheses where necessary to control the order of operations.
6. Tap the ENTER key.

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Auditing Formulas
Follow Along File: Data Analytics Project 2 continued. If starting here use Data Analytics Project
2.06.
A key component of the Data Analytics Model is the Data Audit. Conducting a data audit for
Excel formulas involves tracing the cell reference and mathematical operations to understand how
outputs are being calculated. This activity is especially critical if you are using a workbook that
contains formulas created by another person. However, you should also audit your own formulas
to ensure your calculation methods are accurate. The following demonstrates how a data audit for
formulas is accomplished for the Personal Budget project.
1. Click the Freeze Panes button in the View tab of the Ribbon. Select the Unfreeze Panes option
from the dropdown list. Unfreezing the panes will make it easier to audit the formulas in the
worksheet.
2. Activate cell C4.
3. Click the Show Formulas button in the Formulas tab of the Ribbon (see Figure 4.12). This com-
mand will show any formulas that are entered into your worksheet instead of showing a
calculated output. In addition, the columns on the worksheet will widen so formulas can be
seen.

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Chapter 4 Using Mathematical Outputs for Analytics 145

FIGURE 4.12 Show Formulas

4. Use the RIGHT arrow key to activate cell I4. Notice that the cell references that were used in
the percent of change formula are highlighted and color coded (see Figure 4.13). This allows you
to trace cell references in formulas and examine the mathematical operations to determine
how an output is calculated.

FIGURE 4.13 Auditing Formulas

5. Click the Show Formulas button in the Formulas tab of the Ribbon. This will exit the formula
view on the worksheet and reset the column widths.
6. Activate cell G4. Make sure that column A and row 1 are visible.
7. Click the Freeze Panes button in the View tab of the Ribbon and select the Freeze Panes option
from the dropdown list.

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146 Data Analytics Using Microsoft® Excel®

Integrity Check

Does the Output of Your Formula Make Sense?

It is important to note that the accuracy of the output produced by a formula depends on how it
is constructed. When conducting a data audit for formulas, the first step is to check the output to
see if it makes sense given the data in your worksheet. For a more in-depth data audit, you can
use the Show Formulas command and trace the cell references to investigate how the output is
being produced.

Skill Refresher: Show Formulas and Trace Cell References

1. Click the Formulas tab of the Ribbon.

2. Click the Show Formulas button.
3. Click a cell that contains a formula or function.
4. Click the Show Formulas button again to return showing formula outputs.

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Keyboard Only

Show Formulas
• Hold the CTRL key and tap the ` key.
Paste Formulas
• Tap the ALT key on your keyboard. Then tap the letters H, V, and F one at a time.

Key Takeaways

• The Freeze Panes command can be used to lock column and row headings in place when
scrolling through large worksheets.
• A cell reference is used to display or use a value that is entered into another cell location.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 4 Using Mathematical Outputs for Analytics 147

• Formulas and functions should be created using cell references so when values in the ref-
erenced cells are changed new outputs can be produced. Cell references also allow you to
conduct audits to determine how the formula or function is producing an output.
• Relative referencing automatically adjusts the cell references in formulas and functions when
they are pasted into new locations on a worksheet.
• If needed in formulas and functions, use only universal constants that do not change, such
as days in a week, months in a year, and so on.
• The Paste Formulas command will not disrupt border formats when pasting content.
• Parentheses must be used to control the order of operations if necessary when creating for-
mulas.
• The Show Formulas command can be used to audit how formulas and functions are produc-
ing outputs.

4.2 Basic Statistics Functions

Learning Objectives

1. Review commonly used functions for statistics outputs.

2. Learn how to use the SUM function to produce sum outputs for a range of cells.
3. Become familiar with the impact relative referencing has on functions.
4. Understand when it is necessary to use absolute references and how they are applied.
5. Learn how to create and use the AVERAGE, MAX, and MIN functions.
6. Become familiar with alternate ways to circumvent relative referencing when needed.
7. Review the use of and difference between the COUNTA and COUNT functions.
8. Learn how to create data visualization enhancements using conditional formatting.
9. Learns how to use conditional formatting to create data internal controls.

Similar to formulas, functions can also produce mathematical outputs in Excel. Functions are far
functions
more efficient than formulas when producing a mathematical output that involves a large number
Used to produce
of cell locations. For example, if you needed to add up the values that are contained in 1,000 con- mathematical outputs
tiguous cell locations, you could do this very quickly with the SUM function. If you use a formula, using many cell locations.
you will need to add each of the 1,000 cell locations to the formula one at a time which can be very
time consuming. This section demonstrates a variety of functions that can be used to produce basic
statistics outputs for the Personal Budget project. A list of commonly used functions for statistics
outputs is shown in Table 4.3. In addition to demonstrating functions, this section also reviews the
use of absolute references and conditional formatting for data visualization and data internal con-
trols.

TABLE 4.3 Commonly Used Statistical Functions

Function Output
ABS The absolute value of a number.
AVERAGE The average or arithmetic mean for a group of numbers.
COUNT The number of cell locations in a range that contain a numeric character.
COUNTA The number of cell locations in a range that contain a text or numeric character.

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148 Data Analytics Using Microsoft® Excel®

Function Output
MAX The highest numeric value in a group of numbers.
The middle number in a group of numbers (half the numbers in the group are higher
MEDIAN
than the median and half the numbers in the group are lower than the median).
MIN The lowest numeric value in a group of numbers.
MODE.SNGL The number that appears most frequently in a group of numbers.
PRODUCT The result of multiplying all the values in a range of cell locations.
SQRT The positive square root of a number.
STDEV.S The standard deviation for a group of numbers based on a sample.
SUM The total of all numeric values in a group.

SUM Function
Follow Along File: Data Analytics Project 2 continued. If starting here use Data Analytics Project
2.06.
The SUM function is perhaps one of the most common statistics functions used in Excel. As
its name suggests, the function is used to sum the values in a range of cells. The following demon-
strates how the SUM function is used to produce several outputs for the Personal Budget project:
1. Activate cell A16.
2. Type an equal sign =.
3. Type the word “sum” followed by an open parenthesis.
4. Highlight the range A4:A15. This range will become a cell reference for the function the same
way in which cell locations become cell references when they are used in formulas (see Figure
4.14).

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Chapter 4 Using Mathematical Outputs for Analytics 149

FIGURE 4.14 Adding a Cell Range to the SUM Function

5. Type a closing parenthesis and tap the ENTER key. The function will produce an output
that sums the total expense for last year. This output will satisfy the analytical requirements
defined in the Analysis component of the DATA Analytics Framework which is a comparison
of spending trends from last year to this year. This output also provides a data audit oppor-
tunity. Notice that the output of the function matches the value that was stated in the DATA
Analytics Framework which is $28,620.
6. Copy cell A16.
7. Activate cell C16 and use the Paste command. The function is now summing the last year
spend per month.
8. Double click cell C16. Notice that the range contained in the SUM function is now C4:C15
instead of A4:A15 (see Figure 4.15). Just as relative referencing changes the cell locations used in
formulas, it also changes the cell ranges used in functions. This allows you to copy and paste
functions that are producing outputs using the same number of rows or columns.

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150 Data Analytics Using Microsoft® Excel®

FIGURE 4.15 Relative Referencing in Functions

9. Tap the ENTER key and copy cell C16.

10. Highlight the range G16:H16 and use the Paste command. The SUM function is now summing
the budget and actual spend values for the month of January.
11. Highlight and copy the range G16: H16.
12. Use the RIGHT arrow key to activate cell J16 and use the Paste command. This will copy the
SUM function into cells J16 and K16.
13. Continue to use the RIGHT arrow key to activate the following cell locations: M16, P16, S16, V16,
Y16, AB16, AE16, AH16, AK16, and AN16. When each cell is activated, use the Paste command to
paste the SUM function into the Budget and Actual columns for the rest of the months on the
budget. For months that do not have actual spend data, the function will produce an output of
zero (see Figure 4.16). When the actual spend data is added, the function will show an output
that sums the values. In addition, you should see that the budget spend dollars are fixed every
month at $2,365. This matches the monthly budget target stated in the DATA Analytics Frame-
work for this project.

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Chapter 4 Using Mathematical Outputs for Analytics 151

FIGURE 4.16 SUM Function Outputs

Absolute References
Follow Along File: Data Analytics Project 2 continued. If starting here use Data Analytics Project 2.07.
Excel’s ability to change cell references for both formulas and functions when they are copied absolute reference
and pasted allows for mathematical outputs to be created for thousands of rows of data very effi- Used to turn off relative
ciently. However, there may be situations when relative referencing needs to be turned off. When referencing such that cell
an absolute reference is applied to a cell reference, relative referencing will not be applied when a references will not be
adjusted when copied and
formula or function is copied and pasted to a new location. The following demonstrates how an pasted to a new location.
absolute reference is applied to a cell reference and the context in which it is necessary for the Per-
sonal Budget project.
1. Activate cell B4.
2. Type an equal sign = to start a formula.
3. Click cell A4 and then type a front slash / for division.
4. Click cell A16 and tap the ENTER key. The output for this formula is showing that 48% of the
total dollars spent last year was due to rent.
5. Copy cell B4.
6. Click cell B5 and use the Paste command. You should see the divide by zero error code shown
in Figure 4.17. This happened because relative referencing changed the cell references in the
original formula which created the error.

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152 Data Analytics Using Microsoft® Excel®

FIGURE 4.17 Divide by Zero Error Output

7. Double click cell B5 to trace the cell references in the formula. As shown in Figure 4.18, relative
referencing increased the row number for the first cell location from A4 to A5. This works
because the formula will now calculate the percent of total spend for the Car category. Notice
the row number for the second cell location is also increased from A16 to A17. However, there
is no value in cell A17. This results in the formula dividing the value in cell A5 by zero which
produced the error.
8. Tap the ENTER key to close cell B5.
9. Activate cell B5 and tap the DELETE key to remove the formula creating the divide by zero
error.

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Chapter 4 Using Mathematical Outputs for Analytics 153

FIGURE 4.18 Tracing a Divide by Zero Error

10. Double click B4.

11. Click in front of cell A16 as shown in Figure 4.19.
12. Tap the F4 key on your keyboard. This will add a dollar sign in front of the column letter A
and the row number 16 as shown in Figure 4.19. The dollar signs indicate that an absolute ref-
erence has been applied to cell A16. When the formula is pasted into any other cell location on
the worksheet, cell A16 will not be changed by relative referencing. The dollar signs can also be
typed in front of the column letter and row number.
13. Tap the ENTER key.
14. Copy cell B4.
15. Highlight the range B5:B15 and use the Paste Formulas command. The formulas will now pro-
duce a percent to total output for each budget category.

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154 Data Analytics Using Microsoft® Excel®

FIGURE 4.19 Adding an Absolute Reference to a Cell

Figure 4.20 shows the output of the formula after pasting it with an absolute reference on
cell A16. The formula bar shows how the formula appears in cell B15. Notice that cell A16 has not
changed because of the absolute reference. However, relative referencing increased the row num-
ber for cell A4 to A15.

FIGURE 4.20 Formula Outputs with an Absolute Reference

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Chapter 4 Using Mathematical Outputs for Analytics 155

Skill Refresher: Absolute References

1. Click in front of the column letter of a cell reference in a formula or function.

2. Tap the F4 key or type a dollar sign $ in front of the column letter and row number of the
cell reference.

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AVERAGE Function
Follow Along File: Data Analytics Project 2 continued. If starting here use Data Analytics Project 2.08.
Another commonly used function to produce outputs for statistics is the AVERAGE function.
This function is used to calculate the arithmetic mean for values contained in a range of cells. The
following demonstrates how this function is used in the Personal Budget project to calculate the
average of the actual spend dollars:
1. Click cell D4.
2. Type an equal sign = followed by the letters “av”. When the letters are typed you will see a list
of possible functions that begin with the letters “av” (see Figure 4.21).

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156 Data Analytics Using Microsoft® Excel®

FIGURE 4.21 The Function Dropdown List

3. Double click the AVERAGE function from the function dropdown list. This is another way to
start a function in Excel. Notice this will add the full function name and the open parenthesis.
4. Click cell H4 and type a comma. The purpose of this function is to calculate the average of the
actual spend values. Since these values are not in a contiguous range of cells, we cannot high-
light a range of cells to complete the function. Instead, we will need to add each cell location to
the function individually.
5. Click cell K4 and type a comma. Continue building the function by clicking the following cell
locations and type a comma after you click each cell location: N4, Q4, T4, W4, Z4, AC4, AF4, AI4,
AL4, and AO4. You will need to click the scroll right arrow on the bottom right side of your
screen to access all of these cell locations (see Figure 4.22). Notice cells that do not contain any
actual spend dollars are included in the function. Any cell locations that are blank will not
be used in calculating the output of the function. However, when actual data is added to the
worksheet the values will be included in the output. This allows us to create the function once
and will produce a new output when actual spend data is added to the months of July through
December.

Why…

Use Blank Cell References in Functions

Excel functions will ignore cell references that are blank. If you know data will be entered into
blank cell locations at a future point in time, including them in the function ensures that when the
data is entered, the values will automatically be included in the function output.

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Chapter 4 Using Mathematical Outputs for Analytics 157

FIGURE 4.22 Average Using Non Contiguous Range

6. Type a closing parenthesis. Check the function carefully to make sure a comma appears after
every cell location. Figure 4.22 shows how the function should appear when all 12 cell locations
are added.
7. Tap the ENTER key on your keyboard. The function should produce an output of $1,200. This
indicates that the average actual spend for the months of January through June is $1,200. This
matches the monthly budget and makes sense since rental agreements typically require a fixed
payment each month so there is no reason to expect that the actual spend will be different
than the budget unless a new rental agreement was signed.
8. Copy cell D4 and then highlight the range D5:D15.
9. Click the down arrow below the Paste button in the Home tab of the Ribbon and click the
Paste Formulas & Number Formatting command (see Figure 4.9). Similar to the Paste Formulas
command, this command will paste the formula and only the number format used in cell D4,
which is the Accounting format. This will not disrupt any of the border formats that have been
applied to the range D5:D15.
10. Copy cell C16 and paste it into cell D16. Notice that the total average monthly spend for this
year is currently higher than the average spend per month last year.
11. Activate cell E4 and type an equal sign =.
12. Click cell D4, type a minus sign -, and click cell C4.
13. Tap the ENTER key. This formula is calculating the difference between the average actual
spend this year versus last year. Notice that while the actual average spend per month on rent
matches the monthly budget, it is $50 per month higher than last year.
14. Copy cell E4 and paste it into the range E5:E16 using the Paste Formulas & Number Formatting
command. The output in cell E16 shows that the current average spend per month for the first
six months of the year is $153 higher than last year.

Integrity Check

Contiguous Cell Ranges Functions for Statistics

When using a function to produce a statistical output from a contiguous range of cells, make sure
there are two cell locations separated by a colon and not a comma. If you enter two cell loca-
tions separated by a comma, the function will produce an output using the values in only two cell

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158 Data Analytics Using Microsoft® Excel®

locations instead of all cells that fall in between and including the two cell locations. For example,
=SUM(A5:A15) will sum the values in 11 cell locations. However, =SUM(A5,A15) will sum the val-
ues in only two cell locations (A5 and A15).

MAX and MIN Functions

Follow Along File: Data Analytics Project 2 continued. If starting here use Data Analytics Project 2.09.
The MAX and MIN functions are used to identify the highest and lowest value in a range of
cells. The following demonstrates how these functions, along with other formulas, are used to ana-
lyze the monthly savings goals for the Personal Budget project:
1. Activate cell G18.
2. Type an equal sign = to start a formula.
3. Click cell G17, type a minus sign -, and then click cell G16.
4. Tap the ENTER key. The output of this formula shows that budget was established such that
$135 will be saved each month. Recall that this was the monthly savings goal that was stated in
the Decision component of the DATA Analytics Framework.
5. Copy cell G18 and paste it into cell H18 using the Paste Formulas & Number Formatting com-
mand. The output of $(55) shows that the actual dollars spent exceeded the net income for the
month of January. This resulted in a decrease of savings in the amount of $55 instead of adding
to savings in the target amount of $135.
6. Copy the range G18:H18.
7. Use the RIGHT arrow key to activate cell J18 and use the Paste command. This will calculate
the budget and actual savings for the month of February.
8. Continue using the RIGHT arrow key to activate and paste the formulas into the following
cell locations: M18, P18, S18, and V18. The formula will not be pasted into the months of July
through December since there is no actual data to compare to the budget. Pasting the formula
for months that do not have actual spend data will result in an erroneous output of $2,500
saved.
9. Copy cell I15.
10. Highlight the range I16:I18 and use the Paste Formulas & Number Formatting command. This
will calculate the rate of change for the total budget and spend dollars, net income, and savings.
Notice that the actual spend dollars exceeded the budget dollars by 8.03%. This resulted in a
140.74% decrease in actual savings versus the budget savings target.
11. Highlight and copy the range I16:I18.
12. Use the RIGHT arrow key to activate cell L16 and use the Paste command. This will produce
the rate of change outputs for the month of February.
13. Continue using the RIGHT arrow key to activate and paste the formulas into the following cell
locations: O16, R16, U16, and X16. This will add the rate of change outputs to months that have
actual data.
14. Activate and copy cell D15.
15. Activate cell D18 and use the Paste Formulas command. This cell now contains the AVERAGE
function that was used to calculate the average spend per month. Because of relative referenc-
ing, this function now contains cell references for the actual amount saved for each month.

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Chapter 4 Using Mathematical Outputs for Analytics 159

16. Double click cell D18.

17. Click in front of the function name AVERAGE and used the DELETE key to delete it (see Figure
4.23).

FIGURE 4.23 Renaming an Existing Function

18. After the AVERAGE function name is deleted, type the word “max”. This will change the AVER-
AGE function to the MAX function (see Figure 4.24). This technique was chosen to create the
MAX function since 12 cell references have to be added to the function individually given that
the actual spend data is not in a contiguous range. Since we already did this for the AVERAGE
function, this technique allows us to use those cell references instead of having to add them
again for a new function.
19. Tap the ENTER key on your keyboard. The function output shows that $255 is the highest
amount of actual saved dollars for one month. Similar to the AVERAGE function, this function
also contains cell references that are blank. Blank cells are ignored when the function pro-
duces an output.

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160 Data Analytics Using Microsoft® Excel®

FIGURE 4.24 The MAX Function

20. Click cell D18.

21. Highlight the MAX function in the formula bar as shown in Figure 4.25.

FIGURE 4.25 Copying a Function from the Formula Bar

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Chapter 4 Using Mathematical Outputs for Analytics 161

22. Use the shortcut to copy the function by holding the CTRL key and tapping the letter C on
your keyboard.
23. Tap the ESC key on your keyboard.
24. Double click cell D19 and use the shortcut to paste the function by holding the CTRL key and
tapping the letter V on your keyboard. This technique is used to demonstrate an alternative
way of avoiding the relative reference effect of copying and pasting the function. The goal is
to evaluate the exact same cell references as the MAX function using the MIN function. If we
copied cell D18 and pasted it into cell D19, relative referencing would increase the row numbers
by one for all cell references in the MAX function. This technique copies the text in cell D18 and
then pastes that text into cell D19 thus circumventing the effects of relative referencing.
Note that steps 21 through 24 could also be accomplished by holding the CTRL key and tapping
the apostrophe key ‘ on your keyboard. This shortcut can be used in this example because cell D18
is directly above cell D19. If you are working on a project where the cell locations are not directly
above and below each other, you will need to use the method shown in steps 21 through 24.
25. Click in front of the word “MAX”, delete it, and type the word “min” (see Figure 4.26).

FIGURE 4.26 Changing the Function Name from MAX to MIN

26. Tap the ENTER key on your keyboard. The function produces an output that shows the month
with the lowest amount of money saved.
The use of the MIN and MAX functions help to satisfy one of the items stated in the DATA
Analytics Framework which is to monitor the amount of money saved for each month. The func-
tion outputs show the values that need to be evaluated to understand what produced the largest
savings shortfall and the largest savings gains compared to the budget.

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162 Data Analytics Using Microsoft® Excel®

Skill Refresher: Paste Formulas and Number Formats

1. Copy a cell location that contains a formula.

2. Activate a cell or range of cells where the formula will be pasted.
3. Click the Home tab of the Ribbon.
4. Click the down arrow below the Paste button.
5. Click the Formulas & Number Formatting button from the dropdown menu.

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COUNTA and COUNT Functions

Follow Along File: Data Analytics Project 2 continued. If starting here use Data Analytics Project 2.10.
Other commonly used functions are the COUNT and COUNTA functions. The COUNT func-
tion is used to count the number of cells in a range that contains a number. The COUNTA function
is used to count the number of cells in a range that are not blank. This function is most useful
when counting the number of cell locations that contain either numbers or words. The following
demonstrates how these functions are used for the Personal Budget project:
1. Activate cell F2.
2. Type an equal sign =, followed by the letters “cou”.
3. Double click the COUNTA function from the function dropdown list (see Figure 4.27).

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Chapter 4 Using Mathematical Outputs for Analytics 163

FIGURE 4.27 Adding the COUNTA Function

4. Highlight the range F4:F15 and tap the ENTER key on your keyboard. The function produces
an output of 12 since all cells in the range F4:F15 have an entry. This output will be used for a
data internal control to establish the baseline number of spend categories for the budget.

Why…

The Output of My COUNT Function is Always Zero

The COUNT function will only count the number of cells that contain a numeric value. It will ignore
blank cells and cells that contain anything other than a number. Use the COUNTA function if you
need to count the number of cells that are not blank.

5. Activate cell H1.

6. Type an equal sign =, followed by the letters “cou”.
7. Double click the COUNT function from the function dropdown list (see Figure 4.27).
8. Highlight the range H4:H15 and tap the ENTER key on your keyboard. The function produces
an output of 12 since all cells in the range H4:H15 contain a number. This output will be com-
pared to the output of the COUNTA function to establish a data internal control.

Skill Refresher: Functions for Statistics Outputs

1. Type an equal sign =.

2. Type the function name followed by an open parenthesis or double-click the function name
from the function list.
3. Highlight a range on a worksheet or click individual cell locations followed by commas.
4. Type a closing parenthesis.
5. Press the ENTER key.

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164 Data Analytics Using Microsoft® Excel®

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Conditional Formats for Data Visualization

Follow Along File: Data Analytics Project 2 continued. If starting here use Data Analytics Project 2.11.
The mathematical outputs that were added to the Personal Budget project satisfy the analysis
requirements stated in the DATA Analytics Framework. These outputs allow us to compare spend-
ing trends between this year and last year, compare actual versus budget spend each month, and
evaluate the monthly savings budget versus actual savings. This analysis can be further improved
by adding data visualization enhancements. As demonstrated in Chapter 3, data visualization tech-
niques will enhance your ability to quickly identify trends and make discoveries for analytics
projects. The following demonstrates how Excel’s conditional formatting features can be used to
add data visualization elements to the Personal Budget project:
1. Highlight the range E4:E15. The outputs in this range show the difference between the average
spend per month this year and the average spend per month last year.
2. Click the Conditional Formatting button in the Home tab of the Ribbon.
3. Place the mouse pointer over the Data Bars option from the dropdown menu (see Figure 4.28).
4. Click the Red Data Bars option in the Gradient Fill section of the sub menu (see Figure 4.28).
This will add red bars in each cell where spending this year is higher than the monthly spend
from last year. With this data visualization technique, you can quickly identify that the Rent
category is the largest monthly spend increase over last year. In addition, three other spend
categories are increasing over last year by at least $20: Utilities, Gasoline, and Clothes.

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Chapter 4 Using Mathematical Outputs for Analytics 165

FIGURE 4.28 Adding Data Bars to Cell Locations

5. Highlight the range I4:I15.

6. Click the Conditional Formatting button in the Home tab of the Ribbon.
7. Place the mouse pointer over the Color Scales option in the dropdown menu (see Figure 4.29).
Placing the mouse pointer over the options that are available in this sub menu will enable you
to preview how the color scale will appear on the highlighted range. This allows you to observe
which option is most appropriate for your project.

FIGURE 4.29 Adding Color Scales to Cell Locations

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166 Data Analytics Using Microsoft® Excel®

8. Click the Red-White-Green Color Scale option from the sub menu (see Figure 4.29). This will
color code the cells based on the outputs calculating the percent change between the actual
spend and the budget spend. Cell locations will be white if there is no change between the bud-
get and actual spend. Cell locations will be red if the output is a positive value indicating actual
spend is greater than the budget spend. This color is appropriate since spending that exceeds
the budget will reduce the amount of money that can be saved for the month. Notice that the
cell for the Restaurants category is the darkest shade of red. This is because the actual spend
for Restaurants is the highest positive value for the month of January (actual spend is 100%
greater than budget). Through data visualization, we can immediately identify the cost cate-
gory where spending needs to be monitored and reduced. Cell locations are shaded green if the
output is a negative value indicating the actual spend is less than the budget. The green shade
is appropriate as these categories help to increase savings for the month.
9. Repeat steps 6, 7, and 8 for the following range of cells: L4:L15, O4:O15, R4:R15, U4:U15, and X4:X15.
Highlight the cell range first, and then execute steps 6, 7, and 8. This will add the color scales to
each month that contains actual data.
Figure 4.30 shows the appearance of the Personal Budget project after the Color Scales feature
is added to all months with actual spend data. This data visualization enhancement quickly reveals
important spending patterns. Remember that a key decision outcome as stated in the DATA Analyt-
ics Framework is the ability to monitor and change spending behavior to achieve the savings goal
of $135 per month. Notice that the color scale is consistently white for these spend categories: Rent,
Car, Insurance, Phone, and Internet. This pattern makes sense since these categories are typically
fixed each year. For example, once a rental agreement is signed, the payments are fixed for every
month. Therefore, actual spend each month will match the budget. The following categories are
consistently shaded either red or green: Utilities, Groceries, Gasoline, Gifts, Restaurants, Clothes,
and Miscellaneous. These spend categories vary significantly from month to month and will need
to be closely monitored in order to achieve the savings goals.

Identifying Personal Spending Patterns through Data Visualization

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Chapter 4 Using Mathematical Outputs for Analytics 167

Skill Refresher: Conditional Formatting: Data Bars

1. Highlight a range of cells that contain numeric values to be used for establishing data bars.
2. Click the Home tab of the Ribbon.
3. Click the Conditional Formatting button.
4. Place the mouse pointer over the Data Bars option from the dropdown menu.
5. Drag the mouse pointer over the options shown in the Gradient Fill or Solid Fill submenu.
6. Observe how the various data bar options appear on the highlighted range of cells as you
move the mouse pointer over the submenu of options.
7. Click one of the options in the Data Bars submenu.

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Skill Refresher: Conditional Formatting: Color Scales

1. Highlight a range of cells that contain numeric values to be used for establishing data bars.
2. Click the Home tab of the Ribbon.
3. Click the Conditional Formatting button.
4. Place the mouse pointer over the Color Scales option from the dropdown menu.
5. Drag the mouse pointer over the options shown in the Color Scales submenu.
6. Observe how the various color scale options appear on the highlighted range of cells as
you move the mouse pointer over the submenu of options.
7. Click one of the options in the Color Scales submenu.

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168 Data Analytics Using Microsoft® Excel®

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Conditional Formats for Data Internal Controls

Follow Along File: Data Analytics Project 2 continued. If starting here use Data Analytics Project 2.12.
At this point the Personal Budget project is nearly complete. At the completion of any project,
consideration should be given as to how the mathematical outputs in a worksheet could produce
erroneous results. For the Personal Budget project, the most significant risk involves the input of
actual spend data. If the actual spend data is missing for one or more categories, the formula cal-
culating the actual amount of money saved will be too high. The following explains how this error
can be detected with a data internal control that uses the two count functions previously added
along with a conditional formatting feature:
1. Activate cell H1.
2. Click the conditional formatting button in the Home tab of the Ribbon.
3. Click the New Rule option near the bottom of the dropdown menu. This will open the New
Formatting Rule dialog box.
4. Click the “Use a formula to determine which cells to format” option on the New Formatting
Rule dialog box (see Figure 4.31). When you click this option the dialog box will change to
accommodate this type of conditional format.

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Chapter 4 Using Mathematical Outputs for Analytics 169

FIGURE 4.31 New Formatting Rule Dialog Box

5. Click the input box below the description “Format values where this formula is true” (see Fig-
ure 4.32).

FIGURE 4.32 Conditional Formatting Formula Input Box

6. Type an equal sign =.

7. Type the cell location H1.
8. Type the less than symbol < and then type the greater than symbol >.

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170 Data Analytics Using Microsoft® Excel®

9. Type the cell location F2.

10. Tap the F4 key on your keyboard. This will add an absolute reference to the F2 cell reference
(see Figure 4.33). This formula will be used to determine if the output in cell H1 does not equal
the output in cell F2. Recall that cell F2 contains the COUNTA function which is counting the
number of spend categories used in this budget. Cell H1 contains that COUNT function that is
counting the number of cell locations that contain a number in the range H4:H15. If all of the
actual spend data has been entered into this range, cell H1 should equal cell F2. If any actual
spend data is missing, a format will be applied to alert us that there is missing data.
11. Click the Format button on the New Formatting Rule dialog box (see Figure 4.33). This will open
the Format Cell dialog box.

FIGURE 4.33 Formula to Trigger a Conditional Format

12. Click the Bold font option and select the Red color option from the dropdown color palette (see
Figure 4.34).

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Chapter 4 Using Mathematical Outputs for Analytics 171

FIGURE 4.34 Format Cells for Conditional Formats

13. Click the OK button on the Format Cells dialog box.

14. Click the OK button on the New Formatting Rule dialog box. Since the value in cell H1 is equal
to the value in cell F2, there should be no formatting changes applied to cell H1. All of the actual
spend data has been entered for January.
15. Activate cell H15 and tap the DELETE key. Notice that the format in cell H1 changes to bold
with a red font color (see Figure 4.35). This formatting change serves as a data internal control
which alerts us that actual spend data is missing for the month of January.

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172 Data Analytics Using Microsoft® Excel®

FIGURE 4.35 Conditional Format Triggers a Data Internal Control Alert

16. Click the Undo command. The value in cell H15 will be restored and the formatting in cell H1
will be returned to normal.
17. Copy cell H1 and paste it into the following cell locations: K1, N1, Q1, T1, W1, Z1, AC1, AF1, AI1, AL1,
and AO1. Notice that for cells Z1, AC1, AF1, AI1, AL1, and AO1 the font is bold with red font color.
This is because no actual spend data has been entered for the months of July through Decem-
ber.
The inclusion of the data internal control provides the final element that completes the Per-
sonal Budget project. This project demonstrates how the entire Data Analytics Model is applied
throughout the development of a data analytics project. Moreover, this project has the potential to
provide tremendous personal financial benefits as it provides a mechanism to analyze your own
spending behavior. The analytical results of the budget can help you modify your spending habits
in order to achieve your financial goals.

Skill Refresher: Conditional Formatting: Formula Rule

1. Activate a cell that will be formatted based on the outcome of a formula.

2. Click the Home tab of the Ribbon.
3. Click the Conditional Formatting button.
4. Click the New Rule option from the dropdown menu.
5. Click the “Use a formula to determine which cells to format” option in the New Formatting
Rule dialog box.
6. Click the input box below the heading “Format values where this formula is true”.
7. Type an equal sign =, followed by a formula that will be used to determine if the activated
cell should be formatted.
8. Click the Format button on the New Formatting Rule dialog box.
9. Select the desired formats from the Format Cells dialog box to be used on the activated
cell if the output of the formula in step 7 is true.

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Chapter 4 Using Mathematical Outputs for Analytics 173

10. Click the OK button on the Format Cells dialog box.

11. Click the OK button on the New Formatting Rule dialog box.

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Keyboard Only

Copy and Paste Formula Text Directly Above Active Cell

• Hold the CTRL key and tap the ‘ key.
Paste Formulas & Number Formatting
• Tap the ALT key on your keyboard. Then tap the letters H, V, and O one at a time.

Key Takeaways

• Functions should be used when mathematical outputs must be produced using many cell
locations.
• Functions used for statistics outputs can be created using cell ranges or selected cell loca-
tions separated by commas. Cell ranges must be two cell locations separated by a colon
when using a contiguous range of cells in a function.
• An absolute reference will turn off relative referencing such that cell references used in for-
mulas and functions will not change when they are pasted.
• An absolute reference can be applied to a cell reference by typing a dollar sign in front of the
column letter and row number or by clicking in front of the cell reference and tapping the F4
key on your keyboard.
• Blank cells can be included in functions since they will be ignored. Once values are entered
into the blank cells, the function will reproduce a new output.
• The COUNTA function must be used if counting the number of cell locations that contain any
entry, i.e. numbers or text.
• Conditional formatting features can be used to add data visualization enhancements and
data internal controls to an analytics project.

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174 Data Analytics Using Microsoft® Excel®

4.3 Chapter Assignments and Test

Data Analytics (Skills Review)

Business Flex Budgets (Comprehensive Review)

Starter File Name: Chapter 4 DA Exercise 1

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Difficulty: Level 1
For most businesses, budgets are an essential tool for planning and managing resources. Bud-
gets also serve as an important analytical tool to determine how the actual performance of the
business compares to expected financial goals such as sales, expenses, and profits. This exer-
cise demonstrates how businesses can use budgets effectively to determine if they are meeting
their intended financial goals. At first glance, this may seem to be a simple task of comparing
the actual results of the business against the original plan. However, activity plays a critical role
in the outcome of both sales and expenses which are used to calculate profits. A flex budget is
an adjustment of the original plan based on the actual level of activity that occurred. The actual
revenue and expenses will therefore be compared to the flex budget when evaluating the perfor-
mance of the business.
In this exercise, a flex budget will be developed for a hypothetical pizza restaurant based on the
number of pizzas made and sold. A key objective for this budget is to analyze expenses required
for operating the business such as salaries, rent, etc. Expenses that consistently exceed the flex
budget each quarter need to be evaluated and reduced if possible. A key element of the budget
is to ensure the actual expenses are entered for each quarter. The net operating income, which
is sales less expenses, will appear higher than reality if an actual expense is not entered into the
worksheet. The annual net operating income will also be evaluated in terms of actual results for
the year as well as a summary of the quarterly results. The Excel file that is used for the budget
will serve as a template so budget numbers and actual results can be replaced each year. There
are no additional rows of data needed for this project. The annual plan sales budget for this pro-
ject is $423,300. The total annual expense budget for this project is $404,670.
Begin the exercise by opening the file named Chapter 4 DA Exercise 1. Questions that are pre-
ceded with the letters KO indicate you must only use your keyboard and not your mouse to
execute the required skill.
1. Click cell G6. Make sure columns A through F are visible on your screen.
2. Click the Freeze Panes command in the View tab of the Ribbon. Select the Freeze Panes
option from the dropdown menu.
3. Click cell I13 and start a function by typing an equal sign =. Type the word “sum” followed
by an open parenthesis.
4. Highlight the range I8:I12 and tap the ENTER key on your keyboard.
5. Click cell I14 and start a formula by typing an equal sign =.
6. Click cell I6, type the minus sign -, and then click cell I13.
7. Tap the ENTER key on your keyboard. The output of this formula is calculating the actual
net operating income for the first quarter.
8. Highlight the range I13:I14 and activate the Copy command.
9. Paste the copied content into the following ranges: M13:M14, Q13:Q14, and U13:U14
10. Click cell F16 and start a function by typing an equal sign =. Type the word “average” fol-
lowed by an open parenthesis.

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Chapter 4 Using Mathematical Outputs for Analytics 175

11. Click cell I14 and type a comma. Click cell M14 and type a comma, then click cell Q14
and type a comma, then click cell U14.
12. Tap the ENTER key on your keyboard. The output of the AVERAGE function shows that
on average the company achieved $6,539 of net operating income per quarter.
13. KO Activate cell F17. Hold the CTRL key on your keyboard and tap the apostrophe ‘ key.
This will copy the text of the AVERAGE function and paste it into cell F17.
14. Click in front of the word “AVERAGE”, delete it, and type “max”. This technique is used to
create the MAX function because the same cell references that were used for the AVER-
AGE function will also be used for this function. If the cell location F16 were copied and
pasted into cell F17, relative referencing would change the cell references.
15. Tap the ENTER key on your keyboard. The output of the MAX function shows that the
highest amount of net operating that was achieved in a quarter was $11,001.
16. KO Activate cell F18. Hold the CTRL key on your keyboard and tap the apostrophe (‘) key.
This will copy the text of the MAX function and paste it into cell F18.
17. Click in front of the word “MAX”, delete it, and type “min”.
18. Tap the ENTER key on your keyboard. The output of the MIN function shows that the
lowest amount of net operating that was achieved in a quarter was $3,780. This function
along with the MAX and AVERAGE functions provides a summary of the company’s net
operating income results.
19. Click cell G6 and start a formula by typing the equal sign =.
20. Click cell G4, type the asterisk * for multiplication, and click cell B6.
21. Tap the F4 key on your keyboard. This will place an absolute reference on cell B6 which
is the estimated average price that customers are expected to pay for each pizza. The
restaurant charges different prices depending on the type of pizza the customer orders.
Plain pizzas are the lowest price and pizzas with toppings are priced higher.
22. Tap the ENTER key on your keyboard. The output of the formula calculates the budgeted
plan sales revenue. Notice that the formula uses the estimated number of pizzas sold in
cell G4.
23. Click cell H6 and start a formula by typing an equal sign =.
24. Click cell I4, type the asterisk * for multiplication, and click cell B6. Tap the F4 key on your
keyboard to place an absolute reference on cell B6.
25. Tap the ENTER key on your keyboard. This formula uses the actual pizzas sold in cell I4 to
calculate the flex budget revenue. Since the actual number of pizzas sold is different from
the number of pizzas used for the plan budget, we would expect the actual revenue to be
different from the plan. The flex budget shows what the actual revenue should be given
this change in the number of pizzas sold.
26. Highlight the range G6:H6 and activate the Copy command. Then, paste the content into
the following ranges: K6:L6, O6:P6, and S6:T6.
27. Click cell G8 and start a formula by typing an equal sign =. Click cell A8 to add this cell
reference to the formula. This represents the fixed cost portion of the Salaries expense. A
fixed costs is where the total cost of an expense does not change when activity changes.
28. Tap the F4 key on your keyboard three times. You should see a dollar sign in front of the
letter A in the cell reference A8. This is a mixed reference. An absolute reference shuts off
relative referencing for the entire cell reference. In this case, we do not want column A to
change when pasting this formula. However, we do want the row number to change when
the formula is pasted. Therefore, the dollar sign is placed only in front of the column letter
and not the row number.
29. Type a plus sign + and then an open parenthesis. Click cell B8 to add this cell reference to
the formula. This represents the variable cost portion of the Salaries expense. A variable
cost is where the cost per unit does not change when activity changes. However, we must
multiply the activity (units sold) by the variable cost per unit to get the total variable cost.
30. Tap the F4 key on your keyboard three times. This will also create a mixed reference by
placing a dollar sign only in front of the letter B. There should not be a dollar sign in front
of the number 8 in the cell reference.

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176 Data Analytics Using Microsoft® Excel®

31. Type an asterisk * for multiplication and then click cell G4 to add this cell reference to the
formula. Cell G4 contains the plan level of activity for the first quarter which is 6,400 units
sold. This will be multiplied by the variable cost per unit to calculate the total variable cost
for Salaries.
32. Tap the F4 key on your keyboard two times. This will also create a mixed reference, but
in this case the dollar sign should appear in front of the row number and not the column
letter. When the formula is pasted, the row number will not change but the column letter
will be adjusted from relative referencing.
33. Type a closing parenthesis and tap the ENTER key on your keyboard. The output of
this formula shows the total cost of the Salaries expense. This is known as a mixed
cost because the total cost contains both a fixed cost and variable cost component (not
because the formula contains a mixed reference).
34. Copy cell G8 and then click cell H8.
35. Click the arrow below the Paste button in the Home tab of the Ribbon. Click the Paste
Formulas option from the dropdown menu.
36. KO Edit the formula in cell H8 by tapping the F2 key on your keyboard.
37. Click in front of the cell reference H$4. Delete the letter H and type the letter “I”. Cell I4
contains the actual activity or units sold for the first quarter.
38. Tap the ENTER key on your keyboard. This formula shows the flex budget for the Salaries
expense since the variable cost is now multiplied by the actual units sold. This is done
to control for expense changes that occur due to changes in activity. The actual Salaries
expense will now be compared to the output of this formula.
39. Highlight and copy the range G8:H8.
40. Highlight the range G9:H12 and paste.
41. Highlight and copy the range I13:I14.
42. Highlight the range G13:H14. Click the arrow below the Paste button in the Home tab of
the Ribbon and click the Paste Formulas option from the dropdown menu.
43. Highlight and copy the range G8:H14. Then, paste this into the following ranges: K8:L14,
O8:P14, S8:T14.
44. Click cell J6 and start a formula by typing an equal sign =.
45. Click cell I6, type a minus sign -, and the click cell H6.
46. Tap the ENTER key on your keyboard. The output of this formula compares the actual
sales revenue of the first quarter to the revenue flex budget. The negative value of $(6,540)
indicates revenue should have been $6,540 higher given the actual amount of pizzas sold
which was 8,120. Can you think of a reason why revenue was lower than the flex budget?
47. Copy cell J6 and paste it into the range J8:J14 using the Paste Formulas command.
This will calculate the variance comparing the actual expenses with the flex budget for
expenses. Notice that the variance for the Ingredients expense is negative $(2,750). This
means the cost of ingredients was less that what was expected given that 8,120 pizzas
were sold. Is there a relationship between the negative revenue variance and the negative
spend variance for Ingredients?
48. Highlight the range J8:J13 and click the Conditional Formatting button in the Home tab of
the Ribbon.
49. Place the mouse pointer over the Color Scales option and click the Red – White – Green
Color Scale from the submenu. This will add a data visualization enhancement that will
help analyze expenses for each quarter.
50. Highlight and copy the range J6:J14. Paste this into the following ranges: N6:N14,
R6:R14, and V6:V14. Notice expenses shaded red are positive values indicating that
actual expenses exceeded the flex budget for expenses. Is there any expense category
that is consistently shaded red?
51. Click cell C6 and start a function by typing an equal sign =.
52. Type the function name “sum” followed by an open parenthesis.
53. Click cell H6 and type a comma. Click cell L6 and type a comma; click cell P6 and type a
comma; click cell T6 and type a closing parenthesis.

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Chapter 4 Using Mathematical Outputs for Analytics 177

54. Tap the ENTER key on your keyboard. The output of this function shows the total revenue
flex budget for the year.
55. Copy cell C6 and paste it into the range C8:C14 using the Paste Formulas command.
56. Copy the range C6:C14 and paste it into the range D6:D14.
57. Copy the range J6:J14 and paste it into the range E6:E14.
58. Click cell F3 and start a function by typing an equal sign = followed by the letters “cou”.
59. Double click the COUNTA function from the dropdown list.
60. Highlight the range F4:F14 and tap the ENTER key on your keyboard.
61. Click cell I2 and type an equal sign = followed by an open parenthesis. This is the start of
a complex formula that will include the COUNT function to determine the number of actual
results that were typed into the worksheet.
62. Type the function name “count” following by an open parenthesis.
63. Highlight the range I4:I14 and then type a closing parenthesis. Since this is the COUNT
function, the column heading in cell I5 will be ignored.
64. Type the plus sign +, followed the number 1, and then a closing parenthesis. This function
will be compared to the COUNTA function in cell F3 to verify that all actual values have
been entered into the worksheet. However, the COUNTA function is including the Expense
heading in cell F7. There will not be any actual data entered for the heading. Therefore,
whatever is counted in the range I4:I14 must be increased by 1.
65. Type a minus sign - and then click cell F3. Then, tap the F4 key on your keyboard. This
will put an absolute reference on cell F3.
66. Tap the ENTER key on your keyboard. The output of the formula should be zero. This indi-
cates there are no missing actual data values that need to be added to the budget.
67. Click cell I2 and then click the Conditional Formatting button in the Home tab of the ribbon.
68. Click the New Rule option from the dropdown menu.
69. Click the Use a formula to determine which cells to format option from the New Formatting
Rule dialog box.
70. Click the input box below the heading Format values where this formula is true.
71. Type an equal sign = and then type the cell location I2.
72. Type the less than symbol < follow by a 0.
73. Click the Format button in the New Formatting Rule dialog box.
74. Click the bold font style and set the font color to red in the Format Cells dialog box.
75. Click the OK button in the Format Cells dialog box and then click the OK button in the
New Formatting Rule dialog box.
76. Delete the value in cell I11. A value of negative 1 should now appear in cell I2. This alert
is telling you that one of the actual values is missing from the budget. This alert serves a
data internal control since missing an expense will make the net operating income appear
higher than reality.
77. Copy cell I2 and paste it into the following cell locations: M2, Q2, and U2.
78. Save and close your workbook.

Cost Analytics

Starter File Name: Chapter 4 DA Exercise 2

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178 Data Analytics Using Microsoft® Excel®

Difficulty: Level 2
Cost analytics is a critical activity that helps businesses understand and estimate costs that are
associated with day-to-day operations. This exercise examines the relationship between clean-
ing expenses and the occupancy rate of a small hotel. Cleaning expenses are mostly influenced
by the occupancy rate of the hotel. As more rooms need to be cleaned, cleaning expenses will
increase. To accurately estimate these expenses, the behavior of the cost must be identified in
terms of fixed, variable, or mixed. A fixed cost does not change no matter how many rooms need
to be cleaned. For example, if the cleaning staff is paid a fixed salary, it does not matter if they
clean 1 room or 100 rooms, their salary will remain the same. A variable cost is when the cost
per unit does not change no matter how many rooms are cleaned. In order to calculate the total
variable cost, the cost per unit must be multiplied by the total activity which in this case is the
number of rooms that are cleaned. For example, assume that when a room is cleaned, a new
bottle of shampoo is placed in the bathroom. If the shampoo cost is $1.00 per bottle, it does
not matter if 1 room is cleaned or 100 rooms are cleaned, the cost per bottle will still be $1.00.
However, the total cost will be $100 if 100 rooms are cleaned versus $1.00 if 1 room is cleaned.
A mixed cost is where the total cost is comprised of both a fixed and variable cost.
This exercise will demonstrate how mixed costs can be estimated through a technique called
the high-low method. The project will use one year of monthly occupancy days and cleaning
expenses. Additional years of data will be added to continue the process of analyzing costs in
order to estimate what the cleaning expenses will be at various levels of room occupancy days.
Therefore, additional rows of data will be added to the workbook, but there will be no additional
columns added. The workbook contains cost data from 2019 where the total cleaning expense
for the year was $88,295 and the total occupancy days were 45,925.
Begin the exercise by opening the file named Chapter 4 DA Exercise 2. Questions that are pre-
ceded with the letters KO indicate you must only use your keyboard and not your mouse to
execute the required skill.
1. Enter a function in cell E3 that shows the total of adding the values in the range E5:E16.
Use the output of this function to audit the data versus what was provided in the descrip-
tion of this exercise.
2. Enter a function in cell G3 that shows the total of adding the values in the range G5:G16.
Use the output of this function to audit the data versus what was stated in the description
of this exercise.
3. Enter a function in cell K17 that will count the number of months in the range B5:B17.
Since the data in the worksheet should be for one year, verify that the output of the func-
tion makes sense. Also note that one blank cell, B17, is included in this range.
4. Enter a formula in cell D5 to calculate the January capacity for the hotel. The capacity is
calculated by multiplying the occupants per room (cell C3) by the number of rooms in the
hotel (cell C2). This result is then multiplied by the number of days in the month (cell C5).
Construct this formula so that relative referencing does not change cells C3 and C2 when
the formula is pasted into other cell locations.
5. Copy the formula in cell D5 and paste it into the range D6:D16. Use a paste method that
does not change the border line style in column D.
6. Enter a formula in cell F5 to calculate the occupancy capacity of the hotel. The formula
should divide the Actual Capacity by the Hotel Capacity. Format your result to a percent-
age with two decimal places.
7. Copy cell F5 and paste it into the range F6:F16. Use a paste method that uses the number
format applied to cell F5 but does not change the border style in column F.
8. Enter a function in cell K5 that shows the highest value for the Cleaning Expenses in the
range G5:G16.
9. KO Copy the function in cell K5 and paste it into cell K6 so the range used in the function
does not change. Then modify the function so the output shows the lowest value for the
Cleaning Expenses in the range G5:G16.
10. Enter a function in cell L5 that shows the highest value for the Actual Occupancy in the
range E5:E16.
11. Copy the function in cell L5 and paste it into cell L6 so the range used in the function does
not change. Then modify the function so the output shows the lowest value in the Clean-
ing Expense column.

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Chapter 4 Using Mathematical Outputs for Analytics 179

12. Enter a formula in cell K7 that subtracts the lowest Cleaning Expenses value from the high-
est Cleaning Expenses value.
13. Copy cell K7 and paste it into cell L7 such that only the formula is pasted without any of
the formats from cell K7.
14. Enter a formula in cell L9 that divides the Cleaning Expense High Low Difference (cell K7)
by the Actual Occupancy High Low Difference (cell L7). The output of this formula shows
the variable cost per occupancy day portion of the cleaning expenses per month. As men-
tioned in the description for this exercise, the cleaning expense is a mixed cost, which
means it is comprised of both a variable and fixed cost.
15. Enter a formula in cell L10 that calculates the fixed cost portion for the cleaning expenses
per month. Since we have calculated the variable cost per occupancy day, we can use it
to calculate the fixed expense. First calculate the total variable expense by multiplying the
variable expense per occupancy day in cell L9 by the High Actual Occupancy days in cell
L5. Then, subtract this amount from the High Cleaning Expense in cell K5. Hint: you will
have to put the calculation for the total variable expense in parentheses.
16. Enter the number 3500 in cell K12. Notice this cell is shaded yellow. Shading a cell is
sometimes used to indicate a value that needs to be entered in order to produce an out-
put. In this case, the value of 3,500 will be used to estimate the cleaning expenses.
17. Enter a formula in cell L13 that calculates the estimated cleaning expenses given the num-
ber that was entered into cell K12. Since the variable cost per occupancy day and the
fixed cost is calculated in cells L9 and L10, these results can be used to estimate the
cleaning expenses. The formula to estimate this mixed cost can be expressed as: Y = A +
Bx where Y=Cleaning Expense, A is the fixed cost, B is the variable cost per occupancy
day, and x is the number of occupancy days. The result of multiplying B times x is the total
variable cost.
18. The output of the formula used to calculate the estimated cleaning expenses in cell L13
should be $6,900. Type the value 4800 in cell K12. You should see the cleaning estimate
change to $8,720.
19. Type the following into the merged cell beginning with cell I16: “Data added after row 16
is not included in this analysis”. This alert will be used as part of a data internal control
feature that will appear if additional data is added to the worksheet.
20. Change the font color in the merged cell beginning with I16 to white. It will appear as if the
text has disappeared.
21. With the merged cell beginning with I16 still activated, click the Conditional Formatting
button in the Home tab of the Ribbon.
22. Click the New Rule option from the dropdown menu. Set a conditional format rule based
on the results of the following formula: =K17>12. If the value in cell K17 is greater than
12, then additional data has been added to the worksheet that will not be included in the
outputs of the formulas and functions.
23. Select the bold and red font color for the conditional formats.
24. Type the word “January” in cell B17. This should trigger the conditional format and the
alert should now be seen. This serves as a data internal control so the person using this
worksheet will know that the formulas and functions need to be adjusted to account for
the new data.
25. Save and close the workbook.

Integrity Check

Starter File Name: Chapter 4 IC Exercise 3

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Difficulty: Level 3
The purpose of this exercise is to conduct a data audit to evaluate the integrity of the mathemati-
cal outputs that have been added to a worksheet. Read the scenario below, then open the Excel
workbook related to this exercise. Use the AnswerSheet worksheet for any written responses
required for this exercise.
Scenario
You are the manager of a large do-it-yourself hardware store that is part of a national retail chain.
Your assistant manager has constructed a financial plan by product category for the upcoming
year. The Financial Plan worksheet contains several mathematical outputs used to calculate the
expected sales and profit for the company. The following is a list of key elements and calculations
used on this worksheet:
• Cells shaded in yellow are intended for data entry values. For example, last year sales
results in column B are typed into the cells. Also, the expected growth rates in column D
and profit percentages in column E are also typed into the cells. These values fluctuate
from year to year, and the assistant manager intends to create a few scenarios for the
budget by changing the growth rates and expected profit percentages for each product
category.
• Table 4.4 contains a list of the formulas that should have been used to produce the out-
puts on the Financial Plan worksheet.

TABLE 4.4 Formulas for Financial Plan

Purpose Formula Location

Budgeted Sales x Profit
Budgeted Profit Dollars F4:F7
Percent
Sales Last Year x (1 + Sales
Budgeted Sales C4:C7
Growth)
(Total Budgeted Profit Dollars
Total Profit Growth E8
÷ Total Budgeted Sales)
(Total Budgeted Sales − Total
Total Sales Growth Sales Last Year) ÷ Total Sales D8
Last Year

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 4 Using Mathematical Outputs for Analytics 181

Assignment
1. Use the Show Formulas command to audit the formulas on the worksheet. Compare the
formulas on the worksheet to the formulas shown on Table 4.4. Record your observations
on the AnswerSheet worksheet.
2. The assistant manager intends to use the Financial Plan worksheet to create a few sce-
narios for the budgeted sales and profit dollars. Change a few values in the Profit Percent
column and record your observations on the AnswerSheet worksheet.
3. Look at each value in the Totals row (row 8) on the Financial Plan worksheet. Are there
any values that do not make sense? Record your observations on the AnswerSheet work-
sheet.
4. Given the information provided for this exercise, make any necessary corrections to
improve the integrity of the Financial Plan worksheet.

Applying Data Analytics Skills

Data Analytics Model Review

Starter File Name: Chapter 4 ADAS Exercise 4

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Difficulty: Level 2
When conducting a data analytics project, key decisions with respect to how the project is
designed and how data is analyzed are guided by the Data Analytics Model. The purpose of this
exercise is to review the Data Analytics Model using the Cost Analytics exercise. Complete the
Cost Analytics exercise before starting this exercise. Place your answers to the following ques-
tions in the Chapter 4 ADAS Exercise 4 workbook.
1. Define each component of the DATA Analytics Framework.
2. Assess the data design elements of the Chapter 4 DA Exercise 2 workbook. Identify 2
design traits and explain how these traits align with your assessment of the DATA Analyt-
ics Framework.
3. Identify the data audits that were used in the project. Include the Excel features, formulas,
or functions that were used to conduct these audits.
4. Explain how a data internal control was added to this project. Include in your explanation
why this control was needed and what Excel features, formulas, or functions were used.

Evaluating a Data Analytics Project

Starter File Name: Chapter 4 ADAS Exercise 5

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182 Data Analytics Using Microsoft® Excel®

Difficulty: Level 3
Using the DATA Analytics Framework and understanding how this fits into the broader Data Ana-
lytics Model is critical for conducting a successful analytics project. The purpose of this exercise
is to evaluate the Business Flex Budgets exercise using the Data Analytics Model. Read the Busi-
ness Flex Budgets exercise description and review the Chapter 4 DA Exercise 1 workbook before
starting this exercise. Place your answers to the following questions in the Chapter 4 ADAS Exer-
cise 5 workbook.
1. Define each component of the DATA Analytics Framework.
2. Assess the data design elements of the Chapter 4 DA Exercise 1 workbook. Identify 2
design traits and explain how these traits align with your assessment of the DATA Analyt-
ics Framework.
3. Based on the description of the exercise and your review of the Chapter 4 DA Exercise 1
workbook, explain how you would conduct at least 1 data audit. Be specific in describing
what Excel features, formulas, or functions you would use.
4. Based on the description of the exercise and your review of the Chapter 4 DA Exercise 1
workbook, explain how you would add 2 data internal controls to the workbook. Be spe-
cific in describing what Excel features, formulas, or functions you would use.

Chapter Skills Test

Starter File Name: Chapter 4 Skills Test

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Chapter 4 Using Mathematical Outputs for Analytics 183

12. Enter a formula in cell B4 that calculates the percent to total for the values in the TY Total
Budget column. Your formula should divide the value in cell A4 by the total in cell A16. Place
an absolute reference on the cell A16 in your formula.
13. KO Copy the formula in cell B4 and use the Paste Formulas command to paste it into the
range B5:B15.
14. Enter a function into cell D4 that will calculate the average of the values in the following cell
locations: H4, K4, N4, Q4, T4, and W4.
15. Copy the function in cell D4 and use the Paste Formulas & Number Formatting command to
paste it into the range D5:D16.
16. Enter a formula in cell E4 that calculates the percent change between the monthly budget
spend per month versus the actual average monthly spend per month. Your formula should
first subtract the value in cell C4 from the value in cell D4. Then, divide this result by the value
in cell C4.
17. Copy the formula in cell E4 and use the Paste Formulas & Number Formatting command to
paste it into the range E5:E16.
18. KO Copy the function in cell D16 and paste into cell D18 using Paste Formulas & Number
Formatting command.
19. Change the function name in cell D18 to MAX.
20. KO Copy the function in cell D18 (do not copy the cell location) and paste it into cell D19.
21. Change the function name in cell D19 to MIN.
22. Enter a function in cell F2 that will count the number of spend categories in the range F4:F15.
23. Enter a function in cell H1 that will count the number of cells that contain a number in the
range H4:H15.
24. Apply the Color Scales conditional format on the range E4:E15. The color scale should be
white for values that are zero. Cells should be shaded green for values less than zero and
red for values greater than zero.
25. Apply the red data bars with a gradient fill conditional format to the range I4:I15.
26. Apply a conditional format rule to cell H1. The rule should be based on the results of a for-
mula. The formula should determine if cell H1 does not equal cell F2. Since cell H1 will be
copied and pasted to another cell, place an absolute reference on cell F2 in your formula. If
the formula is true, the format for cell H1 should be bold with a red font color.
27. Copy cell H1 and paste it into cell K1.
28. KO Adjust the worksheet so the formulas and functions appear as they were typed into the
cell locations instead of showing the outputs.
29. Save and close your workbook.

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184 Data Analytics Using Microsoft® Excel®

Scenario Analytics

Scenario analysis is a valuable exercise when making either personal or professional decisions. In
order to make an optimal decision, various outcomes must be evaluated. Decisions such as purchas-
ing a home, leasing airplanes, or making investments involve several variables. Any change in these
variables can significantly change the outcome of the decision. This chapter will focus on how data
analytics can be used to evaluate the outcome of several scenarios related to financial based deci-
sions. To accomplish these scenarios, functions such as PMT (Payment), FV (Future Value), and PV
(Present Value) will be demonstrated as well as the use of dates and date functions. This chapter
will also demonstrate how cell references can be used to link two worksheets in a workbook and
will use Excel’s protection features when adding data internal controls to a workbook.

5.1 Loan and Lease Scenarios

Learning Objectives

1. Understand the concepts and terms for loans.

2. Learn how to use the PMT function to calculate annual and monthly loan payments.
3. Review the use of the Excel Function Builder.
4. Understand how key variables influence loan payments.
5. Learn how to construct and audit a loan amortization schedule.
6. Use cell references to create a link between two worksheets.
7. Understand how dates and date serial numbers are used.
8. Learn how to use the EOMONTH and YEAR functions.
9. Review how the TEXT function is used to display date information.
10. Use the PMT function to calculate monthly lease payments.
11. Learn how to use worksheet protection features for data internal controls.

This chapter will feature two projects that involve financial based decisions. The first project, called
asset
Loan Lease, will involve a loan to purchase an asset and the lease of another asset. An asset can be
Anything of value or
anything of value or anything that provides a financial benefit for an individual or business. The anything that provides a
project details are explained using the DATA Analytics Framework. financial benefit for an
individual or business.
• Decision: The purpose of this project is to evaluate scenarios for the purchase of a house and
the lease of an automobile. For the purchase of the house, the budget requires that loan pay-
ments do not exceed $1,200 per month. The monthly payments for the lease must not exceed
$250 per month.
• Acquisition: To evaluate scenarios involving the purchase or lease of an asset, the following
data must be acquired: interest rate, price of the asset, the amount borrowed, the amount of
time required to repay the loan or the duration of the lease, and the residual value of the lease.

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186 Data Analytics Using Microsoft® Excel®

• Time: The project requires that multiple scenarios be evaluated by changing any of the vari-
ables that are used to calculate the loan or lease payments. This will be established as a
template such that once it is set up, it can be used for an indefinite period of time.
• Analysis: Once the variables are entered into the analysis, the results must produce the
monthly payments for a loan to purchase a house. In addition, a schedule will be created to
show exactly how the loan will be paid off with respect to the amount paid for interest and
loan principal. In the case of the lease, the monthly required payments for the duration of the
lease must be calculated.

Loan Concepts and Terms

Follow Along File: None
loan One of the most common financial decisions made in both personal and professional settings
A contractual agreement in involves loans. Loans can be used for a variety of purposes from the purchase of assets to supple-
which money is borrowed menting cash flow to paying for expenses. A loan is a contractual agreement in which money is
from a lender, such as a borrowed from a lender such as a bank and paid back over a specific period of time. The borrower
bank, and paid back over
a specific period of time. A can then use the money from a loan to purchase and take possession of assets. The amount of
borrower can use a loan to money that is borrowed from the lender is called the principal of the loan. The borrower is required
purchase and take to pay the principal of the loan plus interest. When money is borrowed to purchase a house, the
possession of an asset.
loan is referred to as a mortgage. This is because the house being purchased also serves as collat-
principal eral to ensure payment. In other words, the bank can take possession of the house if the borrower
fails to make loan payments. Table 5.1 provides a summary of the key terms related to loans.
The amount of money
borrowed from a lender.
TABLE 5.1 Key Terms for Loans
mortgage
Term Definition
A loan used to purchase a
house or other property. Collateral Any item of value that is used to secure a loan to ensure payments to the lender.
The amount of cash paid toward the purchase of an asset. If you are paying 20%
Down Payment down, you are paying 20% of the cost of the asset in cash and are borrowing the
rest from a lender.
Annualized
The annual rate charged on borrowed funds. This rate represents the total cost a
Percentage
person must pay for borrowing money.
Rate (APR)
Mortgage A loan where property is put up for collateral.
Principal The amount of money that has been borrowed.
Terms The amount of time to repay a loan.

Figure 5.1 shows an example of an amortization table that is similar to the one that will be
amortization table
created for the Loan Lease project. A lender is required by law to provide borrowers with an amor-
A schedule of payments
broken down by interest tization table when a loan contract is offered. The table shows how the payments of a loan would
and principal for a loan. By work if $100,000 was borrowed from a lender and must be paid back over ten years at an annualized
law, a lender is required to percentage rate (APR) or interest rate of 5%. This is a simplified example which assumes payments
provide an amortization
table to a borrower.
are made on an annual basis. The amortization table that will be built for the Loan Lease project is
based on a more common arrangement of monthly payments. Notice that the annual payment of
$12,950 is split between the interest payment and the principal payment. Each year the amount of
interest paid to the bank decreases and the amount of money used to pay off the principal
increases. This is because the bank is charging interest on the amount of principal that has not
been paid. As the principal is paid off, the interest rate is applied to a lower amount, which reduces
the interest charges. The loan is paid off when the principal balance is paid off. In the example
shown in Figure 5.1, the total interest paid over the ten-year period is $29,505. Indeed, borrowing
money is not free.

FIGURE 5.1 Example of an Amortization Table

PMT Function for Loans

Follow Along File: Data Analytics Project 3

Digital Downloads

Data Analytics Project 3.xlsx

https://catalog.flatworldknowledge.com/a/31995/
Data_Analytics_Project_3-d3b5.xlsx

The first goal of the Loan Lease project is to evaluate a loan for the purpose of buying a house.
As outlined in the DATA Analytics Framework, the monthly payments for the loan must not exceed
$1,200. These monthly loan payments will be calculated using the PMT function. The setup of this
function differs from the statistics functions previously demonstrated because it requires several
arguments to be accurately defined in order to produce a reliable output. Table 5.2 lists these argu-
ments for the PMT function. It is helpful to review the key loan terms in Table 5.1 before defining
these arguments.

TABLE 5.2 Arguments for the PMT Function

Argument Definition
The interest rate or APR the lender is charging the borrower. To get monthly payments,
Rate
this rate must be divided by 12.
Number of periods representing the amount of time in which the loan must be repaid.
Nper
Years must be multiplied by 12 if calculating monthly payments.
Present value is the principal of the loan or the amount of money that is borrowed. When
Pv defining this argument, a minus sign - must precede the cell location or value. For
leases, this argument is used for the price of the asset being leased.

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188 Data Analytics Using Microsoft® Excel®

Argument Definition
Future value represents a lump-sum payment that will be made at the end of the loan
term. This is also used for the residual value of a lease. If it is not defined, Excel will
[Fv]
assume that it is zero. The brackets around the argument indicate that it is not required
to be defined in order to produce an output.
This argument can be defined with either the number 1 or 0. The number 1 is used if
payments are made at the beginning of each period. A 0 is used if payments are made
[Type] at the end of each period. Excel assumes that this argument is 0 if it is not defined. The
brackets around the argument indicate that it is not required to be defined in order to
produce an output.

The following demonstrates how the PMT function is added to the Loan Lease project using
the Function Builder feature in Excel. The first use of the PMT function will be to calculate the
annual payments for the loan that will be used to purchase a house. Since this project contains
multiple worksheets, read the instructions carefully to be sure you are working in the correct work-
sheet.
1. Click the Loan worksheet tab. The next several steps will be applied to the Loan worksheet as
shown in Figure 5.2.
2. Type “4.5” into cell B2. This cell has been formatted to a percentage with two decimal places.
This value indicates that the APR, or total cost of the loan, is 4.5%. This project will assume that
the rate will be fixed through the duration of the loan.
3. Type the number 30 into cell B3. This project will assume the loan will be repaid over 30 years.
4. Type the number 330000 into cell B4. The project assumes that the purchase price of the house
is $330,000.
5. Type the number 50000 into cell B5. This represents the amount of cash that will be paid for
the house.
6. Enter a formula into cell B6 that subtracts cell B5 from B4 (B4-B5). The output of this formula
will show how much money will need to be borrowed to purchase the house.
7. Click cell A9. Then, click the Formulas tab on the Ribbon.
8. Click the Insert Function button (see Figure 5.2). This opens the Insert Function dialog box,
which can be used for searching all functions in Excel.

FIGURE 5.2 Loan Worksheet

9. Type “mortgage payments” when the Insert Function dialog box appears. What you type will
appear in the input box at the top of the Insert Function dialog box (see Figure 5.3). If you are
using Office 365, type “loan payments”.
10. Click the Go button in the upper right side of the Insert Function dialog box. This adds all the
Excel functions that match the description “mortgage payments” in the lower half of the Insert
Function dialog box (see Figure 5.3).
11. Click the PMT option in the lower half of the Insert Function dialog box (see Figure 5.3).

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
190 Data Analytics Using Microsoft® Excel®

FIGURE 5.3 Insert Function Dialog Box

12. Click the OK button at the lower right side of the Insert Function dialog box. This will open the
Function Arguments dialog box.
13. Click the Collapse dialog box button next to the Rate argument in the Function Arguments
dialog box (see Figure 5.4). This will be the first argument defined for the function.

FIGURE 5.4 Function Arguments Dialog Box

14. Click cell B2 on the worksheet. The APR of 4.5% is being used to define the Rate argument.
15. Tap the ENTER key on your keyboard. The Function Arguments dialog box should reopen with
the Rate argument defined with cell B2 (see Figure 5.5).

FIGURE 5.5 Defining the Rate Argument for the PMT Function

16. Click the Collapse dialog button next to the Nper argument in the Function Arguments dialog
box.
17. Click cell B3 and tap the ENTER key on your keyboard. This defines the Nper argument with
the amount of time to repay the loan which is 30 years.
18. Click the Collapse dialog button next to the Pv argument in the Function Arguments dialog
box.
19. Type a minus sign -. When defining the Pv argument of the PMT function, cell locations or val-
ues must be preceded with a minus sign or the function will produce a negative output.
20. Click cell B6. This is the amount of money that will be borrowed which is the principal of the
loan.
21. Tap the ENTER key on your keyboard. You will now see the Rate, Nper, and Pv arguments
defined in the Function Arguments dialog box (see Figure 5.6).

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192 Data Analytics Using Microsoft® Excel®

FIGURE 5.6 Defined Arguments for the PMT Function

22. Click the OK button at the bottom of the Function Arguments dialog box to complete the PMT
function. Excel will assume a value of zero for the Fv and Type arguments since they were not
defined. This is appropriate since there is no lump-sum payment made at the end of the loan
and mortgage payments are typically made at the end of each period.

FIGURE 5.7 PMT Function Output for Annual Payments

Figure 5.7 shows the output of the PMT function in cell A9 if a mortgage were to be paid once a
year. However, mortgage payments are typically made on a monthly basis. The monthly payments
for the Loan Lease project must not exceed $1,200 per month as stated in the Decision component
of the DATA Analytics Framework. In order to evaluate this decision, the PMT function will be con-
structed to produce the monthly payments for the loan. The following demonstrates how the PMT
function is built directly into a cell location without the use of the Function Builder.
23. Activate cell A11 in the Loan worksheet.
24. Type an equal sign =, and then type the function name “pmt”.
25. Type an open parenthesis. You will see a tip box that shows the arguments for the PMT
function (see Figure 5.8). Notice that the “rate” argument is in bold. This indicates that this
argument is currently being defined.
26. Click cell B2. Then type a front slash / followed by the number 12. Since the goal is to calculate
monthly payments, the rate must be divided by 12 to determine how much interest is charged
per month.

FIGURE 5.8 Defining the Rate Argument of the PMT Function for Monthly Payments

27. Type a comma. You will see the “nper” argument in bold on the tip box. This indicates that you
have advanced to defining this argument in the function.
28. Click cell B3. Then type an asterisk * followed by the number 12. Since the goal is to calculate
monthly payments, the repayment in years must be multiplied by 12 to determine the total
number of months that will be required to repay the loan.
29. Type a comma. You will see the “pv” argument in bold on the tip box. This indicates that you
have advanced to defining this argument in the function.
30. Type a minus sign - and then click cell B6.
31. Type a closing parenthesis to complete the function. The “fv” and “type” arguments do not have
to be defined since Excel will assume a value of zero for these arguments. Figure 5.9 shows the
appearance of the completed PMT function.

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194 Data Analytics Using Microsoft® Excel®

FIGURE 5.9 Completed PMT Function for Monthly Loan Payments

Integrity Check

Comparable Arguments for the PMT Function

Arguments defined for the PMT function must be defined in comparable terms. For example,
when calculating monthly payments, the “rate” and “nper” arguments must be defined in terms
of months. The function will produce erroneous results if one argument is defined in annual terms
and the second argument is defined in monthly terms.

32. Tap the ENTER key on your keyboard to display the output of the function. Notice that the
monthly payments for the loan are $1,418.72. This exceeds the budget that was defined in the
DATA Analytics Framework.
33. To evaluate an alternate loan scenario, make the following changes: in cell B2 type “4.20”, in cell
B4 type “300000”, and in cell B5 type “55000”. After making these changes, the monthly pay-
ments should decrease to $1,198.09 which is in line with the budget requirements of the project
(see Figure 5.10). This is one of many scenarios that can be evaluated for this loan.

FIGURE 5.10 Alternate Loan Scenario

Why…

The PMT Function Produces a Negative Output

If the output of the PMT function is a negative value, check the “pv” argument. Cell references
and values used to define the “pv” argument must be preceded by a minus sign. If the minus sign
is omitted, the function will produce a negative output.

Referencing Data Between Worksheets

Follow Along File: Data Analytics Project 3 continued. If starting here use Data Analytics Project 3.01.
The next goal of the Loan Lease project is to complete the loan amortization schedule for the
loan details shown in Figure 5.10. To build this schedule, data from the Loan worksheet will be dis-
played and used in the Loan Amortization worksheet. This is accomplished through the use of cell
references. So far, cell references have been used to display values that exist in the same worksheet
or used in formulas and functions. For this project, cell references will be used to reference data
between two worksheets. This creates a link such that when data is changed in the first worksheet,
it will also be changed in the second worksheet. The following demonstrates how this is accom-
plished.
1. Click the Loan Amortization worksheet tab.
2. Click the merged cell beginning with cell C2 in the Loan Amortization worksheet and type an
equal sign =.
3. Click the Loan worksheet tab.

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196 Data Analytics Using Microsoft® Excel®

4. Click cell B3 in the Loan worksheet.

5. Tap the ENTER key on your keyboard. The value of 30 should now appear in the Loan Amorti-
zation worksheet. Notice how this cell reference appears in Figure 5.11. When referencing data
from another worksheet, the worksheet tab name and an exclamation point precedes the cell
location.

FIGURE 5.11 Cell Reference Linking Two Worksheets

6. Click the merged cell beginning with cell G2 in the Loan Amortization worksheet.
7. Enter a formula that multiplies the repayment in years by 12. The output of this formula will
show the number of months required to repay the loan.
8. In the Loan Amortization worksheet, click the merged cell beginning with cell C3 and type an
equal sign =.
9. Click the Loan worksheet tab.
10. Click cell B6 in the Loan worksheet and then tap the ENTER key on your keyboard. This will
show the amount borrowed, or the principal of the loan, in the Loan Amortization worksheet.
11. In the Loan Amortization worksheet, click the merged cell beginning with cell G3 and type an
equal sign =.
12. Click the Loan worksheet tab.
13. Click cell A11 in the Loan worksheet and then tap the ENTER key on your keyboard. This will
show the monthly payment amount in the Loan Amortization worksheet.
14. In the Loan Amortization worksheet, click the merged cell beginning with cell G4 and type an
equal sign =.
15. Click the Loan worksheet tab.
16. Click cell B2 in the Loan worksheet and then tap the ENTER key on your keyboard. This will
show the APR in the Loan Amortization worksheet.
Figure 5.12 shows how the Loan Amortization worksheet should appear after adding cell refer-
ences that link to data in the Loan worksheet. If the data is changed in the Loan worksheet, these

changes will also appear in the Loan Amortization worksheet. Notice the data design choice that
was made for this worksheet. There are 366 rows of data in this worksheet to show the payments
that are due for a loan that has a repayment period up to 360 months. As a result, the summary data
is shown at the top of the worksheet. Another design choice is the yellow shading in the merged
cells C4:D4. This is to indicate that a value must be entered by a user. This design was also added to
the range B2:B5 in the Loan worksheet.

FIGURE 5.12 Data Referenced from the Loan Worksheet

Dates and EOMONTH (End of Month) Function

Follow Along File: Data Analytics Project 3 continued. If starting here use Data Analytics Project 3.02.
A key feature of the Loan Amortization Schedule is showing the date each payment of the loan date serial number
is due. When a date is entered into a worksheet, Excel recognizes it as a date serial number. This is A number Excel assigns to
how dates can be used in mathematical outputs. With regards to the Loan Amortization Schedule, any date entered into a
we will assume that the first mortgage payment is due at the end of the month following the worksheet so dates can be
used in formulas and
closing date. Each following payment will be due on the last day of every month for the duration functions.
of the loan. Determining the last day of the month can be somewhat complicated because some
months have 30 days, other months 31 days, and in the case of February, 28 days (but 29 days in leap closing date
years). This problem can be solved through the use of the EOMONTH (End of Month) function. The The date in which a loan or
following demonstrates how the EOMONTH (End of Month) function will be used to determine the lease contract is finalized
and initiated.
last day of each month for each payment in the Loan Amortization Schedule.
1. Click the merged cell beginning with cell C4 in the Loan Amortization worksheet.
2. Type the number 6 followed by a front slash /, then the number 12 followed by a front slash /,
and then the number 2020.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
198 Data Analytics Using Microsoft® Excel®

3. Tap the ENTER key on your keyboard. This enters the date 6/12/2020 into the worksheet. Excel
automatically recognizes this entry as a date and can also use its corresponding date serial
number when conducting mathematical outputs.
4. Click cell B7 on the Loan Amortization worksheet.
5. Type an equal sign =, click the merged cell beginning with cell C4, type a plus sign +, and then
type the number 48.
6. Tap the ENTER key on your keyboard. This formula adds 48 days to the date 6/12/2020 and pro-
duced the output of 7/30/2020. Once a date is entered into a cell location, formulas can be used
to add or subtract days to determine new dates. For this project, the EOMONTH function is a
more efficient method to arrive at the last day of the month compared to a formula.
7. Click cell B7 and tap the DELETE key on your keyboard to remove the formula.
8. Type an equal sign = in cell B7 followed by the function name “eomonth” and an open paren-
thesis. The tip box below the EOMONTH function shows two arguments: “start_date” and
“months” (see Figure 5.13).

FIGURE 5.13 Arguments for the EOMONTH Function

9. Click the merged cell beginning with cell C4.

10. Tap the F4 key on your keyboard to add an absolute reference to cell C4. This will prevent the
cell reference C4 from changing when the function is copied and pasted into all rows in the
schedule.
11. Type a comma. This will advance the function to the “months” argument.
12. Click cell A7. The value in cell A7 is 1. By using this cell reference to define the “months”
argument, Excel will go to the last day of the month, one month after the date used in the
“start_date” argument. When the function is copied and pasted to the next row, the cell refer-
ence will change to A8. The function will then show the last day of the month two months
after the date used in the “start_date” argument.
13. Type a closing parenthesis and then tap the ENTER key on your keyboard.

14. The output of the function is 7/31/2020. One month after the month of June is July. The func-
tion then determines the last day of the month of July which is 7/31/2020.
15. Copy cell B7 and paste it into cell B8. The output of the function is now 8/31/2020. The cell refer-
ence C4 in the “start_date” argument did not change and is still referencing the date 6/12/2020.
However, the cell reference A7 in the “months” argument has changed to A8 which contains a
value of 2 for the second mortgage payment. Since two months after June is August, the func-
tion shows an output of the last day in the month of August.
16. Activate cell B8.
17. Bring the mouse pointer to the Fill Handle in the lower right corner of the cell location. The
mouse pointer should change from a white plus sign to a black plus sign (see Figure 5.14).
18. Double click the Fill Handle. This will copy and paste the EOMONTH function to every row
in the Loan Amortization Schedule. This works because the column to the left of the Date
column, Number of Months, contains an entry in every row of the schedule. Excel uses this
column as a reference when pasting the function and will stop when there is no entry in the
Number of Months column.

FIGURE 5.14 Using Auto Fill to Copy and Paste in a Contiguous Range

Why…

Dates Produce Strange Values After Typing Into a Cell

When entering dates into a cell location, do NOT type an equal sign first. Excel will produce the
output of a division formula if an equal sign precedes the date. Dates should be typed as they
are supposed to appear in the cell and should not be preceded with an equal sign. Also, check
that the cell location is formatted with one of the date formats that can be found in the Home
tab of the Ribbon. If a number format is applied to a cell, the date serial number will be displayed
instead of the date.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
200 Data Analytics Using Microsoft® Excel®

FIGURE 5.15 Bottom of the Loan Amortization Schedule

Skill Refresher: EOMONTH Function

1. Type an equal sign =.

2. Type the function name EOMONTH followed by an open parenthesis, or double-click the
function name from the function list.
3. Define the “start_date” argument with a cell location that contains a date.
4. Define the “months” argument with a value or cell reference for the desired number of
months after the date entered into the “start_date” argument.
5. Type a closing parenthesis.
6. Tap the ENTER key.

View the video online at: http://www.youtube.com/embed/0rrRuRaGyKs?rel=0

The YEAR Function

Follow Along File: Data Analytics Project 3 continued. If starting here use Data Analytics Project 3.03.
The Year column on the Loan Amortization Schedule shows just the year in which the loan
payments are required. This column can be used to aggregate and filter the data for specific years
if the Loan Amortization Schedule were to be used in a PivotTable. For example, the total interest
paid for each year can be aggregated or the total amount of loan payments for each year can be
summed if assembling an annual budget. The following demonstrates how the YEAR function is
used to extract just the year from the dates entered into the Date column of the Loan Amortization
Schedule.
1. Click cell C7 in the Loan Amortization worksheet.
2. Type an equal sign = followed by the function name “year”.
3. Type an open parenthesis and then click cell B7. Notice the one argument for the YEAR func-
tion which is “serial_number” (see Figure 5.16). The date serial number will be used from the
date in cell B7.

FIGURE 5.16 The YEAR Function

4. Tap the ENTER key on your keyboard. The output of the function should be just the year
shown in the date in cell B7.
5. Click cell C7 and double click the Fill Handle in the lower right corner of the cell. This will copy
and paste the function into all rows in the Loan Amortization Schedule.

Skill Refresher: YEAR Function

1. Type an equal sign =.

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202 Data Analytics Using Microsoft® Excel®

2. Type the function name YEAR followed by an open parenthesis, or double-click the func-
tion name from the function list.
3. Click a date that has been entered into a cell location.
4. Type a closing parenthesis.
5. Tap the ENTER key.

View the video online at: http://www.youtube.com/embed/5c0Rsd7lWwU?rel=0

The TEXT Function

Follow Along File: Data Analytics Project 3 continued. If starting here use Data Analytics Project 3.04.
The Month column on the Loan Amortization Schedule is intended to show just the month for
each payment date. This column can serve a similar purpose as the Year column if the Loan Amor-
tization data were to be used in a PivotTable for further analysis. The TEXT function will be used
to show the month based on the dates shown in the Date column. While this is not a date function,
the TEXT function is very useful in showing various components of a date that appear in a work-
sheet. The following demonstrates how this is accomplished.
1. Click cell D7 in the Loan Amortization worksheet.
2. Type an equal sign = followed by the function name “text” and then type an open parenthesis.
Notice that the tip box for this function shows the following two arguments: “value” and “for-
mat_text”.
3. Click cell B7 to define the “value” argument of the function. The function will use the date ser-
ial number for the date shown in cell B7.
4. Type a comma to advance to the “format_text” argument.
5. Type an open quotation. Then, type the letter “m” four times followed by a close quotation. Your
entry should appear as follows: “mmmm”.
Figure 5.17 shows how the arguments of the TEXT function are defined to show the month
that is related to the date shown in cell B7. The code that is entered into the “format_text” argument
will determine the output of the function. It is important to always put this code in quotations as
shown or the function will produce an error output.

FIGURE 5.17 Defining the TEXT Function Arguments to Show the Month

6. Type a closing parenthesis and tap the ENTER key on your keyboard. The output of the func-
tion is the month of July.
7. Click cell D7 and double click the Fill Handle to copy and paste the function to the rest of the
rows in the Loan Amortization Schedule. The month name that is related to each date in the
Date column will now appear in the Month column.

Why…

The Output of the TEXT Function Is Always an Error Code

When using the TEXT function, codes that are used to define the “format_text” argument must
be enclosed in quotations. The function will produce the #NAME? error code output if the format
code is not enclosed in quotations.
For this project, the TEXT function was used to show the full month name using a date that
appears in a worksheet. However, the TEXT function can be used to display a variety of formats
using any value that is entered into a worksheet. Table 5.3 shows codes that can be used in the
“format_text” argument when working with dates. Note that the last 5 rows of the table show
common combinations of date codes with dashes and commas. However, any desired combi-
nation of the date codes can be used as well as other commonly used symbols such as front
slashes and periods.

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204 Data Analytics Using Microsoft® Excel®

TABLE 5.3 TEXT Function Format Codes for Dates

Code Output for Date 9/09/2020

“m” 9
“mm” 09
“mmm” Sep
“mmmm” September
“d” 5
“dd” 05
“ddd” Sat
“dddd” Saturday
“y” 20
“yy” 20
“yyy” 2020
“yyyy” 2020
“d-mmm-yy” 5-Sep-20
“d-mmm” 5-Sep
“mmm-yy” Sep-20
“dddd, mmmm d, yyyy” Saturday, September 5, 2020
“mmmm d, yyyy, dddd” September 5, 2020, Saturday

Skill Refresher: TEXT Function for Dates

1. Type an equal sign =.

2. Type the function name TEXT followed by an open parenthesis, or double-click the func-
tion name from the function list.
3. Reference a date entered onto a worksheet to define the “value” argument.
4. Define the “format_text” argument with the desired date format enclosed in quotations.
5. Type a closing parenthesis.
6. Tap the ENTER key.

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Data Audit for Loan Amortization Schedule

Follow Along File: Data Analytics Project 3 continued. If starting here use Data Analytics Project 3.05.
The purpose of this segment is to complete the Loan Amortization Schedule in the Loan Lease
project. Once all the remaining formulas are added to the schedule, a few simple data audits can be
done to ensure the accuracy and integrity of the schedule.
1. Click cell E7 in the Loan Amortization worksheet.
2. Add a cell reference that displays the value in cell C3.
3. Click cell F7.
4. Add a cell reference that displays the value cell G3. Add an absolute reference to this cell refer-
ence.
5. Click cell G7.
6. Add a formula that first divides the APR in cell G4 by 12. Place an absolute reference on cell G4.
Place this calculation in parentheses since it must be computed first. Then, multiply the result
of this calculation by the Beginning Principal Balance in cell E7.
7. Click cell H7.
8. Add a formula that subtracts the output in cell G7 from the Monthly Payment in cell F7. This
formula completes the data for the first loan payment (see Figure 5.18).

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206 Data Analytics Using Microsoft® Excel®

FIGURE 5.18 Data for First Loan Payment

9. Click cell E8.

10. Enter a formula that subtracts the Principal Payment is cell H7 from the Beginning Principal
Balance in cell E7.
11. Copy the range F7:H7 and paste it into F8:H8.
12. Highlight the range E8:H8.
13. Double click the Fill Handle in the lower right corner of cell H8. This will copy and paste the
formulas to rest of the rows to complete the Loan Amortization Schedule.
Figure 5.19 shows the first several payments of the completed Loan Amortization Schedule.
The steps that follow demonstrate a few basic data audits that will verify the accuracy of the sched-
ule.

FIGURE 5.19 Completed Loan Amortization Schedule

14. Click cell A7 and click the Freeze Panes button in the View tab of the Ribbon. Select the Freeze
Panes options from the dropdown menu.
15. Tap the END button on your keyboard and then tap the DOWN arrow on your keyboard. This
will bring you to the last payment on the Loan Amortization Schedule (row 366). The number
of months for the last row of the schedule should be 360. This matches the number of pay-
ments required for the loan which is 360.
16. Check that the value in cell E366 matches the value in cell H366 (see Figure 5.20). Cell H366
shows the amount of the final loan payment that will be applied to the principal of the loan.
Once this payment is made, the balance due for the loan will be zero.

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208 Data Analytics Using Microsoft® Excel®

FIGURE 5.20 Data Audit for Loan Amortization Schedule

PMT Function for Leases

Follow Along File: Data Analytics Project 3 continued. If starting here use Data Analytics Project 3.06.
lease Leases are another commonly used financial arrangement in both personal and professional
A contract that grants the settings. Leases differ from loans in that the entity that engages in a lease, known as the lessee,
lessee the right to use and does not own the asset. The asset is owned by the provider of the lease, known as the lessor. The
control an asset owned by lessor grants the right to use and control the asset to the lessee in exchange for lease payments. In
the lessor in exchange for
payment over a period of many cases, the lessee has the option to purchase the asset or, depending on the lease contract, may
time. own the asset at the end of the lease period. With respect to the Loan Lease project, the lease of an
automobile will be evaluated. As stated in the DATA Analytics Framework, the monthly lease pay-
lessee ments for this automobile must not exceed $250. The following demonstrates how the PMT
A person or entity that function is used to calculate lease payments.
engages in a lease
contract provided by a 1. Click the Lease worksheet tab.
lessor.
2. Click cell B2 in the Lease worksheet and type the number 3.8. This is the interest rate or APR
that will be charged on the lease for the car.
lessor
A person or entity that 3. Click cell B3 in the Lease worksheet and type the number 48. This assumes the car will be
provides a lease to a leased for a period of 4 years or 48 months. At the end of the lease period, the car must be
lessee. returned to the car dealer.
4. Click cell B4 and type the number 25000. This scenario will evaluate the lease of a car that has
a cost of $25,000.
5. Click cell B5 and type the number 10000. This is the residual value of the car. This number
states that the value of the car will be $10,000 after 48 months.
6. Click cell A8 and type an equal sign =.
7. Begin the PMT function by typing the letters “pmt” followed by an open parenthesis.

8. Click cell B2, type a front slash / for division, and then type the number 12. Since the goal is to
evaluate the monthly lease payments, the APR in cell B2 is divided by 12.
9. Type a comma to advance to the “nper” argument.
10. Click cell B3 to define the “nper” argument. Since cell B3 already contains a value that is stated
in months, this cell reference is all that is needed to define the argument.
11. Type a comma to advance to the “pv” argument.
12. Type a minus sign - and then click cell B4. The “pv” argument for a lease is the total cost of the
asset that is being leased.
13. Type a comma to advance to the “[fv]” argument.
14. Click cell B5. The “[fv]” argument is a lump-sum payment that is made at the end of a loan or
lease. When using the PMT function for calculating lease payments, this argument is defined
using the residual value of the asset. Since this lease assumes that the car will be returned
to the dealer after 48 months, this argument represents the value of the asset that is being
returned, or the residual value at the end of the lease term.
15. Type a comma to advance to the “[type]” argument.
16. Type the number 1 to define the “[type]” argument. This scenario will assume that the lease pay-
ments will be made at the beginning of each month. Figure 5.21 shows how the arguments of
the PMT function are defined to calculate the monthly lease payments.

FIGURE 5.21 Arguments for the PMT Function Defined for a Lease

17. Type a closing parenthesis and then tap the ENTER key on your keyboard. The output of the
function shows that this lease will cost $367.85 per month which exceeds the budget.
18. Make the following changes to evaluate an alternate lease scenario: cell B2 “2.9”, cell B4 “22000”,
and cell B5 “12000”. Notice the output for this scenario is $249.30 which achieves the budget
goals.

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210 Data Analytics Using Microsoft® Excel®

Integrity Check

Using the PMT Function for Leases

When using the PMT function to calculate the required payments for a lease, do NOT use a minus
sign for the “fv” argument. The residual value of the asset is used to define the “fv” argument of
the PMT function and should not be preceded with a minus sign. It is important to note that if a
minus sign is used for the “fv” argument, the function will still produce an output, and that output
will not be accurate.

FIGURE 5.22 Alternate Lease Payment Scenario

Skill Refresher: PMT Function

1. Type an equal sign =.

2. Type the function name PMT followed by an open parenthesis, or double-click the function
name from the function list.
3. Define the “rate” argument with a cell location that contains the rate or APR being charged
by the lender for the loan or lease.
4. Define the “nper” argument with a cell location that contains the amount of time to repay
the loan or lease.
5. Define the “pv” argument with a cell location that contains the principal of the loan or the
price of the item being leased. Cell locations or values used for this argument must be
preceded by a negative sign.
6. Define the “[fv]” argument with a cell location that contains the residual value of the item
being leased or the lump-sum payment for a loan.
7. Define the “[type]” argument with a 1 if payments are made at the beginning of each period
or 0 if payments are made at the end of each period.

8. Type a closing parenthesis.

9. Press the ENTER key.

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Worksheet Protection for Data Internal Control

Follow Along File: Data Analytics Project 3 continued. If starting here use Data Analytics Project 3.07.
To complete the Loan Lease project, a few data internal controls will be added to protect the
outputs in the workbook. This project has several yellow shaded cells where the user is required to
input data in order for the formulas and functions to produce outputs. This is what makes the Loan
Lease project a valuable scenario tool. A person can evaluate the outputs for many combinations of
variables used to calculate loan and lease payments. To protect the outputs in the workbook from
being inadvertently altered or deleted, worksheet protection features can be added. The following
demonstrates how these features are used for the Loan Lease project.
1. Click the Loan worksheet tab.
2. Highlight the range B2:B5 on the Loan worksheet. When the worksheet protection feature is
turned on, we want users to be able to edit the values in this range. However, the protection
feature will prevent all other cells on the worksheet from being changed.
3. Click the Review tab of the Ribbon.
4. Click the Allow Users to Edit Ranges button on the right side of the Ribbon. This will open the
Allow Users to Edit Ranges dialog box (see Figure 5.23).

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
212 Data Analytics Using Microsoft® Excel®

FIGURE 5.23 Allow Users to Edit Ranges Dialog Box

5. Click the New button on the Allow Users to Edit Ranges dialog box. This will open the New
Range dialog box (see Figure 5.24).
6. Type the following: “Loan Payment Variables”. What you type will appear in the Title input
box in the New Range dialog box (see Figure 5.24). The range B2:B5, which was previously
highlighted, will appear in the Refers to Cells input box. The bottom input box is for using a
password that a user must provide to edit the range of cells B2:B5. This is not necessary for the
Loan Lease project since anyone who uses the workbook should be able to change the values
in this range.

FIGURE 5.24 Setting a Range of Cells that Can be Changed in Protection Mode

7. Click the OK button on the New Range dialog box.

8. Click the OK button on the Allow Users to Edit Ranges dialog box.
9. Click the Protect Sheet button in the Review tab of the Ribbon. This will open the Protect
Sheet dialog box (see Figure 5.25). The top input box allows you to set a password that is
required to unprotect the worksheet. Without the password, the protection feature can be
turned off by clicking the Unprotect Sheet button in the Review tab of the Ribbon.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
214 Data Analytics Using Microsoft® Excel®

FIGURE 5.25 Protect Sheet Dialog Box

10. Click the OK button on the Protect worksheet dialog box.

11. Click cell B2 and type the number 4. Notice the outputs of the PMT functions in cells A9 and
A11 changed.
12. Click cell A9 and tap the DELETE key on your keyboard. You will see the warning box shown in
Figure 5.26. Any cell the user tries to alter outside of the range B2:B5 will result in this warning
box.
13. Click the OK button on the warning box.

FIGURE 5.26 Warning Alert for Protected Cells

14. Click the Loan Amortization worksheet tab. Notice that most of the data has changed in the
Loan Amortization Schedule. This is because the APR from cell B2 on the Loan sheet is linked
to the APR shown in the merged cell beginning with cell G4 on the Loan Amortization work-
sheet.
15. Click the merged cell beginning with cell C4 on the Loan Amortization worksheet.
16. Click the Allow Users to Edit Ranges button on the Review tab of the Ribbon.
17. Click the New button on the Allow Users to Edit Ranges dialog box.
18. Type the following: “Loan closing date”.
19. Click the OK button on the New Range dialog box and then click the OK button on the Allow
Users to Edit Ranges dialog box.
20. Click the Protect Sheet button in the Review tab of the Ribbon and then click the OK button
on the Protect Sheet dialog box.
21. Click the Lease worksheet tab.
22. Highlight the range B2:B5 on the Lease worksheet.
23. Click the Allow Users to Edit Ranges button on the Review tab of the ribbon.
24. Click the New button on the Allow Users to Edit Ranges dialog box.
25. Type the following: “Lease payment variables”.
26. Click the OK button on the New Range dialog box and then click the OK button on the Allow
Users to Edit Ranges dialog box.
27. Click the Protect Sheet button in the Review tab of the Ribbon and then click the OK button
on the Protect Sheet dialog box.

Skill Refresher: Worksheet Protection

1. Highlight any cells that a user should be able to edit.

2. Click the Allow Users to Edit Ranges button in the Review tab of the Ribbon.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
216 Data Analytics Using Microsoft® Excel®

3. Click the New button on the Allow Users to Edit Ranges dialog box.
4. Type a name for the cells defined in step 1 into the Title input box in the New Range dialog
box.
5. Enter a password in the Range Password input box in the New Range dialog box if you
wish the user to provide this password before editing the cells defined in step 1
6. Click the OK button on the New Range dialog box.
7. Click the OK button on the Allow Users to Edit Ranges dialog box.
8. Note: you can skip steps 1 through 7 and begin here if you do not want a user to change
any cells on the worksheet. Click the Protect Sheet button in the Review tab of the Rib-
bon.
9. Enter a password in the Protect Sheet dialog box if you want a user to enter a password
to remove the protection added to a worksheet.
10. Click the OK button on the Protect Sheet dialog box.

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Keyboard Only

Open the Function Builder

• Hold the SHIFT key and tap the F3 key.
Open the Function Arguments Dialog Box
• Hold the CTRL key and tap the letter A key. This is done after the function is started in a
cell by typing the equal sign =, the function name, and an open parenthesis.

Key Takeaways

• A loan can be used to purchase and take possession of an asset. A lease is where a person
or entity has the right to use and control an asset but does not own the asset.
• The PMT function can be used to calculate loan payments or lease payments.
• The Function Builder can be used to research Excel functions and provide descriptions for
function arguments.

• Arguments defined for the PMT function must be defined in comparable terms. For example,
when calculating monthly payments, the “rate” and “nper” arguments must be defined in
terms of months.
• For the PMT function, cell references and values used to define the “pv” argument must be
preceded by a minus sign or the function will produce a negative output.
• Cell references can be used to display or use data between two worksheets.
• Dates are converted to date serial numbers so they can be used in formulas and functions.
• The EOMONTH function can be used to show the last day of any month.
• The TEXT function will produce an error output if the code used to define the “format_text”
argument is not in quotations.
• When using the PMT function for leases, do not use a minus sign when defining the “fv”
argument.

5.2 Investment Scenarios

Learning Objectives

1. Become familiar with time value of money concepts and terms.

2. Learn how to use the FV (Future Value) function to calculate the future value of one-time
investments and recurring investments.
3. Review how Goal Seek is used to evaluate scenarios by setting target outputs for financial
functions.
4. Learn how to use the PV (Present Value) function to calculate the required investment to
achieve a future value and to fund required payments for an expense.

This section features the second of the two projects covered in this chapter. The Investment Sce-
narios project will evaluate four different scenarios requiring the use of the FV (Future Value) and
PV (Present Value) functions. The FV function will be used to plan two types of investment scenar-
ios. The first will be a one-time investment scenario and the second will be an investment scenario
for a retirement plan. The PV function will also be used to plan two types of investment scenarios.
The first will also be a one-time investment scenario and the second will be an investment scenario
to support payments for the cost of college. This section will also demonstrate the Goal Seek fea-
ture which is a valuable tool for evaluating various scenarios that arise in data analytics projects.

Time Value of Money Terms and Concepts

Follow Along File: None
The use of the FV (Future Value) and PV (Present Value) functions requires an understanding time value of money
of the basic concept and terms regarding the time value of money. The time value of money is the The opportunity to grow
opportunity to grow money over time given a constant or average rate of return. For example, con- money over time given a
sider the data shown in Figure 5.27. This data assumes that a person makes a one-time investment constant or average rate of
return.
of $100 that pays interest of 5% per year. Notice that the values in the Interest Paid column increase
every year. This is because the interest is reinvested, which increases the total value of the invest-
ment. For example, the interest earned in year 1 is based on a $100 investment. Therefore, the
interest paid is $5.00, or 5% of $100. In year two when the $5.00 interest payment is reinvested, the

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
218 Data Analytics Using Microsoft® Excel®

total investment increases to $105. Therefore, the interest paid in year 2 increases to $5.25, or 5% of
$105. The value of the investment at the end of five years is $127.63. The FV function can be used to
caclulate this output.

FIGURE 5.27 Time Value of Money Example for a One-Time Investment

Figure 5.28 shows another example demonstrating the time value of money. Instead of making
annuity
a one-time investment, this example assumes that a person invests $100 at the beginning of every
A recurring investment
made over a specific year that earns interest of 5% per year. This is called an annuity because the person is making
period of time. recurring investments over a specific period of time. Notice that the value of this investment after
five years is $580.19. Also, the total interest earned on this investment is $80.19 as opposed to the
$27.63 earned on the one-time investment in Figure 5.27.

FIGURE 5.28 Time Value of Money Example for a Recurring Investment

Table 5.4 provides definitions for several key terms which can be used when working on pro-
jects related to the time value of money.

TABLE 5.4 Key Terms for Time Value of Money Projects

Term Definition
An investment that is made in regular installments over a period of time. For example,
Annuity depositing $100 a month into an interest-bearing bank account or an investment such as
an Exchange Traded Fund (ETF).
Exchange A collection of similar investments managed by a financial professional. ETFs can be
Traded purchased on the open market just like an individual stock. However, investments are
Funds distributed over many different stocks or bonds. This diversified investment reduces risk
(ETF) in the event a stock or bond fails.
An investment in which an investor owns part of a company. The value of this investment
increases as the company produces higher profits. A portion of these profits might be
Stocks paid to investors as a cash dividend each year. Most stocks are expected to generate a
higher rate of return compared to bonds. However, the risk of losing money on a stock
investment is much greater compared to bonds.
An investment in which an investor lends money to a company or government entity. The
borrower agrees to pay the investor interest over a specific period time. At the end of the
Bonds bond agreement, the amount of money that was borrowed is returned to the investor.
Most bonds are considered a lower risk investment but offer a lower rate of return
compared to stocks.
The percentage gained or lost on an investment. Investments that offer a high predicted
Rate of
rate of return often carry a higher risk of losing money. Investments that offer a lower
Return
predicted rate of return often carry a lower risk of losing money.

The FV (Future Value) Function

Follow Along File: Data Analytics Project 4

Digital Downloads

Data Analytics Project 4.xlsx

https://catalog.flatworldknowledge.com/a/31995/
Data_Analytics_Project_4-d086.xlsx

The FV (Future Value) function is used to determine the outcome of an investment given a con-
stant rate of return over a specific period of time. The Investment Scenarios project will use the
FV function to evaluate two different investments. Similar to the PMT function, the FV function
requires several arguments to be carefully defined in order to produce an accurate output. Table 5.5
defines each of the arguments for the FV function.

TABLE 5.5 Arguments for the FV Function

Argument Definition
This is the rate of return that is expected for an investment for one year. Monthly
Rate investments will require this rate to be divided by 12 in order to produce and accurate
output.
The number of periods or measure of time for the expected duration of an investment.
The measure of time used to define this argument must be comparable to the Rate
Nper
argument. For example, if the rate of return is stated in months, the measure of time for
this argument must also be in months.
The payment or annuity investment amount for each period of time used in the Nper
Pmt argument. For example, if the Nper argument is expressed in terms of months, this
argument must be defined with the investment amount made every month.

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220 Data Analytics Using Microsoft® Excel®

Argument Definition
The present value or the amount of a one-time investment. The brackets around the
argument indicate that it does not have to be defined for the function to produce an
[Pv] output. Excel assumes zero if it is not defined. Both this argument and the Pmt argument
will be defined if an annuity investment has a beginning balance or includes a beginning
one-time lump-sum investment.
This argument is defined with the number 1 or 0. The number 1 is for investments made
at the beginning of each period used to define the Nper argument. A 0 is used if the
[Type] investments are made at the end of each period. The argument is in brackets because it
does not have to be defined if investments are made at the end of each period. Excel
assumes that this argument is 0 if it is not defined.

The first use of the FV function will be to evaluate a $7,500 investment. The goal is to make a
one-time investment for a period of time that allows the value to double or reach at least $15,000.
The following demonstrates how the FV function is used to evaluate a few scenarios to determine
how long this money must be invested to achieve this goal.
1. Click the Future Value worksheet tab in the workbook.
2. Click cell B5 in the Future Value worksheet.
3. Type an equal sign = followed by the function name “fv” and an open parenthesis. Notice the
tip box showing the arguments of the function. The “rate” argument is bold indicating this will
be defined first (see Figure 5.29).
4. Click cell B2. This is the annual rate of return expected on the investment.

FIGURE 5.29 Defining the Rate Argument for the FV Function

5. Type a comma to advance to the “nper” argument.

6. Click cell B3. The function will calculate the value of this investment which is earning an
annual rate of return of 5.5% for 10 years.
7. Type a comma to advance to the “pmt” argument. This argument is for investments that are
made on a recurring basis.

8. Type another comma to advance to the “[pv]” argument. Since this is a one-time investment,
there is no need to define the “pmt” argument. Excel will assume a value of zero.
9. Type a minus sign - and then click cell B4. Values and cell references used to define this argu-
ment must be preceded by a minus sign or the function will produce a negative output.
10. Type a comma to advance to the “[type]” argument.
11. Type the number 1. This assumes the investment is made at the beginning of the first year.
12. Type a closing parenthesis. Figure 5.30 shows how the arguments should be defined for this
scenario.

FIGURE 5.30 Defining the FV Function Arguments for a One-Time Investment

13. Tap the ENTER key on your keyboard. The output of the FV function is $12,811.08 which is
below the goal of $15,000. At a rate of return of 5.5%, the investment duration needs to be longer
than ten years in order to reach $15,000.
14. Click cell B3 and change the duration of the investment to eleven years. This is still below the
target of $15,000. Continue to increase the years in cell B3 until the output of the FV function
is at least $15,000.

Why…

The FV Function Produces a Negative Output

If the output of the FV function is negative, check the “pmt” and “pv” arguments. Cell references
and values used to define these arguments must be preceded by a minus sign. If the minus sign
is omitted, the function will produce a negative output.

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222 Data Analytics Using Microsoft® Excel®

The second investment that will be evaluated using the FV function is a retirement plan.
401K
Retirement plans allow employees to put money into an investment account directly from each
A retirement plan that
allows employees of a paycheck. Plans such as a 401K allow employees to invest money without paying taxes. Taxes are
company to make paid when the money is used during retirement. In addition, some companies match a percentage
investments directly from of retirement contributions as an additional form of compensation. The goal for this scenario is to
paycheck deductions tax
free.
save $1,000,000 for retirement. The following demonstrates how this is accomplished using the FV
function.
15. Click cell B12 in the Future Value worksheet.
16. Type an equal sign = and then click cell B10.
17. Type an asterisk * followed by an open parenthesis. Type the number 1 and then type the plus
sign +.
18. Click cell B11 and then type a closing parenthesis. This formula is calculating the total amount
of investment that is being contributed to the retirement plan each month. This scenario
assumes that $500 is paid from a paycheck. The company has a plan that makes an additional
payment to the retirement plan which is 50% of the employee’s contribution. Therefore, the
$500 contribution is increased by 1 + the value in cell B11 (see Figure 5.31).

FIGURE 5.31 Calculating Retirement Contributions with a Company Match

19. Tap the ENTER key on your keyboard. The amount of money being invested into the retire-
ment plan every month is $750.
20. Click cell B14 and begin the FV function by typing an equal sign =, the function name “fv”, and
an open parenthesis.
21. Click cell B8, type the front slash / for division, and then type the number 12. Since investments
are being made on a monthly basis, the annual return rate must be converted to a monthly
rate. This will produce an output that factors the amount of return that is generated as money
is invested each month throughout the year.
22. Type a comma to advance to the “nper” argument.

23. Click cell B9, type an asterisk * for multiplication, and then type the number 12. Similar to the
Rate argument, the number of periods, or investment duration, must be converted to months
since investments are made on a monthly basis.
24. Type a comma to advance to the “pmt” argument.
25. Type a minus sign - and then click cell B12. This is the total recurring investment that is being
made each month.
26. Type a comma to advance to the “[pv]” argument.
27. Type a minus sign - and then click cell B13. Since there is a balance that is already invested, this
must be factored into the future value of the retirement plan.
28. Type a closing parenthesis. This scenario will assume that investments will be made at the end
of each month which is a zero for the “[type]” argument. However, Excel will assume zero if an
argument is not defined. Figure 5.32 shows how all arguments are defined for this scenario.

Integrity Check

Comparable Arguments for the FV Function

Arguments defined for the FV function must be defined in comparable terms. For example, when
calculating monthly investments, the “rate”, “nper”, and “pmt” arguments must be defined in
terms of months. The function will produce erroneous results if one argument is defined in annual
terms and the other arguments are defined in monthly terms.

FIGURE 5.32 Defining the FV Function Arguments for Recurring Investments

29. Tap the ENTER key on your keyboard. The output of the function is $811,471.79. This is below
the goal of $1,000,000. Potential scenarios that will achieve this goal are demonstrated in the
next section.

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224 Data Analytics Using Microsoft® Excel®

Skill Refresher: FV Function

1. Type an equal sign =.

2. Type the function name FV followed by an open parenthesis, or double-click the function
name from the function list.
3. Define the “rate” argument with a cell location that contains the expected rate of return.
4. Define the “nper” argument with a cell location that contains the duration of the investment
in the amount of time.
5. Define the “pmt” argument with a cell location that contains the value of recurring invest-
ments. Cell locations or values used for this argument must be preceded by a minus sign.
6. Define the “pv” argument with a cell location that contains the value of a one-time lump-
sum investment. Cell locations or values used for this argument must be preceded by a
minus sign.
7. Define the “[type]” argument with a 1 if annuity investments are made at the beginning of
each period or a 0 if investments are made at the end of each period.
8. Type a closing parenthesis.
9. Tap the ENTER key.

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Evaluating Scenarios with Goal Seek

Follow Along File: Data Analytics Project 4 continued. If starting here use Data Analytics Project 4.01.
Goal Seek is a tool within Excel that is used for analyzing scenarios. This tool maximizes the
benefits of Excel’s cell-referencing capabilities by changing inputs to precise values to achieve spe-
cific outputs produced by formulas or functions. Goal Seek will be used for the retirement plan
scenario to evaluate how the variables can be changed to achieve the $1,000,000 goal. The following
demonstrates how this is accomplished.
1. Click cell B14 in the Future Value worksheet.
2. Click the Data tab of the Ribbon.
3. Click the What-If Analysis button. Then click the Goal Seek option from the dropdown menu
(see Figure 5.33). This will open the Goal Seek dialog box.

FIGURE 5.33 Data Tab of the Ribbon

4. Click the “To value” input box on the Goal Seek dialog box (see Figure 5.34).
5. Type the number 1000000.
6. Click the Collapse dialog box button next to the “By changing cell” input box.
7. Click cell B8 and then tap the ENTER key on your keyboard. This set up of Goal Seek will eval-
uate a scenario of achieving the $1,000,000 goal by changing the Annual Return Rate. Figure
5.34 shows how the dialog box is configured for this scenario.

FIGURE 5.34 Goal Seek Scenario by Changing the Annual Return Rate

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226 Data Analytics Using Microsoft® Excel®

8. Click the OK button on the Goal Seek dialog box. Then click the OK button on the Goal Seek
Status dialog box. This dialog box is simply stating that Goal Seek arrived at a solution for this
scenario. Notice that the Future Investment Value is now $1,000,000. Goal Seek arrived at this
goal by changing the Annual Return Rate in cell B8 to 5.41%. In this scenario, if the amount
invested each month and the investment duration is unchanged, the return rate must be 5.41%
in order to achieve a future retirement plan value of $1,000,000.
9. Click the undo command to change the Annual Return Rate back to 4.5%.
10. Click cell B14 and then click the What-If Analysis button in the Data tab of the Ribbon. Select
Goal Seek from the dropdown list.
11. Type “1000000” in the “To value” input box on the Goal Seek dialog box.
12. Click the Collapse dialog box button next to the “By changing cell” input box and click cell B9.
Then tap the ENTER key on your keyboard.
13. Click the OK button on the Goal Seek dialog box and then click the OK button on the Goal Seek
Status dialog box. In this scenario, the annual return rate and the amount invested remained
the same. In order to achieve the $1,000,000 goal, Goal Seek changed the investment duration
to 38.8 years.

Skill Refresher: Goal Seek

1. Click the What-If Analysis button in the Data tab of the Ribbon.
2. Click the Goal Seek option.
3. Define the “Set cell” input box in the Goal Seek dialog box with a cell location that contains
a formula or function.
4. Type a number in the “To value” input box in the Goal Seek dialog box. This number will
become the output of the formula or function in the cell used to define the “Set cell” input
box.
5. Define the “By changing cell” input box in the Goal Seek dialog box with a cell location that
is referenced in the formula or function used to define the “Set cell” input box.
6. Click the OK button on the Goal Seek dialog box.
7. Click the OK button on the Goal Seek Status dialog box.

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The PV (Present Value) Function

Follow Along File: Data Analytics Project 4 continued. If starting here use Data Analytics Project 4.02.
The PV (Present Value) function is closely related to the FV (Future Value) function. The FV
function calculates the value of an investment in the future given a certain period of time and
constant growth rate. The PV function does the exact opposite. Given a certain period of time and
constant growth rate it calculates what the value of the investment must be today in order to reach
a specific value in the future. For example, consider Figure 5.27. If the PV function were used to cal-
culate an output using this data, the value of the investment after five years, which is $127.63, would
be an input. The duration of the investment and the rate of return would also be inputs. The out-
put of the PV function would be $100. This would be used if a person needed to know how much
money should be invested today in order to grow the value to $127.63 over five years at a 5% rate of
return. Table 5.6 provides a description of the PV function arguments.

TABLE 5.6 Arguments for the PV Function

Argument Definition
The rate of return that is expected for an investment for one year. Must be comparable
Rate with the Nper argument. If Nper is defined in months, then the rate must be divided by
12.
The number of periods or measure of time for the expected duration of an investment.
When calculating the value of investments such as bonds, this argument is the number
Nper periods for receiving interest payments. If interest payments are received monthly, this
argument would be the total number of months receiving interest payments for the
duration of the bond.
Payments made that reduce an investment or payments received such as interest
income or dividends. Must be comparable with the Nper argument. If using the function
Pmt
to calculate the value of an investment required to support spending, this argument
would be the amount of money spent for each period defined in the Nper argument.
The desired or expected future value of an investment. The brackets around the
argument indicate that it does not have to be defined for the function to produce an
output. Excel assumes zero if it is not defined. If the function is used to determine how
[Fv] much of an investment is required to pay or fund a purchase, the value of this argument
is zero since the goal is to invest enough money that will satisfy all required payments. If
the function is used to calculate the value of a bond investment, the argument would be
defined with the amount that is returned to the investor when the bond expires.
This argument is defined with the number 1 or 0. The number 1 is used if values used to
define the Pmt argument are made or received at the beginning of each period defined in
[Type]
the Nper argument. A 0 is used if payments are made or received at the end of each
period. Excel assumes 0 if the argument is not defined.

The first use of the PV function will be to evaluate how much of an investment must be made
today in order to achieve a future value of $1,000,000. This will be a one-time investment given
a constant rate of return over a specific period of time. The following demonstrates how this is
accomplished for the Investment Scenarios project.
1. Click the Present Value worksheet tab.
2. Click cell B5 in the Present Value worksheet.
3. Start the PV function by typing an equal sign =, the letters “pv”, and an open parenthesis.
4. Click cell B2 to define the “rate” argument. This investment will have a constant rate of return
of 5% per year.
5. Type a comma to advance to the “nper” argument.
6. Click cell B3 to define the “nper” argument. The money will remain invested for 30 years.

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228 Data Analytics Using Microsoft® Excel®

7. Type a comma to advance to the “pmt” argument.

8. Type another comma to skip the “pmt” argument and advance to the “[fv]” argument. This sce-
nario is evaluating a one-time investment. Since there are no recurring investments, the “pmt”
argument can be skipped. Excel will assume a value of zero.
9. Type a minus sign - and then click cell B4. Values and cell locations used to define the “[fv]”
argument must be preceded by a minus sign or the function will produce a negative output.
The goal for this scenario is to achieve an investment value of $1,000,000 30 years in the future.
10. Type a comma to advance to the “[type]” argument.
11. Type the number 1. This scenario assumes this investment is made at the beginning of the first
year.
12. Type a closing parenthesis to complete the PV function. Figure 5.35 shows how the arguments
should appear after they are defined.

Why…

The PV Function Produces a Negative Output

If the output of the PV function is negative, check the Pmt and Fv arguments. Cell references and
values used to define these arguments must be preceded by a minus sign. If the minus sign is
omitted, the function will produce a negative output.

FIGURE 5.35 Defining the PV Function Arguments for a One-Time Investment

13. Tap the ENTER key on your keyboard. The output of the function is $231,377. This amount of
money must be invested today in order to reach a value of $1,000,000 in 30 years at a 5% rate of
return.
14. Click cell B3 and change the value to 20. Notice that reducing the investment duration
increased the output of the PV function to $376,889. Simply put, if a value of $1,000,000 is going
to be reached 10 years sooner, more money must be invested today.

A valuable use of the PV function is to determine how much money needs to be invested today
to fund payments for items or events such as car payments or college tuition. The following demon-
strates how the PV function is used to determine how much money needs to be invested to support
the costs of attending college for four years:
15. Click cell B11 in the Present Value worksheet.
16. Start the PV function by typing an equal sign =, the letters “pv”, and an open parenthesis.
17. Click cell B8 to define the “rate” argument. This investment will have a constant rate of return
of 5.25% per year.
18. Type a comma to advance to the “nper” argument.
19. Click cell B9 to define the “nper” argument. This represents the duration in which money will
be invested and paid out. This scenario assumes that funding must be available over a 4-year
period.
20. Type a comma to advance to the “pmt” argument.
21. Type a minus sign - and then click cell B10. Values and cell locations used to define the “pmt”
argument must be preceded by a minus sign or the function will produce a negative output.
This scenario assumes that the total cost of attending college will be $35,000 per year. There-
fore, this is the amount that will be paid out or reduced from the initial investment each year
for four years.
22. Type a comma to advance to the “[fv]” argument.
23. Type another comma to skip the “[fv]” argument and advance to the “[type]” argument. The goal
of this scenario is to determine how much should be invested to support four years of college
costs. Therefore, the expectation after four years is that the future value of the investment
will be zero since the money will have been spent. Since this argument was skipped, Excel will
assume a value of zero.
24. Type the number 1 to define the “[type]” argument. This scenario assumes that payments to
cover the cost of college will be made at the beginning of each year.
25. Type a closing parenthesis to complete the PV function. Figure 5.36 shows how the arguments
should appear after they are defined.

Integrity Check

Comparable Arguments for the PV Function

Arguments defined for the PV function must be defined in comparable terms. For example, if cal-
culating the present value of an investment to support monthly payments for a loan or general
expenses, the “rate”, “nper”, and “pmt” arguments must be defined in terms of months. The
function will produce erroneous results if one argument is defined in annual terms and the other
arguments are defined in monthly terms.

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230 Data Analytics Using Microsoft® Excel®

FIGURE 5.36 Using the PV Function to Determine Investment Value to Fund Payments

26. Tap the ENTER key on your keyboard. The output of the PV function shows that $129,869 must
be invested today to fund $35,000 of college cost payments each year for four years.
27. Click cell B8 and change the rate of return to 6%. Notice the output of the PV function
decreases to $128,555. If the rate of return is higher, less money needs to be invested to cover
four years of payments.

Skill Refresher: PV Function

1. Type an equal sign =.

2. Type the function name PV followed by an open parenthesis, or double-click the function
name from the function list.
3. Define the “rate” argument with a cell location that contains the expected rate of return.
4. Define the “nper” argument with a cell location that contains the duration of the investment
in the amount of time or number of periods receiving interest or dividend payments.
5. Define the “pmt” argument with a cell location that contains the amount of money spent
each period or the amount of money received each period. Cell locations or values used
for this argument must be preceded by a minus sign.
6. Define the “[fv]” argument with a cell location that contains the desired value of the invest-
ment in the future or the amount received in one lump sum at the end of the period defined
in the “nper” argument. Set this argument to zero if using the “pmt” argument to show
reduction of an investment to support spending. Cell locations or values used for this argu-
ment must be preceded by a minus sign.
7. Define the “[type]” argument with a 1 if spending or receiving payments at the beginning
of each period or 0 if they are made at the end of each period.
8. Type a closing parenthesis.
9. Tap the ENTER key.

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Keyboard Only

Goal Seek
• Tap the ALT key, and then tap the letters A, W, and G one at a time.

Key Takeaways

• The FV (Future Value) function is used to calculate the value of a one-time investment or
investments that are made on a recurring basis.
• The FV function will produce a negative output if the “pmt” and “pv” arguments are not pre-
ceded with a minus sign.
• The “rate”, “nper”, and “pmt” arguments of the FV and PV functions must all be defined in
comparable terms. These functions will produce erroneous results if one argument is defined
in annual terms and the other arguments are defined in monthly terms.
• Goal Seek is a valuable tool for evaluating scenarios since it can produce targeted outputs
by changing a variable referenced in a formula or function.
• The PV (Present Value) function can determine what investment must be made today to
achieve a future value given a specific period of time and rate of return. This function can also
be used to determine how much investment is required to fund payments for events such as
attending college.
• The PV function will produce a negative output if the “pmt” and “fv” arguments are not pre-
ceded with a minus sign.

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232 Data Analytics Using Microsoft® Excel®

5.3 Chapter Assignments and Test

Data Analytics (Skills Review)

Pro Forma Income Statement (Comprehensive Review)

Starter File Name: Chapter 5 DA Exercise 1

Digital Downloads

Chapter 5 DA Exercise 1.xlsx

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Difficulty: Level 2
Scenario analytics plays a significant role in evaluating the financial expectations of a business.
These expectations or estimates are often shown in a pro forma income statement. The pro forma
income statement can be a powerful scenario tool in showing how the profitability of a business
can change based on the outcome of key decisions such as engaging in loans and leases.
The purpose of this exercise is to draft a pro forma income statement for a consumer products
company. The company is deciding how much equipment should be leased and how much cash
should be borrowed. The company must borrow a minimum of $200,000 to ensure sufficient
cash flow to support operations. Since both loans and leases impact the company’s expenses
and ultimately net income, scenarios must be evaluated such that a net income goal of $250,000
is achieved. The skills covered in this chapter will be used to draft the company’s pro forma
income statement to decide how the loan and lease should be structured in order to achieve the
net income goal.
Begin the exercise by opening the file named Chapter 5 DA Exercise 1. Questions that are pre-
ceded with the letters KO indicate you must only use your keyboard and not your mouse to
execute the required skill.
1. Type your name into cell B2 in the Update Status worksheet. This worksheet will serve as
a data internal control as it provides information regarding who is making changes to the
workbook, the date the changes were made, and the fiscal year that is being estimated.
2. Type today’s date into cell B3.
3. This exercise will assume that the company’s fiscal year ends on December 31 every year.
In cell B4, type the December 31 date using one year later from the date entered into cell
B3. For example, if the date typed into cell B3 is 10/20/2020, then the date in cell B4
should be 12/31/2021.
4. Open the Loan Data worksheet and click cell B2.
5. Enter the YEAR function by typing an equal sign =, the function name “year”, and an open
parenthesis. Click the Update Status worksheet tab, click cell B4, and tap the ENTER key
on your keyboard. The YEAR function will display the fiscal year from the date entered in
cell B4 on the Update Status worksheet.
6. Type December 15 of this current year into cell B6 of the Loan Data worksheet. For exam-
ple, if the current year is 2020, enter 12/15/2020.
7. Use the EOMONTH function to determine the first payment date for the loan. Loan pay-
ments are due the last day of every month beginning one month after the closing date.
Start the function by typing an equal sign = followed by the function name “eomonth”
and then an open parenthesis. Click cell B6 to define the “start_date” argument, type a
comma, and type the number 1 to define the “months” argument. Type a closing paren-
thesis and tap the ENTER key on your keyboard.
8. KO Activate cell B8 and open the Insert Function dialog box by holding the SHIFT key and
tapping the F3 key on your keyboard.

9. Type the letters “pmt” in the “Search for a function” input box and click the Go button on
the Insert Function dialog box.
10. Click the PMT function in the “Select function” area of the dialog box and then click the
OK button.
11. Click the Collapse dialog box button next to the Rate argument. Click cell B3 and tap the
ENTER key on your keyboard. Then, type a front slash / for division followed by the num-
ber 12. Since monthly payments are being calculated, the rate must be divided by 12.
12. Click the Collapse dialog box button next to the Nper argument. Click cell B4 and tap the
ENTER key on your keyboard. Then, type an asterisk * for multiplication followed by the
number 12. Since monthly payments are being calculated, the time to repay the loan must
be converted from years to months.
13. Click the input box next to the Pv argument and type a minus sign -. Then, click the Col-
lapse dialog box button next to the Pv argument. Click cell B5 and tap the ENTER key on
your keyboard. Remember that values and cell references used to define the Pv argument
must be preceded by a minus sign or the function will produce a negative output.
14. Click the OK button on the Insert Function dialog box. Since this is not a lease and pay-
ments are made at the end of every month, it is not necessary to define the Fv and Type
arguments as Excel will assume they are zero.
15. In cell B9, enter a formula that will calculate the interest portion of the first loan payment.
Your formula should first divide the APR in cell B3 by 12, then multiply this result by the
amount borrowed in cell B5.
16. In cell B10, enter a formula that will calculate the total amount of loan payments required
for one year. Your formula should multiply the monthly payment in cell B8 by 12.
17. In cell B11, enter a formula that will calculate the estimated total amount of interest paid
on the loan for the year. Your formula should multiply the first month of interest in cell B9
by 12. The output of this formula will be used on the income statement. This estimate for
interest expense is slightly higher than what will actually be paid, but will suffice since this
is a pro forma or estimated income statement.
18. Open the Lease Data worksheet and click cell B2.
19. Enter the YEAR function in cell B2 to show the year of the date that was entered into cell
B4 on the Update Status worksheet.
20. Click cell B7 and enter a formula that adds 30 days to the date that was entered into cell
B3 on the Update Status worksheet. Type an equal sign =, click the Update Status work-
sheet tab, click cell B3, type a plus sign +, and type the number 30. This exercise will
assume that the closing date for the lease is 30 days from the current date.
21. Click cell B8 and use the PMT function to calculate the annual lease payments. Begin the
function by typing an equal sign =, the function name “pmt”, and an open parenthesis.
22. KO Open the Insert Function dialog box to define the arguments of the PMT function by
holding the CTRL key and tapping the A key.
23. Click the Collapse dialog box button next to the Rate argument. Click cell B3 and tap the
ENTER key on your keyboard.
24. Click the Collapse dialog box button next to the Nper argument. Click cell B4 and tap the
ENTER key on your keyboard.
25. Click the input box next to the Pv argument and type a minus sign -. Then, click the Col-
lapse dialog box button next to the Pv argument, click cell B5, and tap the ENTER key on
your keyboard.
26. Click the Collapse dialog box button next to the Fv argument. Click cell B6 and tap the
ENTER key on your keyboard.
27. Click the OK button on the Insert Function dialog box. Since the lease payments are made
at the end of each year, Excel will assume a value of zero for the Type argument if it is not
defined.
28. Use the EOMONTH function in cell B9 to determine the first payment date for the lease.
The first lease payment is due 12 months after the closing date in cell B7.
29. Enter a formula in cell B10 to show the annual depreciation expense for the leased equip-
ment. Depreciation expense shows how much value an asset has lost over time. This

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234 Data Analytics Using Microsoft® Excel®

exercise will assume the straight line method which is calculated by first subtracting the
residual value in cell B6 from the Asset Cost in cell B5 (B5-B6). Take this result and divide
it by the asset life in years which is the value in cell B4. This exercise will assume that the
lease term will extend for the entire useful life of the asset.
30. Enter a formula in cell B11 that estimates the annual interest expense for the lease. Your
formula should subtract the depreciation expense in cell B10 from the annual payment in
cell B8 (B8-B10).
31. The PV function will be used in cell B12 to calculate the present value of the lease pay-
ments. The output of this function would be recorded on the company’s balance sheet.
Begin the function by typing an equal sign = followed by the function name “pv” and an
open parentheses.
32. Click cell B3 to define the “rate” argument and type a comma to advance to the “nper“
argument.
33. Click cell B4 to define the “nper” argument and type a comma to advance to the “pmt”
argument.
34. Type a minus sign - and then click cell B8 to define the “pmt” argument. Finish the function
by typing a closing parenthesis and tap the ENTER key on your keyboard. The future value
is zero after the last lease payment is made. This use of the PV function is calculating an
investment that is required to cover the total payments of the lease. Since the lease pay-
ments are made at the end of the year, the “type” argument is also zero.
35. Open the Income Statement worksheet and click the merged cell that begins with cell B3.
36. Use the TEXT function to display the month, day, year format using the date that is in cell
B4 on the Update Status worksheet. Type an equal sign = followed by the function name
“text” and an open parenthesis.
37. Click cell B4 on the Update Status worksheet to define the “value” argument.
38. Type a comma and use the following to define the “format_code” argument: “mmmm d,
yyyy”. Complete the function by typing a closing parenthesis and tap the ENTER key on
your keyboard.
39. On the Income Statement worksheet, enter a formula in cell C7 that calculates the Gross
Profit. Your formula should subtract the Cost of Goods Sold from the Revenue (C5-C6).
40. Cell B9 on the income statement is the depreciation expense that was calculated for the
leased equipment. Use a cell reference in cell B9 on the Income Statement worksheet to
display the value in cell B10 on the Lease Data worksheet.
41. Enter a SUM function in cell C14 on the Income Statement worksheet that sums the oper-
ating expenses in the range B9:B13.
42. Enter a formula in cell C15 that calculates the Net Operating Income on the income state-
ment. Your formula should subtract the total operating expenses in cell C14 from the gross
profit in cell C7 (C7-C14).
43. Cell C16 on the income statement is the interest expense that was calculated for the
equipment leased and the loan. Enter a formula in cell C16 that adds the interest expense
in cell B11 on the Loan Data worksheet to the interest expense in cell B11 on the Lease
Data worksheet.
44. Enter a formula in cell C17 on the income statement that calculates the Income Before
Income Tax. Your formula should subtract the interest expense in cell C16 from the Net
Operating Income in cell C15 (C15-C16).
45. Enter a formula in cell C18 on the income statement that calculates the Income Tax. Your
formula should multiply the tax rate in cell D18 by the Income Before Income Tax in cell
C17.
46. Enter a formula in cell C19 on the income statement that calculates the net income. Your
formula should subtract the Income Tax in cell C18 from the Income Before Income Tax in
cell C17 (C17-C18). The net income on the income statement should be $233,006. This is
below the desired goal of $250,000. Alternative loan and lease scenarios will be explored
to achieve the net income goal.
47. Open the Loan Data worksheet and change the amount borrowed in cell B5 to $200,000.
This is the minimum amount of cash that is required. The net income on the income state-
ment should increase to $235,524.

48. Open the Lease Data worksheet and change the Asset Cost in cell B5 to $400,000. The
net income should increase to $242,866.
49. Increase the Residual Value in cell B6 to 40,000 on the Lease Data worksheet. Increasing
the residual value should increase the net income to $243,521.
50. Use Goal Seek to change the Lease Duration in Years in cell B4 on the Lease Data work-
sheet such that the net income in cell C19 on the Income Statement worksheet increases
to $250,000. Begin by activating cell C19 on the Income Statement worksheet.
51. Click the What-If Analysis button on the Data tab of the Ribbon and select Goal Seek from
the dropdown list. Click the “To value” input box and type the number 250000.
52. Click the Collapse dialog box button next to the “By changing cell” input box. Click the
Lease Data worksheet, click cell B4, and then tap the ENTER key on your keyboard. Click
the OK button on the Goal Seek dialog box and then click the OK button on the Goal Seek
Status dialog box. Notice the net income is $250,000. Open the Lease Data worksheet
and notice the change in the Lease Duration in Years.
53. Open the Future NI worksheet and activate cell B4. Use a cell reference to show the net
income in cell C19 on the Income Statement worksheet in this cell.
54. Enter the FV function in cell B5 to calculate the future value of the net income. Type an
equal sign =, the function name “fv”, and an open parenthesis.
55. Define the “rate” argument by clicking cell B2. Type a comma to advance to the “nper”
argument.
56. Click cell B3 to define the “nper” argument. Type a comma to advance to the “pmt” argu-
ment.
57. Type a minus sign -, and then click cell B4 to define the “pmt” argument. Type a closing
parenthesis and tap the ENTER key on your keyboard to complete the function. The out-
put shows the value of the net income as it accumulates over a five-year period at a rate
of 8% per year. Another way to interpret this output is this would be the value of the com-
pany’s retained earnings which is reported on the balance sheet.
58. Open the Loan Data worksheet. Add worksheet protection that allows a user to edit the
values in the range B3:B6 but will prevent any other changes to the worksheet. This will
serve as a data internal control to protect the outputs that are being calculated. Begin by
highlighting the range B3:B6.
59. Click the Allow Users to Edit Ranges button in the Review tab of the Ribbon.
60. Click the New button on the Allow Users to Edit Ranges dialog box.
61. Type “Loan Details”. This will be the description that is added to the Title input box.
62. Click the OK button on the New Range dialog box and then click the OK button on the
Allow Users to Edit Ranges dialog box.
63. Click the Protect Sheet button in the Review tab of the Ribbon and then click the OK but-
ton on the Protect Sheet dialog box.
64. Open the Lease Data worksheet. Add worksheet protection that allows a user to edit the
values in the range B3:B7 but will prevent any other changes to the worksheet.
65. Open the Income Statement worksheet. Add worksheet protection that prevents any
changes to this worksheet.
66. Open the Future NI worksheet. Add worksheet protection that allows a user to edit the
values in the range B2:B3 but will prevent any other changes to the worksheet.
67. Save and close your workbook.

Cash Outflow Scenarios

Starter File Name: Chapter 5 DA Exercise 2

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236 Data Analytics Using Microsoft® Excel®

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Difficulty: Level 1
Evaluating scenarios to determine the amount of cash that will be paid or become an outflow for
a business is a critical exercise. If cash outflows are more than what is planned, a company runs
the risk of not being able to pay its obligations. In addition, it may be very difficult to borrow addi-
tional funds to pay for these obligations which may put the company at risk entering bankruptcy.
The purpose of this exercise is to construct a basic cash outflow schedule to help a company
determine how much cash will be spent during the first quarter. The company’s total cash out-
flow for any given month must not exceed $80,000.
Begin the exercise by opening the file named Chapter 5 DA Exercise 2. Questions that are pre-
ceded with the letters KO indicate you must only use your keyboard and not your mouse to
execute the required skill.
1. Open the Cash Flow worksheet. Type the date 1/31/2021 into cell B2. This cash outflow
schedule will show total cash payments for the first quarter. The first quarter for this com-
pany’s fiscal year is January, February, and March which is the same as a calendar year.
2. Use the EOMONTH function in cell C2 to show the last day of the next month which is
February. Begin the function by typing an equal sign =, the function name “eomonth”, and
an open parenthesis.
3. Click cell B2 to define the “start_date” argument. Then type a comma to advance to the
“months” argument.
4. Type the number 1 to define the “months” argument. Then, type a closing parenthesis and
tap the ENTER key on your keyboard.
5. The output of the EOMONTH function should be the number 44255. Click cell C2 and
change the format by clicking the DOWN arrow for the number format dropdown menu in
the Home tab of the Ribbon. Select the Short Date option from the number dropdown list.
6. Copy cell C2 and paste it into cell D2. Row 2 should now show the last day for each month
in the first quarter.
7. Click cell D1. Enter the YEAR function to show just the year for the date that is entered
into cell B2. Begin the function by typing an equal sign =, followed by the function name
“year”, and an open parenthesis.
8. Click cell B2, type a closing parenthesis and tap the ENTER key on your keyboard.
9. Click cell B3. Use the TEXT function to show the full month name for the date entered into
cell B2. Begin the function by typing an equal sign =, the function name “text”, and an
open parenthesis.
10. Click cell B2 to define the “value” argument. Type a comma to advance to the “for-
mat_text” argument.
11. Type an open quotation followed by the letter “m” four times and then a closing quotation.
The “format_text” argument should appear exactly as shown here: “mmmm”. It is impor-
tant to remember to include the quotations as shown.
12. Type a closing parenthesis and then tap the ENTER key on your keyboard.
13. Copy cell B3 and paste it into the range C3:D3.
14. Open the AP worksheet. Accounts payable (AP) is a significant source of cash outflows
for a company. This account includes items that were purchased on credit where the
company is given an invoice and has a certain amount of time to pay it. For example, a
company may purchase inventory from a supplier to sell to customers. The supplier may
allow the company to pay the invoice in sixty days. The amount owed on this invoice will
appear in the company’s accounts payable (AP) account until the invoice is paid.
15. Click cell C3 and start a formula by typing an equal sign =.
16. Click cell A3 and then tap the F4 key on your keyboard to add an absolute reference to
this cell. This is the value of all the items purchased in the month of November.

17. Type an asterisk * for multiplication.

18. Click the AP Pay Model worksheet tab. This worksheet shows a model of when and how
much the company pays for purchases. Since invoices can vary in how long a company
has to pay, this worksheet shows what the expected pay percent is for all purchases in
any given month.
19. Click cell A3 on the AP Pay Model worksheet. This cell shows that 60% of the purchases
in any given month will be paid in that same month.
20. Complete the formula by tapping the ENTER key on your keyboard. Since there were
$50,000 of items purchased in November, 60% or $30,000 will be paid in November.
21. Copy cell C3 and paste it into the range D3:E3. Notice that relative referencing changes
the cell reference that was used from the AP Pay Model worksheet. Also, you will see
that $5,000 of purchases in November will be paid in January. This is why November is
included in the cash outflow schedule for the first quarter.
22. Click cell D4. Start a formula by typing an equal sign =, click cell A4, and tap the F4 key
on your keyboard to add an absolute reference to this cell.
23. Type an asterisk * and then click cell A3 on the AP Pay Model worksheet.
24. Tap the ENTER key on your keyboard and then copy cell D4 and paste it into the range
E4:F4.
25. Start a formula in cell E5 by typing an equal sign =, click cell A5 and add an absolute ref-
erence.
26. Type an asterisk * and then click cell A3 on the AP Pay Model worksheet. Tap the ENTER
key to complete the formula.
27. Copy cell E5 and paste it into the range F5:G5.
28. Enter a formula in cell F6 that multiplies cell A6 by cell A3 on the AP Pay Model worksheet.
Put an absolute reference on cell A6 in your formula.
29. Copy cell F6 and paste it into cell G6.
30. Enter a formula in cell G7 that multiplies cell A7 by cell A3 on the AP Pay Model worksheet.
31. Enter a SUM function in cell C8 on the AP worksheet that sums the values in the range
C3:C7.
32. Copy cell C8 and paste it into the range D8:H8.
33. Enter a formula in cell H3 that subtracts from cell A3 the sum of the values in the range
C3:G3. When constructing the formula, add cell A3 first, type a minus sign -, and then add
the SUM function that will sum the values in the range C3:G3. The output should be zero.
This formula is calculating how much of the purchase amount in cell A3 has not been paid.
Since all purchases from November will have been paid by the end of January, the unpaid
amount that would be left in the AP account at the end of the first quarter would be zero.
34. Copy cell H3 and paste it into the range H4:H7.
35. Open the Loan worksheet.
36. Click cell B5. Begin the PMT function by typing an equal sign =, the function name “pmt”,
and an open parenthesis. The purpose of this function is to determine the monthly pay-
ments for the loan details in the range B3:B4.
37. To define the “rate” argument, click cell B2, type a front slash / for division, and type the
number 12. Since the PMT function is calculating monthly payments, the APR is divided
by 12.
38. Type a comma to advance to the “nper” argument.
39. Click cell B3, type an asterisk *, and then type the number 12. This will convert the duration
of the loan from years to months.
40. Type a comma to advance to the “pv” argument.
41. Type a minus sign - and then click cell B4.
42. Complete the function by typing a closing parenthesis and then tap the ENTER key on
your keyboard. Since there will not be a lump-sum payment at the end of the loan, and
since payments will be made at the end of the month, the last two arguments do not have
to be defined. Excel will assume zero for both.

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238 Data Analytics Using Microsoft® Excel®

43. Open the Lease worksheet.

44. Click cell B6. Begin the PMT function by typing an equal sign =, the function name “pmt”,
and an open parenthesis. The purpose of this function is to determine the monthly pay-
ments for the equipment lease details in the range B2:B5.
45. Define the “rate” argument by dividing the APR in cell B2 by 12.
46. Define the “nper” argument by multiplying the lease duration in years in cell B3 by 12.
47. Define the “pv” argument with cell B4. This cell reference must be preceded by a minus
sign.
48. Define the “fv” argument with cell B5.
49. Define the “type” argument with number 1. This lease will assume payments are required
at the beginning of the month. To complete the function, type a closing parenthesis and
tap the ENTER key on your keyboard.
50. Open the Cash Flow worksheet and click cell B4.
51. Enter a cell reference that will display the value in cell E8 on the AP worksheet. Type an
equal sign =, click the AP worksheet tab, click cell E8, and tap the ENTER key on your
keyboard.
52. Copy cell B4 on the Cash Flow worksheet and paste into the range C4:D4.
53. Click cell B5 and enter a cell reference that will display the value in cell B5 on the Loan
worksheet.
54. Click cell C5 on the Cash Flow worksheet and enter a cell reference that will display the
value in cell B5 on the Cash Flow worksheet. Since the monthly payments are the same
every month, what every value is displayed in cell B5 can also be displayed in cell C5.
55. Copy cell C5 and paste it into cell D5.
56. Click cell B6 and enter a cell reference that will display the value in cell B6 on the Lease
worksheet.
57. Enter a cell reference in cell C6 that will display the value in cell B6.
58. Copy cell C6 and paste it into cell D6.
59. Enter a SUM function into cell B10 that will sum the values in the range B4:B9.
60. Copy cell B10 and paste it into the range C10:D10.
61. The total cash outflow in cell D10 should be $81,534 which exceeds the limit of $80,000.
Use Goal Seek to change the purchase value in cell A7 on the AP worksheet so the total
spend in cell D10 is equal to $80,000. Begin by clicking cell D10 on the Cash Flow work-
sheet.
62. Click the What-If Analysis button in the Data tab of the Ribbon and select Goal Seek from
the dropdown menu.
63. Click the “To value” input box in the Goal Seek dialog box and type the number “80000”.
64. Click the Collapse dialog box button next to the “By changing cell” input box.
65. Click the AP worksheet tab and then click cell A7.
66. Tap the ENTER key on your keyboard and then click the OK button on the Goal Seek dia-
log box.
67. Click the OK button on the Goal Seek Status dialog box. Goal Seek should have reduced
the amount in cell A7 on the AP worksheet in order to achieve the $80,000 in total cash
outflow for the month of March.
68. Save and close your workbook.

Scenarios for Issuing Bonds

Starter File Name: Chapter 5 DA Exercise 3

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Difficulty: Level 2
The issuance of bonds is a common strategy for companies to raise cash to finance their oper-
ations. This is an arrangement where an investor lends money to a company and in return the
company pays the investor interest over a designated period of time. When the bond reaches
the end of this designated period of time, the investor is paid back the money that was lent to
the company. The PV function is used to determine the fair value or price of the bond when it is
offered to investors.
There are five components of a bond contract this is used in the PV function to establish a fair
price for an investor. The first is the face value or principal of the bond. This is the amount of
money that is returned to the investor when the bond reaches its maturity date which is the end
of the bond term. The second is the term of the bond. This is the amount of time the company
will hold and use the investor’s money. The third component is the coupon or stated rate of the
bond. This value is multiplied by the face value of the bond to determine the annual amount of
interest paid to the investor. The fourth component is payment frequency. This shows how the
interest will be paid to the investor. Some bonds may pay out the annual interest over 12 monthly
payments, other bonds can make four payments, etc. The fifth and final component is the market
rate. This is the interest rate that other bonds are paying investors and is a significant determi-
nant in calculating the fair value of the bond. For example, if a company is issuing a bond with
a coupon rate of 4% but other companies are issuing similar bonds at a coupon rate of 5%,
investors will likely invest only in the bond with the 5% coupon and not the 4% coupon.
The purpose of this exercise is to evaluate three scenarios for pricing the issuance of a bond
using the PV function. Begin the exercise by opening the file named Chapter 5 DA Exercise 3.
Questions that are preceded with the letters KO indicate you must only use your keyboard and
not your mouse to execute the required skill.
1. Click cell B5. A formula will be constructed using two YEAR functions to calculate the
terms of the bond using the Issuance Date and Maturity Date.
2. Start the YEAR function by typing an equal sign =, the function name “year”, and an open
parenthesis. Click cell B4 and type a closing parenthesis.
3. Type a minus sign - following by the function name “year” and an open parenthesis.
4. Click cell B3 followed by a closing parenthesis. Tap the ENTER key on your keyboard to
complete the formula. The output of the function should be 10, indicating the bond terms
are ten years.
5. Click cell C9. Enter a cell reference that displays the value in cell B7. This exercise will
determine three potential values for a bond. The bond value will be determined based on
the relationship between the market rate and the coupon rate. The first scenario will be
where the market rate is equal to the coupon rate.
6. Enter a formula in cell C10 that adds .01 to the coupon rate in cell C7. This scenario will
show the bond value when the market rate is 1% higher than the coupon rate.
7. Enter a formula in cell C11 that subtracts .01 from the coupon rate in cell C7. This scenario
will show the bond value when the market rate is 1% lower than the coupon rate.
8. Click cell B9 and begin the PV function by typing and equal sign =, the function name “pv”,
and open parenthesis.
9. Click cell C9 and then type a front slash / for division.
10. Click cell B6 and then tap the F4 key on your keyboard to add an absolute reference to
this cell. The market rate will be used to define the “rate” argument of the PV function.
Since this bond makes two payments per year, the market rate is divided by the value in
cell B6 which is 2.
11. Type a comma to advance to the “nper” argument.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
240 Data Analytics Using Microsoft® Excel®

12. Click cell B5 and tap the F4 key on your keyboard to add an absolute reference to this
cell.
13. Type an asterisk * for multiplication and then click cell B6. Tap the F4 key to add an
absolute reference to this cell. The “nper” argument is being defined with the total number
of interest payments that will be sent to the investor. Since the bond makes two payments
per year and the bond term is ten years, cell B5 is multiplied by B6.
14. Type a comma to advance to the “pmt” argument.
15. Type a minus sign -, an open parenthesis and click cell B7. Tap the F4 key to add an
absolute reference to this cell.
16. Type a front slash / for division and then click cell B6. Tap the F4 key to add an absolute
reference to his cell.
17. Type a closing parenthesis followed by an asterisk * for multiplication.
18. Click cell B2 and then tap the F4 key to add an absolute reference. The “pmt” argument
is defined with the amount of interest that will be paid the investor. Since there are two
payments made per year, the coupon rate in cell B7 is divided by the number of payments
in cell B6. This result is then multiplied by the face value of the bond in cell B2.
19. Type a comma to advance to the “fv” argument.
20. Type a minus sign -, click cell B2, and tap the F4 key to add an absolute reference to this
cell. The “fv” argument is being defined with the face value of the bond in cell B2. This is
the amount of money that will be returned to the investor at the end of the bond term.
21. Complete the function by typing a closing parenthesis and tap the ENTER key. The output
of the function is $10,000 which is equal to the face value of the bond. This is because the
coupon rate is equal to the market rate. In this scenario, the investor is required to lend
$10,000 to the company and will receive $10,000 back the end of the bond term. This is
called issuing a bond at par value.
22. Copy cell B9 and paste it into cell B10. The output of the function is $9,201.81 which is
less than the face value of the bond. This is because the coupon rate is lower than the
market rate. Investors will get a better return if they choose another bond at the market
rate. Therefore, to fairly compensate investors, this bond will require investors to lend the
company $9,201.81 but will return $10,000 to the investor at the end of the bond term.
This gives the investor an additional $798.19 to compensate for other bonds that would
have paid the investor more interest. This is called issuing a bond at a discount since the
investor has to lend less than what will be returned at the end of the bond term.
23. Copy cell B10 and paste it into cell B11. The output of the function is $10,879.97 which is
higher than the face value of the bond. This is because the coupon rate is higher than the
market rate. Investors are getting a better deal from this bond compared to other bonds
at the lower market rate. Therefore, to fairly compensate the company for paying investors
more interest during the term of the bond compared to similar bonds at the lower mar-
ket rate, this bond will require investors to lend the company $10,879.97 but will return
$10,000 to the investor at the end of the bond term. This gives the investor $879.97 less
than what was lent at the beginning of the bond term, but the investor receives higher
interest payments during the bond term compared to similar bonds at the market rate.
This is called issuing a bond at a premium since the investor has to lend more than what
will be returned at the end of the bond term.
24. Protect the worksheet but allow users to edit the cell locations shaded in yellow. Begin
by highlighting the range B2:B4 and click the Allow Users to Edit Ranges button in the
Review tab of the Ribbon.
25. Click the New button on the Allow Users to Edit Ranges dialog box.
26. Type “Bond Details” to enter a title for this range in the New Range dialog box and then
click the OK button. Then, click the OK button on the Allow Users to Edit Ranges dialog
box.
27. Define the range B6:B7 as a second range of cells a user can edit. Make the title for this
range “Payment Details”.
28. Complete the protection by clicking the Protect Sheet button on the Review tab of the
Ribbon. Then click the OK button on the Protect Sheet dialog box.
29. Save and close your workbook.

Integrity Check

Starter File Name: Chapter 5 IC Exercise 4

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Difficulty: Level 3
The purpose of this exercise is to analyze a worksheet to identify and correct any integrity flaws.
Read the scenario below, then open the Excel workbook related to this exercise. Use the Answer-
Sheet worksheet for any written responses required for this exercise.
SCENARIO
Your coworker is analyzing a few financial calculations in Excel and is asking for your assistance.
The workbook contains calculations for estimating the future value of investments and annual
lease payments for equipment. The following was explained in an e-mail that was sent with the
workbook:
• The Investment Plan worksheet shows the investment valuation estimates. I set the time
horizon for each investment to five years. For some reason the outputs for the functions
I used are all negative. I think the numbers are correct, so just assume these values are
positive.
• The Lease Payments worksheet shows the equipment we need to lease. I estimated the
equipment cost at $675,000. Our budget is $45,000 a year for lease payments. My cal-
culations show the annual payments are $52,409.38, so will need to lower the equipment
cost.
ASSIGNMENT
1. Look at the FV function that was used in column F on the Investment Plans worksheet.
Why are all the outputs negative?
2. Your coworker assumes the outputs produced by the FV function are correct, but they are
just negative instead of positive. Do you agree with this statement?
3. Evaluate the function used to calculate the lease payments in the Lease Payments work-
sheet. Is the function producing a reliable output?
4. Your coworker believes the annual lease payment exceeds the $45,000 budget. If this is
true, what can you do to adjust the Equipment Cost so the annual payments are exactly
$45,000?
5. Make any necessary corrections to the functions used in this workbook. Set the equip-
ment cost in the Lease Payments worksheet so the annual payments are exactly $45,000.

Applying Data Analytics Skills

Lease vs. Buy

Starter File Name: None
Difficulty: Level 2
You are in the process of getting a new car but are not sure if you should buy or lease. The total
cost of the car is $21,000, and you have a $275 monthly spend budget for payments. If you
lease the car, the terms of the lease will be forty-eight months at an APR of 2.25%. The residual
value of the car is $8,000. If you buy the car, a bank will offer an APR of 2.70% and seven years
to repay the loan. You are not required to make a down payment with either the lease or loan
options, and payments are made at the end of the month for both options.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
242 Data Analytics Using Microsoft® Excel®

Should you lease or buy the car given your budget limit of $275 a month? Create a new workbook
that shows the difference between leasing and buying the car in terms of monthly payments. Your
workbook should include the following:
1. Use proper formatting so your worksheet is easy to read.
2. Use column and/or row headings, add titles to your worksheets, and rename the work-
sheet tabs with appropriate labels.
3. Must include more than one worksheet and must utilize at least one cell reference that
links data between the worksheets.
4. Your design must be scenario friendly such that it is clear what cells can be changed by a
user to create new outputs and cells that contain outputs should be protected so they are
not inadvertently deleted.

Credit Card Amortization Schedule

Starter File Name: None

Difficulty: Level 3
Credit cards can offer people considerable flexibility when it comes to purchasing power. How-
ever, this flexibility usually comes at a cost through a high APR on any unpaid balances. If only
the minimum payment is made on a credit card balance, this debt could be carried for many
years and cost thousands of dollars in interest expense. The purpose of this exercise is to design
an amortization schedule for a credit card where only the minimum payment is made. Assume
the bank charges an APR of 16% and that the current balance on the credit card is $5,000. The
minimum payment is established on a fourteen year repayment period and payments are made
at the end of each month. The design of your amortization table must include the following:
1. Design is limited to one worksheet.
2. Assume credit card statements are issued on the first day of each month. Show the state-
ment date for each payment and the statement month on the amortization schedule. The
date for the first statement is 9/1/2020.
3. For each payment, show the total payment, how much of the payment is interest expense,
and how much is used to reduce the balance of the credit card. The schedule should also
show the credit card balance at the beginning of every month.
4. Once the amortization table is complete, use the data to create a PivotTable on a second
worksheet. The PivotTable should show how much total interest is paid each year and the
total interest paid on the $5,000 balance after fourteen years. Also show the total amount
of principal paid each year. The row heading should be the year sorted in chronological
order beginning with 2020. Finally, show the number of payments made each year. Since
the first statement is 9/1/2020, the year 2020 will have four payments.
5. Use column and/or row headings, add titles to your worksheets, and rename the work-
sheet tabs with appropriate labels. Also, use appropriate number formats on both the
amortization worksheet and the PivotTable.

Chapter Skills Test

Starter File Name: Chapter 5 Skills Test

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Difficulty: Level 3
Answer the following questions by executing the required skills on the starter file listed above.
Answer each question in the order it appears. Questions that are preceded with the letters KO
indicate you must only use your keyboard and not your mouse to execute the required skill.
1. Open the Investments worksheet. In cell B5, enter a function that will calculate the present
value of an investment using the data in the range B2:B4. Assume this investment will be
made at the beginning of the first year.
2. Consider the present value calculation in cell B5. Assume that there is only $275,000 that
can be invested today, but you still need to achieve a future value of $1,550,000. Use Goal
Seek to set the present value calculation to $275,000 by changing the Annual Rate of Return.
3. In cell B11, enter a function that will calculate the present value of an investment that will
provide funding for the cost in cell B10. Use the data in the range B8:B10 to set up the func-
tion. Assume that payments are made at the beginning of each year.
4. Enter a function in cell B17 that will calculate the future value of a one-time investment. Use
the data in the range B14:B16 to create the function. Assume the investment is made at the
beginning of the first year.
5. Enter a function in cell B24 that will calculate the future value of a recurring investment. Use
the date in the range B20:B23 to create the function. Assume that investments are made at
the end of each month.
6. Open the Loan worksheet. Use the necessary data in the range B2:B5 to create a formula in
cell B6 that calculates the Loan Principal.
7. Enter the date 11/09/2020 into cell B7.
8. Enter a formula into cell B8 that displays a date 60 days from the date entered into cell B7.
9. Enter a function into cell B9 that shows the date that occurs on the last day of the month,
one month after the date in cell B8.
10. Enter a function into cell B10 that shows just the year of the date that is in cell B9.
11. Enter a function into cell B11 that calculates the monthly payments for the loan. Use the data
in the range B2:B6 to create the function. Assume that payments are made at the end of
each month.
12. Open the Lease worksheet. Enter a formula into cell B6 that calculates the monthly lease
payments. Use the data in the range B2:B5 to create the function. Assume that payments
are made at the end of each month.
13. Apply protection to the Lease worksheet such that users can edit the range B2:B5. Name
this range Lease Data.
14. Open the Summary worksheet. Use a cell reference in cell B2 to display the value in cell B4
on the Lease worksheet.
15. Use a cell reference in cell B3 to display the value in cell B6 on the Loan worksheet.
16. Enter a formula in cell B4 that adds the values in cells B5 and B11 on the Investments work-
sheet.
17. Enter a formula in cell B5 that adds the values in cells B17 and B24 on the Investments
worksheet.
18. Save and close your workbook.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
244 Data Analytics Using Microsoft® Excel®

Exception Analytics

Exception analytics uses logical outputs to identify key traits, patterns, or outliers in a dataset.
These outputs are designed within the dataset to produce an alert or an identifying tag according
to an established model. This technique is considered a key hallmark of data analytics because it
can tell the user where to look for records that require action in big datasets. In Excel, exception
analytics is accomplished through the use of logical and lookup functions. Logical functions such
as the IF, AND, and OR functions will be demonstrated in this chapter as well as the lookup func-
tions VLOOKUP and HLOOKUP. These Excel skills will be applied to the Investment Portfolio
project which will be completed over two chapters. This chapter will demonstrate how exception
analytics are produced in the base dataset of the Investment Portfolio project. Chapter 7 will use
those outputs to summarize the analysis using other types of logical functions. Note that this pro-
ject will use the “Key Terms for Time Value of Money Projects” which was covered in the prior
chapter. It may help to review those terms before continuing with this project.

6.1 Logical Functions

Learning Objectives

1. Learn how to add cell capacity to functions.

2. Become familiar with logical tests and how they are used.
3. Review the setup and use of the IF function.
4. Learn how to create and use nested IF functions.
5. Review the setup and use of the AND function within the IF function.
6. Learn how to set up and use the OR function within the IF function.

The Investment Portfolio project will be used to demonstrate exception analytics using Excel skills
covered in this chapter and the following chapter. This type of project would be used by a wealth
management professional who is analyzing investments made by large corporations or individuals.
An investment portfolio tool can help both users achieve a specified balance across several types
of investments. For example, a portfolio might have a goal of investing 30% of funds in bonds and
70% of funds in stocks. However, the value of investments are constantly changing which in turn
changes this desired balance. Exception analytics will be used to determine which investments are
out of balance and how much should be sold or purchased to bring the portfolio back into balance.
The project objectives and details are outlined using the DATA Analytics Framework.
• Decision: Exception analytics will be used to determine which investments need to be sold
and which investments need to be purchased. The value of each investment will be compared
to a desired target based on a percentage of the portfolio’s overall current value. Investments
that grow too fast or too slow will become out of balance and need to be identified for action.
In addition, investments that have very low gains or losses must be identified and monitored.
Finally, top performing investments should also be identified and evaluated to determine if

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246 Data Analytics Using Microsoft® Excel®

they should be sold to realize gains. An investment will be considered a top performer if it has
an unrealized gain that is greater than $2,000 or 20%.
• Acquisition: Data that must be acquired to inform the stated decisions are as follows:
• Descriptive details for each investment such as the investment type and its comparison
benchmark.
• The amount of shares owned for each investment and the original investment value. For
the Investment Portfolio project, a total of 4,625 shares are owned at a total original invest-
ment value of $357,501.
• The current price and dividend rate for each investment.
• Benchmark growth data that will be used to compare the growth of each investment in the
portfolio.
• The target percentage each investment should represent to the total portfolio.
• The amount of time an investment has been owned.
• Time: This will be an ongoing project. Additional investments (rows of data) will likely be
added to the project for several years into the future. Additional columns might be added in
the future if additional exception analytics need to be added to the project.
• Analysis: The following analyses will need to be accomplished to support the stated decisions:
• The current value will be calculated by taking the current price of an investment and mul-
tiplying it by the shares owned. Dividends that have accumulated over time will need to be
estimated and added to the current value.
• The percent of the total portfolio for each investment needs to be calculated by dividing
the investment current value by the total portfolio current value.
• The amount of current gain or loss that has accumulated for each investment must be cal-
culated to determine if an investment is profitable.
• The amount that should be purchased or sold based on the investment’s actual percent to
total compared to the target percent to total.
• An output that determines if an investment is a top performer.
• A comparison of the investment growth rate over time and the benchmark growth rates.

Adding Capacity to Functions

Follow Along File: Data Analytics Project 5

Digital Downloads

Data Analytics Project 5.xlsx

https://catalog.flatworldknowledge.com/a/31995/
Data_Analytics_Project_5-7ae1.xlsx

As stated in the DATA Analytics Framework, the Investment Portfolio project will be ongoing
with additional rows likely to be added in the future. When working with a project that may need
additional data, cell capacity can be added to functions such that when new data is added, it will
be included in the function outputs. This is similar to adding blank cells to a function. However,
in this case there is some uncertainly as to how many additional rows of data will be added. This
uncertainty will be addressed when data internal controls are added to the project. The following
demonstrates how adding cell capacity to functions is accomplished while conducting a data audit
for the Investment Portfolio project.
1. Open the Investment Detail worksheet and click cell D5. Cell A1 should be visible.

FIGURE 6.1 Investment Detail Worksheet

2. Click the View tab of the Ribbon and select the Freeze Panes command. There are 24 columns
in the Investment Detail worksheet. The Freeze Panes command will allow the column head-
ings and some of the row headings to remain visible as the worksheet is scrolled.
3. Click cell F2 and enter a SUM function that sums the values in the range F5:F34. This function
will be used to audit the total amount of shares owned which should match the 4,625 shares
stated in the DATA Analytics Framework. Notice the range used in the function exceeds the
number of rows that contain data. This is done to add cell capacity to the function such that if
new data is added in rows 20 through 34, the SUM function will include this data in the output.
4. Copy cell F2 and paste it into cell G2 using the Paste Formulas command. The output of the
pasted SUM function can be used to audit the total Original Investment column which should
be $357,501 as stated in the DATA Analytics Framework.
Figure 6.2 shows the output of the SUM function in cell F2 and the setup of the SUM function
with added row capacity in cell G2. Notice that the design choice that is made by putting these
functions at the top of the dataset. Since additional rows of data will be added, it is more efficient
to put totals at the top of the dataset as opposed to the bottom.

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248 Data Analytics Using Microsoft® Excel®

FIGURE 6.2 Adding Cell Capacity to a Function

The Logical Test

Follow Along File: Data Analytics Project 5 continued. If starting here use Data Analytics Project 5.01.
logical test Logical functions, such as the IF function, are critical tools used in designing projects that
A test that evaluates the involve exception analytics. What makes a logical function powerful is its ability to produce out-
contents in one or many puts based on the outcome of a logical test. A logical test evaluates the contents in one or many cell
cell locations and locations and produces an output that is either TRUE or FALSE. For example, the logical test C7 =
produces an output that is
either TRUE or FALSE. 25 (read as: “if the value in cell C7 is equal to 25”) can either be true or false depending on the value
that is entered into cell C7. A logical test can be constructed with a variety of comparison operators
as shown in Table 6.1.

TABLE 6.1 Comparison Operator Symbols and Definitions

Symbol Definition
= Equal To
> Greater Than
< Less Than
<> Not Equal To
>= Greater Than or Equal To
<= Less Than or Equal To

The following demonstrates how a logical test is entered into a cell location by itself. The next
segment will demonstrate how this logical test is used when defining the arguments of the IF func-
tion.

1. Click cell P5 on the Investment Detail worksheet.

2. Type an equal sign =.
3. Click cell O5.
4. Type the greater than sign > followed by an equal sign =.
5. Type the number 12. This completes the logical test which is shown in Figure 6.3. This logical
test is stated as follows, “If the value in cell O5 is greater than or equal to 12.”

FIGURE 6.3 The Logical Test

6. Tap the ENTER key on your keyboard. Notice that the output of the logical test is TRUE (see
Figure 6.4). This is because the value in cell O5 is 48 which is greater than 12.

FIGURE 6.4 Output of a Logical Test

7. Click cell P5 and tap the DELETE key on your keyboard. The IF function will be entered into
this cell location in the next segment using this logical test.

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250 Data Analytics Using Microsoft® Excel®

IF Function
Follow Along File: Data Analytics Project 5 continued. If starting here use Data Analytics Project 5.01.
The IF function is used to produce a custom output based on the results of a logical test. If
the results of the logical test are TRUE, the IF function can display a number or text, or produce a
calculated output. If the results of the logical test are FALSE, the IF function can display a differ-
ent number or text, or perform a different calculated output. The arguments of the IF function are
defined in Table 6.2.

TABLE 6.2 Arguments for the IF Function

Argument Definition
A test used to evaluate the contents of a cell location. The results of the test can be
either TRUE or FALSE. If evaluating a cell that contains text, the text must be
Logical_test
enclosed in quotations. For example, the following tests if the word “Long” is in cell
C7: C7 = “Long”. The word “Long” must be enclosed in quotations as shown.
The output that will be displayed or the calculation that will be performed if the
results of the logical test are TRUE. This argument can be defined with a formula,
[Value_if_true]
function, number, or text. When defining this argument with a text output, it must
be enclosed in quotations.
The output that will be displayed or the calculation that will be performed if the
results of the logical test are FALSE. This argument can be defined with a formula,
[Value_if_false]
function, number, or text. When defining this argument with a text output, it must
be enclosed in quotations.

The IF function will be used on the Investment Detail worksheet to classify investments as
being either long-term or short-term. For tax purposes, an investment is considered short-term if it
is held less than 12 months. This requires the investor to pay a higher tax rate for any profit earned
on the investment. An investment held 12 months or longer is considered a long-term investment
and a lower tax rate is applied to any profit earned on the investment. The following demonstrates
how this is accomplished using the IF function:
1. Click cell P5 on the Investment Detail worksheet.
2. Type an equal sign = followed by the function name “IF” and an open parenthesis.
3. Begin defining the “logical_test” argument by clicking cell O5. Then, type the greater than sign
> followed by the equal sign =.
4. To complete the “logical_test” argument, type the number 12. The logical test is evaluating if the
value in cell O5 is greater than or equal to 12 (see Figure 6.5).

FIGURE 6.5 Logical Test Argument of the IF Function

5. Type a comma to advance to the “[value_if_true]” argument.

6. Type an open quotation followed by the word “Long” and then type a closing quotation. If the
logical test is true, the IF function will display the word “Long” in cell P5.
7. Type a comma to advance to the “[value_if_false]” argument.
8. Type an open quotation followed by the word “Short” and then type a closing quotation. If
the logical test is false, the IF function will display the word “Short” in cell P5. This completes
the three arguments of the IF function as shown in Figure 6.6. Examine the arguments shown
in this figure carefully. Notice that the text outputs used to define the “[value_if_true]” and
“[value_if_false]” arguments are enclosed in quotations.

FIGURE 6.6 Defined Arguments of the IF Function for Text Outputs

9. Type a closing parenthesis and then tap the ENTER key on your keyboard. The output of the
IF function should be the word “Long” since the logical test is TRUE.
10. Copy and paste cell P5 into the range P6:P19. Since data exists in row O, you can copy and paste
into this range by double clicking the Fill Handle.

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252 Data Analytics Using Microsoft® Excel®

Integrity Check

Enclosing Text in Quotations for Logical Functions

When using any logical function to evaluate text in a cell location, or when using a logical function
to produce a text output, the text must be enclosed in quotations. For example, if using a logical
function to evaluate if the word “Long” is entered into cell B5, the logical test must appear as
follows: B5= “Long”. If you omit the quotations, the function will produce an erroneous FALSE
output for the logical test which can corrupt the overall output of the function.

The IF function that was just used to complete the Long/Short Indicator column produced an
output that displayed a word. The following demonstrates how the IF function is used to produce
a calculated output based on the results of the logical test.
dividends 11. Click cell I5 in the Investment Detail worksheet and begin the IF function by typing an equal
With respect to sign =, the function name “IF”, and an open parenthesis.
investments, dividends 12. Define the “logical_test” argument by evaluating if the value in cell E5 is greater than zero.
represent a cash benefit
paid to investors. 13. Type a comma to advance to the “[value_if_true]” argument.
14. Type the letters “fv” followed by an open parenthesis. The FV function will be used to define
the “[value_if_true] argument. This will estimate the amount of dividends that have been paid
over the length of time an investment has been owned. For investments that pay dividends,
this calculation is necessary to determine the current value of an investment which is one of
the analysis items included in the DATA Analytics Framework.
15. Define the “rate” argument of the FV function by clicking cell E5, type a front slash / for division
and then type the number 12. The “rate” argument is being defined with the values in the Div-
idend/Yield column since this is the percentage of the investment value that is paid to the
investor in cash. The ownership time is in months (see column O), therefore the dividend per-
centage is divided by 12 to convert to a monthly rate.
16. Type a comma to advance to the “nper” argument of the FV function.
17. Click cell O5 to define the “nper” argument since this is the amount of time, or number of peri-
ods, the investment has been paying a dividend.
18. Type a comma to advance to the “pmt” argument.
19. Type a comma to skip the “pmt” argument and advance to the “[pv]” argument. The “pmt” argu-
ment is skipped since this project is assuming that the investments are made on a one-time
basis.
20. Type a minus sign - and then click cell G5. This arrangement of the FV function will produce
a conservative estimate (lower than reality) for the dividend payments. This is conservative
since the price of the investment may have increased over time and the dividend rate would be
applied to a higher value.
21. Type a closing parenthesis. The “[type]” argument can be skipped since the project will assume
that dividend payments are always made at the end of each period.
22. Type a minus sign - and then click cell G5. The FV function will produce an output that shows
the value of the entire investment with the dividend payments. The purpose of this column is
to show just the estimated amount of dividend payments. Therefore, by subtracting the orig-
inal investment value from the output of the FV function, what is left will be the estimated
amount of dividend payments that were made for the holding life of the investment. Figure
6.7 shows how the IF function should appear with the “logical_test” and “[value_if_true]” argu-
ments defined.

FIGURE 6.7 IF Function Using an FV Function in the Value_if_True Argument

23. Type a comma to advance to the “[value_if_false]” argument of the IF function.

24. Type a zero followed by a closing parenthesis. If the logical test of the IF function is false, there
are no dividends paid on the investment. Therefore, the output of the function will be zero.
25. Tap the ENTER key on your keyboard. Then copy and paste cell I5 into the range I6:I19.
26. Click cell J5 on the Investment Detail worksheet. A formula will be entered into this cell that
calculates the current value of the investment.
27. Enter a formula that first multiplies the current price in cell H5 by the shares purchased in cell
F5. Add to this result the estimated dividend payments in cell I5. This formula accomplishes
the first item in the Analysis section of the DATA Analytics Framework for calculating the cur-
rent value of an investment.
28. Copy and paste your formula in cell J5 into the range J6:J19. Figure 6.8 shows the outputs for
the Estimated Dividend Payments and Current Investment Value columns.

FIGURE 6.8 Outputs for Estimated Dividend Payments and Current Investment Value
Columns

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
254 Data Analytics Using Microsoft® Excel®

Nested IF Function
Follow Along File: Data Analytics Project 5 continued. If starting here use Data Analytics Project 5.02.
By itself, the IF function can evaluate the contents of a cell location using one logical test and
produce one output if the logical test is true and an alternate output if the logical test is false. How-
ever, there may be situations where multiple logical tests need to be applied to a cell location which
would require more than two potential outputs. This can be solved by creating nested IF func-
tions. A nested IF function will be used to determine if an investment needs to be rebalanced. As
stated in the Analysis section of the DATA Analytics Framework, the current percentage an invest-
ment makes up of the total portfolio must be compared to the target percent of the portfolio. If an
investment falls above or below the target percent to the total portfolio, it must be identified as a
rebalance. The following demonstrates how this is accomplished using the nested IF function.
1. Copy cell G2 and paste it into cell J2 on the Investment Detail worksheet. This output will show
the total current value of the portfolio. This is necessary to determine the current percent to
portfolio total for each investment.
2. Enter a formula in cell K5 that divides the value in cell J5 by the total in cell J2. Add an absolute
reference to J2 in this formula. The output of the formula should be 10.7% (see Figure 6.9),
which indicates that the TRLT investment is 10.7% of the total portfolio.

FIGURE 6.9 Calculating the Current Percent of Portfolio

3. Copy and paste cell K5 into the range K6:K19.

4. Click cell M5 and enter a formula that calculates the difference between the Current Percent
of Portfolio with the Target Percent of Portfolio. Your formula should subtract cell L5 from cell
K5.
5. Copy and paste your formula into the range M6:M19.
6. Click cell N5 and begin the IF function by typing an equal sign =, the function name “IF”, and
an open parenthesis.
7. Define the “logical_test” argument by clicking cell M5, type the greater than symbol > and then
the number 1%. Since the value in cell M5 is a percentage, it is important to use the percent
symbol % after the number 1 (see Figure 6.10). If you omit the percent symbol, Excel will test if
the value in cell M5 is greater than 100%.

FIGURE 6.10 Using the Logical Test to Evaluate Percentages

8. Type a comma to advance to the “[value_if_true]” argument.

9. Type an open quotation followed by the word “Rebalance” and then type a closing quotation.
If the difference between the Current Percent of Portfolio and the Target Percent of Portfolio
is greater than 1%, the function will identify this investment with the word “Rebalance.”
10. Type a comma to advance to the “[value_if_false]” argument.
11. Begin a second IF function by typing the function name “IF” followed by an open parenthesis.
12. Click cell M5, type the less than symbol < followed by the number −1%. Since an investment
can fall above or below the target percent of the portfolio, a second logical test is required to
determine if the investment needs to be rebalanced.
13. Type a comma to advance to the “[value_if_true]” argument.
14. Type an open quotation followed by the word “Rebalance” and then type a closing quotation.
If the difference between the Current Percent of Portfolio and the Target Percent of Portfolio
is less than 1%, the function will identify this investment with the word “Rebalance.”
15. Type a comma to advance to the “[value_if_false]” argument.
16. Type an open quotation followed by the word “OK” and then type a closing quotation. If an
investment is not greater than or less than 1% from the target percent of portfolio, then no
action is needed and the function will identify this investment with the word “OK.”
17. Type two closing parentheses. Since two IF functions were started, there are two open paren-
theses required to complete the function (see Figure 6.11).

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
256 Data Analytics Using Microsoft® Excel®

FIGURE 6.11 Defined Arguments for a Nested IF Function

18. Tap the ENTER key on your keyboard. Then copy cell N5 and paste it into the range N6:N19.

Integrity Check

Evaluating Percentages with Logical Functions

When using a logical test to evaluate percentages in a cell location, use the percent symbol after
the value that is being tested. For example, testing if the percentage in cell location B5 is greater
than 10%, the logical test should appear as follows: B5>10%. If the percent sign is omitted, the
logical test will evaluate if the percentage in cell B5 is greater than 1000%. This may erroneously
force the function to produce the value_if_false output. The percentage can also be converted to
a decimal in the logical test. For example, in decimal form, the logical test can be constructed as
follows: B5>.10.

Skill Refresher: IF and Nested IF Functions

1. Type an equal sign =.

2. Type the function name IF followed by an open parenthesis.
3. Define the “logical_test” argument to evaluate the contents of a cell location such that the
result of the test is either true or false.
4. Define the “value_if_true” argument, which will be the output if the results of the logical test
are true. Text outputs must be enclosed in quotations.
5. Define the “value_if_false” argument, which will be the output if the results of the logical
test are false. When nesting IF functions, define this argument by starting another IF func-
tion.
6. Type a closing parenthesis. In the case of nested IF functions, type a closing parenthesis
for every IF function that was started.
7. Tap the ENTER key on your keyboard.

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The AND Function

Follow Along File: Data Analytics Project 5 continued. If starting here use Data Analytics Project 5.03.
The nested IF function was demonstrated to show how multiple logical tests can be applied to
a cell location and to produce more than two outputs. The AND function can be a more efficient
way to incorporate many logical tests into an IF function. The AND function is used to conduct sev-
eral logical tests and produces an output of either TRUE or FALSE. If all the logical tests in the AND
function are true, the output of the function will be the word “TRUE”. If any of the logical tests
used in the AND function are false, the function output will be the word “FALSE”. The AND func-
tion will be used to define the “logical_test” argument of the IF function to determine how much of
an investment should be sold or how much should be purchased. The following demonstrates how
this is accomplished.
1. Click cell Q5 on the Investment Detail worksheet. Unrealized Gain/Loss
2. Enter a formula that calculates the Unrealized Gain/Loss. This is the money that would be This is the money that
gained or lost if the investment is sold. Your formula should subtract the Original Investment would be gained or lost if
the investment is sold.
in cell G5 from the Current Value in cell J5.
3. Copy cell Q5 and paste it into the range Q6:Q19.
4. Click cell R5 and enter a formula that calculates the Percent Gain/Loss. Your formula should
take the value in cell Q5 and divide it by the value in cell G5.
5. Copy cell R5 and paste it into the range R6:R19. Figure 6.12 shows how the outputs should
appear for the Unrealized Gain/Loss and Percent Gain/Loss columns. These calculations sat-
isfy another item from the Analysis segment of the DATA Analytics Framework and will be
used in one of the logical tests of the AND function.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
258 Data Analytics Using Microsoft® Excel®

FIGURE 6.12 Investment Unrealized Gain and Loss Outputs

6. Click cell S5 and begin an IF function by typing an equal sign =, the function name “IF,” and an
open parenthesis.
7. Type the function name “AND” followed by an open parenthesis. The AND function is being
used to define the “logical_test” argument of the IF function.
8. Click cell M5 and then type the less than symbol < followed by the number -1%. This defines
the first logical test of the AND function (see Figure 6.13).

FIGURE 6.13 Logical Test of the AND Function

9. Type a comma to advance to the second logical test of the AND function.
10. Click cell Q5. Type the greater than sign >, followed by an equal to sign =, and then type a zero.
11. Type a closing parenthesis to complete the AND function (see Figure 6.14).

FIGURE 6.14 Defining the Logical_Test Argument of the IF Function with the AND Function

12. Type a comma to advance to the “[value_if_true]” argument of the IF function. The purpose of
the IF function is to determine if an investment should be purchased. If the output of the AND
function is TRUE, an investment is below the target percent of the total portfolio by at least
1% and the investment currently has an unrealized gain. This will trigger the “[value_if_true]”
output of the IF function, which will be used to calculate how much of the investment should
be purchased.
13. Type a formula that will first multiply the target percent in cell L5 by cell J2 which is the total
current value of the portfolio. You must add an absolute reference to cell J2 in this formula.
Subtract from this result the value in cell J5 which is the current investment value (see Figure
6.15). This formula will calculate the amount of the investment that needs to be purchased to
reach the target percent of portfolio.

FIGURE 6.15 Calculating the Purchase Amount in the Value_If_True Argument

14. Type a comma to advance to the “[value_if_false]” argument of the IF function.

15. Type a zero and then type a closing parenthesis to complete the IF function. If an investment is
not below the target percent of the total portfolio or if the investment does not have a positive
unrealized gain, the IF function output will be zero indicating that additional shares should
not be purchased.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
260 Data Analytics Using Microsoft® Excel®

16. Tap the ENTER key on your keyboard. The output of the function should be zero indicating
this investment should not be purchased. This makes sense because the current percent of the
total portfolio for this investment is 2.7% higher than the target.
17. Copy cell S5 and paste it into the range S6:S19. Figure 6.16 shows the outputs in the Buy
Amount column. This satisfies one of the key decisions stated in the DATA Analytics Frame-
work which is to identify investments that need to be purchased.

FIGURE 6.16 Outputs in the Buy Amount Column

18. Click cell T5 on the Investment Detail worksheet and begin the IF function by typing an equal
sign =, the function name “IF” and an open parenthesis. The purpose of this IF function is to
determine which investments should be sold, which is another key decision stated in the DATA
Analytics Framework.
19. Type the function name “AND” followed by an open parenthesis. The AND function is being
used to determine if an investment should be sold.
20. Define the first logical test of the AND function by clicking cell M5. Then type the greater than
symbol > followed by the number 1%. The first requirement to sell an investment is that it
must exceed the target percent of the total portfolio.
21. Type a comma to advance to the second logical test of the AND function.
22. Click cell O5, type the greater than symbol > and then type the number 12. This test is checking
if the investment has been held for more than 12 months. If the investment has been held for
less than 12 months, a higher tax rate will be applied to any gains on the investment. Therefore,
an investment will only be sold if it has been owned for more than 12 months.
23. Type a comma to advance to the third logical test of the AND function.
24. Click cell Q5, type the greater than symbol > and then type a zero. This is testing to see if the
investment has a positive unrealized gain. If there is currently a loss, it may be a bad time to
sell as the price might increase if the investment is held for a longer period of time.
25. Type a closing parenthesis to complete the AND function and then type a comma to advance
to the “[value_if_true]” argument of the IF function. If the output of the AND function is true,
then the IF function will calculate how much of the investment should be sold.
26. Type a formula that subtracts from the value in cell J5 the result of multiplying the total value
of the portfolio in cell J2 by the target percent in cell L5. You must apply an absolute reference
to cell J2 in this formula.
27. Type a comma to advance to the “[value_if_false]” argument of the IF function.

28. Define the “[value_if_false]” argument by typing a zero and then complete the IF function by
typing a closing parenthesis.
29. Tap the ENTER key on your keyboard. The output of the function should be the value $13,444.
This indicates that part of this investment should be sold. This makes sense because this
investment exceeds the target percent of the portfolio by 2.7%. Selling part of this investment
will decrease the percent to the total portfolio bringing it closer to the target percentage.
30. Copy cell T5 and paste it into the range T6:T19. Figure 6.17 shows the outputs of the IF function
in the Sell Amount column.

FIGURE 6.17 Outputs in the Sell Amount Column

Why…

Using AND / OR Functions for Logical Test in IF Functions

The benefit of using the AND or OR functions to define the “logical_test “argument of the IF
function is that doing so reduces the need to construct lengthy nested IF functions. It becomes
increasingly difficult to manage the accuracy of lengthy nested IF functions. The AND and OR
functions can test a variety of conditions in a cell location, which can reduce the need to nest
multiple IF functions.

Skill Refresher: AND Function

1. Type an equal sign =.

2. Type the function name AND followed by an open parenthesis.
3. Define the “logical_test” argument to evaluate the contents of a cell location such that the
result of the test is either true or false.
4. Type a comma to define a second logical test. Define additional logical test arguments as
needed. The output of the function will be TRUE if ALL of the logical tests are true.
5. Type a closing parenthesis.
6. Tap the ENTER key on your keyboard.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
262 Data Analytics Using Microsoft® Excel®

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The OR Function
Follow Along File: Data Analytics Project 5 continued. If starting here use Data Analytics Project 5.04.
Similar to the AND function, the OR function offers an efficient way to enter several logical
tests into the IF function. However, when using the OR function, if any of the logical tests are true
the function will produce a TRUE output. For the Investment Portfolio project, the OR function
will be used to identify top performing investments. As stated in the Decision component of the
DATA Analytics Framework, an investment is considered a top performer if the unrealized gain is
greater than $2,000 or the percentage for the unrealized gain is greater than 20%. The following
demonstrates how this is accomplished using the OR function.
1. Click cell U5 on the Investment Detail worksheet.
2. Begin the IF function by typing an equal sign =, the function name “IF,” and an open parenthe-
sis.
3. Begin the OR function by typing the function name “OR” followed by an open parenthesis.
4. Define the first logical test of the OR function by clicking cell R5, type the greater than symbol
>, and type the number 20%.
5. Type a comma to advance to the second logical test of the OR function.
6. Click cell Q5, type the greater than symbol >, and type the number 2000. Figure 6.18 shows the
two logical tests defined for the OR function.

FIGURE 6.18 Logical Tests Defined in the OR Function

7. Type a closing parenthesis to complete the OR function and then type a comma to advance to
the “[value_if_true]” argument of the IF function.
8. Type a quotation followed by the word “TOP” and then type a second quotation. If either of
the two logical tests used in the OR function is true, the “[value_if_true]” argument in the IF
function will be triggered and the output will be the word “TOP.”
9. Type a comma to advance to the “[value_if_false]” argument.
10. Type two quotations (“”) to define the “[value_if_false]” argument (see Figure 6.19). There is no
need to display anything if both logical tests of the OR function are false. The two quotations
will leave the cell location blank if the IF function triggers the “[value_if_false]” argument.

FIGURE 6.19 OR Function Used Within the IF Function

11. Complete the IF function by typing a closing parenthesis and tapping the ENTER key on your
keyboard.
12. Copy cell U5 and paste it into the range U6:U19. Figure 6.20 shows the outputs in the Top Per-
formers column.

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264 Data Analytics Using Microsoft® Excel®

FIGURE 6.20 Outputs for the Top Performers Column

Why…

Use Two Quotations for Blank Cell Outputs

If the desired output for the IF function is a blank cell, type two quotations (“”) in either the
“value_if_true” or “value_if_false” arguments. Skipping these arguments will not produce a blank
cell output. For example, if the “value_if_false” argument is omitted, the IF function will show the
word “FALSE” as the output if the logical test is false.

Skill Refresher: OR Function

1. Type an equal sign =.

2. Type the function name OR followed by an open parenthesis.
3. Define the “logical_test” argument to evaluate the contents of a cell location such that the
result of the test is either true or false.
4. Type a comma to define a second logical test. Define additional logical test arguments as
needed. The output of the function will be TRUE if at least one of the logical tests are true.
5. Type a closing parenthesis.
6. Tap the ENTER key on your keyboard.

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Key Takeaways

• Cell capacity should be added to functions when additional data is going to be added to a
worksheet in the future.
• A logical test evaluates the contents of a cell and produces an output of either TRUE or
FALSE.
• The IF function is used to evaluate the contents of a cell location using a logical test. Based
on the results of the logical test, a custom output or calculation can be produced.
• Text, or non-numeric data, must be enclosed in quotations when defining any argument of
the IF function.
• A nested IF function is used when more than one logical test and more than two outputs are
required for a project.
• When using logical tests to evaluate percentages, the percent symbol “%” must follow the
number used in the logical test or the percentage must be converted to a decimal value.
• The AND function is used when many logical tests are required to evaluate the contents of a
cell location. The function will produce a TRUE output if all logical tests are true.
• The OR function is used when many logical tests are required to evaluate the contents of a
cell location. The function will produce a TRUE output if one of the logical tests is true.
• To minimize the complexity of nested IF functions, the OR and AND functions should be used
when possible to define the “logical_test” argument of the IF function.
• Two quotations should be used if a blank cell is the desired output of the IF function.

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266 Data Analytics Using Microsoft® Excel®

6.2 Lookup Functions

Learning Objectives

1. Learn how to construct and use the VLOOKUP function.

2. Learn how to construct and use the HLOOKUP function.
3. Review how data visualization is used for exception analytics.
4. Learn how to set custom rules for conditional formatting icon sets.
5. Understand how the ISBLANK function produces an output.
6. Learn how to use the ISBLANK function within the IF function to develop a data internal con-
trol for cell capacity.

The Investment Portfolio project continues in this section with the use of lookup functions.
Lookup functions are used to search for and display data located in other worksheets or work-
books. As stated in the Acquisition component of the DATA analytics framework, descriptive infor-
mation for each investment must be added to the dataset. The two lookup functions that will be
used to accomplish this are the VLOOKUP and HLOOKUP functions. In addition to demonstrat-
ing these functions, this section will also demonstrate the use of data visualization techniques for
exception analytics and the use of the ISBLANK function to implement a data internal control.

VLOOKUP Function
Follow Along File: Data Analytics Project 5 continued. If starting here use Data Analytics Project 5.05.
The VLOOKUP function will be used to display data between two worksheets in the Invest-
ment Portfolio workbook. This is a very powerful and versatile function because it eliminates the
need to copy or recreate data that exists in other worksheets or workbooks. It is called a VLOOKUP
function because the function will search vertically down the first column of a range of cells to
find what is called a lookup value. For the Investment Portfolio project, the lookup value will be
the investment symbol on the Investment Detail worksheet. The VLOOKUP function will be used
to complete the Benchmark, Investment Type, and Description columns on the Investment Detail
worksheet. The data for these columns is contained in the Investment List worksheet. Table 6.3
defines each of the arguments of the VLOOKUP function.

TABLE 6.3 Arguments for the VLOOKUP Function

Argument Definition
Defined with a cell location, number, or text. Text data must be enclosed in
Lookup_value quotations. The function will search for the criteria used to define this argument in
the first column of the cell range used to define the Table_array argument.
Range of cells that contain the lookup value and the data that will become the
Table_array output of the function. The first column of this cell range must contain the lookup
value.

Argument Definition
The column index number (the number of columns to the right of the first column in
Col_index_num the table array range) contains the data that will become the output of the function.
The first column in the table array range is counted as column 1.
This argument is defined with either the word “TRUE” or “FALSE”. When defined
with the word “FALSE”, the function will look for an exact match to the lookup value
in the first column of the table array range. The function will search the entire table
array range to find an exact match. If defined with the word “TRUE”, the function will
look for a value that is an exact match or the closest match that is less than the
lookup value. For example, if the lookup value is 80 and the highest value in the first
column of the table array range is 78, the function will consider 78 a match for the
[Range_lookup] number 80. However, if the lookup value was 80 and the lowest number in the first
column of the table array range was 85, the function will produce an error. This is
because the number 80 and any value less than 80 do not exist in the first column
of the table array range. When using the word “TRUE” for this argument the table
array range must be sorted in ascending order. The function will stop searching for
a match once the value in the first column exceeds the lookup value. This argument
is in brackets because if it is not defined it will automatically be defined with the
word “TRUE”.

The following will first demonstrate how the VLOOKUP is constructed using the Function
Arguments dialog box. The function will then be demonstrated by typing directly into a cell.
1. Click cell A5 in the Investment Detail worksheet.
2. Click the Lookup & Reference button in the Formulas tab of the Ribbon.
3. Click VLOOKUP from the dropdown list (see Figure 6.21). This will open the Function Argu-
ments dialog box.

FIGURE 6.21 The Lookup & Reference Dropdown List

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268 Data Analytics Using Microsoft® Excel®

4. Click the Collapse dialog box button next to the Lookup_value argument.
5. Click cell C5 and tap the ENTER key on your keyboard. This will make the symbol in cell C5
the lookup value for the function (see Figure 6.22).

FIGURE 6.22 Defining the Lookup Value Argument for the VLOOKUP Function

6. Click the Collapse dialog box button next to the Table_array argument.
7. Click the Investment List worksheet tab.
8. Highlight the range A3:D50 on the Investment List worksheet. This will add cell capacity to the
VLOOKUP function in the event additional investments are added to this worksheet.
9. Tap the F4 key on your keyboard. This will add an absolute reference and prevent relative ref-
erencing from changing the table array range when the function is copied and pasted to other
cells.
10. Tap the ENTER key on your keyboard. This will reopen the Function Arguments dialog box.
11. Click in the input box next to the Col_index_num argument and type the number 4. The
benchmark description is in the fourth column of the table array range (counting from left to
right). Once the VLOOKUP finds the row where the lookup value is located, whatever is in the
cell location in the fourth column will become the output of the function.
12. Click in the input box next to the Range_lookup argument and type the word “FALSE”. Figure
6.23 shows how each argument is defined for the VLOOKUP function.

FIGURE 6.23 Defined Arguments for the VLOOKUP Function

13. Click the OK button on the Function Arguments dialog box. The output of the function should
be Bond Market. Figure 6.24 shows how the VLOOKUP arrived at this output. The lookup value
is the symbol TRLT since this is what is entered in cell C5 on the Investment Detail worksheet.
The function found this symbol in row 28. The entry in the fourth column of the table array
range in cell D28 is Bond Market. The VLOOKUP function is pulling whatever is entered into
the cell and displaying it in cell A5 on the Investment Detail worksheet.

FIGURE 6.24 The Investment List Worksheet

14. Copy cell A5 and paste it into the range A6:A19. Figure 6.25 shows all the outputs in the Bench-
mark column.

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270 Data Analytics Using Microsoft® Excel®

FIGURE 6.25 Outputs for the Benchmark Column on the Investment Detail Worksheet

Integrity Check

Adding Absolute References to Table Array Ranges

When copying and pasting either the VLOOKUP or HLOOKUP functions, an absolute reference
must be placed on the range used to define the “table_array” argument. Without the absolute
reference, relative referencing will change the table array range when the function is pasted into
new cell locations. This may result in an error output because the function will not be able to find
the lookup value since the table array range has been changed. Or, if defining the “range_lookup”
argument with the TRUE option, an adjustment in the table array range can result in an erroneous
output which may be difficult to identify as an error.

15. Click cell B5 on the Investment Detail worksheet and begin the VLOOKUP function by typing
an equal sign = the function name “VLOOKUP” and an open parenthesis.
16. Click cell C5 to define the “lookup_value” argument.
17. Type a comma to advance to the “table_array” argument.
18. Click the Investment List worksheet tab.
19. Highlight the range A3:A50.
20. Tap the F4 key on your keyboard.
21. Type a comma to advance to the “col_index_num” argument.
22. Type the number 3. The purpose of the function is to show the investment type for each sym-
bol which is in the third column of the table array range.
23. Type a comma to advance to the “[range_lookup]” argument.
24. Type the word “FALSE”.
25. Type a closing parenthesis and tap the ENTER key on your keyboard. The output of the func-
tion should be Bond ETF (see Figure 6.26).

FIGURE 6.26 VLOOKUP Function for the Investment Type Column

26. Copy cell B5 and paste it into the range B6:B19.

27. Click cell B5 and highlight the VLOOKUP function in the Formula Bar (see Figure 6.26).
28. Use the keyboard to copy the function (CTRL + C)
29. Tap the ESC key on your keyboard.
30. Double click cell D5 and use the keyboard to paste the function (CTRL + V). Rather than retype
the VLOOKUP function, it is more efficient to use what was already created and edit the
“col_index_num” argument to produce the outputs for the Description column.
31. Click in front of the number 3 in the “col_index_num” argument (see Figure 6.27).

FIGURE 6.27 Editing the Col_Index_Num Argument

32. Tap the DELETE key on your keyboard to remove the number 3 and type the number 2. The
VLOOKUP function that is needed to show the investment descriptions is exactly the same as
the two previous VLOOKUP functions with a different column index number.
33. Tap the ENTER key on your keyboard. The output of the function should be LT Treasury as
shown in Figure 6.28.

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272 Data Analytics Using Microsoft® Excel®

FIGURE 6.28 VLOOKUP Function for the Description Column

34. Copy cell D5 and paste it into the range D5:D19. This completes the descriptive data for each
investment, which is one of the requirements stated in the Acquisition component of the DATA
analytics framework.

Skill Refresher: VLOOKUP Function

1. Type an equal sign =.

2. Type the function name VLOOKUP followed by an open parenthesis.
3. Define the “lookup_value” argument with a cell location, number, or text that will be
searched in another workbook or worksheet. Text must be placed in quotations.
4. Type a comma to advance to the “table_array” argument.
5. Define the “table_array” argument with a range of cells that contain the lookup value in the
first column along with data that will become the output of the function.
6. Type a comma to advance to the “col_index_num” argument.
7. Define the “col_index_num” argument with a number that designates a column in the table
array range that contains data that will become the output of the function. Count the first
column of the table array range as 1.
8. Type a comma to advance to the “range_lookup” argument.
9. Define the “range_lookup” argument with either the word FALSE or TRUE. The word
FALSE will search for exact matches to the lookup value. The word TRUE will search for
an exact or closest match that is less than the lookup value. Excel will define this argument
as TRUE if it is omitted.
10. Type a closing parenthesis.
11. Tap the ENTER key on your keyboard.

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HLOOKUP Function
Follow Along File: Data Analytics Project 5 continued. If starting here use Data Analytics Project
5.06.
Similar to the VLOOKUP function, the HLOOKUP function is used to display data between
two worksheets in a workbook. However, instead of searching for the lookup value vertically down
the first column of the table array range, the HLOOKUP function searches horizontally across the
first row of the table array range. When the function finds a match for the lookup value, it will dis-
play the contents in a cell location based on a row index number. This is the row number, counting
from top to bottom, in the table array range that contains data that will become the output of the
function. Table 6.4 provides a definition for each argument of the HLOOKUP function.

TABLE 6.4 Arguments for the HLOOKUP Function

Argument Definition
Defined with a cell location, number, or text. Text data must be enclosed in
Lookup_value quotations. The function will search for the criteria used to define this argument in
the first row of the cell range used to define the Table_array argument.
Range of cells that contain the lookup value and the data that will become the
Table_array output of the function. The first row of this cell range must contain the lookup
value.

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274 Data Analytics Using Microsoft® Excel®

Argument Definition
The row index number is the number of rows below the first row in the table array
Row_index_num range that contains the data that will become the output of the function. The first
row in the table array range is counted as row 1.
This argument is defined with either the word “TRUE” or “FALSE”. When defined
with the word “FALSE”, the function will look for an exact match to the lookup
value in the first row of the table array range. The function will search the entire
table array range to find an exact match. If defined with the word “TRUE”, the
function will look for a value that is an exact match or the closest match that is less
than the lookup value. For example, if the lookup value is 80 and the highest value
in the first row of the table array range is 78, the function will consider 78 a match
[Range_lookup] for the number 80. However, if the lookup value was 80 and the lowest number in
the first row of the table array range was 85, the function will produce an error.
This is because the number 80 and any value less than 80 do not exist in the first
row of the table array range. When using the word “TRUE” for this argument, the
table array range must be sorted in ascending order from left to right. The function
will stop searching for a match once the value in the first row exceeds the lookup
value. This argument is in brackets because if it is not defined, it will automatically
be defined with the word “TRUE”.

The HLOOKUP function will be used to complete the Benchmark Growth Rate 5 Year column
on the Investment Detail worksheet. As stated in the Analysis component of the DATA analytics
framework, the growth rate for each investment will be compared to a benchmark growth rate. The
benchmarks provide an industry or market view of how an investment should have grown over
a specific period of time. This will provide a better analysis as to how an individual investment is
performing in addition to the amount of unrealized gains that have been achieved. The following
demonstrates how the HLOOKUP function is used to display the growth rate that applies to the
appropriate benchmark for each investment.
1. Click cell V5 on the Investment Detail worksheet.
2. Begin the HLOOKUP function by typing an equal sign =, the function name “HLOOKUP”, and
an open parenthesis.
3. Click cell A5 to define the “lookup_value” argument.
4. Type a comma to advance to the “table_array” argument.
5. Click the Benchmarks worksheet tab.
6. Highlight the range B2:E6 on the Benchmarks worksheet.
7. Tap the F4 key on your keyboard to apply an absolute reference to the table array range.
8. Type a comma to advance to the “row_index_num” argument.
9. Type the number 4 to define the “row_index_num” argument. The five-year benchmark growth
rate will be used for the Investment Portfolio project. Counting row 2 as the first row in the
table array range, the five-year growth rate is in the fourth row which is row 5 on the work-
sheet.
10. Type a comma to advance to the “[range_lookup]” argument.
11. Type the word “FALSE” to define the “[range_lookup]” argument.
12. Type a closing parenthesis and then tap the ENTER key on your keyboard. The output of the
function should be 2.79% as shown in Figure 6.29.

FIGURE 6.29 HLOOKUP Function Added to the Investment Detail Worksheet

13. Copy cell V5 and paste it into the range V6:V19.

Integrity Check

Using the TRUE option for the Range_Lookup Argument

When using the TRUE option for the “range_lookup” argument in either the VLOOKUP or
HLOOKUP functions, the cell range used to define the “table_array” argument must be sorted
in ascending order. For the VLOOKUP function, the table array range must be sorted based on
the values in the first column, smallest to largest or A to Z. For the HLOOKUP function, the table
array range must be sorted from left to right based on the values in the first row, from smallest to
largest or A to Z.

14. Click cell W5 on the Investment Detail worksheet. Enter a formula into this cell that divides
cell R5 by the result of dividing cell O5 by 12. This formula will calculate the average growth
rate per year. The percent gain or loss on the investment in cell R5 will be divided by calculated
years owned.
15. Copy cell W5 and paste it into the range W6:W19. Figure 6.30 shows how the outputs should
appear for this column.

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276 Data Analytics Using Microsoft® Excel®

FIGURE 6.30 Formula and Outputs for the Annual Growth Rate Column

16. Click cell X5 on the Investment Detail worksheet and enter a formula that calculates the dif-
ference between Actual Annual Growth Rate and the Benchmark Growth Rate 5 Year. Your
formula should subtract cell V5 from cell W5.
17. Copy cell X5 and paste it into the range X6:X19. Figure 6.31 shows the outputs for the Bench-
mark vs Actual Growth Rate column.

FIGURE 6.31 Formula and Outputs for the Benchmark vs Actual Growth Rate Column

Why…

The VLOOKUP or HLOOKUP Output is #N/A or #REF!

If the output for the VLOOKUP or HLOOKUP function is a #N/A error code, it indicates that Excel
cannot find the lookup value in the table array range. Check to make sure the lookup value exists
in the first column of the table array range for the VLOOKUP function, or the first row of the table
array range for the HLOOKUP function. This error code may also appear after pasting either func-
tion into a new cell location without putting an absolute reference on the table array range. The
#REF! error code indicates that the column index number or row index number exceeds the num-
ber of columns or rows in the table array range.

Skill Refresher: HLOOKUP Function

1. Type an equal sign =.

2. Type the function name HLOOKUP followed by an open parenthesis.
3. Define the “lookup_value” argument with a cell location, number, or text that will be
searched in another workbook or worksheet. Text must be placed in quotations.
4. Type a comma to advance to the “table_array” argument.
5. Define the “table_array” argument with a range of cells that contains the lookup value in
the first row along with data that will become the output of the function.
6. Type a comma to advance to the “row_index_num” argument.
7. Define the “row_index_num” argument with a number that designates a row in the table
array range that contains data that will become the output of the function. Count the first
row of the table array range as 1.
8. Type a comma to advance to the “range_lookup” argument.
9. Define the “range_lookup” argument with either the word FALSE or TRUE. The word
FALSE will search for exact matches to the lookup value. The word TRUE will search for
an exact or closest match that is less than the lookup value. Excel will define this argument
as TRUE if it is omitted.
10. Type a closing parenthesis.
11. Tap the ENTER key on your keyboard.

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278 Data Analytics Using Microsoft® Excel®

Data Visualization for Exception Analytics

Follow Along File: Data Analytics Project 5 continued. If starting here use Data Analytics Project 5.07.
As stated in the Decision component of the DATA analytics framework, any investment that
has low unrealized gains or is losing money needs to be identified and monitored. Data visual-
ization is an excellent way to accomplish this requirement. Using conditional formatting, a data
visualization technique will be applied to the Percent Gain / Loss column on the Investment Detail
worksheet. This will create a visual display of the exception analytics that will quickly reveal invest-
ments that need to be monitored. The following demonstrates how this is accomplished.
1. Highlight the range R5:R34 in the Investment Detail worksheet. Note that cell capacity is
added to this range to accommodate additional data that is added to the worksheet.
2. Click the Conditional Formatting button in the Home tab of the Ribbon.
3. Place the mouse pointer over the Icon Sets option from the dropdown menu and then click
the More Rules option on the Icon Sets sub menu (see Figure 6.32). This will open the New For-
matting Rule dialog box.

FIGURE 6.32 Opening the New Formatting Rule Dialog Box for an Icon Set

4. Locate the Type category in the lower right area of the New Formatting Rule dialog box (see
Figure 6.33). Click the down arrow on the first dropdown box under this category. This is used
to set the parameters that will assign a green circle to the value in the Percent Gain/Loss col-
umn.
5. Select Number from the Type dropdown list. This will change the number in the Value input
box from 67 to 0.

FIGURE 6.33 Changing the Type in the New Formatting Rule Dialog Box

6. Click in the first input box under Value at the bottom of the New Formatting Rule dialog box
(see Figure 6.34). Delete the number 0 and type “.05”. This will assign a green circle to any invest-
ment that has a percent gain of 5% or higher which in decimal form is .05.

FIGURE 6.34 Setting a Value to Assign the Green Circles

7. Click in the second input box under Value at the bottom of the New Formatting Rule dialog
box. Delete the number 33 and type a zero. This will assign a yellow circle for any investment
that has a percent gain that is greater than or equal to zero but less than .05.
8. Click the down arrow on the second dropdown box below the Type cateogry in the lower left
area of the New Formatting Rule dialog box. Select Number from the dropdown list. Figure
6.35 shows how the settings on the New Formatting Rule dialog box should appear.

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280 Data Analytics Using Microsoft® Excel®

FIGURE 6.35 Rules to Apply Icons to the Percent Gain / Loss Column

9. Click the OK button on the New Formatting Rule dialog box and click cell R5. A green, yellow,
and red circle should appear next to each value in the Percent Gain/Loss column (see Figure
6.36). Notice that just glancing at the data reveals two yellow circles and one red circle. These
investments are performing below other investments in the portfolio in terms of gains and
must be monitored.

FIGURE 6.36 Data Visualization Applied to the Percent Gain / Loss Column

Skill Refresher: Conditional Formatting Icons

1. Highlight a range of cells where icons will be applied.

2. Click the Conditional Formatting button in the Home tab of the Ribbon.
3. Place the mouse pointer over the Icon Sets option from the dropdown menu.
4. When the Icon Sets sub menu opens, select one of the preset options or click the More
Rules option to establish a custom rule for assigning icons to the highlighted range of data.
5. Select an Icon Style in the lower section of the New Formatting Rule dialog box.
6. Starting with the first icon in the lower section of the New Formatting Rule dialog box,
select a desired comparison operator, enter a desired Value, and select the appropriate
value Type.
7. Repeat step 6 for all icons in the icon set where a rule can be applied (the system will
automatically calculate the rule for the last icon based on rules entered for all other icons
in the set).
8. Click the OK button on the New Formatting Rule dialog box.

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Data Internal Controls Using the ISBLANK and

IF Functions
Follow Along File: Data Analytics Project 5 continued. If starting here use Data Analytics Project 5.08.
The beginning of this chapter demonstrated the technique of adding cell capacity to the func-
tions used in Row 2 of the Investment Detail worksheet. This creates the need to apply two data
internal controls to protect the integrity of the project. The cell capacity that was added to the SUM
functions in cells F2, G2, and J2 ends at row 34. If data is added beyond row 34, the user must be
alerted that this data will not be included in these SUM functions. If the SUM functions do not
include all data for the portfolio, most of the outputs on the worksheet will become distorted. Addi-
tionally, when new data is added to the worksheet, the percent to total for an existing investment
must decrease to accommodate a target portfolio percent for a new investment. Therefore, a second
data internal control will be applied to alert the user if the sum of the Target Percent of Portfolio
column does not equal 100%. The following will demonstrate how the ISBLANK and IF functions
are used to create both data internal controls.
1. Click cell F1 on the Investment Detail worksheet.
2. Type an equal sign =, the function name “ISBLANK”, followed by an open parenthesis.

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282 Data Analytics Using Microsoft® Excel®

3. Click cell A35 and tap the ENTER key on your keyboard. The output of the function should be
the word “TRUE”. This is because cell A35 is blank.
4. Type “S&P” into cell A35 and tap the ENTER key on your keyboard. The output of the ISBLANK
function changes to FALSE because cell A35 is not blank.
5. Click cell F1 and tap the DELETE key on your keyboard. An IF function will be created that
uses the ISBLANK function to create a logical test.
6. Begin the IF function by typing an equal sign =, the function name “IF”, and an open parenthe-
sis.
7. Type the function name “ISBLANK” followed by an open parenthesis. This ISBLANK function
will be used to define the logical test of the IF function.
8. Click cell A35 to define the “value” argument of the ISBLANK function,
9. Type a closing parenthesis and then type a comma to advance to the “[value_if_true]” argument
of the IF function (see Figure 6.37).

FIGURE 6.37 Using the ISBLANK Function within the IF Function

10. Type two quotation (“”) to define the “[value_if_true]” argument which will produce a blank
output. If the ISBLANK function produces a TRUE output, then cell A35 is blank. This means
there is no data that has been added beyond cell A34 and there is no need to alert the user.
11. Type a comma to advance to the “[value_if_false]” argument.
12. Type the following to define the “[value_if_false]” argument: “Data exceeds function capacity!”
This alert message will be the output if the ISBLANK function is FALSE. If the ISBLANK func-
tion is FALSE, this indicates that data has been added beyond row 34, and the user must be
alerted.
13. Type a closing parenthesis and tap the ENTER key on your keyboard. As shown in Figure 6.38,
the output of the function shows the message: Data exceeds function capacity!. This is because
there is still an entry in cell A35.

FIGURE 6.38 Data Internal Control Cell Capacity Alert

14. Click cell A35 and tap the DELETE key on your keyboard. Once the entry in cell A35 is deleted,
the alert message from the IF function will disappear.

Integrity Check

Defining the Value argument of the ISBLANK Function

The “value” argument of the ISBLANK function must be defined with only one cell location. If a
contiguous cell range is used to define the “value” argument, the function may produce a TRUE
output even though cells in the range contain data or could produce a FALSE output even though
all cells in the range are blank. Therefore, the ISBLANK function should be used to evaluate only
one cell location to produce an accurate output.

15. Enter a SUM function in cell L2 that sums the values in the range L5:L19. This will sum the tar-
get percentages for the portfolio and should show an output of 100%.
16. Click cell L1 and begin an IF function by typing an equal sign =, the function name “IF,” and an
open parenthesis.
17. Click cell L2 and type the less than symbol < followed by the greater than symbol >. The two
symbols typed together denote “not equal to” (see Table 6.1). Type the number 1 to complete the
logical test of the IF function. The logical test of the IF function is evaluating if the output of
the SUM function in cell L2 is not equal to 1 which is 100% in decimal form.
18. Type a comma to advance to the “[value_if_true]” argument.
19. Type the following to define the “[value_if_true]” argument: "Target Percent Does Not Equal
100%"
20. Type a comma to advance to the “[value_if_false]” argument.
21. Type two quotation (“”) to define the “[value_if_false]” argument (see Figure 6.39). If cell L2 is
equal to 1, the function will produce a blank output since there is no need to alert the user.

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284 Data Analytics Using Microsoft® Excel®

FIGURE 6.39 Data Internal Control for Target Percent of Portfolio

22. Type a closing parenthesis and tap the ENTER key on your keyboard. There should be no out-
put since cell L2 is equal to 1 or 100%.
23. Click cell L5 and change the value to 5%. This will produce the alert output in cell L1 since the
value in cell L2 is no longer 100%.
24. Use the Undo command to return cell L5 to its original value. This should remove the alert in
cell L1 and return the value in cell L2 to 100%.
After adding the data internal controls, the Investment Detail worksheet is complete.

Skill Refresher: ISBLANK Function

1. Type an equal sign =.

2. Type the function name ISBLANK followed by an open parenthesis.
3. Define the “value” argument with a single cell location that will be evaluated if it contains
any data.
4. Type a closing parenthesis.
5. Tap the ENTER key on your keyboard.

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Key Takeaways

• Lookup functions are powerful and versatile tools because they eliminate the need to copy
or recreate data that exists in other worksheets or workbooks.
• The VLOOKUP function will look for the lookup value vertically down the first column of the
table array range.
• The lookup value must exist in the first column of the table array range when using the
VLOOKUP function or the function will produce the #N/A error.
• The HLOOKUP function will look horizontally across the first row of the table array range to
find the lookup value.
• The HLOOKUP function will produce the #N/A output if the lookup value is not in the first
row of the table array range.
• If the “range_lookup” argument is defined with the word “TRUE”, the data in the table array
range for the VLOOKUP function must be sorted in ascending order (smallest to largest)
based on the values in the first column, and for the HLOOKUP function the data must be
sorted in ascending order from left to right based on the values in the first row.
• If you are copying and pasting a VLOOKUP or HLOOKUP function to other cell locations on
a worksheet, there should be an absolute reference placed on the table array range.
• Icon Sets are a conditional formatting feature that can be used to apply data visualization
techniques to a dataset.
• The “value” argument of the ISBLANK function should be defined with only one cell location
and not a cell range.

6.3 Chapter Assignments and Test

Data Analytics (Skills Review)

Retail Inventory Exceptions (Comprehensive Review)

Starter File Name: Chapter 6 DA Exercise 1

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Chapter 6 DA Exercise 1.xlsx

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Difficulty: Level 2
Exception analytics plays a significant role in the evaluation of inventory for companies in the retail
industry. Large retail corporations may service thousands of customers in hundreds of stores
every day. Suppyling these stores with the appropriate amount of inventory is a considerable
challenge. Allowing inventory levels to get too low can jeopardize sales as customers may not
find the items they wish to buy. Exception analytics are often used to evaluate sales and inventory
levels by store to prioritize inventory shipments. The purpose of this exercise is to utilize the Excel
skills covered in this chapter to create various exception alerts that will help a retailer organize
and prioritize inventory store shipments.
Begin the exercise by opening the file named Chapter 6 DA Exercise 1. Questions that are pre-
ceded with the letters KO indicate you must only use your keyboard and not your mouse to
execute the required skill.

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286 Data Analytics Using Microsoft® Excel®

1. Enter a SUM function in cell G2 on the Sales and Inventory worksheet. The SUM function
should sum the values in the Inventory Value column. Add cell capacity to the function to
include Row 40.
2. Copy cell G2 and paste it into cells H2 and I2.
3. Enter an HLOOKUP function in cell B4 on the Sales and Inventory worksheet that will
show the region name from the Region Plan worksheet. The “lookup_value” argument
should be defined with cell A4 on the Sales and Inventory worksheet. The “table_array”
argument should be the range B2:E5 on the Region Plan worksheet. Place an absolute
reference on this range. The “row_index_num” argument should be the number 2 and the
“range_lookup” argument should be the word “FALSE”.
4. Copy cell B4 and paste it into the range B5:B27.
5. Enter a VLOOKUP function in cell E4 on the Sales and Inventory worksheet that will show
the city for each store from the Store Details worksheet. The “lookup_value” argument
should be defined with cell C4 on the Sales and Inventory worksheet. The “table_array”
argument should be the range A3:F26 on the Store Details worksheet. Place an absolute
reference on this range. The “col_index_num” argument should be the number 5 and the
“range_lookup” argument should be the word “FALSE”.
6. Copy cell E4 and paste it into the range E5:E27.
7. Enter a formula in cell J4 that divides cell I4 by I2. Place an absolute reference on cell I2.
8. Copy cell J4 and paste it into the range J5:J27.
9. Enter an IF function in cell M4 to determine if a store is a high growth exception. If the
value in cell K4 is greater than 5%, then the output of the function should be the word
“Growth”. Otherwise, there should be no output for the function. The “logical_test” argu-
ment should be K4>5%. The “value_if_true” argument should be the word “Growth” and
must be enclosed in quotations. The “value_if_false” argument should be two quotations
to leave the cell blank.
10. Copy cell M4 and paste it into the range M5:M27.
11. Begin an IF function in cell N4 on the Sales and Inventory worksheet. The purpose of this
function is to determine if it is OK to deliver inventory to a store or if the delivery should be
postponed. It can be a problem for smaller stores if too much inventory is delivered. For
this company, a small store is 10,000 square feet.
12. Define the “logical_test” argument of the IF function by using the AND function. The first
logical test of the AND function should determine if cell F4 is equal to 10000. The second
logical test of the AND function should determine if cell L4 is greater than 8. Cell L4 con-
tains the weeks of supply which is a calculation that shows how fast the store is selling
its current inventory. A high weeks of supply indicates that a store may have too much
inventory relative to sales.
13. Define that “value_if_true” argument of the IF function with the word “Hold”. Based on the
results of the AND function, if a store is 10,000 square feet and the weeks of supply is
greater than 8, the output of the function should be the word “Hold”.
14. Define the “value_if_false” argument with the word “OK”.
15. Copy cell N4 and paste it into the range N5:N27.
16. Enter a nested IF function in cell O4 to identify the inventory status for each store. The
inventory status will be determined based on the value in the Weeks of Supply column.
The logical test of the first IF function should determine if cell L4 is less than 4. If this logical
test is true, the output of the function should be the word “Low”. Start a second IF func-
tion in the “value_if_false” argument of the first IF function. The logical test of the second
IF function should determine if the value in cell L4 is greater than 8. If this logical test is
true, the output of the function should be the word “High”. If this logical test is not true, the
function should output the word “Normal”. The word “Normal” should be used to define
the “value_if_false” argument of the second IF function.
17. Copy cell O4 and paste it into the range O5:O27.
18. Enter an IF function in cell P4 that determines if a store should be identified as a priority
delivery. Use the OR function to define the “logical_test” argument of the IF function. The
first logical test of the OR function should determine if cell K4 is greater than 8%. The sec-
ond logical test of the OR function should determine if cell L4 is less than 4. If the output

of the OR function is true, the output of the IF function should be the word “Priority”. If the
output of the OR function is not true, the IF function should leave the cell blank. Therefore,
define the “value_if_false” argument of the IF function with two quotations.
19. Copy cell P4 and paste it into the range P5:P27.
20. Enter an IF function in cell A2 that will alert the user if data has been added to the work-
sheet that exceeds the cell capacity in the SUM functions in the range G2:I2. Use the
ISBLANK function in the “logical_test” argument of the IF function. The ISBLANK function
should determine if cell A41 is blank. If the output of the ISBLANK is true, then the output
of the IF function should be a blank cell. If the output of the ISBLANK function is false, the
output of the function should be: Report totals are missing data!.
21. Apply the traffic light icon set from the conditional formatting list of options to the Weeks of
Supply column. Highlight the range L4:L40 to add cell capacity to this conditional format.
After selecting the More Rules option from the Icon Sets sub menu, make the following
rule change to the green and yellow circles in the New Formatting Rule dialog box: Set the
type for each circle to Number. Set the value for the green circle to 8 and set the value for
the yellow circle to 4. Any weeks of supply that is less than 4 will be assigned a red circle.
These are stores that might be in danger of running out of inventory.
22. Save and close your workbook.

Payroll Taxes for a Medical Group

Starter File Name: Chapter 6 DA Exercise 2

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Difficulty: Level 2
The Excel skills demonstrated in this chapter for the purpose of conducting exception analytics
can also be used to calculate payroll taxes and benefits for the employees of a medical group.
Medical groups are common in the health care industry and can range in a variety of sizes. The
defining trait of a medical group is that more than one doctor is on the staff for a particular prac-
tice, which creates more flexible hours for patients and physicians. In addition, a medical group
can provide a variety of medical services in one location. The purpose of this exercise is to use
the Excel and exception analytics skills covered in this chapter to prepare a payroll tax and ben-
efits worksheet.
Begin the exercise by opening the file named Chapter 6 DA Exercise 2. Questions that are pre-
ceded with the letters KO indicate you must only use your keyboard and not your mouse to
execute the required skill.
1. Set the Freeze Panes command on the Payroll Details worksheet so that rows 1 and 2
and columns A and B are locked in place while scrolling through the worksheet.
2. Enter an IF function in cell G3 on the Payroll Details worksheet to calculate the Social
Security tax. Social Security funds are used by the government to provide income for peo-
ple who are retired, a beneficiary of a retiree, or disabled. An employer must withhold 6.2%
of an employee’s weekly pay for Social Security. However, an employee’s salary is taxed
up to $100,000. The logical test of the IF function should assess if the value in the Pay
Year to Date column is greater than or equal to 100000. If the logical test is true, the out-
put of the function should be zero. Otherwise, the function should multiply the value in the
Gross Pay This Week by 6.2%. Copy and paste the function into the range G4:G22.
3. Enter a formula in cell H3 on the Payroll Details worksheet that calculates the Medicare
Tax. Medicare funds are used by the government to provide medical financial support to
senior citizens. Your formula should multiply the Gross Pay This Week by 1.45%. Copy
and paste this formula into the range H4:H22.

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288 Data Analytics Using Microsoft® Excel®

4. Enter a formula in cell I3 on the Payroll Details worksheet that calculates the total FICA tax
(FICA stands for Federal Insurance Contributions Act). Your formula should add the Social
Security Tax to the Medicare Tax. Copy and paste this formula into the range I4:I22.
5. Enter an IF function in cell J3 on the Payroll Details worksheet to calculate the Federal Tax.
If the Gross Pay This Week is less than or equal to 1150, then the tax is calculated by mul-
tiplying the Gross Pay This Week by 20%. Otherwise, this tax is calculated by multiplying
the Gross Pay This Week by 25%. Copy and paste the IF function into the range J4:J22.
6. If an employee has been working with the medical group for 1 or more years, the company
will match 50% of the employee’s 401K retirement contributions. Calculate the company’s
401K retirement contributions by entering an IF function in cell L3 on the Payroll Details
worksheet. If the Years of Service is greater than or equal to 1, multiply the 401K Retire-
ment value by 50%. Otherwise, the output of the function should be zero. Copy and paste
the IF function into the range L4:L22.
7. The medical group offers its employees an additional retirement benefit based on the
employee’s position and years of service. Employees who are with the practice for three
or more years will receive an additional contribution to their retirement account. Calcu-
late this benefit by entering an IF function in cell M3 on the Payroll Details worksheet. If
an employee is a physician and has been working in the medical group for three or more
years, the function should multiply the Gross Pay This Week by 8%. For all other employ-
ees who have been working at the medical group for three or more years, the function
should multiply the Gross Pay This Week by 5%. Copy and paste the function into the
range M4:M22.
8. Enter a formula into cell N3 on the Payroll Details worksheet that calculates the Total
Retirement Benefits. Your formula should add the 401K Company Match value to the
Retirement Benefit value. Copy and paste the formula into the range N4:N22.
9. Enter a formula into cell O3 on the Payroll Details worksheet that calculates the Net Pay-
ment for each employee. Your formula should subtract the values in the range I3:K3 from
the Gross Pay This Week in cell F3. The range I3:K3 includes the following: Total FICA (cell
I3), Federal Tax (cell J3), and 401K Retirement (cell K3). Copy and paste this formula into
the range O4:O22.
10. Save and close your file.

Integrity Check

Starter File Name: Chapter 6 IC Exercise 3

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through rate that is outside of this range will require immediate action. An analyst has prepared
and e-mailed an inventory status report for you based on the company’s inventory management
guidelines. She explains the following in her e-mail:
• I used exception analytics to create the Status column on the Inventory Report worksheet.
The function I created will identify which items need a “rush priority”. The company sug-
gests that we put a “rush priority” on any inventory orders where we sold more than 100
units in a week and the sell through rate is greater than or equal to 20%.
• If the sell through rate for any item is less than 10%, we have to work with the buyers
to see if any incoming orders can be cancelled. The function I created indicates any slow
selling items with a “cancel warning” description.
• Overall, it looks like our biggest problem is that we don’t have enough inventory! In fact,
most of the items on the report are showing a “rush priority.” I guess this is a good prob-
lem to have.
ASSIGNMENT
1. Look at the Status column (column E) for the first few items on the inventory report. Does
the output of the function created by the analyst make sense given the company’s guide-
lines for managing inventory? Document your observation in the AnswerSheet worksheet.
2. Evaluate the construction of the IF function in the Status column for the first item. Does the
function accurately evaluate the Sell Through percentages in column D? Document your
observation in the AnswerSheet worksheet.
3. The company suggests that if the unit sales for an item are greater than 100 and the sell
through rate is greater than or equal to 20% that a rush priority be placed on any orders.
Does the IF function in the Status column accurately account for this condition? Document
your observation in the AnswerSheet worksheet.
4. Enter a new IF function in the Status column to accurately assess the inventory for each
item based on the company’s inventory policies. Make any other adjustments to the work-
sheet so that it is easy to see all items that require “Rush Priorities” as well “Cancel
Warnings.”

Applying Data Analytics Skills

A Second Look at Federal Income Taxes

Starter File Name: Chapter 6 ADAS Exercise 4

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Chapter 6 ADAS Exercise 4.xlsx

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Chapter_6_ADAS_Exercise_4-d3e4.xlsx

Difficulty: Level 3
The purpose of this assignment is to revisit the federal payroll tax calculations from the Payroll for
a Medical Group exercise. In that project it was assumed that if the employee’s weekly income
was less than or equal to $1,150, the federal tax was estimated at 20%. For any income over
$1,150, the federal tax was estimated at 25%. However, the IRS publishes tables that provide
more details as to how federal taxes should be calculated and withheld for payroll distributions.
The Excel workbook for this assignment contains two worksheets. The Payroll Details worksheet
is a subset of the data that was used in the Payroll for a Medical Group exercise. The Withholding
Table worksheet contains part of an Excel worksheet that was published by the IRS. There are
six levels of weekly income in columns A and B of the worksheet. Columns C and D provide
information for calculating the amount of federal tax that should be withheld. For example, if an
employee’s weekly salary is $200, you would use row 3 to calculate the amount of federal tax
that should be withheld. This means you would first subtract the value in cell C3 from the weekly

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290 Data Analytics Using Microsoft® Excel®

salary which is: 200 – 111.15 = 88.85. Then, the result of 88.85 is multiplied by the percentage
in cell D3 which is: 88.85 x .10 = 8.885. Therefore, the federal tax that should be withheld for an
employee who is paid $200 a week is $8.885. Expressed as a formula, the calculation would be
as follows: (200 − 111.15) x .10.
Your assignment is to complete the Federal Tax calculations in column F of the Payroll Details
worksheet. You are required to reference the data in the Withholding Table worksheet such that
if the tax rates change in the future (a very common occurrence) your federal tax calculations will
automatically be updated. Hint: You will need to use the VLOOKUP function twice in your formula.
Follow the example calculation carefully and manually check the output of your formula to deter-
mine whether you are producing an accurate result. Note that when constructing the VLOOKUP
function, you will not be able to search for an exact match.

Chapter Skills Test

Starter File Name: Chapter 6 Skills Test

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Difficulty: Level 3
Answer the following questions by executing the required skills on the starter file listed above.
Answer each question in the order it appears. Questions that are preceded with the letters KO
indicate you must only use your keyboard and not your mouse to execute the required skill.
1. Apply the Freeze Panes command to the Investment Detail worksheet so Rows 1 and 2 and
Columns A, B, and C are visible while scrolling the worksheet.
2. Enter a SUM function in cell I1 on the Investment Detail worksheet to sum the values in the
Current Investment column. Add cell capacity to include Row 25 in this function.
3. In cell D3 on the Investment Detail worksheet, enter a VLOOKUP function that displays the
growth last year for the symbol in cell B3. The growth last year for all investments can be
found in Column E on the Investment List worksheet. Your function should look for an exact
match to the lookup value. Consider that this function will be copied and pasted into the
range D4:D17 when defining the arguments.
4. KO Copy and paste cell D3 into the range D4:D17.
5. In cell E3 on the Investment Detail worksheet, use an HLOOKUP function to show the perfor-
mance target for the benchmark in cell A3. The performance targets for each benchmark can
be found in the Performance Targets worksheet. The function should display the Aggressive
target values in Row 6 on the Performance Targets worksheet. Your function should look for
an exact match to the lookup value. Consider that this function will be copied and pasted
into the range E4:E17 when defining the arguments.
6. KO Copy cell E3 and paste it into the range E4:E17.
7. On the Investment Detail worksheet, enter an IF function in cell J3. The output of the function
should be the word “Gain” if the Current Investment Value in cell I3 is greater than the Cost
of Purchase in cell H3. Otherwise, the output of the function should be the words “No Gain”.
8. KO Copy cell J3 and paste it into the range J4:J17.
9. On the Investment Detail worksheet, enter a nested IF function into cell G3. If the Dividend
/ Yield value in cell F3 is less than 2%, show the word “Low”. If the Dividend / Yield value
in cell F3 is greater than or equal to 5%, show the word “High”. Otherwise, show the word
“Moderate”.
10. KO Copy cell G3 and paste it into the range G4:G17.

11. On the Investment Detail worksheet in cell P3, use the OR function within an IF function to
evaluate the Current vs. Target value. If the Current vs. Target value in cell O3 is greater than
2% or less than −2%, show the word “REBAL”. Otherwise, show the word “OK”.
12. KO Copy cell P3 and paste it into the range P4:P17.
13. On the Investment Detail worksheet in cell Q3, use the AND function within an IF function to
evaluate the Current vs. Target value and the Unrealized Gain/Loss value. If the Current vs.
Target value in cell O3 is greater than 2% and if the Unrealized Gain/Loss value in cell K3 is
greater than 0, show the word “BUY.” Otherwise, show the word “hold”.
14. KO Copy cell P3 and paste it into the range Q4:Q17.
15. On the Investment Detail worksheet in cell D1, use the ISBLANK function within the IF func-
tion to determine if cell A26 is blank. If cell A26 is blank then there should be nothing
displayed in cell D1. If there is anything entered into cell A26, the following should be dis-
played in cell D1: Data exceeds function cell capacity.
16. Apply a data visualization technique to the data in Column K. Use filled circle icons (traffic
light icons) to indicate the level of unrealized gains and losses. If there is gain greater than or
equal to $100, there should be a green circle. If the gain is greater than or equal to zero but
less than $100, there should be a yellow circle. Any losses should be identified with a red
circle.

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292 Data Analytics Using Microsoft® Excel®

Summarizing Exception
Analytics

After completing a project that involves exception analytics, summary reports can be created that
use these exceptions to categorize and aggregate a dataset. For the Investment Portfolio project,
Chapter 6 demonstrated how exception analytics was applied to a dataset using logical and lookup
functions. This chapter will use the exception outputs from the Investment Detail worksheet to
construct two summary reports. The first is the Balance Summary report in the Portfolio Summary
worksheet. This report will summarize the investment data on the Investment Detail worksheet
by investment type. The second is the Top Performer Analysis report in the Performance Sum-
mary worksheet. This report will summarize several exception outputs on the Investment Detail
worksheet related to top performing investments. The Excel skills that will be used to create these
reports are Statistical IF and Statistical IFS functions. This includes the COUNTIF, COUNTIFS,
SUMIF, SUMIFS, AVERAGEIF, and AVERAGEIFS functions.

7.1 Statistical IF Functions

Learning Objectives

1. Learn how to use the COUNTIF function to count selected non-blank cells in a range based
on one criteria argument.
2. Understand how the AVERAGEIF function uses one cell range to produce an output based
on cells selected in an alternate range using one criteria argument.
3. Learn how the SUMIF function uses one cell range to produce an output based on cells
selected in an alternate range using one criteria argument.

The first report that will be added to the Investment Portfolio project is the Balance Summary
by Investment Type report in the Portfolio Summary worksheet. The purpose of this report is to
aggregate the dataset in the Investment Detail worksheet by investment type. This will provide
the user with an overview of how the portfolio is performing in terms of current value and total
investment gains and will also show how the portfolio is balanced by investment type. This will
be accomplished through the use of statistical IF functions. These functions combine the logical
test of the IF function with the computational capabilities of statistical functions. This enables the
function to selectively include targeted cell locations when producing outputs for statistical calcu-
lations such as sum, average, count, etc.
Figure 7.1 shows the Balance Summary by Investment Type report before statistical IF func-
tions are used to summarize the data from the Investment Detail worksheet. The placement of this
summary report in a separate worksheet is a design choice based on the DATA Analytics Frame-
work which was outlined in the prior chapter. As stated in the Time component of the framework,
additional rows and columns might be added to the Investment Detail worksheet. To allow for this
flexibility, both summary reports for the project are placed in separate worksheets.

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294 Data Analytics Using Microsoft® Excel®

FIGURE 7.1 Balance Summary by Investment Type Report

The COUNTIF Function

Follow Along File: Data Analytics Project 5 continued. If starting here use Data Analytics Project
5.09.
The first statistical IF function that will be used is the COUNTIF function. The COUNTIF
function differs from the regular COUNT function in two ways. First, the regular COUNT function
will only count the number of cells in a range that contain numeric data. The COUNTIF function
will count the number of cells in a range that contain any type of entry either numeric or non-
numeric data. Second, the COUNTIF function can selectively count the cells in a range based on
specific criteria.
The COUNTIF function contains two arguments: “range” and “criteria”. The “range” argument
is defined with a cell range that contains the data that will be counted. The “criteria” argument is
defined with the criteria that will be used to decide if a cell in the range should be included in the
output of the function. The following explains how the COUNTIF function is used to count the
number of investments in the portfolio for each investment type.
1. Click cell B3 on the Portfolio Summary worksheet.
2. Begin the COUNTIF function by typing an equal sign =, the function name “countif”, and an
open parenthesis.
3. Click the Investment Detail worksheet tab.
4. Highlight the range B5:B34. This will define the “range” argument of the function. Note that cell
capacity is added to the function so when additional rows of data are added to the Investment
Detail worksheet, the data will also be included in these summary reports.
5. Tap the F4 key to add an absolute reference to the range B5:B34. The absolute reference will
prevent relative referencing from modifying the range when the function is copied and pasted
to other cell locations.
6. Type a comma to advance to the “criteria” argument.
7. Click the Portfolio Summary worksheet tab.
8. Click cell A3 to define the “criteria” argument (see Figure 7.2). The function will count the num-
ber of instances the “Bond ETF” appears in the range B5:B34.

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 7 Summarizing Exception Analytics 295

FIGURE 7.2 Defined Arguments for the COUNTIF Function

9. Type a closing parenthesis and tap the ENTER key on your keyboard. The output of the func-
tion is “3” indicating there are three Bond ETF investments. These investments appear in the
first three rows of the Investment Detail worksheet.
10. Copy cell B3 and paste it into the range B4:B7 using the Paste Formulas command.
11. Enter a SUM function in cell B8 that sums the values in the range B3:B7. The report now shows
how the “15” investments in the Investment Detail worksheet are allocated by investment type
(see Figure 7.3). Notice the largest number of investments (6) are in Common Stock and the
lowest number of investments (1) are in Precious Metals ETF.

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296 Data Analytics Using Microsoft® Excel®

FIGURE 7.3 Number of Investments Summarized by Investment Type

Skill Refresher: COUNTIF Function

1. Type an equal sign =.

2. Type the function name COUNTIF followed by an open parenthesis.
3. Define the “range” argument with a range of cells that contain data to be counted.
4. Type a comma to advance to the “criteria” argument.
5. Define the “criteria” argument with a cell location, number, text, or logical test. Text and
logical tests must be enclosed in quotations.
6. Type a closing parenthesis.
7. Tap the ENTER key on your keyboard.

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Chapter 7 Summarizing Exception Analytics 297

The AVERAGEIF Function

Follow Along File: Data Analytics Project 5 continued. If starting here use Data Analytics Project 5.10.
The AVERAGEIF function performs the identical mathematical calculation as the regular
AVERAGE function. Similar to the COUNTIF function, the AVERAGEIF function provides the abil-
ity to define criteria that is used to select cells in a range that will be included in the function
output. The AVERAGEIF function differs from the COUNTIF function in that there are two cell
ranges that must be defined instead of one. The first cell range contains data that will be evaluated
for a match to the criteria defined in the function. The second cell range contains the values that
will be used to produce the function output. Table 7.1 provides definitions for the arguments con-
tained in the AVERAGEIF and SUMIF functions.

TABLE 7.1 Arguments for the AVERAGEIF and SUMIF Functions

Argument Definition
Range of cells that will be evaluated to determine a match to the Criteria
Range
argument.
Criteria that will be used to evaluate the range of cells defined in the Range
argument for a match. This argument can be defined with a cell location, formula,
Criteria
number, text, or logical test. Note that text and logical tests must be enclosed in
quotations.
Range of cells that will be used to calculate the average when using the
[Average_Range] AVERAGEIF function, or the sum when using the SUMIF function. This argument is
or [Sum_Range] enclosed in brackets because it can be omitted. If this argument is omitted, the
function will use the range of cells in the Range argument to calculate the output.

The AVERAGEIF function will be used to calculate the average time each investment has been
owned on the Balance Summary by Investment Type report. The following demonstrates how this
is added to the report.
1. Click cell C3 in the Portfolio Summary worksheet.
2. Type an equal sign = followed by the function name “averageif” and an open parenthesis.
3. Click the Investment Detail worksheet tab.
4. Highlight the range B5:B34 on the Investment Detail worksheet. This will define the “range”
argument of the function.
5. Tap the F4 key on your keyboard to add an absolute reference to the range B5:B34.
6. Type a comma to advance to the “criteria” argument.
7. Click the Portfolio Summary worksheet tab.
8. Click cell A3 on the Portfolio Summary worksheet. This will define the “criteria” argument. The
function will search for the investment type in cell A3 in the Portfolio Summary worksheet in
the range B5:B34 on the Investment Detail worksheet.

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298 Data Analytics Using Microsoft® Excel®

FIGURE 7.4 Defining the Range and Criteria Arguments of the AVERAGEIF Function

9. Type a comma to advance to the “[average_range]” argument.

10. Click the Investment Detail worksheet tab.
11. Highlight the range O5:O34 on the Investment Detail worksheet. Use the scroll bars to navigate
the worksheet to highlight this range. When the function finds a match for the investment
type in the range B5:B34, it will include the value in the same row in the range O5:O34 for the
output.
12. Tap the F4 key on your keyboard to put an absolute reference on the range O5:O34. Note that
the Formula Bar must be used to view the function when an argument is defined on a second
worksheet (see Figure 7.5).

FIGURE 7.5 Using the Formula Bar When Defining Arguments in a Second Worksheet

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Chapter 7 Summarizing Exception Analytics 299

13. Type a closing parenthesis and tap the ENTER key on your keyboard. The output of the func-
tion should be 44. This indicates that on average, each of the “3” Bond ETF investments has
been owned for 44 months.
14. Copy cell C3 and paste it using the Paste Formulas command into the range C4:C7 on the Port-
folio Summary worksheet.
15. Enter an AVERAGE function into cell C8 on the Portfolio Summary worksheet to calculate the
average of the values in the range C3:C7.

Skill Refresher: AVERAGEIF Function

1. Type an equal sign =.

2. Type the function name AVERAGEIF followed by an open parenthesis.
3. Define the “range” argument with a range of cells that will be evaluated using the “criteria”
argument.
4. Type a comma to advance to the “criteria” argument.
5. Define the “criteria” argument with a cell location, number, text, or logical test. Text and
logical tests must be enclosed in quotations.
6. Type a comma to advance to the “[average_range]” argument.
7. Define the “[average_range]” argument with a range that contains values to be averaged.
Excel will use the “range” argument to calculate the average if this argument is omitted.
8. Type a closing parenthesis.
9. Tap the ENTER key on your keyboard.

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The SUMIF Function

Follow Along File: Data Analytics Project 5 continued. If starting here use Data Analytics Project 5.11.
The SUMIF function performs the same mathematical calculation as the regular SUM func-
tion. Similar to the AVERAGEIF function, the SUMIF function can select specific cells from a range
that will be used in the output. The arguments for the SUMIF function are very similar to the
AVERAGEIF function (see Table 7.1) and two cell ranges are used when defining the function argu-
ments. The following demonstrates how the SUMIF function is used to complete the Balance
Summary by Investment Type report.

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300 Data Analytics Using Microsoft® Excel®

1. Click cell D3 on the Portfolio Summary worksheet.

2. Begin the SUMIF function by typing an equal sign =, the function name “sumif”, and an open
parenthesis.
3. Click the Investment Detail worksheet tab.
4. Highlight the range B5:B34.
5. Tap the F4 key on your keyboard to place an absolute reference on the range.
6. Type a comma to advance to the “criteria” argument.
7. Click the Portfolio Summary worksheet tab.
8. Click cell A3 to define the “criteria” argument.
9. Type a comma to advance to the “[sum_range]” argument.
10. Click the Investment Detail worksheet tab.
11. Highlight the range Q5:Q34. The data in this range will be summed based on rows in the range
B5:B34 that match the investment type in cell A3 (cell A3 is used in the “criteria” argument).
12. Tap the F4 key on your keyboard to add an absolute reference to the range used to define the
“[sum_range]” argument.
13. Type a closing parenthesis and tap the ENTER key on your keyboard. The output of the func-
tion should be $19,547. This is how much gains have or profit has been earned on all Bond ETF
investments (see Figure 7.6).

FIGURE 7.6 SUMIF Function Output

14. Copy cell D3 and paste it into the range D4:D7 using the Paste Formulas command.
15. Enter a SUM function in cell D8 that sums the values in the range D3:D7. The SUMIF outputs
in this column show that the Common Stock and Stock ETF investments have earned the
highest gains in the portfolio.

Integrity Check

Matching Row Numbers for the Range and [Average_range] or [Sum_range] Arguments
When defining the “[average_range]” argument for the AVERAGEIF function or the “[sum_range]”
argument for the SUMIF function, the row numbers used in these ranges must match the row
numbers used in the “range” argument. For example, if the “range” argument is defined with the
range A4:A12, the range used to define the “[average_range]” or “[sum_range]” argument must
begin with Row 4 and end with Row 12. If the row numbers in these two arguments do not

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Chapter 7 Summarizing Exception Analytics 301

match, Excel will include the values only in the rows used to define the “range” argument. For
example, if the “range” argument is defined with the cell range A4:A12 and the “[average_range]”
or “[sum_range]” argument is defined with the cell range D4:D20, only the values in cells D4:D12
will be included in the function output. This could produce an erroneous output that will not be
recognized unless the cell ranges used to define the function arguments are carefully examined.

16. Click cell E3 on the Portfolio Summary worksheet.

17. Begin the SUMIF function by typing an equal sign =, the function name “sumif”, and an open
parenthesis.
18. Define the “range” argument with the cell range B5:B34 on the Investment Detail worksheet.
Place an absolute reference on this range.
19. Define the “criteria” argument with cell A3 on the Portfolio Summary worksheet.
20. Define the “[sum_range]” argument with the range J5:J34 on the Investment Detail worksheet.
Place an absolute reference on this range. Figure 7.7 shows how the SUMIF function should
appear after all arguments are defined.

FIGURE 7.7 Defined Arguments of the SUMIF Function

21. Complete the SUMIF function and then copy cell E3 and paste it into the range E4:E7 using the
Paste Formulas command.
22. Copy cell D8 and paste it into cell E8. The output of the SUM function pasted into cell E8 should
be $489,887. A quick data audit on this output can be done by checking to see that it matches
the value in cell J2 on the Investment Detail worksheet.
23. Enter a formula in cell F3 that calculates the current value percent of portfolio for each invest-
ment type. Your formula should divide the current value in cell E3 by the current value of the
total portfolio in cell E8. Use the absolute references were appropriate in this formula.
24. Copy cell F3 and paste it into the range F4:F7 using the Paste Formulas command.
25. Copy cell E8 and paste it into cell F8 using the Paste Formulas command. Figure 7.8 shows
how the outputs should appear for the Percent of Portfolio column on the Portfolio Summary
worksheet.

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302 Data Analytics Using Microsoft® Excel®

FIGURE 7.8 Outputs for the Percent of Portfolio Column

26. Click cell G3 on the Portfolio Summary worksheet.

27. Enter a SUMIF function that sums the Target Percent of Portfolio column on the Investment
Detail worksheet for each investment type in column A on the Portfolio Summary worksheet.
For the “range” and “[sum_range]” arguments add cell capacity to include row 34 on the Invest-
ment Detail worksheet. Use absolute references where appropriate.
28. Copy cell G3 and paste it into the range G4:G7 using the Paste Formulas command.
29. Copy cell F8 and paste it into cell G8. Figure 7.9 shows how the outputs should appear in the
Target Percent column on the Portfolio Summary worksheet. The SUMIF function that was
entered into cell G3 can be seen in the Formula Bar. Notice where absolute references where
used in the function arguments.

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Chapter 7 Summarizing Exception Analytics 303

FIGURE 7.9 Outputs for the Percent of Portfolio Column

30. Enter a formula in cell H3 on the Portfolio Summary worksheet that subtracts cell G3 from cell
F3. This will show where the portfolio is out of balance by investment type.
31. Copy cell H3 and paste it into the range H4:H7 using the Paste Formulas command.
Figure 7.10 shows the completed Balance Summary by Investment Type report. This report
provides a concise summary of the data contained in the Investment Detail worksheet. The report
also shows how well the investments are currently balanced against the desired targets. The user
of this report can quickly see that investments in the Global Stock ETF, Precious Metals ETF, and
Common Stock categories are below the target percentage for the portfolio and may require addi-
tional investments. Investments in the Bond ETF and Stock ETF categories are too high compared
to the target percentage of the portfolio and investments in these categories may need to be sold.

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304 Data Analytics Using Microsoft® Excel®

FIGURE 7.10 Completed Balance Summary by Investment Type Report

Skill Refresher: SUMIF Function

1. Type an equal sign =.

2. Type the function name SUMIF followed by an open parenthesis.
3. Define the “range” argument with a range of cells that will be evaluated using the “criteria”
argument.
4. Type a comma to advance to the “criteria” argument.
5. Define the “criteria” argument with a cell location, number, text, or logical test. Text and
logical tests must be enclosed in quotations.
6. Type a comma to advance to the “[sum_range]” argument.
7. Define the “[sum_range]” argument with a range that contains values to be summed. Excel
will use the “range” argument to calculate the sum if this argument is omitted.
8. Type a closing parenthesis.
9. Tap the ENTER key on your keyboard.

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Chapter 7 Summarizing Exception Analytics 305

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Key Takeaways

• The COUNTIF, SUMIF, and AVERAGEIF functions can select specific cell locations from a
range to compute an output using one criteria.
• The COUNTIF function differs from the regular COUNT function in that the COUNTIF function
will count the number of cells in a range that contain either numeric or non-numeric data.
• The AVERAGEIF function performs the identical mathematical calculation as the regular
AVERAGE function.
• When using the AVERAGEIF and SUMIF functions, the row numbers used in the ranges to
define the “range” argument and the “[average_range]” or “[sum_range]” arguments must be
identical.

7.2 Statistical IFS Functions

Learning Objectives

1. Learn how to use the COUNTIFS function to count selected non-blank cells in a range based
on more than one criteria.
2. Understand how the AVERAGEIFS function calculates the average of selected cells in a
range based on the values in an alternate range of cells using more than one criteria.
3. Learn how the SUMIFS function calculates the sum of selected cells in a range based on the
values in an alternate range of cells using more than one criteria.
4. Review how the CONCATENATE function is used to combine data from multiple cell loca-
tions into one cell location.

The second report that will summarize the exception analytics created on the Investment Detail
worksheet is the Top Performers Analysis. This report will require the use of statistical IFS func-

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306 Data Analytics Using Microsoft® Excel®

tions. The statistical IF functions that were used to create the Balance Summary by Investment
Type report provided the ability to define one criteria to select cells from a targeted range. The sta-
tistical IFS functions provide the ability to define multiple sets of criteria for selecting cells from a
targeted range. The plural IFS at the end of the function name, such as COUNTIFS, indicate that
more than one criteria can be used to select cells that will be used to produce the function output.
Similar to the previous summary report, the Top Performers Analysis will aggregate data by
investment type. Exceptions that will be summarized in this report include the top performer
exceptions as well as the buy and sell amounts. The report will also summarize the number of
investments where the growth rate is falling behind the benchmark growth rate.

The COUNTIFS Function

Follow Along File: Data Analytics Project 5 continued. If starting here use Data Analytics Project 5.12.
The COUNTIFS function provides the option of defining multiple sets of criteria for selecting
cells from a targeted range that will be used in the function output. The arguments for the
COUNTIFS function are established in pairs. For example, the first arguments for the function
are “criteria_range1” and “criteria1”. The function will use the “criteria1” argument to select cells in
the “criteria_range1” argument. A second pair of arguments, “criteria_range2” and “criteria2”, can be
defined to select a subset of cell locations that were selected in the “criteria_range1” and “criteria1”
arguments. This process can be repeated for several pairs of “criteria” arguments. The following
demonstrates how the COUNTIFS function is used to count the number of investments that were
assigned a TOP exception tag from the Investment Detail worksheet by investment type.
1. Click cell B3 on the Performance Summary worksheet.
2. Begin the COUNTIFS function by typing an equal sign =, the function name “countifs”, and an
open parenthesis.
3. Click the Investment Detail worksheet tab.
4. Highlight the range B5:B34 to define the “criteria_range1” argument. As was done in previous
functions, cell capacity is being added to the function to include data that is added through
row 34 on the Investment Detail worksheet.
5. Tap the F4 key on your keyboard. This will add an absolute reference to the range B5:B34.
6. Type a comma to advance to the “criteria1” argument.
7. Click the Performance Summary worksheet tab. Check to make sure the correct worksheet is
open. The function should be visible and the title of the report should be Top Performer Analy-
sis (see Figure 7.11).
8. Click cell A3 on the Performance Summary worksheet. This will define the “criteria1” argument
with the investment type that is entered into cell A3 (see Figure 7.11). The function will first
select cells to be counted that match the Bond ETF investment type in the range B5:B34 on the
Investment Detail worksheet.

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Chapter 7 Summarizing Exception Analytics 307

FIGURE 7.11 Defining Criteria_Range1 and Criteria1 Arguments of the COUNTIFS Function

9. Type a comma to advance to the “[criteria_range2” argument.

10. Click the Investment Detail worksheet tab.
11. Highlight the range U5:U34 on the Investment Detail worksheet. You will need to use the scroll
bars to navigate to the first row under Column U (see Figure 7.5).
12. Tap the F4 key to add an absolute reference to the range.
13. Type a comma to advance to the “criteria2]” argument.
14. Type an open quotation, then type the word “top” followed by a closing quotation (see Figure
7.12). When defining the “criteria” argument for any statistical IF function, text must be
enclosed in quotations.
15. Type a closing parenthesis and then tap the ENTER key on your keyboard. The output of the
function should be 2. The function first counted how many cells in the range B5:B34 on the
Investment Detail worksheet matched the “Bond ETF” entry in cell A3 on the Performance
Summary worksheet. Then the function counted how many of the cells that were counted in
B5:B34 also had the word “top” in the range U5:U34 on the Investment Detail worksheet. The
result is that there are “2” Bond ETF investments that are identified as TOP performer excep-
tions on the Investment Detail worksheet.

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308 Data Analytics Using Microsoft® Excel®

FIGURE 7.12 Output of the COUNTIFS Function

16. Copy cell B3 on the Performance Summary worksheet and paste it into the range B4:B7 using
the Paste Formulas command.
17. Enter a SUM function in cell B8 that sums the values in the range B3:B7. The results in the
Count of Top Performers column shows that the Common Stock and Stock ETF categories
have the most top performing investments.
The next column to be completed on the Top Performer Analysis report is the Count of Falling
Behind. This column is measuring investments that are considered top performers based on the
exception analytics applied in the Investment Detail worksheet, but have fallen below the bench-
mark growth rate. To produce the outputs for this column, there will be three pairs of arguments
defined for the COUNTIFS function. In defining these arguments, the use of a logical test will be
needed. The following demonstrates how this is accomplished.
18. Click cell C3 on the Performance Summary worksheet.
19. Begin the COUNTIFS function by typing an equal sign =, the function name “countifs”, and an
open parenthesis.
20. Define the “criteria_range1” argument with the range B5:B34 on the Investment Detail work-
sheet. Place an absolute reference on this range.
21. Define the “criteria1” argument with cell A3 on the Performance Summary worksheet. The first
pair of “criteria” arguments for the function should be identical to the arguments shown in Fig-
ure 7.11.
22. Define the “[criteria_range2” argument with the range U5:U34 on the Investment Detail work-
sheet. Place an absolute reference on this range.
23. Define the “criteria2]” argument with the word “top”. Note this word must be enclosed in quo-
tations. Up to this point, the arguments of the COUNTIFS function should be identical to the
arguments shown in the Formula Bar on Figure 7.12.
24. Type a comma to advance to the “[criteria_range3” argument.
25. Highlight the range X5:X34 on the Investment Detail worksheet. Use the scroll bars as shown
in Figure 7.4 as needed to navigate the worksheet to highlight this range.
26. Add an absolute reference to the range by tapping the F4 key on your keyboard.
27. Type a comma to advance to the “criteria3]” argument.
28. Type an open quotation followed by the less than sign < and the number zero. Then, type a
closing quotation. The third criteria of the COUNTIFS function is a logical test that will count

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Chapter 7 Summarizing Exception Analytics 309

any cells in the range X5:X34 that are less than zero. When using a logical test with a constant
to define the criteria of any statistical IF function, the entire logical test must be enclosed in
quotations.
29. Type a closing parenthesis and then tap the ENTER key on your keyboard. The output of the
function is zero because the two top performing Bond ETF investments have growth rates that
are higher than the benchmark growth rates. Also, notice how the logical test in the “criteria3]”
argument is enclosed in quotations (see Figure 7.13).

FIGURE 7.13 COUNTIFS Function with a Logical Test

30. Copy cell C3 on the Performance Summary worksheet and paste it into the range C4:C7 using
the Paste Formulas command.
31. Copy cell B8 and paste it into cell C8. The results show there are “2” Stock ETF investments that
are considered top performers but are falling below the benchmark growth rate.

FIGURE 7.14 Outputs for Count of Falling Behind Column

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310 Data Analytics Using Microsoft® Excel®

The COUNTIFS function used in the Count of Falling Behind column for the Top Performers
Analysis report used a logical test to define the “criteria3]” argument. Defining the “criteria” argu-
ments for statistical IF functions differ from the way in which logical tests are entered into basic
IF functions. Table 7.2 is provided to show the proper syntax for defining “criteria” arguments for
statistical IF functions.

TABLE 7.2 Syntax for “Criteria” Arguments in Statistical IF and IFS Functions

Syntax Description
A5 A match will be found for whatever is entered into cell A5.
3 Cells will be selected that contain the number 3.
“top” Cells will be selected that contain the word “top”.
“>6” Cells that have a value greater than 6 will be selected.
Cells that have a value that is less than or equal to the value entered in cell A5 will be
“<=”&A5
selected.
“09/20/
Cells that contain the date 09/20/2020 will be selected.
2020”
“<=09/
20/ Cells that contain the date 09/20/2020 or any date prior to 09/20/2020 will be selected.
2020”
Any cells that contain the sequence of the three letters “etf” will be selected. The asterisk
“*etf” denotes that these three letters in this sequence can appear anywhere in the cell in order
for it to be selected.
Any cells that contain exactly five characters and the last three characters are the letters
“??etf”
“etf”. The question marks denote that the first two characters can be anything.

Why…

Error Message Appears When Entering a Statistical IF or IFS Function

If an error message appears when attempting to enter a statistical IF or IFS function into a cell
location, carefully check the syntax of the “criteria” argument. The syntax for using logical tests
in “criteria” arguments is different compared to a regular IF function. For example, if using a log-
ical test to assess if a range of cells contains values that are greater than or equal to zero, the
“criteria” argument must be defined as follows: “>=0”. If the quotations are omitted, Excel will not
accept the function and instead will display an error message.

Skill Refresher: COUNTIFS Function

1. Type an equal sign =.

2. Type the function name COUNTIFS followed by an open parenthesis.
3. Define the “criteria_range1” argument with a range of cells that will be counted.
4. Type a comma to advance to the “criteria1” argument.
5. Define the “criteria1” argument with a cell location, number, text, or logical test. Text and
logical tests must be enclosed in quotations. This argument will be used to select cells
from the “criteria_range1” argument.
6. Type a comma and then repeat steps 3, 4, and 5 to define as many pairs of arguments as
needed.
7. Type a closing parenthesis.
8. Tap the ENTER key on your keyboard.

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Chapter 7 Summarizing Exception Analytics 311

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The AVERAGEIFS Function

Follow Along File: Data Analytics Project 5 continued. If starting here use Data Analytics Project 5.13.
The AVERAGEIFS function is similar to the COUNTIFS function in that multiple sets of
criteria can be defined for selecting cells to produce an output instead of one. However, the AVER-
AGEIFS function allows for one cell range to be used to evaluate the criteria for selecting rows and
a second cell range that is used to produce the function output. This setup of arguments is identical
to the AVERAGEIF function shown in the first section of this chapter. Table 7.3 provides definitions
for the arguments of the AVERAGEIFS and the SUMIFS functions.

TABLE 7.3 Arguments for the AVERAGEIFS and SUMIFS Functions

Argument Definition
Average_range Range of cells that contain values to be averaged using the AVERAGEIFS function
or Sum_range or summed using the SUMIFS function. The AVERAGEIFS or SUMIFS function will
only select values from this range if all criteria pairs are true.
Criteria_range1 Range of cells that will be evaluated based on the Criteria1 argument. This will
determine which cells in the Average_range or Sum_range arguments will be
included in the function output.
Criteria1 Criteria that will be used to evaluate the range of cells used in the Criteria_range1
argument. This argument can be defined with a cell location, formula, number, text,
or logical test. Note that text must be enclosed in quotations.
Criteria_range2 Optional argument that defines a second range of cells that will be evaluated based
on the Criteria2 argument. This will determine which cells in the Average_range or
Sum_range arguments will be included in the function output. Additional
Criteria_rangeN arguments can be defined as needed where N can be any number.
Criteria2 Criteria that will be used to evaluate the range of cells used to define the
Criteria_range2 argument. This argument can be defined with a cell location,
formula, number, text, or logical test. Note that text and logical tests must be
enclosed in quotations. Additional CriteriaN arguments can be defined as needed
where N can be any number.

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312 Data Analytics Using Microsoft® Excel®

The following demonstrates how the AVERAGEIFS function is used to complete the Average
Time Owned column on the Performance Summary worksheet.
1. Click cell D3 on the Performance Summary worksheet.
2. Begin the AVERAGEIFS function by typing an equal sign =, the function name “averageifs”, and
an open parenthesis.
3. Click the Investment Detail worksheet tab.
4. Highlight the range O5:O34 and then tap the F4 key on your keyboard to add an absolute refer-
ence. Use the scroll bars to navigate the worksheet to highlight this range. This is the range of
cells that will be used to produce the function output. As in previous functions, cell capacity is
added up to row 34.
5. Type a comma to advance to the “criteria_range1” argument.
6. Highlight the range B5:B34 on the Investment Detail worksheet. Use the scroll bars to navigate
the worksheet to highlight this range.
7. Tap the F4 key on your keyboard to add an absolute reference to this range.
8. Type a comma to advance to the “criteria1” argument.
9. Click the Performance Summary worksheet.
10. Click cell A3 to define the “criteria1” argument (see Figure 7.15).

FIGURE 7.15 Defining Arguments for the AVERAGEIFS Function

11. Type a comma to advance to the “[criteria_range2” argument.

12. Click the Investment Detail worksheet tab.
13. Highlight the range U5:U34. Then, tap the F4 key on your keyboard to add an absolute refer-
ence.
14. Type a comma to advance to the “criteria2]” argument.
15. Type an open quotation and then type the word “top”. Then, type a closing quotation.
16. Type a closing parenthesis and then tap the ENTER key on your keyboard. The function
output is 48 (see Figure 7.16). This indicates that on average the top performing Bond ETF
investments have been owned for 48 months.

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Chapter 7 Summarizing Exception Analytics 313

FIGURE 7.16 Output of the AVERAGEIFS Function

17. Copy cell D3 on the Performance Summary worksheet and paste it into the range D4:D7 using
the Paste Formulas command.
18. Enter an AVERAGE function into cell D8 on the Performance Summary worksheet that cal-
culates the average of the values in the range D3:D7. The output is 41 which indicates that on
average, investments that are considered top performers have been owned for 41 months (see
Figure 7.17).

FIGURE 7.17 Output for the Average Time Owned Column

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314 Data Analytics Using Microsoft® Excel®

Skill Refresher: AVERAGEIFS Function

1. Type an equal sign.

2. Type the function name AVERAGEIFS followed by an open parenthesis.
3. Define the “average_range” argument with a range of cells that contain values to be aver-
aged.
4. Type a comma to advance to the “criteria_range1” argument.
5. Define the “criteria_range1” argument with a range of cells that will be evaluated based on
the criteria used to define the “criteria1” argument.
6. Type a comma to advance to the “criteria1” argument.
7. Define the “criteria1” argument with a cell location, number, text, or logical test. Text and
logical tests must be enclosed in quotations.
8. Repeat steps 4, 5, 6 and 7 to define as many pairs of “criteria” arguments as needed.
9. Type a closing parenthesis.
10. Tap the ENTER key on your keyboard.

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The SUMIFS Function

Follow Along File: Data Analytics Project 5 continued. If starting here use Data Analytics Project 5.14.
The last statistical IFS function that will be used to complete the Top Performers Analysis
report is the SUMIFS function. The arguments of the SUMIFS function are defined in the same
manner as the AVERAGEIFS function (see Table 7.3) in that multiple “criteria” arguments can be
defined to select cells from a targeted range. However the SUMIFS function output will sum the
values in a range instead of calculating the arithmetic mean. The following demonstrates how the
SUMIFS function will be used to complete the Amount to be Sold and Amount to be Purchased
columns on the Performance Summary worksheet.
1. Click cell E3 on the Performance Summary worksheet.
2. Begin the SUMIFS function by typing an equal sign =, the function name “sumifs”, and an open
parenthesis.
3. Click the Investment Detail worksheet.

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Chapter 7 Summarizing Exception Analytics 315

4. Highlight the range T5:T34. Use the scroll bars to navigate the worksheet as needed. This func-
tion will be used to sum the values that have been calculated as sell amount exceptions on the
Investment Detail worksheet for investments that have been identified as top performers.
5. Tap the F4 key on your keyboard to add an absolute reference.
6. Type a comma to advance to the “criteria_range1” argument.
7. Highlight the range B5:B34 on the Investment Detail worksheet. Use the scroll bars as needed
to navigate the worksheet.
8. Tap the F4 key on your keyboard to add an absolute reference.
9. Type a comma to advance to the “criteria1” argument.
10. Click the Performance Summary worksheet tab and then click cell A3 to define the “criteria1”
argument (see Figure 7.18).

FIGURE 7.18 Three Arguments Defined for the SUMIFS Function

11. Type a comma to advance to the “[criteria_range2” argument.

12. Click the Investment Detail worksheet tab.
13. Highlight the range U5:U34 on the Investment Detail worksheet. Use the scroll bars to navigate
the worksheet as needed.
14. Tap the F4 key on your keyboard to add an absolute reference the range.
15. Type a comma to advance to the “criteria2]” argument.
16. Type an open quotation, type the word “top”, and then type a closing quotation.
17. Type a closing parenthesis and then tap the ENTER key on your keyboard.
The output of the function is $19,254 (see Figure 7.19). This indicates that based on the exception
logic used on the Investment Detail worksheet, there is $19,253 of Bond ETF investments that have
been identified to be sold. This output makes sense considering the Balance Summary by Invest-
ment Type report. This report showed that the Bond ETF investments exceeded the target percent
of portfolio by 4.2%. Selling a portion of these investments will help to lower the overall percent of
the portfolio in Bond ETF investments. It is also worth noting that the total gain showing for Bond
ETF investments is $19,547. The sell amount calculated by the SUMIFS function covers almost all of
these gains.

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316 Data Analytics Using Microsoft® Excel®

FIGURE 7.19 SUMIFS Function Output

18. Copy cell E3 and paste it into the range E4:E7 using the Paste Formulas command.
19. Enter a SUM function into cell E8 that sums the values in the range E3:E7. The outputs shown
in the Amount to be Sold column show that investments in both the Bond ETF and Stock ETF
categories should be sold (see Figure 7.20). Both of these categories are exceeding the target
percent of the portfolio on the Balance Summary by Investment Type report.

FIGURE 7.20 Outputs in the Amount to be Sold Column

A second SUMIFS function will be used to complete the Amount to be Purchased column. The
following demonstrates how this is accomplished.
20. Click cell F3 on the Performance Summary worksheet.
21. Begin the SUMIFS function by typing an equal sign =, the function name “sumifs”, and an open
parenthesis.
22. Click the Investment Detail worksheet.

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Chapter 7 Summarizing Exception Analytics 317

23. Highlight the range S5:S34 to define the “sum_range” argument.

24. Tap the F4 key on your keyboard to add an absolute reference to the cell range.
25. Type a comma to advance to the “criteria_range1” argument.
26. Define the “criteria_range1” argument with the range B5:B34 on the Investment Detail work-
sheet. Add an absolute reference to this range.
27. Define the “criteria1” argument with cell A3 on the Performance Summary worksheet (see Fig-
ure 7.21).

FIGURE 7.21 Arguments Defined for the Second SUMIFS Function

28. Define the “[criteria_range2” argument with the range U5:U34 on the Investment Detail work-
sheet. Add an absolute reference to this range.
29. Define the “criteria2]” argument with the word “top”. Note that the word should be enclosed in
quotations.
30. Complete the function by typing a closing parenthesis and tap the ENTER key on your key-
board.
31. Copy cell F3 and paste it into the range F4:F7 using the Paste Formulas command.
32. Copy the cell E8 and paste it into cell F8.
Figure 7.22 shows the outputs produced by the SUMIFS functions in the Amount to be Pur-
chased column on the Performance Summary worksheet. The global Stock ETF, Precious Metals
ETF, and Common Stock investment categories are all showing amounts that should be purchased.
These outputs make sense given the data shown on the Portfolio Summary worksheet. All three
investment categories show that they are below the target percent of portfolio. Therefore, invest-
ment purchases in these categories along with investment sales for the Bond ETF and Stock ETF
investment categories can bring the portfolio back into balance.

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318 Data Analytics Using Microsoft® Excel®

FIGURE 7.22 Outputs for the Amount to be Purchased Column

Skill Refresher: SUMIFS Function

1. Type an equal sign =.

2. Type the function name SUMIFS followed by an open parenthesis.
3. Define the “sum_range” argument with a range of cells that contain values to be summed.
4. Type a comma to advance to the “criteria_range1” argument.
5. Define the “criteria_range1” argument with a range of cells that will be evaluated based on
the criteria used to define the “criteria1” argument.
6. Type a comma to advance to the “criteria1” argument.
7. Define the “criteria1” argument with a cell location, number, text, or logical test. Text and
logical tests must be enclosed in quotations.
8. Repeat steps 4, 5, 6 and 7 to define as many pairs of “criteria” arguments as needed.
9. Type a closing parenthesis.
10. Tap the ENTER key on your keyboard.

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Chapter 7 Summarizing Exception Analytics 319

The CONCATENATE Function

Follow Along File: Data Analytics Project 5 continued. If starting here use Data Analytics Project 5.15.
The final component that will be added to the Investment Portfolio project is a data internal
control on the Top Performer Analysis and Balance Summary by Investment Type reports. In the
prior chapter, a data internal control was created to show if the number of rows added to the work-
sheet exceeded the function cell capacity. If data is entered beyond Row 34 on the Investment
Detail worksheet, a warning will be displayed showing that data on the worksheet is not included
in the function outputs. A second data internal control was added to display a warning if the sum
of the Target Percent of Portfolio column does not equal 100%. These two data internal controls
must be reflected on the Portfolio Summary and Performance Summary worksheets.
The CONCATENATE function will be used to show both data internal controls on the Top Per-
former Analysis report. The CONCATENATE function is used when items on a worksheet need to
be combined. The arguments for this function are all the same and can be defined with either text
enclosed in quotations or with cell references. The output of the function will be a single text string
that combines all the arguments that are defined. For this project, the two data internal control
messages on the Investment Detail worksheet will be combined and displayed on the Performance
Summary worksheet. The following demonstrates how this is accomplished.
1. Click cell A35 on the Investment Detail worksheet.
2. Type “Bond ETF”, and tap the ENTER key on your keyboard. This will trigger the data internal
control warning in cell F1 which will help to check the output of the CONCATENATE function.
3. Change the value in cell L5 to 1%. This will trigger the second data internal control warning in
cell L1.
4. Click the Performance Summary worksheet tab.
5. Click cell A11. This is the first cell in a set of merged cells that contains the range A11:F11 (see
Figure 7.22).
6. Begin the CONCATENATE function by typing and equal sign =, the function name “concate-
nate” and an open parenthesis.
7. Click the Investment Detail worksheet tab.
8. Click cell F1 on the Investment Detail worksheet. Use the scroll bars as needed to navigate the
worksheet. This will define the “text1” argument.
9. Type a comma to advance to the “[text2]” argument.
10. Type an open quotation, tap the SPACE BAR ten times, and then type a closing quotation. This
will create space between the two data internal control alert messages.
11. Type a comma to advance to the “[text3]” argument.
12. Click cell L1 on the Investment Detail worksheet.
13. Complete the function by typing a closing parenthesis and tap the ENTER key on your key-
board. Both data internal control alert messages now appear on the Performance Summary
worksheet (see Figure 7.23). This is helpful in the event a user is only looking at the Perfor-
mance Summary worksheet and does not check the Investment Detail worksheet.

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320 Data Analytics Using Microsoft® Excel®

FIGURE 7.23 CONCATENATE Function Output

Why…

#NAME? Error Appears When Entering the CONCATENATE Function

When defining the arguments of the CONCATENATE function, text entries must be enclosed in
quotations. For example, if an argument is defined with the word “Stock”, it must be enclosed in
quotations as follows: “Stock”. If the quotations are omitted, the output of the function will be the
#NAME? error. When using numbers to define the arguments of the function, quotations can be
used, but they are not required. Cell references should not be enclosed in quotations.

14. Click the Portfolio Summary worksheet tab.

15. Click cell A11 which begins a merged cell that contains the range A11:H11.
16. Begin a cell reference by typing an equal sign =.
17. Click the Performance Summary worksheet tab.
18. Click cell A11 on the Performance Summary worksheet and tap the ENTER key on your key-
board to complete the cell reference. Any data internal control alert that is displayed on the
Performance Summary worksheet will also be displayed on the Portfolio Summary worksheet
through this cell reference.
This completes the Investment Portfolio project that was started in Chapter 6. It is important
to note that the reports created in this chapter through the use of statistical IF and statistical IFS
functions could have also been created using PivotTables. However, the statistical IF and statistical
IFS functions provide far more flexibility in designing customer reports that exceed the formatting
and design capabilities of PivotTables.

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Chapter 7 Summarizing Exception Analytics 321

Skill Refresher: CONCATENATE Function

1. Type an equal sign =.

2. Type the function name CONCATENATE followed by an open parenthesis.
3. Define the “text1” argument with a cell reference, number, or text enclosed in quotations.
4. Type a comma to advance to the “text2” argument.
5. Repeat steps 3 and 4 as many times as needed to combine data in one cell location.
6. Type a closing parenthesis.
7. Tap the ENTER key on your keyboard.

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Key Takeaways

• The COUNTIFS, SUMIFS, and AVERAGEIFS functions can select specific cell locations from
a range to compute an output using multiple sets of “criteria” arguments.
• The COUNTIFS function will count any cell that is not blank based on the defined “criteria”
arguments. Cells that contain either numeric or non-numeric data will be counted.
• The syntax required for entering logical tests in the “criteria” arguments for statistical IF and
IFS functions is different from regular IF functions.
• The CONCATENATE function is used to combine data into one cell location.

7.3 Chapter Assignments and Test

Data Analytics (Skills Review)

Summarizing Retail Inventory Exceptions (Comprehensive Review)

Starter File Name: Chapter 7 DA Exercise 1

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Difficulty: Level 2
In Chapter 6, exception analytics was used to evaluate the inventory status for several retail
stores. The purpose of this exercise is to summarize these exceptions to create two reports. The
first report will show sales and inventory data summarized by region. A second report will sum-
marize the data by store size for a region selected by the user. This second summary report
will provide the user with more details on the region’s performance without having to review the
dataset by store. This provides the benefit of rapidly identifying stores that need attention within
each region. The data design used for this exercise cannot be produced using a PivotTable thus
emphasizing the benefits of using statistical IF functions.
Begin the exercise by opening the file named Chapter 7 DA Exercise 1. Questions that are pre-
ceded with the letters KO indicate you must only use your keyboard and not your mouse to
execute the required skill.
1. Enter a COUNTIF function in cell C3 on the Summary worksheet that counts the number
of stores by region. Define the “range” argument with the range A4:A40 on the Sales and
Inventory worksheet. This will add cell capacity to the function through Row 40. Add an
absolute reference to this range. Define the “criteria” argument with cell A3 on the Sum-
mary worksheet.
2. KO Copy cell C3 on the Summary worksheet and paste it into the range C4:C6.
3. Enter a SUMIF function in cell D3 on the Summary worksheet that sums the sales for
this year by region. Define the “range” argument with the range A4:A40 on the Sales and
Inventory worksheet. Define the “criteria” argument with cell A3 on the Summary work-
sheet. Define the “[sum_range]” argument with the range I4:I40 on the Sales and Inventory
worksheet. Place absolute references on both cell ranges used in the function.
4. KO Copy cell D3 on the Summary worksheet and paste it into the range D4:D6.
5. Enter a SUMIF function in cell E3 on the Summary worksheet that sums the sales for last
year by region. The setup of this function is identical to the setup in step 3. However,
define the “[sum_range]” argument with the range H4:H40 on the Sales and Inventory
worksheet.
6. KO Copy cell E3 on the Summary worksheet and paste it into the range E4:E6.
7. Enter a formula in cell F3 on the Summary worksheet that calculates the percent change
in sales. This formula should first subtract last year’s sales from this year’s sales (D3-E3).
Then, divide this result by last year’s sales in cell E3.
8. KO Copy cell F3 on the Summary worksheet and paste it into the range F4:F6.
9. Enter an AVERAGEIF function in cell G3 on the Summary worksheet that calculates the
average weeks of supply per store for each region. Define the “range” argument with the
range A4:A40 on the Sales and Inventory worksheet. Define the “criteria” argument with
cell A3 on the Summary worksheet. Define the “[average_range]” argument with the range
L4:L40 on the Sales and Inventory worksheet. Place absolute references on both cell
ranges used in the function.
10. KO Copy cell G3 on the Summary worksheet and paste it into the range G4:G6.
11. Enter a CONCATENATE function in the merged cell beginning with B7 on the Summary
worksheet that displays the data internal control warning on the Sales and Inventory work-
sheet. Define the Text1 argument with the word “Warning: ”. Include a colon and 2 spaces
after typing the word “Warning”. Define the “[text2]” argument with cell A2 on the Sales
and Inventory worksheet.
12. Enter a CONCATENATE function in the merged cell beginning with C9 on the Summary
worksheet that displays the region name based on the number typed into cell B9. Use a
VLOOKUP function to define the “text1” argument. The arguments of the VLOOKUP func-
tion should be defined as follows: Lookup_value use cell B9, Table_array use the range
A3:B6, Col_index_num use the number 2, and for [Range_lookup] use the word “FALSE”.

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Chapter 7 Summarizing Exception Analytics 323

Define the “[text2]” argument of the CONCATENATE function with the word “Region”.
Include two spaces in front of the word as shown.
13. Check the CONCATENATE function in the merged cell beginning with C9 by changing the
number in cell B9 to 2. This should change the region name to South. Then, change the
region number in B9 back to 1.
14. Enter a COUNTIFS function in cell C11 on the Summary worksheet to count the number
of stores by size for the region number typed into cell B9. Define the Criteria_range1
argument with the range A4:A40 on the Sales and Inventory worksheet and the Criteria1
argument with cell B9 on the Summary worksheet. Define the [Criteria_range2] argument
with the range F4:F40 on the Sales and Inventory worksheet and the [Criteria2] argument
with cell B11 on the Summary worksheet. Place absolute references on cell B9 in the “cri-
teria1” argument and both cell ranges used in the function.
15. KO Copy cell C11 on the Summary worksheet and paste it into the range C12:C14 using
the Paste Formulas command.
16. Enter a SUMIFS function in cell D11 on the Summary worksheet that sums the sales this
year by store size for the region number entered into cell B9. Define the [Sum_range]
argument with the range I4:I40 on the Sales and Inventory worksheet. Define the “cri-
teria_range1” argument with the range A4:A40 on the Sales and Inventory worksheet
and the “criteria1” argument with cell B9 on the Summary worksheet. Define the “[crite-
ria_range2]” argument with the range F4:F40 on the Sales and Inventory worksheet and
the “[criteria2]” argument with cell B11 on the Summary worksheet. Place absolute refer-
ences on cell B9 in the “criteria1” argument and all three cell ranges used in the function.
17. KO Copy cell D11 on the Summary worksheet and paste it into the range D12:D14 using
the Paste Formulas command.
18. Enter a SUMIFS function in cell E11 on the Summary worksheet that sums the sales last
year by store size for the region number entered into cell B9. The setup for this function
is identical to the setup in step 16. However, define the “[sum_range]” argument with the
range H4:H40 on the Sales and Inventory worksheet.
19. KO Copy cell E11 on the Summary worksheet and paste it into the range E12:E14 using
the Paste Formulas command.
20. KO Copy cell F6 on the Summary worksheet and paste it into the range F11:F14 using the
Paste Formulas command.
21. Enter an AVERAGEIFS function in cell G11 on the Summary worksheet that calculates the
average weeks of supply by store size for the region number entered into cell B9. The
setup for this function is identical to the setup of the SUMIFS function in step 16. However,
define the “[average_range]” argument with the range L4:L40 on the Sales and Inventory
worksheet.
22. KO Copy cell G11 on the Summary worksheet and paste it into the range G12:G14 using
the Paste Formulas command.
23. Change the region number in cell B9 to 3. Notice cell F5 shows that the Midwest region
had an increase in sales of 4.32%. The summary by store size report shows that there
is one 20,000 square foot store in this region that had a decline in sales of 8.00%. This
illustrates the value of the design choice by putting both summary reports on the same
worksheet. This was the only store in this region with a decrease in sales which likely
skewed the results. This example of summarizing exceptions shows how quickly certain
areas of a dataset can be identified and investigated.
24. Save and close your workbook.

Contribution Format Income Statement

Starter File Name: Chapter 7 DA Exercise 2

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Difficulty: Level 2
A valuable accounting tool for professional managers is the contribution format income state-
ment. This income statement differs from the traditional financial income statement published for
investors in that it is organized by variable and fixed cost behaviors. A variable cost is when the
cost of a single item remains the same regardless of how much of the item is used. For example,
if a shirt manufacturing company pays $1.00 per yard of fabric, it does not matter if the com-
pany uses 10 yards of fabric or 1000 yards of fabric, the cost is still $1.00 per yard. Therefore,
the fabric would be considered a variable cost. Additionally, since this cost is incurred to make
the company’s product, this would also be considered a product cost. A fixed cost is when the
total cost of the item stays the same regardless of the company’s level of activity. For example,
suppose a company pays $10,000 for an advertisement on a highway digital billboard. The cost
would be $10,000 regardless of how many shirts the company produces and sells. Therefore, this
would be considered a fixed cost. This would also be considered part of the company’s SG&A
(Selling, General, and Administrative) costs.
The purpose of this exercise is to use the SUMIFS function to summarize a dataset into a con-
tribution format income statement. After the income statement is created, other calculations and
scenarios will be added to show how managers use this tool to make decisions and establish
sales targets for a company. Begin the exercise by opening the file named Chapter 7 DA Exercise
2. Questions that are preceded with the letters KO indicate you must only use your keyboard and
not your mouse to execute the required skill.
1. Enter the year 2019 into cell B1 on the Contribution worksheet.
2. Enter a CONCATENATE function into the merged cell beginning with cell A4 on the Con-
tribution worksheet. The function should combine the words “Fiscal Year: ” and the year
that is entered into cell B1. Note that there are two spaces that should be added after the
colon following the words “Fiscal Year”.
3. Enter a SUMIFS function into cell C5 on the Contribution worksheet that sums the Sales
Revenue on the Sales and Cost Data worksheet based on the year that is entered into cell
B1 on the Contribution worksheet. The data to be summed is in Column E on the Sales
and Cost Data worksheet. The function should find a match in the Year column on the
Sales and Cost Data worksheet to the year entered in cell B. The function should also find
a match to the item in cell A5 (Sales Revenue) in Column C on the Sales and Cost Data
worksheet. Add cell capacity to include Row 100 on the Sales and Cost Data worksheet.
4. Enter a SUMIFS function into cell B7 on the Contribution worksheet that sums the variable
product costs on the Sales and Cost Data worksheet. The setup of this function is identi-
cal to the SUMIFS function in step 3 with the following changes: This function should find a
match to the item in cell A7 (Product) in Column C on the Sales and Cost Data worksheet.
This function should also find a match to the item in cell A6 (Variable Cost) in Column D
on the Sales and Cost Data worksheet. Add cell capacity to include Row 100 on the Sales
and Cost Data worksheet.
5. Enter a SUMIFS function into cell B8 on the Contribution worksheet that sums the variable
SG&A costs on the Sales and Cost Data worksheet. The setup of this function is identical
to the SUMIFS function in step 4 except this function should find a match to the item in
cell A8 (SG&A) in Column C on the Sales and Cost Data worksheet. Add cell capacity to
include Row 100 on the Sales and Cost Data worksheet.
6. Enter a formula in cell C9 on the Contribution worksheet that sums the two variable costs
in cells B7 and B8.
7. Enter a formula in cell C10 that calculates the Contribution Margin. The formula should
subtract the total variable costs in cell C9 from the sales revenue in cell C5 (C5-C9).
8. Enter a SUMIFS function into cell B12 on the Contribution worksheet that sums the fixed
product costs on the Sales and Cost Data worksheet. The setup of this function is identi-
cal to the SUMIFS function in step 4 with the following changes: This function should find

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Chapter 7 Summarizing Exception Analytics 325

a match to the item in cell A12 (Product) in Column C on the Sales and Cost Data work-
sheet. This function should also find a match to the item in cell A11 (Fixed Cost) in Column
D on the Sales and Cost Data worksheet. Add cell capacity to include Row 100 on the
Sales and Cost Data worksheet.
9. Enter a SUMIFS function into cell B13 on the Contribution worksheet that sums the fixed
SG&A costs on the Sales and Cost Data worksheet. The setup of this function is identical
to the SUMIFS function in step 8 except this function should find a match to the item in
cell A13 (SG&A) in Column C on the Sales and Cost Data worksheet. Add cell capacity to
include Row 100 on the Sales and Cost Data worksheet.
10. Enter a formula in cell C14 on the Contribution worksheet that sums the two fixed costs in
cells B12 and B13.
11. Enter a formula in cell C15 that calculates the Net Operating Income. The formula
should subtract the total fixed costs in cell C14 from the contribution margin in cell C10
(C10-C14).
12. Enter a SUMIFS function into cell F5 on the Contribution worksheet that sums the Sales
Units on the Sales and Cost Data worksheet. The setup of this function is identical to the
SUMIFS function in step 3 that was used to calculate the Sales Revenue. However, this
function should find a match to the item in cell E5 (Sales Units) in Column C on the Sales
and Cost Data worksheet. Add cell capacity to include Row 100 on the Sales and Cost
Data worksheet.
13. Enter the value 60000 into cell F15 on the Contribution worksheet. The first scenario will
calculate sales targets in order for the company to achieve a net operating income of
$60,000
14. Enter a formula into cell F11 that calculates the contribution margin per unit. The formula
should divide the contribution margin in cell C10 by the Sales Units in cell F5.
15. Enter a formula into cell F9 that calculates the variable cost ratio. This formula should
divide the total variable cost in cell C9 by the sales revenue in cell C5.
16. Enter a formula into cell F10 that calculates the contribution margin ratio. This formula
should subtract from the number 1 the variable cost ratio in cell F9. The contribution mar-
gin ratio and the variable cost ratios are percentages of the sales revenue. When added
together, these ratios must equal 1 or 100%.
17. Enter a formula in cell F7 that calculates the Sales Target in Units which is needed to
achieve the net operating income of $60,000. The formula should first add the target profit
in cell F15 to the total fixed costs in cell C14. This result should be divided by the contri-
bution margin per unit in cell F11.
18. Enter a formula in cell F6 that calculates the Sales Target in Dollars which is needed to
achieve the net operating income of $60,000. The formula should first add the target profit
in cell F15 to the total fixed costs in cell C14. This result should be divided by the con-
tribution margin ratio in cell F10. The results show that based on the contribution format
income statement for 2019, in order for the company to achieve $60,000 in net operating
income, sales revenue must be $436,721. Sales in units must be 6,612. These results will
change from year to year as the cost and sales data change.
19. Change the year in cell B1 to 2020. Notice the company is showing a loss of (12,106) with
sales revenue at $408,125.
20. Change the value in cell F15 to zero. Notice the Sales Target in Dollars $437,554. This is
known as the break-even point. In order for the company to break-even with a net operat-
ing income of zero, the sales revenue must be $437,554. Note the sales revenue for 2020
is lower than this value which is why the net operating income is less than zero.
21. Save and close your workbook.

Applying Data Analytics Skills

A Second Look at the Contribution Format Income Statement

Starter File Name: Chapter 7 ADAS Exercise 3

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Difficulty: Level 3
The purpose of this assignment is to revisit the data used to create a contribution format income
statement from a previous exercise. The goal for this exercise is to summarize the data for spe-
cific quarters in a given year. Once the data is summarized in the contribution format income
statement, sales revenue targets will be set based on desired levels of net operating income. The
Sales and Cost Data worksheet contains three years of data (2019, 2020, and 2021). The total
sales revenue for each of these years is as follows: 2019 = $420,245; 2020 = $408,125; 2021 =
$401,750. It is expected that several years of data will be added to the worksheet in the future
and additional columns may be added as well.
The Contribution Format Income Statement exercise should be completed first before proceeding
to this exercise. Begin this exercise by opening the file named Chapter 7 ADAS Exercise 3. Com-
plete each of the requirements listed below. Questions that require a written response should be
entered on the AnswerSheet worksheet in the workbook.
1. Based on the information provided in the description of this exercise, conduct a data audit
by creating a PivotTable. The PivotTable should appear in a separate worksheet. The Item
column in the Sales and Cost Data worksheet should be used for the Row labels. The
Year column in the same worksheet should be used for the Column labels. Apply a filter to
the Item column in the PivotTable so only the Sales Revenue data is displayed. Remove
all grand totals and format values using the Accounting format.
2. Based on the description provided with this exercise, and your knowledge from com-
pleting the Contribution Format Income Statement exercise, define each of the four
components of the DATA Analytics Framework. Space is provided for each component on
the AnswerSheet worksheet.
3. In the merged cell beginning with cell A4 on the Contribution worksheet, use the CON-
CATENATE function to create a subheading for the income statement. The subheading
should show the fiscal year that is entered into cell B1 and the quarter in cell D1. The data
on the income statement will include the quarter entered into cell D1 and all previous quar-
ters. Therefore, if quarter 3 is entered into cell D1, the subheading should show the words
“Through Quarter” and then number 3.
4. Complete the contribution format income statement in the Contribution worksheet in good
form. The data pulled from the Sales and Cost Data worksheet should be based on the
year entered in cell B1 and for all quarters less than or equal to the quarter entered into
cell D1. The income statement should capture any data added to the Sales and Cost Data
worksheet through Row 125. HINT: To check the output for the Sales Revenue, change
the quarter number to 4 and compare it to the annual sales revenue on the PivotTable
created for the data audit. This PivotTable can be used to audit other components of the
income statement as well.
5. In the range E5:F15 on the Contribution worksheet, complete all calculations to determine
the target sales dollars and target sales units needed to achieve a net operating income of
zero (break-even) as of the 2nd quarter in the year 2020.
6. Add a data internal control to the merged cell beginning with cell A2 on the Contribution
worksheet. There are two data internal control warnings that should be displayed if
needed. The first is if the year entered into cell B1 is less than the oldest year or greater
than the most recent year on the Sales and Cost Data worksheet. The MIN function can
be used to identify the oldest year and the MAX function can be used to identify the most
recent year on the Sales and Cost Data worksheet. If the year entered into B1 does not
exist in the dataset, the following message should be displayed: “Data for this year is
not available!”. The second data internal control should evaluate if data has been entered
beyond Row 125 on the Sales and Cost Data worksheet. If cell A126 on the Sales and
Cost Data worksheet is not blank, the following message should be displayed: “New Data

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
Chapter 7 Summarizing Exception Analytics 327

Exceeds Report Capacity!” Use the CONCATENATE function so both data internal con-
trol warnings can be displayed if needed. Add space between the two messages in the
event they both need to be displayed. HINT: you will need to use IF functions in the CON-
CATENATE function to display any combination of data internal control warnings that are
needed. Add the appropriate entries to test your data internal control.
7. Assess the data design choices that were made for this project. Identify the rationale for
2 data design features and briefly explain how they connect to the DATA Analytics Frame-
work.

Chapter Skills Test

Starter File Name: Chapter 7 Skills Test

Digital Downloads

Chapter 7 Skills Test.xlsx

https://catalog.flatworldknowledge.com/a/31995/Chapter_7_Skills_Test-e675.xlsx

Difficulty: Level 3
Answer the following questions by executing the required skills on the starter file listed above.
Answer each question in the order it appears. Questions that are preceded with the letters KO
indicate you must only use your keyboard and not your mouse to execute the required skill.
1. Enter a COUNTIF function in cell B3 on the Summary worksheet. The function should count
the entries in the Investment Type column on the Investment Detail worksheet that match cell
A3 on the Summary worksheet. Include cell capacity through Row 25 when defining argu-
ments that require a cell range and use absolute references when needed.
2. KO Copy cell B3 and paste it into the range B4:B6 using the Paste Formulas command.
3. Enter an AVERAGEIF function in cell C3 on the Summary worksheet. The function should
compute the average of the entries in the Dividend/Yield column on the Investment Detail
worksheet where there is a match in the Investment Type column on the Investment Detail
worksheet with cell A3 on the Summary worksheet. Include cell capacity through Row
25 when defining arguments that require a cell range and use absolute references when
needed.
4. KO Copy cell C3 and paste it into the range C4:C6 using the Paste Formulas command.
5. Enter a SUMIF function in cell D3 on the Summary worksheet. The function should compute
the sum of the entries in the Current Percent of Portfolio column on the Investment Detail
worksheet where there is a match in the Investment Type column on the Investment Detail
worksheet with cell A3 on the Summary worksheet. Include cell capacity through Row
25 when defining arguments that require a cell range and use absolute references when
needed.
6. KO Copy cell D3 and paste it into the range D4:D6 using the Paste Formulas command.
7. Enter a COUNTIFS function in cell B10 on the Summary worksheet. The function should
count the number of investments on the Investment Detail worksheet that match the invest-
ment type in cell A10 on the Summary worksheet and achieved a gain that is greater than
or equal to 15%. Use the Percent Gain/Loss column on the Investment Detail worksheet to
evaluate the gains for each investment. Include cell capacity through Row 25 when defining
arguments that require a cell range and use absolute references when needed.
8. KO Copy cell B10 and paste it into the range B11:B13 using the Paste Formulas command.
9. Enter a SUMIFS function in cell C10 on the Summary worksheet. The purpose of the function
is to sum the values in the Unrealized Gain/Loss column on the Investment Detail worksheet
based on two conditions. The first is where the Investment Type column on the Investment
Detail worksheet matches the investment type in cell A10. The second condition is where the
value in the Percent Gain/Loss column on the Investment Detail worksheet is greater than or

equal to 15%. Include cell capacity through Row 25 when defining arguments that require a
cell range and use absolute references when needed.
10. KO Copy cell C10 and paste it into the range C11:C13 using the Paste Formulas command.
11. Enter an AVERAGEIFS function in cell D10 on the Summary worksheet. The purpose of the
function is to compute the average of the values in the Months Owned column on the Invest-
ment Detail worksheet based on two conditions. The first condition is where the Investment
Type column on the Investment Detail worksheet matches the investment type in cell A10.
The second condition is where the value in the Percent Gain/Loss column on the Investment
Detail worksheet is greater than or equal to 15%. Include cell capacity through Row 25 when
defining arguments that require a cell range and use absolute references when needed.
12. KO Copy cell D10 and paste it into the range D11:D13 using the Paste Formulas command.
13. Enter a CONCATENATE function in the merge cell range beginning with cell A7 in the Sum-
mary worksheet. The function should combine the phrase “Error Warning:” with the entry in
cell D1 on the Investment Detail worksheet.

Working with Big Datasets

Case: Investigating Fraud

The purpose of this chapter is to apply many of the skills that have been demonstrated up to this
records
point of the textbook. The project for this chapter will be a case called Investigating Fraud which
One row of a data set.
contains over 30,000 rows, or records, of data. Learning how to work with large amounts of data is
vital for becoming proficient in data analytics projects. This case will also provide an opportunity
to apply the Data Analytics Model for a more complex project. Most of the skills needed to complete
the project have already been demonstrated in earlier chapters. Therefore, the focus will be how
and why certain skills are being used as opposed to detailed steps on how to execute the skills
themselves. When new skills are introduced, a more detailed approach will be presented as well as
the rationale for applying the skill. Given the large volume of data for this project, using the mouse
will often prove to be too cumbersome and add considerable time to accomplishing various tasks.
As such, particular emphasis will be placed on using Keyboard Only skills.

8.1 Using the DATA Analytics

Framework

Learning Objectives

1. Review a cash handling case.

2. Practice assessing a case using the DATA Analytics Framework.
3. Learn how to develop scenarios for analyzing data.

The Investigating Fraud case will be used to demonstrate a comprehensive application of the Data
Analytics Model as well as several skills that have been demonstrated in the textbook up to this
point. In order to produce a successful outcome, a thorough analysis of the case must be estab-
lished. This section will present the case and then an analysis of the case using the DATA Analytics
Framework.

Case: Investigating Fraud

Follow Along File: None
The following is a description of the case that will be analyzed in this chapter. The case
assumes that you are a consultant and that you have been hired to help a retail company evaluate
its cash handling operations. The information presented in the case will be used to define each com-

ponent of the DATA Analytics Framework. In addition, this will help define the dataset that will be
used to produce a solution for the case in the Data Analytics Project 6 workbook.
The General Store Corporation owns and operates a chain of 32 retail stores. You have been
asked to analyze the company’s operating procedures with respect to the handling of cash. The
company’s process for handling cash is as follows:
• Each cash register stores all transactions that are scanned or entered by the cashier. Data
recorded from each cash register is displayed in the Amount column on the dataset. A negative
number indicates an item was returned and a positive number indicates an item was sold.
• Cashiers must complete a cash report at the end of each day and turn in all cash proceeds
directly to the store manager. The cashier manually enters into the system the amount of cash
being turned over to the store manager. The system then prints a total cash receipt for the
day for that cashier. The cashier must include this document with the cash when it is turned
over to the store manager. The amount submitted on these reports can be found in the Cashier
Report column on the dataset.
• The store manager takes the cash proceeds and stores them in a safe until the end of the week.
• The store manager compiles all cash proceeds for the week and enters the weekly cash pro-
ceeds for the store into the company’s system. Once this is done, an armored truck service is
automatically notified to pick up the cash to be transported to the bank. The store manager’s
weekly report can be found in the Store Report column on the dataset.
The company needs to determine if its process is sufficient in preventing any pilfering of cash.
Your responsibility is to analyze the data provided by the company and determine if any cash has
been stolen. In addition, the company has requested that the dataset be summarized into a custom
report which is also provided in the Data Analytics Project 6 workbook.
The sample data provided by the company contains cash transactions for all 32 stores begin-
ning 9/14/2020 through 9/20/2020. During this time, the company processed 30,240 cash transac-
tions. It is expected that additional weeks will be added to the dataset for further analysis. Only
cash transactions are supplied since this is the focus of the project. A price list is also provided
which contains all prices that are charged for all items sold by the company.

Assessing the Case

Follow Along File: Data Analytics Project 6

Digital Downloads

Data Analytics Project 6.xlsx

https://catalog.flatworldknowledge.com/a/31995/
Data_Analytics_Project_6-4f05.xlsx

As previously stated, the DATA Analytics Framework will be used to establish a full assessment
of the case before developing a solution. The following defines each of the four components of the
framework.
Decisions: The decision that is being made is if the cash handling process is sufficient to pre-
vent money from being stolen from the company.
Acquisition: Data that must be used to produce a solution for the case is as follows:
• The store in which a transaction occurred.
• The cashier number that was responsible for the cash register in each store. This will be neces-
sary to identify who may have pilfered cash from the company.

• The date and time in which the cashier was responsible for the cash register.
• A unique number for each transaction that occurred in each store.
• The amount of money that was either received, in the case of a sale, or distributed, in the case
of a return for each transaction.
• The amount of money that was recorded by the cashier at the end of each day on the cashier
report which is submitted to the store manager.
• The amount of money that is reported by the store manager for each week.
Time: The dataset provided includes one week of data to establish an initial analysis of the
company’s cash handling process. As stated, additional weeks of data will be added for further
analysis.
Analysis: This is a critical part of the framework since it will guide how the data will be ana-
lyzed to determine if cash is being stolen. To complete this component of the DATA Analytics
Framework effectively, potential scenarios must be identified as to how a store employee might be
able to steal money. To determine these possibilities, an understanding of the company’s cash han-
dling process must be fully evaluated.
Figure 8.1 shows a diagram of the cash handling process that was described in the case. Notice
the two diagonal black lines on the diagram. This indicates where a manual entry is made into the
system. For example, there is a black diagonal line next to the Cash Register square in the upper left
corner. This is because the cashier takes money from the register and manually enters the amount
into the company system.
The red triangles on Figure 8.1 indicate how data is shown on the Data Analytics Project 6
workbook. For example, the Amount column in the dataset shows records from the actual cash
register where cash was received for items sold and distributed for items returned. The amount of
money that is manually entered into the system by the cashier is shown in the Cashier Report col-
umn in the dataset.

FIGURE 8.1 Cash Handling Process

After the company’s cash handling process is diagrammed and analyzed, scenarios can be iden-
tified as to how someone might be able to steal money from the company. The following is a list of
potential scenarios:
Scenario 1: A cashier might enter a lower number into the company system compared to what
was actually received into the cash register and pilfer the difference.
Scenario 2: A store manager can pilfer money in a similar manner as the cashier. A cash amount
lower than what was turned in by the cashier can be entered into the company system and the
store manager can pilfer the difference.
Scenario 3: Can you think of another way in which a cashier can pilfer cash from the company?
What if a cashier wanted to take a $10 bill out of the cash register? A fake return could be entered
in the exact amount of the bill that is stolen.
After identifying scenarios that show how pilfering cash is feasible given the company’s cur-
rent cash handling policies, the analytics process can be established. For example, to identify if
Scenario 1 is actually happening, the amount of cash that is recorded in the Amount column of the
dataset for a specific cashier on a specific day can be compared to the amount in the Cashier Report
column. A similar process can be established for Scenario 2. The amount of cash in the Amount col-
umn of the dataset can be summed for an entire week. This amount can then be compared to the
amount recorded by the store manager in the Store Report column. For Scenario 3, the dataset pro-
vided with this case does not include inventory data since the focus is cash transactions. However,
the return amounts can be checked against the price list data for any discrepancies. After establish-
ing the analytics process for these scenarios, the development of a solution can begin.

Key Takeaways

• The four components of the DATA Analytics Framework must be completely addressed
before analyzing data and developing a solution for a project.
• When a data analytics project involves the evaluation of a process, a diagram can help iden-
tify weaknesses that need to be investigated.
• Scenarios should be identified in the Analysis component of the DATA Analytics Framework
that show how data needs to be analyzed to develop a solution.

8.2 Data Audit Using PivotTables

Learning Objectives

1. Become familiar with navigating big datasets with a keyboard.

2. Understand how a PivotTable can be used for basic data audits.
3. Learn how to change the Values outputs on a PivotTable.
4. Learn how to use field and report filters on PivotTables.
5. Review how calculated fields are created on PivotTables.

After completing the DATA analytics framework, analyzing the dataset for the project can begin.
A critical first step in working with any dataset is the data audit. The PivotTable is a valuable tool
when conducting data audits on big datasets. This section will feature more in depth demonstra-
tions on PivotTables while conducting the data audit for the Investigating Fraud dataset.

Navigating Big Datasets with the Keyboard

Follow Along File: Data Analytics Project 6 continued.
The first data audit that will be applied is a simple assessment of the dataset size and content.
The content must match the items identified in the Acquisition component of the DATA Analytics
Framework. In addition, a few basic formatting enhancements will be applied to the dataset which
will make the content easier to read. It is vital to use the keyboard when navigating big datasets.
Using the mouse to click and drag will be too cumbersome and time consuming. As a result, the
steps that follow will emphasize Keyboard Only commands and will be denoted with KO. As a
reminder, details will not be provided for skills that have already been covered in previous chapters.
You may have to review these skills while completing tasks for this project. The following demon-
strates how the basic data audit is accomplished and formats applied to the dataset.
1. Click cell A1 in the Transactions worksheet.
2. KO Open and view the Summary worksheet. This contains a custom report that will be com-
pleted later in the project.
3. KO Open the Price List worksheet. This worksheet contains a list of every price point that is
charged for every item sold in the store.
4. KO Open the Transactions worksheet.
5. KO Identify the last row of data in column A. Hold the CTRL key on your keyboard and then
tap the DOWN ARROW. The last row of the dataset is 30,241. Since the first row contains col-
umn headings, this dataset contains 30,240 cash transactions.
6. KO Activate cell A1. Hold the CTRL key on your keyboard and then tap the UP ARROW.
7. KO Activate cell A2.
8. KO Beginning with cell A2, highlight all cells that are not blank in column A. Hold the SHIFT
key, hold the CTRL key, and then tap the DOWN ARROW key on your keyboard. The Count
value in the Status Bar should read 30240 (see Figure 8.2). This also indicates that there are
30,240 transactions in the dataset.

FIGURE 8.2 Using the Status Bar to Audit the Number of Transactions

9. KO Activate cell A1 by tapping the UP ARROW key on your keyboard.

10. KO Highlight all of the data contained in the worksheet. Hold the CTRL key and tap the A key
on your keyboard.
11. KO Change the font style for the entire dataset to Arial.
12. KO Apply a bold font to the column headings in the range A1:H1.
13. KO Apply the Accounting number format for all data contained in the Amount, Cashier
Report, and Store Report columns.
14. KO Add a thin black border around the perimeter of the entire data range.
15. KO Apply the Wrap Text format to the column headings in the range A1:H1.
16. KO Change the width of column B to 14 points.
17. KO Change the height of row 1 to 35 points.
18. KO Change the width of column E to 14 points.
Figure 8.3 shows the appearance of the first 25 rows of the Transactions worksheet after
formats have been applied. The column headings show that all of the items identified in the Acqui-
sition component of the DATA Analytics Framework are available on the worksheet. Notice the
values in the Store Report column (column H) are repeating for all rows shown. This is because the
dataset contains store level data and transaction level data. This is also an issue for the Cashier
Report column. Notice that the value in cell G2, $1,271.61, repeats for several other rows shown in the
figure. This is because the dataset contains cashier level data which is the sum of all transactions
for that day and transaction level data. Identifying repeating values is a critical part of the basic
data audit process. This observation will need to be considered when using the Cashier Report and
Store Report columns in any of the analytical outputs for the project. Strategies for working with
these values will be demonstrated later.

FIGURE 8.3 Formats Applied to the Transactions Worksheet

Why…

Identify Repeating Values in a Dataset

When conducting a basic data audit for big datasets, it is critical to identify and understand
repeating values. This is very important because repeating values cannot be aggregated when
producing the outputs for an analytics project. Repeating values can produce valuable outputs
since they tend to summarize details contained within the same dataset. However, these outputs
must be carefully developed and data internal controls must be established such that changes to
the project do not corrupt any outputs by aggregating any repeating values.

PivotTables for Basic Data Audits

Follow Along File: Data Analytics Project 6 continued. If starting here use Data Analytics Project 6.01.
PivotTables can serve as valuable tools for conducting simple data audits on big datasets. This field
is especially helpful when trying to determine the data ranges within a field (or column). For exam- A column of data in a
ple, the Investing Fraud case stated that the dates included in the dataset are from 9/14/2020 dataset that contains
through 9/20/2020. This can be verified very quickly through the use of PivotTables. The following values that are the same
type such as numeric
demonstrates how PivotTables can be used to quickly conduct a few basic data audits for the Inves- values, dates, text
tigating Fraud project. descriptions, etc.

1. Activate cell A1 in the Transactions worksheet.

2. Insert a PivotTable into a new worksheet. Check that the Table/Range in the Create PivotTable
dialog box contains all of the data on the worksheet (see Figure 8.4). For the first part of this
data audit, the last row of this dataset was identified as row 30241 and column H as the last
column.

FIGURE 8.4 Verifying the Cell Range for a PivotTable

3. Add the Date field to the ROWS area of the PivotTable.

The PivotTable shown in Figure 8.5 quickly verifies that the date range for the dataset is 9/14/
2020 through 9/20/2020. Placing this PivotTable into a separate worksheet is a data design choice

that was made given the amount of data contained on the Transactions worksheet. Also, with large
projects such as the Investigating Fraud case, additional columns may be added to the Transactions
worksheet. As such, there is no practical location for the PivotTable on the Transactions worksheet
which is why it is placed in a new worksheet.

FIGURE 8.5 PivotTable Showing the Date Range in the Dataset

4. Remove the Date field from the ROWS area.

5. Add the Store field to the ROWS area of the PivotTable.
6. Type the number 1 in cell B4 and the number 2 in cell B5 next to the PivotTable.
7. Highlight the range B4:B5 and use AutoFill to complete the sequence through cell B35. This a
quick way to count the stores shown in the row headings of the PivotTable (see Figure 8.6). As
stated in the Investigating Fraud case, the company owns and operates 32 stores. This part of
the data audit verifies that 32 stores are included in the dataset.

FIGURE 8.6 Counting the Number of Stores in the Dataset

8. Delete the values in the range B4:B35. Once the number of stores have been verified, this data
can be removed.
9. Change the worksheet tab name for the PivotTable to “Data Audit”.

PivotTable Outputs
Follow Along File: Data Analytics Project 6 continued. If starting here use Data Analytics Project
6.02.
When fields are added to the VALUES area of a PivotTable, Excel will typically default to
summing numeric data. However, this can be changed depending on the needs of a project. The
PivotTable that was created in the Data Audit worksheet will be used to conduct a more extensive
evaluation of the dataset in the Transactions worksheet. The purpose of this evaluation is to get
a better understanding of the architecture of the dataset which is an important part of the data
audit process for big datasets. The following demonstrates how this is accomplished.
1. In the Data Audit worksheet, add the Transaction Number field to the VALUES area of the Piv-
otTable. Notice that Excel will sum the values in this field since it contains numeric data (see
Figure 8.7). However, the purpose for adding the Transaction Number field is to count the num-
ber of transactions that occurred for each store.

FIGURE 8.7 Adding the Transaction Number Field

2. Click the Sum of Transaction Number column heading in cell B3 on the PivotTable (see Figure
8.7).
3. Click the Field Settings button in the Analyze tab of the Ribbon. This will open the Value Field
Settings dialog box for the Transaction Number field.
4. Click the Count option from the list of mathematical summary options on the Value Field
Settings dialog box (see Figure 8.8). This will count the number of values in the Transaction
Number field for each store shown in the PivotTable.

FIGURE 8.8 Value Field Settings Dialog Box for Transaction Number Field

5. Click in the Custom Name input box on the Value Field Settings dialog box (see Figure 8.8).
6. Remove the current field name by using the BACKSPACE and/or DELETE key on your key-
board.

7. Type the name “Transaction Count”. This will change the column heading displayed on the Piv-
otTable.
8. Click the OK button at the bottom of the Value Field Settings dialog box.
Figure 8.9 shows the PivotTable counting the number of transactions per store. As shown, each
store has exactly the same number of transactions: 945. Since this dataset was created for train-
ing purposes, this result is acceptable. However, data that appears like this in a real scenario would
be cause for concern. It is very unlikely that every store in a retail chain would have exactly the
same amount of transactions for a week. It is important to identify these anomalies during the
data audit. If this were a real data analytics project, it is likely the dataset is incomplete or might
be corrupt. This would have to be corrected before any analysis of the dataset takes place. Another
area to check is the Grand Total in row 36. This matches the total number of transactions of 30240
which was previously verified.

FIGURE 8.9 Transaction Count by Store

Integrity Check

Look for Unusual Patterns and Values in a Dataset

A critical part of the data audit is to look for patterns or values in a dataset that look abnormal or
unusual. It is important that any abnormality in a dataset be fully investigated before proceeding
with the project. The outputs and conclusions derived from a data analytics project will be ren-
dered useless if the data used is corrupt or incomplete.

9. Add the Amount field to the VALUES area of the PivotTable. When the data in this field is
summed, it shows the net cash sales by store. Net cash sales is cash received for items sold less
cash issued for items returned.
10. Click cell C3 and change the name of the column heading by typing: “Net Cash Sales”. Tap the
ENTER key on your keyboard after typing the new column heading. As an alternative to the
Value Field Settings dialog box, this is another way to change the field name on a PivotTable.

11. Highlight the range C4:C36 and apply the Accounting format in the Home tab of the Ribbon.
Reduce the decimal places to zero. Values can be formatted using the Value Field Settings dia-
log box or by applying the formatting commands in the Home tab of the Ribbon.
12. Sort the stores on the PivotTable using the values in the Net Cash Sales column in descending
order (largest to smallest).
Figure 8.10 shows the appearance of the PivotTable. Notice the stores listed on the far left side
of the PivotTable are sorted based on the values in the Net Cash Sales column. The store with the
highest net cash sales is 540CT.

FIGURE 8.10 Value Field Settings Dialog Box for Transaction Number Field

Skill Refresher: Change PivotTable Values Outputs

1. Click the field name in the VALUES area of the PivotTable.

2. Click the Field Settings button in the Analyze tab of the Ribbon.
3. Click the desired mathematical output on the Value Field Settings dialog box.
4. Click the OK button on the Value Field Settings dialog box.

View the video online at: http://www.youtube.com/embed/rSJzTrXDwZY?rel=0

PivotTable Filters
Follow Along File: Data Analytics Project 6 continued. If starting here use Data Analytics Project
6.03.
Using the PivotTable to conduct a data audit continues with the application of filters. Filters
allow specific components of a dataset to be viewed. Through the use of filters, the base architec-
ture of the dataset can be examined. In other words, one single transaction can be viewed in the
PivotTable to see the lowest level of detail in the dataset. The following demonstrates how this is
accomplished.
1. Add the Date field to the FILTERS area on the PivotTable in the Data Audit worksheet.
2. Click the down arrow next to the Date field in cell B1 (see Figure 8.11).

FIGURE 8.11 Setting a PivotTable Report Filter

3. Click the 9/15/2020 date from the filter dropdown list and click the OK button (see Figure
8.11). With this filter, the data shown on the PivotTable will show only those transactions that
occurred on 9/15/2020.
4. Click the down arrow next to the Row Labels heading in cell A3 (see Figure 8.12).
5. Click the check box next to the (Select All) option on the filter dropdown menu (see Figure 8.12).
This will deselect all of the store options shown on the list.
6. Use the scroll bar on the right side of the filter dropdown menu to locate store 140PA (see Figure
8.12).

FIGURE 8.12 Setting a Row Labels Filter

7. Click the check box next to store 140PA and click the OK button. The PivotTable will now show
data for only one store.
8. Add the Cashier Number field to the ROWS area of the PivotTable.
9. Click the Report Layout button in the Design tab of the Ribbon.
10. Click the Show in Outline Form option from the dropdown menu (see Figure 8.13). The Pivot-
Table default setting will be the Compact Form. However, if more than one field is used for row
headings, the Outline Form will show the field names that are used for these row headings.
The Compact Form will show all fields under the generic Row Labels title.

FIGURE 8.13 Change the PivotTable to Outline Format

11. Sort the Cashier Number field using the Net Cash Sales field in descending order.
12. Click the down arrow next to the Cashier Number field so a filter can be applied to show only
cashier number 5600-140PA (see Figure 8.14).
13. Click in the Search input box (see Figure 8.14) and type the number 5600. This feature is partic-
ularly helpful when setting a filter on a field that contains a large number of unique labels of
values.
14. Click the check box next to the (Select All Search Results) option to deselect the options on the
filter list (see Figure 8.14).

FIGURE 8.14 Using the Search Feature to Set a Filter

15. Use the scroll bar to search and select cashier 5600-140PA and click the OK button. The Pivot-
Table will now show data for only cashier 5600 in store 140PA on 9/15/2020.
16. Add the Time field to the ROWS area of the PivotTable. Once this field is added, the times may
be grouped by hour as shown in Figure 8.15.
17. Click the Time field name in cell C3 (see Figure 8.15).
18. Click the Ungroup button in the Analyze tab of the Ribbon (see Figure 8.15). This will show each
specific time that is contained in the dataset.

FIGURE 8.15 Ungrouping Data in PivotTable Field

19. Remove the Grand and Subtotals on the PivotTable.

20. Sort the Time field based on the values in the Net Cash Sales field in descending order (largest
to smallest).
Figure 8.16 shows how the PivotTable appears after applying filters. Notice that the transaction
count is now 1 for each time shown on the PivotTable. This indicates that the PivotTable is showing
the lowest level of detail from the dataset on the Transactions worksheet. In addition, the values
shown in the Net Cash Sales column are the amounts either paid by customers for sales or amounts
given to customers for returns. Scroll down to the last rows of the PivotTable to see how many
returns were processed by this cashier.

FIGURE 8.16 PivotTable with Filters Applied

Skill Refresher: Setting a PivotTable Field Filter

1. Click the field name in the Row Heading area of the PivotTable.
2. Click the down arrow to the right of the field name.
3. Click the check box next to the (Select All) option.
4. Click the check box next to the desired items to appear on the PivotTable.
5. Click the OK button.

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Skill Refresher: Setting a PivotTable Report Filter

1. Add a field to the Filters area of the PivotTable.

2. Click the down arrow on the cell next to the field name.
3. Click the check box next to the (All) option.
4. Click the check box next to the item that will be used to filter the data on the PivotTable.
5. If multiple items are used to filter the data on the PivotTable, click the check box next to
the Select Multiple Items.
6. Click the OK button.

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PivotTable Calculated Fields

Follow Along File: Data Analytics Project 6 continued. If starting here use Data Analytics Project
6.04.
Calculations can be created using the data on a PivotTable by adding a calculated field. The
data audit will conclude by adding a percent to total calculated field to the PivotTable. In addition,
the Cashier Report and Store report fields will be added to the PivotTable to view the entire archi-
tecture of the dataset in the Transactions worksheet. The following demonstrates how this is
accomplished.
1. Add the Cashier Report field to the VALUES area of the PivotTable. The value of 1219.65 should
appear for every transaction since this is the total amount of cash that was reported by this
cashier on 9/15/2020.
2. Change the Sum of Cashier Report field name to “Daily Cashier Report”. Format the values to
U.S Currency with zero decimal places.
3. Add the Store Report field to the VALUES area of the PivotTable. The value of 27832.91 should
appear for every transaction since this is the total amount of cash that was reported by the
store manager for this week.
4. Change the Sum of Store Report field name to “Weekly Store Report”. Format the values to U.S
Currency with zero decimal places.

5. A calculated field will be added that shows the percent of the Daily Cashier Report to the
Weekly Store Report. Begin by clicking the Fields, Items, & Sets button in the Analyze tab of
the Ribbon (see Figure 8.17).
6. Click the Calculated Field option from the dropdown menu (see Figure 8.17). This will open the
Insert Calculated Field dialog box.

FIGURE 8.17 Adding a Calculated Field

7. Type the field name “Percent of Store Total” in the Name input box on the Insert Calculated
Field dialog box (see Figure 8.18).
8. Click in the Formula insert box to the right of the zero on the Insert Calculated Field dialog
box and tap the BACKSPACE key on your keyboard (see Figure 8.18). This will remove the zero,
but the equal sign should still remain.

FIGURE 8.18 The Insert Calculated Field Dialog Box

9. Double click the Cashier Report field from the list of fields on the Insert Calculated Field dialog
box. This field will be added to the Formula input box.
10. Type the front slash / for division.
11. Double click the Store Report field from the list of fields on the Insert Calculated Field dialog
box. This field will also be added to the Formula input box which completes the formula (see
Figure 8.19).
12. Click the OK button at the bottom of the Insert Calculated Field dialog box.

FIGURE 8.19 Creating a Formula in the Insert Calculated Field Dialog Box

13. Change the Sum of Percent of Store Total field name to “Cashier Percent of Store” and format
the values to a percentage with two decimal places.
Figure 8.20 shows the final PivotTable that was created to conduct the data audit of the Investi-
gating Fraud case. Notice that the Daily Cashier Report and the Weekly Store Report fields contain
repeating values. These are the same values that were previously identified on the Transactions
worksheet. The PivotTable shows how these values can be used. The calculated field shows that on
9/15/2020, cashier 5600 in store 140PA represented 4.38% of the net cash sales for the entire store for
that week. In addition, since the value of 1 is shown for every row in the Transaction Count field, it
confirms that the values in the Daily Cashier Report and the Weekly Store Report fields are NOT
aggregated. This is good, because aggregating repeating values would produce erroneous values on
the PivotTable. However, this presents a risk. Should any of the row headings be removed from the
PivotTable, the values in the Transaction Count will be greater than “1” and the values in the Daily
Cashier Report and the Weekly Store Report fields would be aggregated. This risk will be addressed
when data internal controls are added to the project.

FIGURE 8.20 Completed PivotTable for the Data Audit

Skill Refresher: Adding PivotTable Calculated Field

1. Click the Fields, Items, & Sets button in the Analyze tab of the Ribbon.
2. Type a field name in the Name input box on the Insert Calculated Field dialog box.
3. Remove the zero in the Formula input box on the Insert Calculated Field dialog box.
4. Double click the desired field names on the Insert Calculated Field dialog box and type
desired mathematical operators to construct the formula.
5. Click the OK button on the Insert Calculated Field dialog box.

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Keyboard Only

Go to the Last Row of a Contiguous Range of Data

• Tap the END key and then tap the DOWN ARROW.
• Hold the CTRL key and tap the DOWN ARROW.
Go to the First Row of a Contiguous Range of Data
• Tap the END key and then tap the UP ARROW.
• Hold the CTRL key and tap the UP ARROW.
Highlight a Contiguous Range of Data
• Hold the CTRL key and tap the A key.

Key Takeaways

• Navigating big datasets efficiently requires the use of the keyboard; click and drag methods
should be avoided.
• A thorough and efficient data audit can be conducted using PivotTables.
• The data displayed in the VALUES area of a PivotTable can be aggregated using a variety of
mathematical processes.
• It is important to look for columns that contain repeating values in a dataset. Columns that
contain repeating values cannot be aggregated.
• Look for unusual values or patterns in a dataset during the data audit. Do not move forward
with a data analytics project if the dataset seems corrupt or incomplete.
• The layout of a PivotTable must be switched to Outline Form if setting filters on more than
one field in the row headings section.
• Fields that contain dates or times may need to be ungrouped to view all details on a Pivot-
Table.
• Formulas can be used on PivotTables by adding calculated fields.

8.3 Analyzing the Data

Learning Objectives

1. Learn how the RIGHT function can select and display characters from an entry in a cell.
2. Review the use of the WEEKNUM function.
3. Learn how to use the IF function to eliminate repeating values in a field.
4. Understand how the ABS (Absolute Value) function is used within other functions.
5. Review uses for the ISERROR function.
6. Learn how PivotTables can be used to develop solutions for data analytics projects.

After completing the data audit, analytics can be applied to the dataset to solve the Investigating
Fraud case. This will require additional columns, or fields, to be added to the dataset in the Trans-
actions worksheet. This process is similar to what was demonstrated in the chapter on exception

analytics. The data that is provided for the Investigating Fraud case will be used to create additional
fields that can be used in PivotTables to produce a solution for the case.

RIGHT Text Function

Follow Along File: Data Analytics Project 6 continued. If starting here use Data Analytics Project
6.05.
When working with big datasets, it is often helpful to break the data down into segments to parsed
help evaluate potential solutions. For example, the last two characters of every store number in the The analysis of a text
Investigating Fraud dataset represents the state where the store is located. Being able to evaluate string within a cell location.
this dataset by state will allow for smaller segments to be investigated when developing a solution.
To accomplish this, characters will have to be parsed and extracted out of one cell and placed into
another. This will require the use of the RIGHT text function which extracts the characters from a
cell location beginning with the far right side of the entry. The following demonstrates how this is
accomplished.
1. KO Open the Transactions worksheet. Since modifications will be made to the Transactions
worksheet, a copy of the data will be stored in the workbook. This is done in the event data
is inadvertently changed or deleted in the process of adding additional columns to the work-
sheet.
2. KO Highlight and copy all of the data in the Transactions worksheet.
3. KO Insert a new worksheet into the workbook.
4. KO Change the name of the new worksheet tab to Original Data.
5. KO Paste the copied data into the new worksheet beginning in cell A1.
6. Click cell I1 in the Transactions worksheet.
7. Type the word “State” into cell I1.
8. In cell I2, type an equal sign =, the function name “right”, and an open parenthesis.
9. Click cell A2 to define the “text” argument of the RIGHT function.
10. Type a comma and then type the number 2 to define the “[num_chars]” argument. This is the
number of characters that will be selected from the text entered into cell A2 beginning from
RIGHT to left.
11. Type a closing parenthesis and then tap the ENTER key on your keyboard. The output of the
function is the last two characters, CT, from the store entered into cell A2 (see Figure 8.21).

FIGURE 8.21 Output of the RIGHT Function

12. Copy the RIGHT function in cell I2 and paste it into all rows for the dataset by double clicking
the Fill Handle (see Figure 8.21). Column I will now contain the two-character abbreviation for
the state where each store is located. This will allow the dataset to be segmented and analyzed
by state.

Skill Refresher: RIGHT Function

1. Type an equal sign = followed by the function name RIGHT and an open parenthesis.
2. Define the “text” argument with a cell location that contains text where characters will be
extracted from right to left.
3. Type a comma to advance to the “[num_chars]” argument.
4. Enter the number of characters that will be extracted, counting from right to left, from the
cell location defined in the “text” argument.
5. Type a closing parenthesis and tap the ENTER key on your keyboard.

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WEEKNUM Function
Follow Along File: Data Analytics Project 6 continued. If starting here use Data Analytics Project
6.06.
The WEEKNUM function is used to identify the week number of a calendar year that is
associated with a date serial number. This function will be used to create a new column on the
Transactions worksheet so the Investigating Fraud dataset can be evaluated based on the week of
the year. Currently, there is only one week of data in the dataset. However, as stated in the Time
component of the DATA Analytics Framework, additional weeks of data will be added to the dataset
in the future for further analysis. By adding the week number column, when the additional data is
added, the dataset can be segmented and analyzed by week. The following demonstrates how this
is accomplished.
1. Type the column heading “Week” into cell J1 on the Transactions worksheet.
2. In cell J2, type an equal sign =, the function name “weeknum”, and an open parenthesis.
3. Click cell C2 to define the “serial_number” argument. Cell C2 contains a date which can be eval-
uated as a date serial number.
4. Type a comma to advance to the “[return_type]” argument.
5. Type the number 2. This will set the output of the function such that Monday will be the first
day of the week.
6. Type a closing parenthesis and tap the ENTER key on your keyboard. The output of the func-
tion should be 38 indicating that the date 9/14/2020 occurs in the 38th week of the calendar
year.
7. Copy the WEEKNUM function in cell J2 and paste it into the rest of the rows of the dataset
(see Figure 8.22).

FIGURE 8.22 Output of the WEEKNUM Function

Skill Refresher: WEEKNUM Function

1. Type an equal sign = followed by the function name WEEKNUM and an open parenthesis.
2. Define the “serial_number” argument with a cell location that contains a date.
3. Type a comma to advance to the “[return_type]” argument.
4. Enter the value that represents the day in which the week begins.
5. Type a closing parenthesis and tap the ENTER key on your keyboard.

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Using the IF Function to Eliminate Repeating

Values
Follow Along File: Data Analytics Project 6 continued. If starting here use Data Analytics Project 6.07.
As shown in the data audit phase of the Investigating Fraud case, the Cashier Report and
Store Report columns contain repeating values. This can produce erroneous results on a PivotTable
if these fields are summed or aggregated. However, being able to use these fields when data is
aggregated on a PivotTable can be very useful for developing a solution for the case. For example,
summing the Amount field for one day of transactions for a cashier and comparing that amount to
the Cashier Report can determine if Scenario 1 from the Analysis component of the DATA Analytics
Framework is true. This problem of repeating values can be solved by using a combination of the
CONCATENATE and IF functions. The following demonstrates how this is accomplished.
1. Sort the data in the Transactions worksheet in ascending order (smallest to largest) based on
following columns: Store, Cashier Number, and Date. These columns must be used in the order
listed to sort the data. This is a critical step in achieving accurate results for this analytics tech-
nique. Figure 8.23 shows how the Sort dialog box should appear when setting the sort sequence
for the dataset. All data in the range A1: J30241 must be sorted.

FIGURE 8.23 Setting the Sort Sequence for the Dataset

2. Type the column heading “Cashier Day” into cell K1.

3. Enter a CONCATENATE function in cell K2 that combines the cashier number in cell B2 and
the date in cell C2. The output of this function will create a unique value for each cashier by
day on the dataset.
4. Increase the width of column K to accommodate the entire output of the CONCATENATE
function.
5. Copy the CONCATENATE function in cell K2 and paste it into all rows of the dataset.
Figure 8.24 shows how the worksheet should appear after creating the Cashier Day column.
Look carefully at the sort order to ensure your worksheet matches what is shown in the figure.

FIGURE 8.24 Using the CONCATENATE Function to Identify Unique Cashier by Day

6. Type the column heading “Daily Cash Report” into cell L1. Increase the width of column L so
the text is visible.
7. Enter an IF function into cell L2 to show only the first instance of the Cashier Report values
in column G. If the output in cell K2 is equal to the value in cell K1, then show a value of zero.
Otherwise show the value in cell G2.
8. Copy the IF function in cell L2 and paste it into all the rows of the dataset.
Figure 8.25 shows the output of the IF function that was entered into cell L2. The function is
checking if the values in column K are identical. If they are, this indicates the record in the dataset
is related to the same cashier for the same day and the output of the function will be zero. When
the value in column K switches to a new output, the IF function shows the first instance of the
value in column G which is the Cashier Report. This can be seen by scrolling the worksheet down to
row 47. Since row 47 begins a new cashier number, the first instance of the cashier report is shown
in cell L47. The end result of this technique is that a new column is now added to the dataset that
eliminates the repeating values in column G. Therefore, column L can now be aggregated in a Piv-
otTable.

FIGURE 8.25 IF Function Eliminates Cashier Report Repeating Values

9. Type the column heading “Store Week” into cell M1.

10. Enter a CONCATENATE function in cell M2 that combines the store number in cell A2 and the
week number in cell J2. The output of this function will create a unique value for each store by
week on the dataset. This column is necessary since it was identified in the Time component
of the DATA Analytics Framework that additional weeks of transaction data will be added to
the dataset. If additional weeks of data were not going to be added in the future, this column
would not be needed.
11. Copy the CONCATENATE function in cell M2 and paste it into all rows of the dataset (see Fig-
ure 8.26).

FIGURE 8.26 Using the CONCATENATE Function to Identify Unique Store by Week

12. Type the column heading “Weekly Store Cash” into cell N1. Increase the width of column N so
the text is visible.

13. Enter an IF function into cell N2 to show only the first instance of the Store Report values in
column H. If the output in cell M2 is equal to the value in cell M1, then show a value of zero.
Otherwise show the value in cell H2.
14. Copy the IF function in cell N2 and paste it into all the rows of the dataset.
Figure 8.27 shows the completed Weekly Store Cash column on the Investigating Fraud case
dataset. This column as well as the Daily Cash Report column can now be aggregated in a Pivot-
Table when solving the case since the repeating values have been eliminated.

FIGURE 8.27 IF Function Eliminates Store Report Repeating Values

The ABS (Absolute Value) Function

Follow Along File: Data Analytics Project 6 continued. If starting here use Data Analytics Project
6.08.
The ABS or Absolute Value function is used when a number is used irrespective of whether
it is a positive or negative value. This is necessary for evaluating Scenario 3 of the Investigating
Fraud case. This scenario requires an investigation of a cashier who is booking a fake return and
taking cash from the register. To evaluate if this scenario is true, the return price that is entered
into the system will be evaluated against the prices in the Price List worksheet. However, the Price
List worksheet does not contain any negative values, but the returns on the Transactions work-
sheet are shown as negative values. As a result, the ABS will be used within the VLOOKUP function
to verify if the prices on the dataset match the prices in the Price List worksheet. The following
demonstrates how this is accomplished.
1. Type the column heading “Price Check” into cell O1 on the Transactions worksheet.
2. In cell O2, begin a VLOOKUP function by typing an equal sign =, the function name “vlookup”,
and an open parenthesis.
3. Start the ABS function by typing “abs” followed by an open parenthesis. The “lookup_value”
argument of the VLOOKUP function will be defined by taking the absolute value of the price
in cell F2.
4. Click cell F2 and type a closing parenthesis.
5. Type a comma to advance to the “table_array” argument of the VLOOKUP function.

6. Click the Price List worksheet tab and highlight the range A2:A17.
7. Tap the F4 key on your keyboard to add an absolute reference to this range.
8. Type a comma to advance to the “col_index_num” argument.
9. Type the number 1 and then type a comma to advance to the “range_lookup” argument.
10. Type the word “FALSE” followed by a closing parenthesis. The function must look for an
exact match to the lookup value which means this argument must be defined with the word
“FALSE”. Tap the ENTER key on your keyboard to complete the function.
11. Copy the VLOOKUP function in cell O2 and paste it into all rows of the dataset.
Figure 8.28 shows the output of the VLOOKUP function which is using the ABS function in the
“lookup_value” argument. The outputs shown indicate that the prices in the amount column were
found on the Price List worksheet. Notice the output in row 19. The value in the Amount column
is (24.99). However, by using the ABS function, the VLOOKUP function was able to find this on the
Price List worksheet and show the output of 24.99. What is not shown on the figure is if a price was
not found on the Price List worksheet. This will result in an error output which will be resolved
next.

FIGURE 8.28 Using the ABS Function in a VLOOKUP Function

Skill Refresher: ABS (Absolute Value) Function

1. Type an equal sign = followed by the function name ABS and an open parenthesis.
2. Define the “number” argument with a cell location or number.
3. Type a closing parenthesis and tap the ENTER key on your keyboard.

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The ISERROR Function

Follow Along File: Data Analytics Project 6 continued. If starting here use Data Analytics Project
6.09.
The ISERROR function will be used to evaluate if the VLOOKUP function in the Price Check
column (column O) is producing an error output. When evaluating the contents of a cell location,
the output of the ISERROR function is the word “TRUE”, if the cell location contains and error code,
or the word “FALSE” if there is no error code. With regards to the VLOOKUP function, if the output
of the function is an error, then the price used in the Amount column does not exist in the Price
List worksheet. This will allow the ISERROR function to be used within the IF function to produce
an output where the value in the Amount column does not exist in the Price List worksheet. The
following demonstrates how this is accomplished.
1. Type the column heading “Price Alert” into cell P1 on the Transactions worksheet.
2. In cell P2, begin an IF function by typing an equal sign =, the function name “if” and an open
parenthesis.
3. Type the function name “iserror” followed by an open parenthesis.
4. Click cell O2. The ISERROR function will evaluate if there is an error code in cell O2.
5. Type a closing parenthesis followed by a comma to advance to the “[value_if_true]” argument.
6. Define the “[value_if_true]” argument by typing the number 1. If the output of the ISERROR
function is TRUE, then the output of the IF function will be the number 1.
7. Type a comma to advance to the “[value_if_false]” argument.
8. Define the “[value_if_false]” argument by typing a zero. If the output of the ISERROR function
is FALSE, then the output of the IF function will be “0.”
9. Type a closing parenthesis and tap the ENTER key on your keyboard.
10. Copy the IF function in cell P2 and paste it into the rest of the rows of the dataset.
Figure 8.29 shows the outputs in the Price Alert column. This column, along with several other
columns that were added to the dataset can now be used to finalize a solution for the case.

FIGURE 8.29 Outputs for the IF and ISERROR Functions

Skill Refresher: ISERROR Function

1. Type an equal sign = followed by the function name ISERROR and an open parenthesis.
2. Define the “number” argument with a cell location or number.
3. Type a closing parenthesis and tap the ENTER key on your keyboard.

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Solving the Case

Follow Along File: Data Analytics Project 6 continued. If starting here use Data Analytics Project 6.10.
The columns that were added to the dataset in the Transactions worksheet will enable the
three scenarios identified in the Analysis component of the DATA Analytics Framework to be inves-

tigated. The goal will be to determine if any or all of these scenarios are true by processing the
dataset into PivotTables. The following demonstrates how this is accomplished.
1. Insert a PivotTable using the entire dataset in the Transactions worksheet. The PivotTable
should appear in a separate worksheet and the worksheet tab should be labeled Solution 1.
2. Add the State field to the ROWS area of the PivotTable and add the Amount field to the VAL-
UES area.
3. Change the name of the Amount field to Net Cash Sales and format the values to U.S. currency,
zero decimal places.
4. Add the Daily Cash Report field to the VALUES area. This field was created to eliminate the
repeating values in the Cash Report field. This will enable Scenario 1 to be investigated.
5. Change the name of the Daily Cash Report field to Reported Cash by Day. Format the values to
U.S. currency, zero decimal places.
6. Add a calculated field that subtracts the Amount field from the Daily Cash Report field (Daily
Cash Report–Amount). The name of this field should be Actual vs Cashier Report and format
values to U.S. Currency, zero decimal places.
Figure 8.30 shows the appearance of the PivotTable arranged to investigate Scenario 1 from the
Analysis component of the DATA Analytics Framework. Since the repeating values were eliminated
in the Daily Cash Report field, the sum of the values in the Amount field should match the sum of
the values in the Daily Cash Report field. However, notice the values do not match in the states of
CT and NJ. Filters can be applied to further investigate this discrepancy.

FIGURE 8.30 Comparing Net Cash Sales and Cash Reported by State

7. Apply a filter to show data for only the state of CT.

8. Add the Store field to the ROWS area. Store 500CT shows a $110 discrepancy in the Actual vs
Cashier Report field.
9. Apply a filter to show data for only store 500CT. To do this, the PivotTable layout will need to
be changed to the Outline Form.
10. Add the Cashier Number to the ROWS area. Notice the discrepancy for cashier 5700-500CT.

11. Apply a filter to show data only for 5700-500CT.

12. Add the Date field to the ROWS area.
Figure 8.31 shows that cashier 5700 in store 500CT may have pilfered cash 6 out of 7 days shown
on the PivotTable. The analytics demonstrated for this case show how it is possible to identify these
few discrepancies in a dataset of over 30,000 records.

FIGURE 8.31 Potential Theft by Cashier Discovered

13. Remove the Date field from the PivotTable by clicking the check box to the left of the field
name in the PivotTable Fields window pane (see Figure 8.31).
14. Remove the filter from the Cashier Number field by clicking the down arrow next to the field
name and click the check box next to the “(Select All)” option. Click the OK button in the filter
dropdown menu and then remove the Cashier Number field from the PivotTable.
15. Remove the filter from the Store field, and then remove the Store field from the PivotTable.
16. Remove the filter from the State field. Once this filter is removed, the PivotTable should be
back to the appearance shown in Figure 8.30.
17. Apply filters to identify the cashier that may have stolen cash from a store in NJ. Also, identify
the dates in which the cash may have been stolen.
18. Reset the PivotTable back to the appearance shown in Figure 8.30. Remember to remove the
filters first before removing the field.
19. Remove the Actual vs Cashier Report calculated field.
20. Add the Weekly Store Cash field to the VALUES area.
21. Change the name of the Weekly Store Cash field to Cash Reported by Store. Format the values
to U.S. currency, zero decimal places.
22. Add a calculated field that subtracts the Daily Cash Report field from the Weekly Store Cash
field (Weekly Store Cash–Daily Cash Report). Name this field Cashier vs Store Reports and for-
mat the values to U.S. currency, zero decimal places. The cash reported by the store manager
should equal the sum of the cash reported by the cashiers for the week. This calculated field
will show if there is a discrepancy between these two reports.
Figure 8.32 shows the setup of the PivotTable that can be used to test Scenario 2 identified in
the Analysis component of the DATA Analytics Framework. Even though there was a cashier that
was identified as possibly stealing cash in CT, the store manager reported the same amount of cash
that was reported by the cashier. This is also true for PA. However, there are discrepancies in both
NJ and NY. The results for the state of NY show that Scenario 2 may be true since the store manager

is reporting a lower amount compared to what was reported by the cashier. The Reported Cash by
Day for NY matches the Net Cash Sales, so it appears the store manager may have stolen cash.

FIGURE 8.32 Potential Theft by Store Manager Identified

What is most unusual in the results shown in Figure 8.32 is the discrepancy for the state of
NJ. The results show that the store manager is reporting an amount that is higher than what the
cashier reported. Could this suggest a scenario that was not considered in the Analysis phase of
the DATA Analytics Framework? What if this discrepancy was a collusion attempt between both
the cashier and the store manager? In other words, what if both people are working together to try
and cover up the theft? In this case, both the store manager and the cashier would need to be ques-
tioned. This type of discovery is common when conducting data analytics projects. It is difficult
to identify all possible scenarios when completing the Analysis component of the DATA Analytics
Framework. As the data is analyzed, discoveries can be made that require the Analysis component
to be amended. This may also require additional data or calculations to be added to the dataset in
the Acquisition component of the DATA Analytics Framework.
23. Apply a filter to show only data for NY.
24. Add the Store field to the ROWS area.
Figure 8.33 shows that the manager of store 360NY may have stolen cash.

FIGURE 8.33 Applying Filters Show Potential Theft by Store Manager 360NY

25. Click cell A1 in the Transactions worksheet. Insert another PivotTable using the entire dataset.
Place the PivotTable in a new worksheet and change the label of the worksheet tab to Solution
2. The purpose of this PivotTable is to investigate Scenario 3 in the Analysis component of the
DATA Analytics Framework.
26. Add the Price Alert field to the ROWS area. This field was created to show if a cashier booked a
fake return to take money out of the cash register.
27. Apply a filter to the Price Alert field so only the number 1 is showing. The number 1 indicates a
price in the Amount field does not match any of the prices in the Price List worksheet.
28. Add the Store field to the ROWS area.
29. Click the Report Layout button in the Design tab of the Ribbon and select the Show in Tabular
Form from the dropdown menu.
30. Add the Price Alert field to the VALUES area. Since this field contains numeric values, it can be
used in both the ROWS area for the purpose of applying a filter and in the VALUES area.
Figure 8.34 shows the current appearance of the PivotTable used to evaluate Scenario 3. Notice
that there are two stores that each have seven instances where the price in the Amount field does
not match any of the prices in the Price List worksheet.

FIGURE 8.34 PivotTable Shows Price Discrepancies for Two Stores

31. Apply a filter to show data for only store 500CT.

32. Add the Amount field to the VALUES area.
33. Add the Cashier Number field to the ROWS area.
34. Add the Date field to the ROWS area.
35. Add the Time field to the ROWS area.
36. Ungroup the Time field by clicking the field name on the PivotTable and then click the
Ungroup button in the Analyze tab of the Ribbon.
37. Increase the width of column D if needed to see the dates.
38. Remove the subtotals from the PivotTable.
Figure 8.35 shows the results of the PivotTable identifying a cashier that may be booking fake
returns. Based on the data shown, it appears that cashier 5700-500CT is booking a fake return to
take a $20 bill out of the register every day at 12:15pm.

FIGURE 8.35 Cashier Booking Fake Returns Discovered

39. Remove the filter applied to the Store field to identify the cashier booking fake returns in store
530CT. This completes the solution for investigating Scenario 3.

Key Takeaways

• Columns can be added to a dataset to create smaller segments for analysis.

• When creating a column to eliminate repeating values, the entire dataset must be sorted
such that all repeating values are grouped together.
• Characters from an entry in a cell location can be selected and displayed in another cell loca-
tion using the RIGHT function.
• The WEEKNUM function is helpful for segmenting a dataset by week when several date
records are added on a continuing basis.
• The ABS function is useful when a number cannot be displayed or used in other functions as
a negative value.
• The ISERROR function can be used in an IF function to determine if other functions are pro-
ducing an error output.
• New scenarios that need to be investigated in a dataset are often discovered during the
development of a solution for a data analytics project.

8.4 Summarizing Big Datasets in

Custom Reports

Learning Objectives

1. Learn how to summarize big datasets using functions.

2. Review the use of the Excel Spell Check.
3. Learn how to add a descriptive comment to a cell location.
4. Understand how mixed references are used when pasting formulas and functions.

In addition to answering the question of cash being pilfered in the Investigating Fraud case, the
construction of a custom report is also required. In the field of consulting, this is a common
request. Companies often have their own way of presenting and analyzing data for their business.
When working with big datasets, the development of these reports often requires the use of the
statistical IF and IFS functions which were demonstrated in the Summarizing Exception Analytics
chapter. These functions as well as the concept of adding cell capacity to functions will be used to
complete the report template that is found in the Summary worksheet of the Data Analytics Pro-
ject 6 workbook.

Excel Spell Check

Follow Along File: Data Analytics Project 6 continued. If starting here use Data Analytics Project 6.11.
Before building the custom report required for the Investigating Fraud case, Excel’s spell check
feature will be used to identify any misspelled words. It is important to use the spell check feature
before finalizing reports in Excel since there is no red underline (as seen in Microsoft Word) that
will be displayed if a word is spelled incorrectly on a worksheet. The following demonstrates how
this is used.
1. Open the Summary worksheet.
2. Click the Spelling button in the Review tab of the Ribbon. This will open the Spelling dialog
box shown in Figure 8.36. The dialog box suggests that the word “Reprot” be changed to
“Report”.

FIGURE 8.36 The Spelling Dialog Box

3. Click the Change button on the right side of the Spelling dialog box (see Figure 8.36). The
Spelling dialog box then identifies the next misspelled word: “Transations.”
4. Click the “Transactions” option from the list of Suggestions on the Spelling dialog box and then
click the Change button. The Spelling dialog box then identifies that the abbreviation “Pct”
should include a period “Pct.”.
5. Click the Change All button on the right side of the Spelling dialog box. Since the “Pct” abbre-
viation appears a few times on the worksheet, this button will change all occurrences.
6. The Alert box will appear as shown in Figure 8.37. Click the Yes button on the Alert box and
then click the OK button on the next alert box stating the spell check is complete.

FIGURE 8.37 Spell Check Warning Box

Skill Refresher: Spell Check

1. Click the Spelling button in the Review tab of the Ribbon.

2. Click the desired option from the Suggestions list on the Spelling dialog box.
3. Click either the Change or Change All button on the Spelling dialog box.
4. Click the Yes button if an alert box opens asking to check the worksheet from the begin-
ning.
5. Click the OK button when the alert box opens stating the spell check is complete.

View the video online at: http://www.youtube.com/embed/vq-6qapWLsQ?rel=0

Adding Comments to Cell Locations

Follow Along File: Data Analytics Project 6 continued. If starting here use Data Analytics Project 6.12.
Excel provides the ability to add comments to a cell location which can be used to describe the
data contained on a worksheet. In some cases, these comments can serve as a data internal control
to prevent the misinterpretation of outputs on a worksheet. The custom report for the Investigat-
ing Fraud case contains outputs that require additional clarification so the user understands what
is being calculated. The following demonstrates how this is accomplished.
1. Click cell E5 on the Summary worksheet.
2. Click the New Comment button in the Review tab of the Ribbon.
3. Type the following: “Percent of total in this column is return dollars as a percent of cash sales.”
This will be added to the yellow comment box as shown in Figure 8.38. Notice that the sizing
handles can be used to change the size of the comment box.

FIGURE 8.38 Adding a Comment to a Cell Location

4. Click cell G3. Clicking any cell will close the comment box. The upper right corner of cell E5 is
shaded red indicating a comment has been added to this cell.
5. Place the mouse pointer over cell E5 to display the comment.
6. Double click cell A5 to edit the contents of the cell.
7. Type a front slash / and then start a second line in the cell.
8. Type the following: “Pct. Of Total”.
9. Tap the ENTER key on your keyboard to complete the edit to this cell.
10. KO Edit cell A5 and change the capital “O” in the word “Of” to a lower case “o”.
Figure 8.39 shows the appearance of the Summary worksheet after a comment is added and
cell A5 is edited. Notice the buttons in the Review tab of the Ribbon for editing, deleting, and review-
ing comments that are added to a worksheet.

FIGURE 8.39 Appearance of the Summary Worksheet

Skill Refresher: Comments

1. Click a cell where a comment is to be added.

2. Click the New Comment button in the Review tab of the Ribbon.
3. Type the desired comment.
4. Click any cell to close the comment box.
5. Place the mouse pointer back over the cell to view the comment.

View the video online at: http://www.youtube.com/embed/8FQjqnmdE40?rel=0

Using Functions with Big Datasets

Follow Along File: Data Analytics Project 6 continued. If starting here use Data Analytics Project 6.13.
Building the custom report for the Investigating Fraud case continues with the addition of
basic statistics functions. In previous chapters, basic statistics functions were built by simply high-
lighting a range of cells that were used in the function. When working with big datasets, this
method is not practical. The functions that will be used for the custom report in the Summary
worksheet will need to reference data in the Transactions worksheet and will include cell capacity
up through row 50,000. The click and drag method would be very inefficient. Typing this into a
function has its downsides as well due to syntax error risk. The following demonstration offers a
way to build functions using big datasets that support efficiency and accuracy.
1. Click the merged cell beginning with cell B3 in the Summary worksheet.
2. Begin the MIN function by typing an equal sign =, the function name “min” and an open paren-
thesis. The purpose of this function is to show the oldest date that appears on the dataset in
the Transactions worksheet. Since dates are recognized as data serial numbers in Excel, the
MIN function can identify the date with the lowest serial number which would be the oldest
date.
3. Click the Transactions worksheet tab. Then, highlight the range C2:C5.
4. Type a closing parenthesis and then tap the ENTER key on your keyboard. At this point, the
function is only processing the data in the range C2:C5. However, this range will be edited in
the next step.
5. Double click the merged cell that contains the MIN function. Type 4 zeros next to the number
5 in the cell location C5 (see Figure 8.40). This will increase the cell capacity of the function to
include row 50,000 in column C.

FIGURE 8.40 Editing the Cell Range for the MIN Function

6. Tap the ENTER key on your keyboard. The output shows the oldest date on the dataset which
is 9/14/2020. The benefit of clicking and dragging the first few rows of data to define the
function is that the syntax for the worksheet name that precedes the cell range is added auto-
matically. This eliminates the possibility of typing a syntax error.
7. Using the method in steps 2 through 6, enter the MAX function into the merged cells beginning
with cell E3. The function should find the newest date in the range C2:C50000.
8. Use the MIN and MAX functions to create a formula in the merged cell beginning in cell C4.
The formula should first use the MAX function to find the highest week number in the range
J2:J50000 on the Transactions worksheet. Then subtract from the MAX function a MIN func-
tion that finds the lowest week number in the range J2:J50000 on the Transactions worksheet.
Then, add 1 to the MIN function. The result of this formula will show the number of weeks of
data that is contained in the dataset on the Transactions worksheet.
Figure 8.41 shows the output of the formula used to calculate the number of weeks of data in
the Investigating Fraud dataset. There is currently one week of data. Since capacity was added to
the functions through row 50,000, the output will change when additional records are added to the
dataset.

FIGURE 8.41 Output of Formula Calculating Number of Weeks

Selecting Data with Statistical IF and IFS

Functions
Follow Along File: Data Analytics Project 6 continued. If starting here use Data Analytics Project 6.14.
Statistical IF and IFS functions will be added to the custom report in the Summary worksheet
to select data from the Transactions worksheet. These functions will serve a similar purpose to the
way in which a PivotTable selects data from a dataset. The method used to add the basic statistics

functions to the report will also be used for these functions. The following demonstrates how this
is accomplished.
1. Begin the COUNTIF function in cell B6 on the Summary worksheet by typing an equal sign =,
the function name “countif”, and an open parenthesis.
2. Open the Transactions worksheet and highlight the range I2:I5 to define the “range” argument.
3. Tap the F4 key to add an absolute reference to the range.
4. Type a comma to advance to the “criteria” argument.
5. Open the Summary worksheet and click cell A6 to define the “criteria” argument.
6. Type a closing parenthesis and tap the ENTER key on your keyboard.
7. Edit the COUNTIF function in cell B6 and change cell $I$5 in the “criteria” argument to cell
$I$50000 (see Figure 8.42).
Figure 8.42 shows the output of the COUNTIF function. There are 4725 transactions for the
state of CT on the Investigating Fraud dataset.

FIGURE 8.42 Output of the COUNTIF Function

8. Format cell B6 with commas and zero decimal places.

9. Copy cell B6 and paste it into cells B8, B10, and B12. Notice how the function adjusts the trans-
action count for the appropriate state as the function is pasted.
10. Begin the SUMIF function in cell C6 by typing an equal sign =, the function name “sumif”, and
an open parenthesis.
11. Open the Transactions worksheet and highlight the range I2:I5 to define the “range” argument.
12. Tap the F4 key to add an absolute reference to the range.
13. Type a comma to advance to the “criteria” argument.
14. Open the Summary worksheet and then click cell A6 to define the “criteria” argument.
15. Type a comma to advance to the “[sum_range]” argument.
16. Open the Transactions worksheet and highlight the range F2:F5.

17. Tap the F4 key to add an absolute reference to the range.

18. Type a closing parenthesis and tap the ENTER key on your keyboard.
19. Edit the SUMIF function in cell C6 so the cell capacity of the function includes row 50000 on
the Transactions worksheet (see Figure 8.43).
20. Format cell C6 to the Accounting format with zero decimal places.

FIGURE 8.43 Output of the SUMIF Function

21. Copy cell C6 and paste it into cells C8, C10, and C12.
22. Begin the SUMIFS function in cell D6 by typing an equal sign =, the function name “sumifs”,
and an open parenthesis.
23. Open the Transactions worksheet and highlight the range F2:F5 to define the “sum_range”
argument.
24. Tap the F4 key to add an absolute reference to the range.
25. Type a comma to advance to the “criteria_range1” argument.
26. Highlight the range I2:I5 on the Transactions worksheet.
27. Tap the F4 key to add an absolute reference to the range.
28. Type a comma to advance to the “criteria1” argument.
29. Open the Summary worksheet and click cell A6 to define the “criteria1” argument.
30. Type a comma to advance to the “[criteria_range2” argument.
31. Open the Transactions worksheet and highlight the range F2:F5 to define the “[criteria_range2”
argument.
32. Tap the F4 key to add an absolute reference to the range.
33. Type a comma to advance to the “criteria2]” argument.
34. Type the following logical test: “>0”. You must include the quotations around the logical test
when defining the “criteria2]” argument.
35. Type a closing parenthesis and tap the ENTER key on your keyboard.

36. Edit the SUMIFS function in cell D6 so the cell capacity of the function includes row 50000
on the Transactions worksheet (see Figure 8.44). The output of this function is summing just
the cash sales for each state. This removes the return transactions so the company can see the
gross sales that are achieved for each state.
37. Format cell C6 to the Accounting format with zero decimal places.

FIGURE 8.44 Output of the SUMIFS Function

38. Copy cell D6 and paste it into cells D8, D10, and D12.
39. Add a second SUMIFS function in cell E6. This SUMIFS function will be identical to the func-
tion in cell D6, however the logical test will be “<0”. The output of this function will sum only
the return transactions. By isolating the total volume of returns, the company can monitor if
there are any significant increases in products being returned to the stores by state.
40. Edit the SUMIFS function in cell E6 such that the entire function is placed inside an ABS func-
tion (see Figure 8.45). This will show the total returns as a positive number.
41. Format cell E6 to the Accounting format with zero decimal places.
Figure 8.45 shows the output of the SUMIFS function placed inside the ABS function. Notice
in the formula bar that it is necessary to place two closing parentheses at the end of the function.

FIGURE 8.45 Output of the SUMIFS Function Inside the ABS Function

42. Copy cell E6 and paste it into cells E8, E10, and E12.
43. Enter a COUNTIFS function in cell F6 that counts the number of transactions for each state
(similar to the COUNTIF function in cell B6) where the value in the Amount column is greater
than zero. The output of this function will enable a calculation that shows on average the
amount of money spent for each sale transaction. As in the previous functions, the cell capac-
ity must include row 50000 on the Transactions worksheet.
44. Format cell F6 with commas and zero decimal places.

FIGURE 8.46 Output of the COUNTIFS Function

45. Copy cell F6 and paste it into cells F8, F10, and F12.

Mixed References
Follow Along File: Data Analytics Project 6 continued. If starting here use Data Analytics Project 6.15.
Throughout this textbook, the absolute reference has been used to prevent relative referencing
from changing a cell reference when a formula or function is pasted into other cell locations. The
absolute reference prevents both the column letter and row number from changing. However, there
are situations when it may be helpful to have relative referencing change just the column letter or
row number when a formula or function is pasted into a new cell location. In these cases a mixed
reference is needed. The following demonstrates how mixed references are used in formulas to
complete the custom report in the Summary worksheet.
1. Enter a formula in cell B14 on the Summary worksheet that adds the values in cells B6, B8, B10,
and B12.
2. Copy cell B14 and paste it into the range C14:F14.
3. Format the range C14:E14 with the Accounting format and reduce the decimal places to zero.
Increase column widths as needed.
Figure 8.47 shows the formula outputs totaling data for five columns on the custom report.
This data design choice of placing totals at the bottom of the report was made since no additional
rows will be added to the report. The report is intended to be a fixed design that summarizes data
on the Transactions worksheet.

FIGURE 8.47 Report Totals

4. Begin a formula in cell B7 by typing an equal sign =, click cell B6, and type the front slash / for
division.
5. Click cell B14.
6. Tap the F4 key on your keyboard twice. This will create a mixed reference by placing a dollar
sign only in front of the row number of the cell reference (see Figure 8.48). This will prevent rel-
ative referencing from changing row 14, which contains the report totals, but the column letter
will change when the formula is pasted to other cells. This will allow the formula to be pasted
into any cell that is calculating a percent of report total.

FIGURE 8.48 Using a Mixed Reference in a Formula

7. Tap the ENTER key on your keyboard to complete the formula.

8. Format cell B7 with a percentage and 2 decimal places.
9. Copy cell B7 and paste it into the range C7:D7.
10. Copy the range B7:D7.
11. Paste the copied range into: B9:D9, B11:D11, and B13:D13.
12. Copy cell B7 and paste it into cells F7, F9, F11, and F13.
Figure 8.49 shows cell locations that contain output for the formula calculating percent of
totals. By using the mixed reference, this formula only needed to be created one time. The formula
was then able to be pasted into all cell locations calculating a percent of total.

FIGURE 8.49 Percent of Totals Added to the Custom Report

13. Enter a formula in cell E7 that divides the value in cell E6 by the value in cell D6. As stated in
the comment added to cell E5, this column will show the percent of returns to cash sales. This
output helps the company understand what percentage of cash sales are returned to the store.
14. Format cell E7 to a percentage and 2 decimal places.
15. Copy cell E7 and paste it into cells E9, E11, and E13.
16. Enter a formula in cell G6 that divides the value in cell D6 by the value in cell F6. This formula
will show the company how much a customer spends on average for each sale transaction.
17. Format cell G6 to the Accounting format with two decimal places.
18. Copy cell G6 and paste it into cells G8, G10, and G12.
19. Use the Paste Formulas & Number Formatting command to paste the formula into cell G14.
Figure 8.50 shows the completed custom report in the Summary worksheet. Since the func-
tions used in the report contain cell capacity through row 50,000 on the Transactions worksheet, as
new data is added it will be included in this report. However, data that is added beyond row 50,000
will not be included. This will be addressed next when data internal controls are added to the pro-
ject.

FIGURE 8.50 Completed Custom Report

Key Takeaways

• It is important to proofread worksheets and use the spell check to identify misspelled words.
• When working with big datasets, it is not practical to highlight the range of cells that is used
in a function.
• Adding a descriptive comment to a cell location can serve as a data internal control by pre-
venting the user from misinterpreting the output of a formula or function.
• A mixed reference is valuable when relative referencing is needed to modify either the row
number or column letter of a cell reference when pasting a formula or function.

8.5 Establishing Data Internal

Controls

Learning Objectives

1. Understand the setup and uses of a READ ME worksheet.

2. Review capacity alert data internal controls.
3. Review worksheet protection

To complete the Investigating Fraud case, a few data internal controls will be added to protect the
integrity of the outputs created by formulas, functions, and PivotTables. Risks such as aggregating
repeating values on PivotTables and exceeding capacity limits in functions currently exist in the
workbook. This section will establish data internal controls that will address these risks, as well as
other risks, by using many of the techniques that were demonstrated earlier in the textbook.

READ ME Worksheet
Follow Along File: Data Analytics Project 6 continued. If starting here use Data Analytics Project 6.16.
A simple data internal control is the addition of a READ ME worksheet. Just as it sounds, it is
a worksheet that contains pertinent information about the workbook that a user is encouraged to
read before making any modifications. The following demonstrates how a READ ME worksheet is
added to the Data Analytics Project 6 workbook with an emphasis on Keyboard Only skills.
1. KO Insert a new worksheet into the workbook.
2. Click and drag the new worksheet tab so it is the first worksheet on the far left of the other
worksheet tabs.
3. Change the worksheet tab label to “READ ME”.
4. Click cell A1.
5. KO Change the width of column A to 18 points.
6. KO Type the following into cells A1 through A5: “Last Updated”, “Update Time”, “Updated By”,
and “Comments” (see Figure 8.51).

FIGURE 8.51 Adding a READ ME Worksheet

7. KO Format the entire worksheet to Arial font style and 12 point font size. Holding the CTRL
key and tapping the A key will highlight the data in a contiguous range. Tap the A key a second
time to highlight the entire worksheet.

8. KO Apply the bold and italics format to the range A1:A4.

9. KO Edit each entry in the range A1:A4 by adding a colon at the end of each entry.
10. KO Merge the cells in the range B1:G4. Use the Merge Across option so each row contains a
merged cell that extends from column B to column G.
11. KO Set the alignment in the range B1:G4 to align left.
12. KO Add the current date into the merged cell to the right of cell A1. Hold the CTRL key and tap
the semicolon ; key. Then tap the ENTER key.
13. KO Add the current time into the merged cell to the right of cell A2. Hold the CTRL key, the
SHIFT key, and tap the colon : key. Then tap the ENTER key.
14. KO Type your name into the merged cell to the right of cell A3.
15. KO Set the alignment in the merged cell B4:G4 to Wrap Text.
16. KO Set the height of row 4 to 125 points.
17. KO Set the alignment of cell A4 to top left.
18. KO Type the following into the merged cell to the right of cell A4: “The PivotTable in the Data
Audit worksheet must remain at the transaction level. The Cashier Report and Store Report
fields contain repeating values and cannot be aggregated.”. Add two blank lines by holding the
ALT key and tapping the ENTER key twice. Then type: “The dataset in the Transaction work-
sheet must be sorted by Store, Cashier Number, and Date. Changing the sort order will corrupt
the outputs in the workbook!!”.
Figure 8.52 shows the complete READ ME worksheet. This example of the worksheet contains
a few items that would help a user with this workbook. However, other items could be added
such as contact information, purpose of workbook, or additional people that can be contacted. Any
information that would help the outputs from being compromised in the workbook should be con-
sidered additions to the worksheet.

FIGURE 8.52 Completed READ ME Worksheet

19. Click cell D1 in the Data Audit worksheet.

20. Type the following: “Transaction count must equal 1. Cashier Report and Store Report fields
cannot be aggregated.” Adding this message to the Data Audit worksheet adds another data
internal control to ensure the PivotTable is not corrupted by aggregating the repeating values
in the Cashier Report and Store Report fields.
21. Format cell D1 with an Arial font, bold, and change the font color to red.
22. KO Open the Transactions worksheet and go to the last row of the dataset.
23. Click cell A30242. Type the following: “This dataset must be sorted by Store, Cashier Number,
and Date. If adding new data, sort the entire dataset.” This data internal control is placed in
this location so if new rows are added to the dataset the user knows that the entire dataset
must be sorted.
24. Click cell A30243. Type the following: “PivotTables in this workbook will not include new data
that is added here. New PivotTables must be created or cell range in existing PivotTables must
be modified.” This data internal control serves as a reminder that existing PivotTables will not
include new data. Data internal controls were placed in cells A30242 and A30243 as these are
the first rows that are likely to be used and seen when new data is added to the worksheet.
25. Apply a bold font and change the font color to red in cells A30242:A30243.
26. Click cell A1 in the Solution 1 worksheet. Type the following: “Only the State and Store fields
can be used in the ROWS area of this PivotTable.” This data internal control is used to tell the
user the PivotTable is not designed to examine details beyond the State and Store level. This is
because the Reported Cash by Day and Cash Reported by Store fields were created to eliminate
repeating values and can only be used when aggregating the dataset at the state or store level.
27. Format cell A1 with a bold font and change the font color to red.

Setting Capacity Alerts

Follow Along File: Data Analytics Project 6 continued. If starting here use Data Analytics Project 6.17.
The custom report in the Summary worksheet contains functions that will include data from
the Transactions worksheet through row 50,000. However, data that is added after row 50,000 will
not be included in the report and will require an alert to the user. A capacity alert was demon-
strated earlier in the textbook using the ISBLANK and IF functions. The following demonstrates
the same technique for the custom report.
1. Merge the cells in the range A16:G19 on the Summary worksheet.
2. Enter an IF function in the merged cell beginning with cell A16. The IF function should eval-
uate if cell A50001 on the Transactions worksheet is blank. If cell A50001 on the Transactions
worksheet is blank, the IF function should leave the merged cells blank. If cell A50001 on the
Transactions worksheet is not blank, the IF function should produce the following output:
Report is incomplete, do not use! Data in the Transactions worksheet exceeds report function
capacity.
3. Format the merged cells beginning with cell A16 with font size 14, font color red, and bold.
4. Set the alignment to Wrap Text for the merged cells beginning with cell A16.
5. Open the Transactions worksheet.
6. Hold the CTRL key and tap the G key on your keyboard. This will open the Go To dialog box.
7. Type the cell location A50001 (see Figure 8.53).

FIGURE 8.53 The Go To Dialog Box

8. Click the OK button on the Go To dialog box. The worksheet will jump down to cell A50001.
When working with big datasets, the Go To dialog box is an efficient way to activate specific
cell locations on a worksheet.
9. Type store “100PA” into cell A50001. This will test the capacity data internal control added to the
Summary worksheet.
10. Open the Summary worksheet. The capacity alert should be displayed (see Figure 8.54).

FIGURE 8.54 Capacity Alert on the Summary Worksheet

Worksheet Protection
Follow Along File: Data Analytics Project 6 continued. If starting here use Data Analytics Project 6.18.
The Investigating Fraud case concludes with the addition of one more data internal control.
The custom report on the Summary worksheet is intended to summarize and display the data on
the Transactions worksheet. Since there are no user inputs required, this worksheet can be pro-
tected so the formulas and functions used on the report are not inadvertently changed or deleted.
The following reviews how this is accomplished.
1. Open the Summary worksheet.
2. Click the Protect Worksheet button in the Review tab of the Ribbon.
3. Click the OK button on the Protect Sheet dialog box. This will protect the worksheet from
being changed. However, the worksheet protection can easily be turned off. If a stronger data
internal control is needed, a password could be entered in the Protect Sheet dialog box which
would be required to turn off the worksheet protection.

Keyboard Only

Current Date
• Hold the CTRL key and tap the semicolon ; key.
Current Time
• Hold the CTRL key and the SHIFT key and tap the colon : key.
Go To Dialog Box
• Hold the CTRL key and tap the G key.
Merge Cells Across
• Tap the ALT key and then tap the H, M, and A keys.

Key Takeaways

• READ ME worksheets can serve as a data internal control by providing pertinent information
about a workbook.
• The Go To command is a convenient way to jump to any cell location in a big dataset.
• When adding cell capacity to functions, an alert should be added that warns the user when
data is added to a workbook that exceeds the cell range used in functions.
• Worksheet protection should be used when there are no user inputs required for a report
that summarizes a big dataset.

8.6 Chapter Assignments and Test

Data Analytics (Skills Review)

Identifying Inventory Discrepancies (Comprehensive Review)

Starter File Name: Chapter 8 DA Exercise 1

Digital Downloads

Chapter 8 DA Exercise 1.xlsx

https://catalog.flatworldknowledge.com/a/31995/Chapter_8_DA_Exercise_1-5ba6.xlsx

Difficulty: Level 2
Many retailers have return policies that may allow customers to return merchandise several
months after a purchase. However, a common requirement is that the item returned must have
been purchased at one of the company’s stores and must be an item that is sold by the com-
pany. In some cases return errors can occur such that a cashier accepts an item for return that
is not sold by the store. If the store does not require a receipt, these returns can be done inten-
tionally as a way to pilfer money from the company. These types of returns may also be the
result of collusion between a customer and a store employee to pilfer money from the store. To
identify if this is happening, inventory discrepancies can be investigated using data analytics.
The purpose of this exercise is to use the new skills demonstrated in this chapter to identify
inventory return discrepancies for a hypothetical retailer. Begin the exercise by opening the file
named Chapter 8 DA Exercise 1. Questions that are preceded with the letters KO indicate you
must only use your keyboard and not your mouse to execute the required skill.
1. KO Change the font style to Arial for the entire dataset in the Inv Transactions worksheet.
2. KO Apply the bold font and Wrap Text alignment to the range A1:H1.
3. KO Apply the Accounting format to all the data in the Amount column.
4. KO Insert a new worksheet into the workbook and change the worksheet tab name to Data
Copy.
5. KO Copy the entire dataset in the Inv Transactions worksheet and paste it into the Data
Copy worksheet.
6. KO Change the width to 15 points for columns C, D, E, F, G, and H on the Data Copy work-
sheet.
7. KO Open the Inv Transactions worksheet.
8. In cell I1 on the Inv Transactions worksheet, type the column heading “Region”.
9. Enter a RIGHT function in cell I2 that will show the last two characters of the entry in cell A2.
Define the “text” argument with cell A2 and define the “[num_chars]” argument with the num-
ber 2. The last two characters for the data shown in the District column is the abbreviation
of the region. For example, district 10NE is district 10 in the Northeast region. The output of
this function will allow the dataset to be summarized by region.
10. Copy cell I2 and paste it into all of the rows in the dataset by double clicking the Fill Handle.
11. In cell J1, type the column heading “Week”.
12. Enter the WEEKNUM function in cell J2 that will show the week number related to the date
in cell C2. Define the “serial_number” argument with cell C2. Define the “[return_type]” argu-
ment with the number 2 which assumes that Monday is the first day of the week. The output
of this function will be useful if additional data is added to the dataset.
13. Copy cell J2 and paste it into all of the rows in the dataset by double clicking the Fill Handle.
14. In cell K1, type the column heading “Return Amount”.
15. Enter an IF function in cell K2 that will show the absolute value of the returns in the Amount
column. The logical test of the function should evaluate if cell F2 is less than zero. If the

logical test is true, define the “[value_if_true]” argument with the ABS function. Define the
“number” argument of the ABS function with cell F2. If the logical test is false, the output of
the IF function should be zero.
16. Copy cell K2 and paste it into all of the rows in the dataset by double clicking the Fill Handle.
17. Click cell K1 and add a comment by clicking the New Comment button in the Review tab of
the Ribbon. When the comment box opens, type the following: “Return amounts are shown
as positive values”. Click cell I1 to close the comment box.
18. In cell L1, type the column heading “Sale Amount”.
19. Enter an IF function in cell L2 that shows just the positive values (sale transactions) in the
Amount column. The logical test of the function should evaluate if cell F2 is greater than zero.
If the logical test is true, define the “[value_if_true]” argument with cell F2. If the logical test is
false, the output of the IF function should be zero.
20. Copy cell L2 and paste it into all of the rows in the dataset by double clicking the Fill Handle.
21. Sort the entire dataset in ascending order based on the following column sequence: District,
Store, and Date. Highlight the entire dataset and then click the Sort button in the Data tab of
the Ribbon. This is a critical step that will be required to eliminate the repeating values in the
Store Report column.
22. In cell M1, type the column heading “Store Week”.
23. Enter a CONCATENATE function into cell M2 that combines the Store and Week columns.
Define the “text1” argument with cell B2, and the “[text2]” argument with cell J2.
24. Copy cell M2 and paste it into all of the rows in the dataset by double clicking the Fill Handle.
25. In cell N1, type the column heading “Weekly Store Sales”.
26. Enter an IF function in cell N2 that displays the first instance of the values in the Store Report
column. The logical test of the IF function should evaluate if cell M2 is equal to M1. If the
logical test is true, the output of the function should be zero. If the logical test is false, the
output of the function should be the value in cell H2.
27. Copy cell N2 and paste it into all of the rows in the dataset by double clicking the Fill Handle.
28. In cell O1, type the column heading “SKU Check”.
29. Enter a VLOOKUP function into cell O2 that looks for the SKU (Stock Keeping Unit) number
in cell G2 in the SKU List worksheet. Define the “lookup_value” argument with cell G2.
Define the “table_array” argument with the range A2:A101 in the SKU List worksheet. Place
an absolute reference on this cell range before defining the next argument. Define the
“col_index_num” argument with the number 1 and the “[range_lookup]” argument with the
word “FALSE” to look for an exact match to the lookup value.
30. Copy cell O2 and paste it into all of the rows in the dataset by double clicking the Fill Handle.
31. In cell P1, type the column heading “SKU Alert”.
32. Enter an IF function in cell P2 that shows an output of 1 if the VLOOKUP function produced
an error output in the SKU Check column. The logical test of the IF function should be
defined with the ISERROR function. Define the “value” argument of the ISERROR function
with cell O2. If the logical test is true, the output of the IF function should be the number 1. If
the logical test is false, the output of the function should be zero.
33. Copy cell P2 and paste it into all of the rows in the dataset by double clicking the Fill Handle.
34. Create a PivotTable using the entire dataset in the Inv Transactions worksheet. Click cell A1
and click the PivotTable button in the Insert tab of the Ribbon. The Create PivotTable dia-
log box should automatically include the entire range of the dataset. The PivotTable should
appear in a separate worksheet and the worksheet tab label should be changed to “Returns
Ratio”.
35. Add the Region and Store fields to the ROWS area of the PivotTable.
36. Change the layout of the PivotTable to the Outline Form by clicking the Report Layout button
in the Design tab of the Ribbon.
37. Add the Transaction Number field to the VALUES area of the PivotTable.
38. Double click the Sum of Transaction Number column heading on the PivotTable to open the
Value Field Settings dialog box. Change the output calculation to Count and the field name
to “Transaction Count”.

39. Add the Sale Amount field to the VALUES area of the PivotTable. Change the field name to
“Cash Sales” and format the values to U.S. Currency with zero decimal places.
40. Add the Return Amount field to the VALUES area of the PivotTable. Change the field name
to “Cash Returns” and format the values to U.S, Currency with zero decimal places.
41. Add a calculated field by clicking the Fields, Items, & Sets button in the Analyze tab of the
Ribbon. The field name should be Returns Ratio. The formula should be the Return Amount
field divided by the Sale Amount field.
42. Format the values in the Sum of Returns Ratio field to a percentage with 2 decimal places.
43. Sort the stores on the PivotTable based on the values in the Sum of Returns Ratio field in
descending order. The results of this PivotTable show stores that have a high percentage of
returns with respect to sale transactions. These stores may require additional monitoring to
ensure these are all legitimate returns.
44. Create a second PivotTable using the entire dataset in the Inv Transactions worksheet. The
worksheet tab name should be “SKU ALERT”.
45. Add the SKU Alert Field to the ROWS area of the PivotTable.
46. Change the layout of the PivotTable to the Tabular Form.
47. Click the down arrow next to the SKU Alert field name on the PivotTable and set a filter so
only the value of 1 is displayed.
48. Add the District, Store, and SKU fields to the ROWS area of the PivotTable.
49. Add the Date and Time fields to the ROWS area of the PivotTable.
50. Remove all subtotals from the PivotTable and increase the column width of the Date and
SKU fields if needed.
51. Click the Time column heading on the PivotTable. Show all values in this field by clicking the
Ungroup button in the Analyze tab of the Ribbon.
52. Add the Amount field to the VALUES area of the PivotTable. The PivotTable shows that store
310 in district 30SE processed returns for SKU 82023138 which is an item that is not sold
by the company. The pattern of these returns is interesting as they all occurred at or after
7:00pm which may be right before the store closes or times when there are fewer people in
the store. Also, notice that the same item was returned for different purchase amounts. In
total, $282.96 was taken from the cash register for these returns.
53. Save and close your workbook.

Chapter Skills Test

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7. KO Set the alignment in the merged cell beginning with B4 to Align Left.
8. KO Format the merged cell beginning with B4 to WrapText.
9. KO Add the current date in cell B1.
10. KO Add the current time in cell B2.
11. KO Type your last name in cell B3.
12. KO Increase the height of row 4 to 35 points.
13. KO Type the following into the merged cell beginning with B4: “Do not change sort sequence
in Store Data worksheet.” Start a new line in this cell and add the following so that it appears
below the text you just typed: “Read any alerts before using this workbook!”
14. Create a PivotTable that shows each unique store from the Store Data worksheet. Your Piv-
otTable should appear in a separate worksheet and the worksheet tab should be named
Stores.
15. Create a second PivotTable that shows the date range from the Store Data worksheet. Your
PivotTable should appear in a separate worksheet and the worksheet tab should be named
Date Range (Hint: you will have to consider the Report Layout as well as fields that may have
been grouped).
16. Start a third PivotTable using the Store Data worksheet. This PivotTable should also appear
in a separate worksheet and the worksheet tab should be renamed Cash Analysis.
17. Add the Store, Cashier Number, and Date fields to the ROWS area of the PivotTable. Make
any necessary adjustments such that the field names are visible and do not display grouped
data.
18. Add the Amount field to the VALUES area of the PivotTable. Change the name of the field to
Net Cash and format the values to U.S. Currency with zero decimal places.
19. Remove all subtotals from the PivotTable.
20. Sort the Stores based on the Net Cash (formerly Amount) field in descending order.
21. Filter the results so only store 540 is showing.
22. Set another filter level so only cashier 5700-540CT is showing.
23. Set another filter level so only the 10/27 date is showing.
24. Bring the Transaction Number field into the ROWS area of the PivotTable. This field should
appear to the right of the Date field. Make any necessary column width adjustments so all
data and field names are visible.
25. Add the Cashier Report field to the VALUES area of the PivotTable. Change the name of the
field to Daily Cash Report and format the values to Currency with zero decimal places.
26. Add the Transaction Number field to the VALUES area of the PivotTable. Change the data
processing output to Count and change the field name to Transaction Count.
27. Sort the Transaction Numbers in descending order based on the Net Cash (formerly Amount)
field.
28. Add a calculated field that divides the Net Cash (formerly Amount) field by the Daily Cash
Report (formerly Cashier Report) field. The name of this calculated field should be: Pct. of
Daily Cash. Format the output of this field to a percentage, 2 decimal places.
29. How can this PivotTable produce erroneous results if the row heading fields are changed?
Identify one data processing risk and write your answer on the Answer Sheet worksheet.
30. Add a modification to the Cash Analysis worksheet to mitigate the risk you identified in ques-
tion 29.
31. Open the Store Data worksheet. In cell I1, type the column heading “State”. Then, use the
RIGHT function to show the last two characters in the Cashier Number field in this column.
32. In cell J1, type the column heading “Week”. Then use the WEEKNUM function to display the
week number of the calendar year in this column. Assume the week begins on a Monday.
33. In cell K1, type the column heading “Cashier Day”. Then, use the CONCATENATE function
to combine the Cashier Number and Date fields in this column. Adjust the column width to
accommodate the data.
34. In cell L1, type the column heading “Cashier Daily Report”. In this column, show only one
instance of each repeating value in the Cashier Report column. The Cashier Report column is
showing the amount of cash the cashier reported in the company system each day (Hint: the

sort order of the dataset is critical to produce an accurate result). Adjust the column width to
accommodate the column heading.
35. In cell M1, type the column heading “Price Check”. For this column, use the VLOOKUP func-
tion to look for the value in the Amount column in the Price List worksheet. The function
should look for an exact match. Note that values can be negative in the Amount column for
returns, but there are no negative values in the Price List worksheet.
36. In cell N1, type the column heading “Price Alert”. For this column, use the IF function to pro-
duce an output of 1 if the output of the VLOOKUP function in column M is an error code.
Otherwise, the function should show an output of zero.
37. Add a PivotTable to the workbook that identifies the state, store, cashier number, date, time
and amount where a return was booked at a price that does not match the values in the
Price List worksheet. This PivotTable should appear in a separate worksheet with the work-
sheet tab label Return Alert.
38. Save and close your workbook.

Charts for Presentations and

Data Visualization

Charts serve a dual role in data analytics projects. After a data analytics project is completed, charts
are often used to communicate the decisions and discoveries that were revealed as a result of the
project. However, as demonstrated throughout this textbook, charts can also serve the purpose of
data visualization. Data visualization can help accomplish both the Decision and Analysis compo-
nents of the DATA Analytics Framework. For example, the Treemap chart demonstrated in Chapter
3, showed how a dataset can be analyzed to rapidly arrive at the project decision. As a result, there
is a very subtle difference between charts that are used for presentations and charts that are used
for data visualization. The distinction is based on the purpose of the chart and how it is used. This
chapter will take a look at several charts and explain the value they bring in terms of data visualiza-
tion and presentations. This chapter will also demonstrate how to integrate charts into Microsoft
PowerPoint and Microsoft Word for the purposes of verbal and written communications.

9.1 Chart Types

Learning Objectives

1. Understand how charts are used for both presentations and data visualization.
2. Construct a line chart to show a time series trend.
3. Learn how to adjust the scale of the Y axis.
4. Construct a line chart to present a comparison of two trends.
5. Learn how to use a pie chart to show the percent of total for a dataset.
6. Construct a 100% Stacked Column chart to show percent of total trends.
7. Learn how to add series lines and annotations to charts.
8. Construct a column chart to show a frequency distribution.
9. Understand how a column chart is used to compare frequency distributions.
10. Learn how to create a chart with data in a non-contiguous range.

The purpose of a chart and how it is used will distinguish whether it is a tool for data visualization
X axis
or presentation. In either situation, it is important to determine a few key parameters in order to
The horizontal axis of a
create an effective chart. The first is choosing the most appropriate chart type. This will depend on chart.
the type of data that is used, the solution that is being explored, and the message that is being con-
veyed. The second parameter is selecting an appropriate subset of the data from a master dataset. Y axis
Charts are typically created with only a small portion of data that is used for an analytics project. The vertical axis of a chart.
However, when working on smaller projects, the entire dataset might be used. The third parameter
is identifying values that should appear on the X axis and the Y axis. Drawing a sketch of a chart
on paper is one way to determine what values belong on the X and Y axes. In some cases, the chart
type selected will dictate what data can and cannot be assigned to the X or Y axis.

Line Charts for Time Series Trends

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Line charts are often used to evaluate and communicate time series trends which show how
S&P 500
data for a specific topic changes over time. The first line chart will show the trend of the S&P 500
An aggregate price index
for 500 of the largest stock index. From the perspective of data visualization, this line chart can show the direction and
publicly traded U.S. magnitude of how the S&P 500 performed over a 52-week period. This can also be the message com-
companies. municated for a presentation that is intended to show whether stock prices have been increasing,
decreasing, or remaining constant over this period of time. Figure 9.1 shows the dataset that will be
used to create this line chart. There are 52 weeks of data for the year 2018 for the S&P 500 and the
Microsoft (MSFT) Corporation common stock. For this project, additional years of data will likely be
added for further analysis in the future. This will add rows of data to the worksheet, but additional
columns will not be added.

FIGURE 9.1 S&P 500 and Microsoft Common Stock Data for 2018

Before creating the chart for the 2018 S&P 500 trend, it is important to identify why a line chart
is the most appropriate chart type. When presenting the trend for any dataset over a period of time,
the most commonly used chart types are the line and column charts. For example, a column chart
was used earlier in the textbook showing sales by month. The column chart used for that project
was an appropriate choice because the dataset was filtered to show four data points, or bars, on the
chart. While there is no specific rule regarding the number of bars that should be added to a col-
umn chart, a maximum of 15 to 20 is a reasonable estimate. This is because as the number of bars

on a column chart increases, the chart can be very difficult to read. The line chart is a more appro-
priate choice for this project because there are 52 data points which would put too many bars on
the column chart (see Figure 9.1). The visual goal of this chart is to show the week number on the X
axis (horizontal axis) and the closing price on the Y axis (vertical). The following demonstrates how
the line chart is created.
1. Highlight the range B3:C55 on the Stock Analysis worksheet.
2. Use the scroll bar on the far right side of the worksheet to scroll up so Row 1 is visible (see Fig-
ure 9.2).
3. Click the Insert tab on the Ribbon.
4. Click the Insert Line or Area Chart button (see Figure 9.1).
5. Click the first option from the dropdown menu which is the Line option. A preview of the
chart will appear on the worksheet when the mouse pointer is placed over the options in the
dropdown menu (see Figure 9.2).

FIGURE 9.2 Inserting a Line Chart

Figure 9.3 shows the embedded line chart in the Stock Analysis worksheet. Notice there are
contextual tabs
two additional tabs, or contextual tabs, added to the Ribbon under the heading Chart Tools. These
Hidden tabs on the Ribbon
tabs appear only when the chart is activated. It is important to note that Excel automatically places that contain commands
the week number on the X axis and the closing price on the Y axis. This is because the X axis on a related to a specific object.
line chart is only for displaying labels. In other words, the line chart will allocate the same amount Contextual tabs become
visible when the related
of space along the X axis for each label. Since the cell range used for this chart contained one col- object is added or
umn of text data and one column of numeric data, Excel was able to assign values to the activated.
appropriate axes automatically. This chapter will also address how this assignment of data to the X
and Y axes can be manually controlled.

FIGURE 9.3 Embedded Line Chart in the Stock Analysis Worksheet

6. Click and drag the upper left corner of the line chart to the center of cell I2.
7. Place the mouse pointer over the left middle sizing handle, hold the ALT key down on your
keyboard, and click and drag the chart so it locks into the left side of column I.
8. Resize the chart so the top locks into the top of Row 2, the bottom locks into the bottom of Row
18, and the right side locks into the right side of column P.
9. Click the chart title once and then click after the number 500. Tap the SPACE bar and then
type the following: “Closing Price by Week for 2018” (see Figure 9.4).
Figure 9.4 shows the line chart after it is moved, resized and title changed. Notice that the siz-
ing handles do not appear around the perimeter of the chart. This is because the chart has been
deactivated. To activate the chart, click anywhere inside the chart perimeter. The design choice to
embed the chart in the same worksheet as the dataset was made because there are no additional
columns that will be added.

FIGURE 9.4 S&P 500 Trend for 2018

Integrity Check

X Axis Contains Descriptive Labels on Line Charts

When using line charts in Excel, anything placed on the X axis is considered a descriptive label,
not a numeric value. This is important because there will never be a change in the spacing of any
items placed on the X axis of a line chart. To create a line chart using numeric data on the X axis,
use the scatter chart type.

Skill Refresher: Inserting a Line Chart

1. Highlight a range of cells that contain two columns of data that will be used to create the
chart. One column must contain text data and the other numeric values.
2. Click the Insert tab of the Ribbon.
3. Click the Insert Line or Area Chart button.
4. Select a line chart style from the dropdown menu.

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Adjusting the Y Axis Scale

Follow Along File: Data Analytics Project 7 continued. If starting here use Data Analytics Project 7.01.
After creating a chart, it may be necessary to adjust the scale of the Y axis. The maximum value
used for the Y axis is based on the data used to create the chart. However, the minimum Y axis value
is usually set to zero. Depending on the data used to create a chart, setting the minimum value to
zero can substantially minimize the data visualization potential for analyzing a trend. For exam-
ple, the trend shown on the line chart in Figure 9.4 appears to be mostly flat with little change.
However, from its peak value to lowest value, the S&P 500 had a swing of almost 20% in 2018. The
presentation of this trend can be improved if the minimum value started at 2000 instead of zero.
The following demonstrates how this is accomplished.
1. Click any of the values on the Y axis of the S&P 500 Closing Price by Week for 2018 chart on the
Stock Analysis worksheet. This will activate the Y axis (see Figure 9.5).
2. Click the Format tab of the Ribbon.
3. Click the Format Selection button. This will open the Format Axis window pane on the right
side of the worksheet (see Figure 9.5).
4. Click in the Minimum input box in the upper area of the Format Axis window pane (see Figure
9.5).

FIGURE 9.5 The Format Axis Window Pane

5. Tap the BACKSPACE button to remove the zero and type the number 2000.
6. Click the X in the upper right corner of the Format Axis window pane (see Figure 9.5). This will
change the minimum value of the Y axis and close the Format Axis window pane.
Figure 9.6 shows the S&P Closing Price by Week for 2018 line chart after the Y axis minimum
value is changed to 2000. Notice the trend for the S&P 500 is more pronounced and reflects the sub-
stantial changes that occurred during 2018 compared to the chart shown in Figure 9.4.

FIGURE 9.6 Adjusted Y Axis for the S&P 500 Line Chart

Skill Refresher: Adjusting the Y Axis Scale for a Line Chart

1. Click anywhere along the Y axis.

2. Click the Format tab of the Ribbon.
3. Click the Format Selection button.

4. Click in the Minimum input box in the upper area of the Format Axis window pane.
5. Remove the current value and type a new value.
6. Click the X in the upper right corner of the Format Axis window pane.

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Line Charts for Trend Comparisons

Follow Along File: Data Analytics Project 7 continued. If starting here use Data Analytics Project 7.02.
Line charts can be used to show one trend or compare two or more trends. To demonstrate a
comparison of trends using a line chart, the change in value for the S&P 500 will be compared to the
change in value for the MSFT common stock. The relationship between the growth of an invest-
ment and a benchmark such as the S&P 500 was demonstrated in Chapter 6 with the Investment
Portfolio project. A line chart can be used to visually display this relationship for the purpose of
either data visualization or presentation. The analysis or message of this chart is to determine if
MFST common stock is performing better or worse than the S&P 500 index. This type of analysis
can be used to determine whether a stock should be sold, purchased, or held.
Before creating the line chart to compare the trends of the S&P 500 and MFST common stock,
it is important to review the data in the range C4:D55 on the Stock Analysis worksheet. The price
data for the S&P 500 in Column C and the MSFT common stock in Column D cannot be used
because these values are not comparable. That is to say, the data for MSFT is in a range of $85.42
to $112.98, but the data for the S&P 500 is in a range of 2,416.62 to 2,929.67. If these values were used
to create a line chart, there would be no substantial change in the trend for either the S&P 500 or
MSFT. Both would appear as relatively flat lines on the chart with the S&P 500 line at the top of the
chart and the MSFT line at the bottom. To correct this problem, formulas were used to calculate the
percent change in value for the S&P 500 and MSFT for each week in the range F4:G55. This percent
change data or ratios provide a common comparison to evaluate the growth trends for both the
S&P 500 and MSFT. This is a very important step to consider when comparing trends.
The construction of this second line chart will be similar to the first line chart shown in Figure
9.6. The X axis will show the week number in the range B4:B55; however, the Y axis will show the
percentages in the range F4:G55. This creates a problem because the data is no longer in a contigu-
ous range that can easily be highlighted before inserting the chart. There are two solutions that will
be demonstrated to solve this problem. The first is to select non-contiguous cell ranges using the

CTRL key on your keyboard. The second method, which will be demonstrated later in this chapter,
provides more control in assigning values to the X and Y axes. The following demonstrates the first
method.
1. Highlight the range B3:B55 on the Stock Analysis worksheet.
2. Use the scroll bar to navigate up to the top of the worksheet. Then, hold the CTRL key down
on your keyboard and highlight the range F3:G55.
3. Click the Insert Line or Area Chart button in the Insert tab of the Ribbon.
4. Click the Line option from the dropdown list of line chart options.
Figure 9.7 shows the appearance of the line chart comparing the S&P 500 and MSFT common
stock before it is moved and resized. A legend is added at the bottom of the chart identifying each
of the lines in the plot area. Also, notice that the lowest value on the Y axis is -20%. Because, the
dataset contains values that are below zero, Excel assigned a minimum value of -20% to the Y axis.

FIGURE 9.7 Second Line Chart Embedded in the Stock Analysis Worksheet

5. Click and drag the upper left corner of the chart so the upper left corner is in the middle of cell
I21.
6. Resize the chart so the left side is locked to the left side of column I, the right side is locked to
the right side of column P, the top is locked to the top of row 21, and the bottom is locked to the
bottom of row 36.
7. Click the chart title once, then click at the end of the generic title “Chart Title”.
8. Use the BACKSPACE button to remove the generic chart title and type “S&P 500 and MSFT
2018 Comparison” (see Figure 9.8).
Figure 9.8 shows the completed line chart to compare the 2018 trend for the S&P 500 and MSFT.
Using this chart for data visualization, it can be immediately seen that Microsoft has outperformed
the S&P 500 stock index in 2018. At week 3, Microsoft moves higher than the S&P 500 and trends
higher for the remainder of the year. This is also an effective presentation tool as an audience can
also see very clearly how Microsoft compares to the S&P 500 during the year 2018.

FIGURE 9.8 Trend Comparison Chart for S&P 500 and MSFT

Why…

Use Ratios to Create Comparable Values

When creating a chart to compare two or more trends, the values in the dataset for each trend,
or data series, must be comparable. A reasonable estimate is to make sure the variance between
each data series is not greater than a multiple of 2. For example, comparing a value of 1000 to
a value of 500 is a multiple of 2 and would be the maximum desirable variance. Comparing a
value of 1000 to a value of 100 is a multiple of 10 and would not be comparable. This is because
there will be very little discernable change in this trend comparison. If the variance between two
data series is greater than 2, calculate the ratio, or percent change, for each point in time in the
dataset. The ratio, or percent change, must be calculated with respect to the first data point for
each trend. Then, create the chart using the ratios instead of the actual values for each data
series.

Pie Charts for Percent of Totals

Follow Along File: Data Analytics Project 8

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A pie chart is used to show a percent of total for a dataset at a specific point in time. From
the perspective of data visualization, this chart is similar to a hierarchy chart (shown in Chapter 3)
in that large areas displayed on the chart represent higher percent of totals compared to smaller
areas. This chart can also be a valuable tool for a presentation that explains how the magnitude of
certain datasets are broken down by category. To demonstrate a pie chart, data regarding the over-
all spending in the U.S. health care industry will be displayed over five categories. The Health Spend
worksheet contains data that shows total spending in the U.S. for the years 1969 and 2009 for each

category listed in column A. The following shows how a pie chart is created to show the 1969 U.S.
health care spend by category:
1. Highlight the range A2:B7 on the Health Spend worksheet.
2. Click the Insert tab of the Ribbon.
3. Click the Insert Pie or Doughnut Chart button (see Figure 9.9).
4. Select the 3-D Pie option from the dropdown list of options (see Figure 9.9).

FIGURE 9.9 Inserting a Pie Chart

5. Click and drag the pie chart so the upper left corner is in the middle of cell E2.
6. Resize the pie chart so the left side is locked to the left side of column E, the right side is locked
to the right side of column L, the top is locked to the top of row 2, and the bottom is locked to
the bottom of row 17 (see Figure 9.10).

FIGURE 9.10 Pie Chart Moved and Resized

7. Click the chart legend once to activate it. A border with sizing handles will appear around the
legend once it is activated (see Figure 9.10).
8. Tap the DELETE key on your keyboard. Labels will be added to each wedge on the pie chart so
a legend is not needed.
9. Click the Add Chart Element button in the Design tab of the Ribbon (see Figure 9.11).
10. Place the mouse pointer over the Data Labels option from the dropdown menu (see Figure 9.11).
11. Click the More Data Label Options from the Data Labels sub menu (see Figure 9.11). This will
open the Format Data Labels window pane on the right side of the worksheet.

FIGURE 9.11 Adding Chart Elements

12. Click the box next to Category Name in the Format Data Labels window pane (see Figure 9.12).
The category name from column A should now appear on the pie chart.

13. Click the box next to Percentage in the Format Data Labels window pane (see Figure 9.12). This
will add the percent of total to the pie chart.
14. Click the box next to the Value option in the Format Data Labels window pane. This removes
the check mark and the dollar values displayed on the pie chart (see Figure 9.12).
15. Click the X in the upper right corner of the Format Data Labels window pane to close it (see
Figure 9.12).

FIGURE 9.12 Adding Data Labels

16. Click the Home tab of the Ribbon and then click the Bold button. This will bold the data labels
on the pie chart.
17. Change the font size to 10. This will increase the font size of the data labels on the pie chart.
18. Click the chart title and then click in front of the year 1969. Type the following: “Health Care
Spending: ”. Add a space after the colon.
19. Highlight the chart title and apply the following formats: bold, italics, and underline.
20. Click any cell on the Health Spend worksheet to deactivate the chart.
21. Place the mouse pointer on the Out of Pocket slice of the pie chart. A tip box will appear show-
ing more details on the data that was used to create this part of the chart (see Figure 9.13).
Figure 9.13 shows the completed pie chart for health care spend in the U.S. during 1969. This
chart is very effective in revealing that Health Insurance and Out of Pocket make up the majority
of health care spending in 1969. Similar to the column chart, the key to creating an effective pie
chart is the number of data points used. Although there are no specific rules for the number of cat-
egories (pie slices) that can be used on a pie chart, a reasonable number is approximately ten or less.
As the number of categories exceed ten, it becomes more difficult to identify key categories that
make up the majority of the total.

FIGURE 9.13 Pie Chart for U.S. Health Care Spend in 1969

Skill Refresher: Inserting a Pie Chart

1. Highlight a range of cells that will be used to create the chart.

2. Click the Insert tab of the Ribbon.
3. Click the Insert Pie or Doughnut Chart button.
4. Select a pie chart style from the dropdown list of options.

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Stacked Column Chart for Percent of Total

Trends
Follow Along File: Data Analytics Project 8 continued. If starting here use Data Analytics Project 8.01.
The stacked column chart is commonly used to evaluate percent to total trends. Similar to
other charts, the stacked column chart is an effective data visualization and presentation tool
because it can show how the composition of data changes over time. For example, when looking at
the pie chart in Figure 9.13, it is easy to see that two categories, Out of Pocket Expenses and Health
Insurance, make up the majority of health care spend data in 1969. The stacked column chart can
show if these two categories still dominate healthcare spend data from 1969 to 2009. If health care
spend has changed, the stacked column chart will clearly show how and what has changed from
1969 to 2009. The Y axis of the chart will show the percentage from 0 to 100%. The X axis will show
the two years: 1969 and 2009. The following demonstrates how the stacked column chart is created.
1. Highlight the range A2:C7 on the Health Spend worksheet.
2. Click the Insert tab of the Ribbon.
3. Click the Insert Column or Bar Chart button (see Figure 9.14).
4. Click the 100% Stacked Column option from the dropdown menu of column chart types (see
Figure 9.14).

FIGURE 9.14 Inserting a 100% Stacked Column Chart

5. Click the Switch Row/Column button in the Design tab of the Ribbon (see Figure 9.15). This will
place the year on the X axis and will stack the categories for each year.

FIGURE 9.15 Switching Rows and Columns on a 100% Stacked Column Chart

6. Click and drag the chart so the upper left corner is in the middle of cell E20.
7. Resize the chart so the left side is locked to the left side of column E, the right side is locked to
the right side of column M, the top is locked to the top of row 20, and the bottom is locked to
the bottom of row 40.
8. Click the legend one time and tap the DELETE key on your keyboard.
9. Click the green plus sign on the upper right corner of the chart (see Figure 9.16).
10. Click the Data Table option from the list of Chart Elements (see Figure 9.16). Note that depend-
ing on your computer, this list may open on the left side of the chart as shown in Figure 9.16 or
it may open on the right side of the chart.
Figure 9.16 shows the appearance of the data table that is added to the bottom of the 100%
stacked column chart. This is another way of displaying a legend for a column chart along with the
numerical values that make up each component.

FIGURE 9.16 Adding a Data Table to a Chart

11. Change the chart title to read: Change in Health Care Spending.
12. Format the title of the chart as follows: bold, italics, underline.
Figure 9.17 shows the final 100% stacked column chart. Notice that the Out of Pocket category,
or the amount of cash people paid for health care expenses not including health insurance,
decreased significantly from 1969 to 2009. However, the Health Insurance category increased signif-
icantly from 1969 to 2009. Additional enhancements will be added to this chart in the next section
that will help to identify these trend changes.

FIGURE 9.17 100% Stacked Column Chart for Health Care Spend

Skill Refresher: Inserting a Stacked Column Chart

1. Highlight a range of cells that will be used to create the chart.

2. Click the Insert tab of the Ribbon.
3. Click the Insert Column or Bar Chart button.
4. Select the Stacked Column option from the dropdown menu to show the values of each
category on the Y axis. Select the 100% Stacked Column option to show the percent to
total for each category on the Y axis.

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Adding Series Lines and Annotations

Follow Along File: Data Analytics Project 8 continued. If starting here use Data Analytics Project 8.02.
Series lines are commonly used in stacked column charts to show how the percent to total
trend changes from one stack to the next. Annotations are also useful for clarifying the data pre-
sented in a chart or to identify sources that were used to acquire the data. These features will be
added to the Change in Health Care Spending 100% stacked column chart shown in Figure 9.17.
Adding these features will enhance the effectiveness of the chart when being used for either data
visualization or presentation. The following demonstrates how these features are added.
1. Click anywhere on the Change in Health Care Spending chart to activate it.
2. Click the Design tab of the Ribbon.
3. Click the Move Chart button to move the chart to a separate chart sheet.
4. Select the New Sheet option in the Move Chart dialog box and type the sheet tab name “Spend
Analysis”.
5. Click the OK button on the Move Chart dialog box.
6. Click the Add Chart Element button in the Design tab of the Ribbon (see Figure 9.18).
7. Place the mouse pointer over the Lines option from the dropdown menu.
8. Click the Series Lines option from the submenu (see Figure 9.18). This will add lines connecting
the two data stacks which emphasizes the change in trend.

FIGURE 9.18 Adding Series Lines to a 100% Stacked Column Chart

9. Click any of the series lines added to the chart. Clicking one line will activate all lines on the
chart (see Figure 9.19).
10. Click the Shape Outline button in the Format tab of the Ribbon. Place the mouse pointer over
the Weight option and select the 2¼ pt option (see Figure 9.19).
Figure 9.19 shows the appearance of the chart with the series lines connecting the two stacks.
In this example, the lines help to emphasize the significant increase in the Health Insurance cat-
egory. The lines also help to show that all other categories have decreased with the exception of
“Public Health Activity” which shows a slight increase.

FIGURE 9.19 Series Lines Emphasizing Trends on a 100% Stacked Column Chart

11. Click the plot area of the chart. Sizing handles will appear around the perimeter of the plot
area once it is activated.
12. Click and drag the top center sizing handle down so there is about 1 inch of space between the
chart title and the top of the chart plot area (see Figure 9.20).

FIGURE 9.20 Adjusting the Size of the Plot Area

13. Click the Text Box button in the Insert tab of the Ribbon (see Figure 9.20). The text box will be
used to add an annotation to the chart.
14. Place the mouse pointer on the left edge of the chart area approximately ¼ inch from the top.
Click and drag a rectangle approximately 1.5 inches wide and 1/4 inch high (see Figure 9.21).
15. Click the Home tab of the Ribbon and make the following format changes: font style to Arial,
font size to 10 points, bold, and italics.
16. Type the following: “Dollars in Millions”. This annotation tells the audience or reader that the
numbers on the chart have been truncated and represent denominations in millions. This
means 6 zeros need to be added to the end of each number on the chart. Therefore, the Out of
Pocket value for 1969 is shown as $22,617 but is actually $22,617,000,000 or 22.6 billion.

FIGURE 9.21 Adding a Text Box to a Chart

17. Click the Text Box button in the Insert tab of the Ribbon and draw a box above the 100% value
on the Y axis (see Figure 9.21). The box should be about 1 inch long and ¼ inch high.
18. Apply the Arial font style, font size 10 points, bold, and italics.
19. Type the following: “100% =”. Then, click anywhere on the chart area to deactivate the text box.
This annotation is added to describe two other text boxes that will be placed at the top of each
stack on the chart to show the total dollar value for each year of data.
20. Add a text box above the 1969 stack on the chart. The number $66,172 should appear in the text
box (see Figure 9.22).
21. Apply the same formatting changes to the text box as in step 18, and use the Center align but-
ton to center the number in the text box (see Figure 9.22)
22. Add a text box above the 2009 stack on the chart. The number $2,486,293 should appear in the
text box (see Figure 9.22).
23. Apply the same formatting changes to the text box as in step 18, and use the Center align but-
ton to center the number in the text box (see Figure 9.22).
24. Click anywhere on the chart area to deactivate the text box added above the 2009 stack. Figure
9.22 shows the annotations that were added at the top of the Change in Health Care Spending
chart. The reader can now see the dollar value that is represented by each stack on the chart.

FIGURE 9.22 Using Annotations to Identify Dollar Values on 100% Stacked Column Chart

25. Click the plot area of the chart.

26. Click the bottom center sizing handle of the plot area and drag it up about 1 inch to create space
at the bottom of the chart.
27. Add a text box to the lower left corner of the chart. The box should be about 4 inches long and
¼ inch high.
28. Apply the same format settings that are used in step 18 and type the following into the text box:
“Source: U.S. Department of Health and Human Services”. This annotation provides a source
for the data used in the chart (see Figure 9.23).
Figure 9.23 shows the completed Change in Health Care Spending chart. The series lines and
annotation enhancements make the chart a more effective tool for both data visualization and pre-
sentation.

FIGURE 9.23 Completed 100% Stacked Column Chart with Annotations

Skill Refresher: Adding Series Lines

1. Click anywhere on the chart area.

2. Click the Design tab of the Ribbon.
3. Click the Add Chart Element button.
4. Place the mouse pointer over the Lines option from the dropdown menu.
5. Click the Series Lines option from the sub menu.

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Skill Refresher: Adding Annotations with Text Boxes

1. Click anywhere on the chart area.

2. Click the Insert tab of the Ribbon.
3. Click the Text Box button.
4. Click and drag the size of the text box needed on the chart.
5. Apply any desired format changes from the Home tab of the Ribbon.
6. Type the desired text.

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Column Charts for Frequency Distributions

Follow Along File: Data Analytics Project 9

Digital Downloads

Data Analytics Project 9.xlsx

https://catalog.flatworldknowledge.com/a/31995/
Data_Analytics_Project_9-10b1.xlsx

A common use for column charts is to analyze and present frequency distributions. A
frequency
frequency distribution shows the number of occurrences by established categories. For example, distribution
many companies will conduct an accounts receivable aging analysis. An accounts receivable is an
The number of
amount of money owed to a company by a customer. Companies will often provide goods and ser- occurrences for an
vices to customers and then give customers an invoice stating how much must be paid. These established set of
categories.
invoices are documented and tracked by the company in the Accounts Receivable account. An
aging analysis shows the company the amount of invoices that are current and past due. Invoices
accounts receivable
that are past due are typically divided up into a few categories based on how long it has been since
An account used to track
the due date has passed and the customer has not yet paid. The column chart can be used to show
money that is owed to a
a frequency distribution based on the number of invoices that are in each past due category. The company from its
following demonstrates how the column chart is created to show the frequency distribution for an customers.
accounts receivable aging analysis for a division of large a company.
past due
1. Highlight the range A3:B8 on the Invoice Data worksheet.
Time elapsed after the
2. Click the Insert Column or Bar Chart button in the Insert tab of the Ribbon. date in which a customer
is required to pay an
3. Click the 3-D Clustered Column option from the dropdown menu of column chart formats (see invoice.
Figure 9.24).

FIGURE 9.24 Inserting a 3-D Clustered Column Chart

4. Use the Move Chart button in the Design tab of the Ribbon to place the chart into a separate
chart sheet. The chart sheet tab name should be Division Invoice Chart.
5. Change the title of the chart to read: Division Invoice Aging Analysis.
6. Click any space outside of the chart to deactivate it.
Figure 9.25 shows the completed column chart in a separate chart sheet. The chart shows the
frequency or the number of invoices for each category. Notice that the highest number of invoices
are in the Current category. These are invoices that have been issued to customers but are not yet
due to be paid. The lowest category is the 105 Days past due category. These are invoices that were
due 105 days ago but customers have not yet submitted payment.

FIGURE 9.25 Showing a Frequency Distribution with a 3-D Clustered Column Chart

Frequency Comparison: Controlling Values

Assigned to X and Y Axes
Follow Along File: Data Analytics Project 9 continued. If starting here use Data Analytics Project 9.01.
Column charts are a useful tool for comparing frequency distributions. The frequency distri-
bution in Figure 9.25 shows the invoice aging analysis for one division of a company. In order to
make a judgment whether this is a reasonable distribution, the division will be compared to the
company. However, since the number of invoices vary significantly between the division and the
company, the frequency comparison will be based on the percentage of invoice for each past due
category instead of the actual number of invoices. These percentages are calculated in columns E
and F on the Invoice Data worksheet for the Division and the Company. This technique is similar
to the percent change calculations that were used for the time trend comparison that was demon-
strated earlier using line charts.
To create the column chart comparing the frequency distribution between the Division and
the Company, the Y axis will be assigned the percentages in columns E and F and the X axis will be
assigned the categories in column A. Similar to the line chart that was used to compare time series
trends, this data is not in a contiguous range. The following demonstrates another method for cre-
ating a chart with data that is not in a contiguous range by starting with a blank chart. Starting
with a blank chart will enable more control in assigning values to the X and Y axes.
1. Click cell H2 on the Invoice Data worksheet. It is important to note that this is a blank cell that
is not adjacent to any data on the worksheet.
2. Click the Insert Column or Bar Chart button in the Insert tab of the Ribbon.
3. Click the 2-D Clustered Column option from the dropdown menu. This will create a blank
chart as shown in Figure 9.26.

FIGURE 9.26 Inserting a Blank Chart

4. Click and drag the blank chart so the upper left corner is in the middle of cell H2.
5. Resize the blank chart so the left side is locked to the left side of column H, the right side is
locked to the right side of column O, the top is locked to the top of row 2, and the bottom is
locked to the bottom of row 16.
6. Click the Select Data button in the Design tab of the Ribbon (see Figure 9.27). This opens the
Select Data Source dialog box.
7. Click the Add button on the Select Data Source dialog box (see Figure 9.27). This opens the Edit
Series dialog box.

FIGURE 9.27 Select Data Source Dialog Box

8. Type the word “Division” to define the Series name in the Edit Series dialog box.
9. Click the Collapse dialog box button next to the Series values input box (see Figure 9.28).
10. Highlight the range E4:E8 and then tap the ENTER key on your keyboard. This will add the
range to the Series values input box and bars will appear on the column chart (see Figure 9.28).
11. Click the OK button on the Edit Series dialog box. This will return back to the Select Data
Source dialog box.

FIGURE 9.28 Edit Series Dialog Box

12. Click the Add button on the Select Data Source dialog box.
13. Type the word “Company” to define the Series name.
14. Click the Collapse dialog box button next to the Series values input box.
15. Highlight the range F4:F8 and then tap the ENTER key on your keyboard.
16. Click the OK button on the Edit Series dialog box. This will add bars for the Company data to
the chart.
17. Click the Edit button on the right side of the Select Data Source dialog box (see Figure 9.30).
This will open the Axis Labels dialog box.
18. Click the Collapse dialog box button next to the Axis label range input box (see Figure 9.29).
19. Highlight the range A4:A8 and then tap the ENTER key on your keyboard.
20. Click the OK button on the Axis Labels dialog box.

FIGURE 9.29 Axis Labels Dialog Box

21. Click the OK button on the Select Data Source dialog box. This completes the process of assign-
ing values to the X and Y axes of the column chart. Figure 9.30 shows how the final settings in
the Select Data Source dialog box should appear before clicking the OK button.

FIGURE 9.30 Final Settings in the Select Data Source Dialog Box

22. Click the green plus sign next to the upper right side of the chart (see Figure 9.31). If the green
plus sign is not shown, click the chart once to activate it. This button is another way to access
the options available in the Add Chart Element button in the Design tab of the Ribbon.
23. Place the mouse pointer over the Chart Title option from the Chart Elements list (see Figure
9.31).
24. Click the arrow next to the Chart Title option (see Figure 9.31).
25. Click the Above Chart option from the Chart Title dropdown menu (see Figure 9.31).
26. Click the Legend option on the Chart Elements dropdown menu (see Figure 9.31).
27. Click a blank cell on the worksheet to close the Chart Elements dropdown menu.

FIGURE 9.31 Adding a Chart Title Using the Chart Elements Menu

28. Click the chart title twice and change the title to read as follows: “Receivables Past Due Com-
parison”.
29. Click anywhere on the chart area to deactivate the chart title.
30. Click the gray funnel button on the right side of the chart, which is the filter button (see Figure
9.32).
31. Click the check box next to the Current option on the filter dropdown menu. This will remove
the Current category from the chart so the analysis will focus on the past due categories. This
process of adding a filter was previously demonstrated on a PivotChart in Chapter 3. Notice
that as the mouse pointer is moved over the options in the filter dropdown menu, the related
bars on the chart will be highlighted. This allows you to preview what will be removed or added
from the chart before making a selection.

FIGURE 9.32 Applying a Filter to a Chart

32. Click the Apply button on the filter dropdown menu. This will apply any selections to the col-
umn chart.
33. Click any cell on the worksheet to close the filter dropdown menu.

Figure 9.33 shows the completed column chart comparing two frequency distributions. This
comparison shows that the Division has a lower percentage of invoices that are 30 days past due
compared to the Company. However, for the other three past due categories, the Division exceeds
the percentage of invoices compared to the Company. This suggests that the Division may have
more invoices that are at risk of not getting paid compared to the Company.

FIGURE 9.33 Completed Column Chart for Frequency Distribution Comparison

Skill Refresher: Assigning X and Y Axis Values

1. Click a blank cell location that is not adjacent to any data on the worksheet.
2. Select a chart from the Insert tab of the Ribbon.
3. Click the Select Data button in the Design tab of the Ribbon.
4. Click the Add button on the Select Data Source dialog box.
5. In the Edit Series dialog box, type a name in the Series name input box or highlight a cell
location on the worksheet that contains a description for the data series.
6. Tap the TAB key on your keyboard to advance to the Series values input box or click the
Collapse dialog box button next to the Series values input box.
7. Highlight the range of cells on the worksheet that contain the data that will appear on the
Y axis for the series identified in step 5. If using the Collapse dialog box button, tap the
ENTER key after highlighting this range.
8. Click the OK button on the Edit Series dialog box.
9. Repeat steps 4 through 8 for each data series that is added to the chart.
10. Click the Edit button on the right side of the Select Data Source dialog box.
11. Highlight the range of cells that contain the labels for the X axis.
12. Click the OK button on the Axis Labels dialog box.
13. Click the OK button on the Select Data Source dialog box.

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Key Takeaways

• Depending on the purpose of a chart and how it is used will distinguish whether it is a tool
for data visualization or presentation.
• Column and line charts can be used to present a trend and trend comparison over a period
of time.
• The number of bars on a column chart should be limited to approximately 20 bars or less.
• For column, line, and bar charts, the X axis can only be used for labels, not for numeric val-
ues.
• If there is a wide variance (2 times or more) between the values in two data series that are
being compared, the percent change should be calculated with respect to the first data point
for each series.
• A pie chart is used to present the percent to total for a dataset.
• A stacked column chart is used to show how a percent of total changes over time.
• Column charts are often used to display frequency distributions and frequency distribution
comparisons.
• Values assigned to the X and Y axes can be manually controlled by using the Select Data
button in the Design tab of the Ribbon.
• A filter can be applied to a chart to reduce the amount of data displayed.

9.2 Formatting Enhancements for

Charts

Learning Objectives

1. Learn how to apply formatting commands to the X and Y axes.

2. Apply formatting techniques to the chart title and legend.
3. Learn how to add and format titles to the X and Y axes.
4. Apply formatting techniques to data labels and data series.
5. Become familiar with formatting the plot and chart areas.

There are a variety of formatting techniques available to enhance the appearance of a chart once
it is created. The purpose of applying these visual enhancements is similar to a worksheet in that
they make charts easier to read. This also makes presentations effective as these enhancements
can focus the audience’s attention on the chart areas that are essential for conveying the intended
message. The column chart created for the frequency distribution comparison will be used to
demonstrate a few commonly used visual enhancements for charts.

Formatting the X and Y Axis Values

Follow Along File: Data Analytics Project 9 continued. If starting here use Data Analytics Project
9.02.
Using formatting enhancements for the values on Y axis and labels on the X axis are important
since the axes are critical for communicating the intended message of the chart. The most common
formatting adjustments are the font size, style, and color. These are typically done so an audience
can clearly see the labels on the X axis and values on the Y axis. The following demonstrates how
these formatting adjustments are applied to the Receivables Past Due Comparison chart.
1. Click any of the labels along the X axis (horizontal axis) of the Receivables Past Due Compari-
son chart on the Invoice Data worksheet.
2. In the Home tab of the Ribbon, change the font style to Arial. Notice the font on the X axis will
change as the mouse pointer hovers over the font styles on the dropdown menu.
3. Change the font size to 11 points and bold the font.
4. Click the Format tab of the Ribbon.
5. Click the Format Selection button. This will open the Format Axis window pane on the far
right side of the worksheet (see Figure 9.34). The Format Axis window pane contains many for-
matting enhancement options that can be applied to the X and Y axes.
6. Click the paint bucket icon which is the Fill & Line button on the upper left area of the Format
Axis window pane (see Figure 9.34).
7. Click the Line option.
8. Click the Solid line option (see Figure 9.34).
9. Click the Color paint bucket button and select black from the color palette (see Figure 9.34).
This will add a solid black line above the labels along the X axis.
10. Click the X in the upper right corner of the Format Axis window pane.

FIGURE 9.34 Using the Format Axis Window Pane

11. Click any of the values along the Y axis.

12. Apply the same formatting enhancements as the X axis by repeating steps 2 through 11.
13. Click any blank cell on the worksheet to deactivate the chart. Figure 9.35 shows the appearance
of the chart after formatting the X and Y axes.

FIGURE 9.35 Formatted X and Y Axes

Skill Refresher: Formatting the X and Y Axes

1. Click any label or value along the X or Y axis to activate it.

2. Click the Home tab of the Ribbon and use any formatting commands as needed.
3. Click the Format tab of the Ribbon.
4. Click the Format Selection button.
5. Use any of the formatting commands in the Format Axis window pane.
6. Click the X in the upper right corner of the Format Axis window pane to close it.

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Formatting the Chart Legends and Titles

Follow Along File: Data Analytics Project 9 continued. If starting here use Data Analytics Project
9.03.
The next items that will be formatted on the Receivables Past Due Comparison chart are the
legend and title. Formatting enhancements will be applied to these items the same way in which
the X and Y axes were formatted. In addition, preset formats that are found in the Format tab of the
Ribbon will also be used. The following demonstrates how these formats are applied to the legend
and chart title:
1. Place the mouse pointer over the legend on the Receivables Past Due Comparison chart on the
Invoice Data worksheet.
2. When the cross arrows appear on the mouse pointer, click and drag so the top of the legend
aligns with the 30.0% line next to the plot area (see Figure 9.36).

FIGURE 9.36 Moving the Chart Legend

3. Apply the following formatting enhancements from the Home tab of the Ribbon: Arial font
style, font size 10, bold, and italics.
4. Use the sizing handles to expand the legend so all of the text in the legend is visible (see Figure
9.36).
5. Click the chart title to activate it.
6. Click the Format tab of the Ribbon.
7. Click the More down arrow in the Shape Styles group of commands to open the complete set
of preset format styles (see Figure 9.37).

FIGURE 9.37 Using Preset Designs in the Format Tab of the Ribbon

8. Click the Subtle Effect - Orange, Accent 2 option, which is in the fourth row, third style from
the left. As the mouse hovers over a style, the appearance can be previewed on the chart title.
9. In the Home tab of the Ribbon, change the font style to Arial, font size to 12, and apply the bold
font.
Figure 9.38 shows the appearance of the chart legend and title after formatting enhancements
are applied.

FIGURE 9.38 Formatting Enhancements Applied to the Chart Legend and Title

Skill Refresher: Formatting the Chart Legend

1. Click the chart legend to activate it.

2. Click the Home tab of the Ribbon and use any formatting commands as needed.
3. Click the Format tab of the Ribbon and use any formatting commands as needed or click
the Format Selection button and use the formatting commands in the Format Legend win-
dow pane.
4. Click and drag the legend to move it if needed.
5. Click and drag any of the sizing handles to adjust the size of the legend.

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Skill Refresher: Formatting the Chart Title

1. Click the chart title to activate it.

View the video online at: http://www.youtube.com/embed/XU7ICszcRBQ?rel=0

Adding X and Y Axis Titles

Follow Along File: Data Analytics Project 9 continued. If starting here use Data Analytics Project
9.04.
Titles for the X and Y axes are necessary for defining the values and labels presented on a chart.
For example, by looking at the Receivables Past Due Comparison chart, it is not clear what either
the percentages on the Y axis or the days on the X axis represent when looking at the chart for the
first time. The following demonstrates how titles are added to this chart to define the X and Y axes.
1. Click anywhere on the Receivables Past Due Comparison chart on the Invoice Data worksheet.
2. Click the Add Chart Element button in the Design tab of the Ribbon.
3. Place the mouse pointer over the Axis Titles option from the dropdown list.
4. Click the Primary Horizontal option from the Axis Titles sub menu (see Figure 9.39).
5. Click the Add Chart Element button again and place the mouse pointer over the Axis Titles
option from the dropdown list.
6. Click the Primary Vertical option from the Axis Titles sub menu (see Figure 9.39).

FIGURE 9.39 Adding Axis Titles to a Chart

7. Click the axis title below the X axis.

8. Click the Format tab of the Ribbon.
9. Click the Colored Outline – Orange, Accent 2 preset shape style (see Figure 9.40).

FIGURE 9.40 Formatting Axis Titles

10. Click the Bold format button in the Home tab of the Ribbon.
11. Click the axis title next to the Y axis.
12. Repeat steps 8 through 10.
13. Click the Y axis title a second time and remove the generic title name by using the BACKSPACE
and DELETE keys on your keyboard.
14. Type the following into the Y axis title box: “Percent of Total Invoices”.
15. Click the X axis title two times and remove the generic title name by using the BACKSPACE
and DELETE keys on your keyboard.
16. Type the following into the X axis title box: “Number of Days Past the Invoice Due Date”.
17. Click any cell location on the worksheet to deactivate the chart.

Figure 9.41 shows the appearance of the Receivables Past Due Comparison chart with X and Y
axis titles. The titles define the labels and values on the chart and help clarify the message that is
being communicated.

FIGURE 9.41 Receivables Past Due Comparison Chart with Axis Titles

Skill Refresher: Adding X and Y Axis Titles

1. Click anywhere on the chart.

2. Click the Design tab of the Ribbon.
3. Click the Add Chart Element button.
4. Place the mouse pointer over the Axis Titles option from the dropdown menu.
5. Click the Primary Horizontal option to add a title to the X axis or click the Primary Vertical
option to add a title to the Y axis.
6. Click the title one time and use any of the format commands in the Home or Format tabs
of the Ribbon.
7. Click the axis title two times to delete the generic name and retype a new title.

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Data Series Formats and Labels

Follow Along File: Data Analytics Project 9 continued. If starting here use Data Analytics Project
9.05.
Adding labels to the data series of a chart is a valuable formatting feature. A data series is the data series
category or item that is being displayed graphically on a chart. For example, the blue bars on the Data related to a specific
Receivables Past Due Comparison chart represent one data series. Labels can be added at the top category or item that is
of each bar to show the exact percentage the bar represents. In addition, other formatting enhance- visually displayed on a
chart.
ments can be applied to a data series such as changing the color of the bars. The following
demonstrates how these enhancements are added to a chart.
1. Click any orange bar representing the Company data series on the Receivables Past Due Com-
parison chart on the Invoice Data worksheet. Clicking one bar automatically activates all bars
in the data series. If a bar is clicked a second time, only that bar is activated.
2. Click the Format tab of the Ribbon.
3. Click the down arrow on the Shape Fill button.
4. Click the Gold, Accent 4, Lighter 40% from the dropdown color palette (see Figure 9.42). The col-
ors can be previewed on the activated data series as the mouse pointer hovers over the color
palette.

FIGURE 9.42 Changing the Colors of the Bars on a Column Chart

5. Click the Add Chart Element button in the Design tab of the Ribbon.
6. Place the mouse pointer over the Data Labels option on the dropdown menu.
7. Click the Outside End option on the Data Labels sub menu (see Figure 9.43). This will add the
exact percentage value for each bar of the Company data series. Note that clicking the More
Data Label Options will open the Format Data Labels window pane which was used earlier in
this chapter. This will allow you to change what is displayed in the data labels added to the
chart.

FIGURE 9.43 Adding Data Labels to a Column Chart

8. Click any data label that was added above the bars of the Company data series. Clicking one
data label will activate all data labels for a data series.
9. Click the bold command in the Home tab of the Ribbon. Any of the formatting commands in
the Home tab of the Ribbon can be used to format the data labels that are added to a chart.
10. Click any of the blue bars on the column chart which represent the Division data series.
11. Repeat steps 5 through 9. For step 8, click any data label that is added above the bars for the
Division data series.
12. Click any cell on the worksheet to deactivate the chart.
Figure 9.44 shows the appearance of the Receivables Past Due Comparison chart with data
labels added for each bar of the chart. The labels allow an audience to see the exact percentages to
compare the Division and the Company.

FIGURE 9.44 Receivables Past Due Comparison Chart with Data Labels

Skill Refresher: Adding Data Labels

1. Click a data series on the chart.

2. Click the Design tab of the Ribbon.
3. Click the Add Chart Element button.
4. Place the mouse pointer over the Data Labels option.
5. Click one of the options from the Data Labels sub menu. For more options in controlling
what is displayed in a data label, click the More Data Label Options from the sub menu.

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Skill Refresher: Formatting a Data Series

1. Click a data series on the chart.

2. Click either the Home tab or the Format tab of the Ribbon.
3. Select any of the available formatting commands in these tabs.

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Visual Enhancements for the Plot and Chart

Areas
Follow Along File: Data Analytics Project 9 continued. If starting here use Data Analytics Project
9.06.
The last items that will be formatted on the Receivables Past Due Comparison chart are the
chart and plot areas. The purpose of formatting these areas are mostly for enhancing the visibility
of the data series and creating a professional appearance for the chart. The following demonstrates
how these visual enhancements are accomplished.
1. Click anywhere in the chart area of the Receivables Past Due Comparison chart in the Invoice
Data worksheet.
2. Click the Format tab of the Ribbon.
3. Click the down arrow on the Shape Fill button.
4. Click the Gray-25%, Background 2, Darker 10% from the color palette (see Figure 9.45). This will
change the color of both the plot area and the chart area.

FIGURE 9.45 Changing the Chart Color

5. Click anywhere in the plot area of the chart.

6. Click the Home tab of the Ribbon.
7. Click the down arrow on the Fill Color button.
8. Select White from the color palette. Using the Fill Color button on the Home tab of the Ribbon
is another way to change the color of selected items on a chart.
9. Click the Format tab of the Ribbon.
10. Click the Shape Effects button.
11. Place the mouse pointer over the Bevel option from the dropdown menu.
12. Click the Circle option from the Bevel sub menu (see Figure 9.46). If using Office 365, this is the
Round option.

FIGURE 9.46 Selecting a Bevel Shape Effect for the Plot Area

13. Click any cell on the worksheet to deactivate the chart.

Figure 9.47 shows the completed Receivables Past Due Comparison chart with formatting
enhancements. The visual enhancements that were added are intended to focus the reader’s atten-
tion on the plot area first so the visual comparison between the Division and Company past due
invoices are prominent.

FIGURE 9.47 Completed Receivables Past Due Comparison Chart

Skill Refresher: Changing the Chart Fill Color

1. Click anywhere on the chart area.

2. Click the Format tab of the Ribbon.
3. Click the Shape Fill button.
4. Select a color from the color palette.

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Skill Refresher: Changing the Plot Area Fill Color

1. Click anywhere on the plot area of the chart.

2. Click the Format tab of the Ribbon.
3. Click the Shape Fill button.
4. Select a color from the color palette.

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Key Takeaways

• Applying formatting enhancements to a chart can make it easier to read for an audience.
• Formatting commands in the Home tab of the Ribbon can be used when formatting charts.
• Adding X and Y axis titles will define the labels and values that are used to create a chart.

• Either the green plus sign on the right side of a chart or the Add Chart Element button in the
Design tab of the Ribbon can be used for adding a variety of elements to a chart.
• Data labels can be used to show the precise values for a data series.

9.3 Using Charts in PowerPoint and

Word

Learning Objectives

1. Learn how to create a linked image between an Excel workbook and a PowerPoint file.
2. Review modifying a linked chart in a PowerPoint slide.
3. Learn how to paste an image of a chart into a Word document.

Charts that are created in Excel are commonly presented through Microsoft PowerPoint slides or
used in Microsoft Word documents. Excel provides options for pasting an image of a chart into
either a PowerPoint slide or Word document. A link can also be established to an Excel workbook
so a chart can be modified after it is pasted into a PowerPoint slide or a Word document.

Creating a Chart Link Between Excel and

Powerpoint
Follow Along File: Data Analytics Project 9 continued and Data Analytics Project 10 (PowerPoint file).
If starting here use Data Analytics Project 9.07.

Digital Downloads

Data Analytics Project 10.pptx

https://catalog.flatworldknowledge.com/a/31995/
Data_Analytics_Project_10-8c07.pptx

Microsoft PowerPoint is perhaps the most commonly used tool for delivering live presen-
tations. The charts used in a live presentation are critical for efficiently delivering ideas to an
audience. Charts that are created in Excel can be added to a PowerPoint slide such that a link is cre-
ated between the PowerPoint file and the Excel workbook. This will allow the chart to be modified
after it is pasted into a PowerPoint slide. The following demonstrates how this is accomplished.
1. Begin by opening both Data Analytics Project 9 and Data Analytics Project 10 which is a Pow-
erPoint file.
2. Click the Receivables Past Due Comparison chart on the Invoice Data worksheet in the Data
Analytics Project 9 file.
3. Click the Copy button in the Home tab of the Ribbon.
4. Open the Data Analytics Project 10 PowerPoint file by clicking the PowerPoint icon in the
Taskbar (see Figure 9.48).

FIGURE 9.48 Switching from Excel to PowerPoint

5. Click the down arrow below the Paste button in the Home tab of the Ribbon in the PowerPoint
file.
6. Click the Keep Source Formatting & Link Data button from the dropdown menu (see Figure
9.49). This will add the Excel chart to the PowerPoint slide. Since the chart was pasted using a
data link, the chart can be modified as if it were still in an Excel worksheet. Notice the buttons
on the upper right side of the chart appear when the chart is activated.

FIGURE 9.49 Pasting a Chart with a Data Link

7. Click the Chart Filters button on the right side of the chart (see Figure 9.49).

8. Click the Current option from the filter menu. This will add the Current category to the X axis
of the chart.
9. Click the Apply button on the lower left corner of the filter menu. This will add the Current
category to the X axis of the chart.
10. Click anywhere on the PowerPoint slide to deactivate the chart and close the filter menu.
11. Since both the Division and the Company have the same percentage of invoices that are cur-
rent (30%), it is difficult to see the data labels for the Current category on the X axis. Click the
data label above the blue bar in the Current category and drag it up to the top of the plot area
so both labels are visible.
12. Click anywhere on the PowerPoint slide to deactivate the chart.

Why…

Linked Excel Chart in PowerPoint Can Not Be Modified

When creating a link to an Excel chart in a PowerPoint or Word file, the Excel workbook must be
kept in its original location on your computer or network. If you move or delete the Excel work-
book that contains the data for the chart, the chart cannot be modified in the PowerPoint or Word
file. This will also happen if the Excel workbook is saved on a network drive that your computer
cannot access. These errors occur because the link to the Excel workbook has been severed.
Therefore, if you know in advance that you will be using a USB drive to pull up your presentation
or documents, move the Excel workbook that contains the data for the chart to your USB drive
before you establish the link in your PowerPoint or Word file.

Figure 9.50 shows the final appearance of adding the Receivables Past Due Comparison chart
to a PowerPoint slide. The benefit of using the data link paste option is that the chart can be modi-
fied while the PowerPoint slide is in edit mode.

FIGURE 9.50 PowerPoint Slide with an Excel Chart

Skill Refresher: Pasting a Linked Excel Chart into PowerPoint

1. Open both the Excel file that contains the data for the chart and the PowerPoint file.
2. Click the chart on the Excel file to activate it.
3. Click the Copy button in the Home tab of the Ribbon.
4. Click the PowerPoint icon in the Taskbar.
5. Click the down arrow below the Paste button in the Home tab of the Ribbon in Power-
Point.
6. Click the Keep Source Formatting & Link Data button.

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Pasting a Chart Image into Word

Follow Along File: Data Analytics Project 8 continued and Data Analytics Project 11 (Word file). If
starting here use Data Analytics Project 8.03.

Digital Downloads

Data Analytics Project 11.docx

https://catalog.flatworldknowledge.com/a/31995/
Data_Analytics_Project_11-22ff.docx

Excel charts can be valuable tools for explaining quantitative data in a written report. Reports
that address business plans, public policies, budgets, and so on all involve quantitative data. Pasting
an image of an Excel chart in a Microsoft Word document can make written communications
involving quantitative data very efficient. To demonstrate how this is accomplished, the Change in
Health Care Spending 100% stacked column chart, created earlier in this chapter, will be pasted into
a Word document.
1. Begin by opening both Data Analytics Project 8 and Data Analytics Project 11 which is a Word
file.
2. Click the Change in Health Care Spending chart on the Spend Analysis worksheet in the Data
Analytics Project 8 file.

3. Click the copy button in the Home tab of the Ribbon.

4. Open the Data Analytics Project 11 Word file by clicking the Word icon in the Taskbar (see Fig-
ure 9.51).

FIGURE 9.51 Switching to a Word File from the Taskbar

5. Click below the heading on the Word document that states: Figure 6: Heath Care Spending in
the U.S.
6. Click the down arrow below the Paste button in the Home tab of the Ribbon.
7. Click the Picture option from the dropdown menu (see Figure 9.52). This will paste an oversized
picture of the chart into the Word document.

FIGURE 9.52 Pasting a Picture of a Chart into Word

8. Click the chart that was pasted into the Word document once to activate it.
9. Click the Format tab of the Ribbon. The Format tab will appear after the chart is clicked.
10. Click the down arrow next to the Shape Height button to reduce the size of the picture (see Fig-
ure 9.53). Keep clicking the down arrow until the Height value is 4.5. It is best to use either the
Shape Width or Shape Height buttons to reduce the size of the chart since using either button
will automatically reduce the height and width of the chart in proper proportion. If using the
sizing handles to resize the chart, hold the SHIFT key while clicking and dragging on a corner
sizing handle to keep the chart in proper proportion.

FIGURE 9.53 Reducing the Size of a Picture Pasted into Word

11. Click anywhere on the Word document to deactivate the picture.

Figure 9.54 shows the final appearance of the Word document. The chart is pasted into the doc-
ument as a picture which means it cannot be changed. The chart must be modified in the Excel file
and a new picture of the chart must be pasted into the Word document if a change is needed.

FIGURE 9.54 Change in Health Care Spending Chart Pasted into Word Document

Skill Refresher: Pasting a Chart Image into Word

1. Open both the Excel file that contains the data for the chart and the Word file.
2. Click the chart on the Excel file to activate it.
3. Click the Copy button in the Home tab of the Ribbon.
4. Click the Word icon in the Taskbar.
5. Click the down arrow below the Paste button in the Home tab of the Ribbon in Word.
6. Click the Picture button.
7. Click the image of the chart to activate it.
8. Click the Format tab of the Ribbon.
9. Click the down arrow next to the Shape Height button to reduce the size of the image if
needed.
10. Click anywhere on the Word document to deactivate the image.

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Key Takeaways

• When pasting an image of a chart with a data link in PowerPoint, use the Keep Source For-
matting & Link Data button from the Paste dropdown menu.
• When creating a link to an Excel chart in a PowerPoint or Word file, the Excel workbook must
be kept in its original location on your computer or network.
• When pasting an image of a chart into a Word document, use the Picture button from the
Paste dropdown menu.
• To maintain the proper proportions of an image when changing the size in Word, use the
arrows next to the Shape Height or Shape Width buttons in the Format tab of the Ribbon.

9.4 The Scatter Chart and Motion

Data Visualization

Learning Objectives

1. Learn how to create a scatter chart.

2. Review how to set fixed values for the scale of the X and Y axes.
3. Learn how to add a trendline and trendline line equation to a data series on a scatter chart.

This section will demonstrate the construction and use of the scatter chart type. What makes this
chart different from all other charts demonstrated in this chapter is that values are used on both
the X and Y axes. So far, the charts demonstrated used qualitative labels for the X axis. This means
that the distance between each category on the X axis will always be the same, even if numbers are
used. With a scatter chart, the X axis operates just like the Y axis. The distance between the values
on the X axis will vary depending on the value of the number. This makes the scatter chart a valu-
able tool for studying various shapes or functional forms for a line chart. This also makes it possible
to use the chart for data visualization with motion. In other words, data used to create the chart
will be changed such that the line formations on the chart will move. This movement can be ana-
lyzed to make conclusions about the dataset. In addition, Excel can evaluate the line on a scatter
chart and produce a mathematical equation, which can be added to the chart.

Scatter Chart for Supply and Demand

Follow Along File: Data Analytics Project 12

Digital Downloads

Data Analytics Project 12.xlsx

https://catalog.flatworldknowledge.com/a/31995/
Data_Analytics_Project_12-c4ea.xlsx

A common use for a scatter chart is the study of supply and demand curves. This is because
the data points for both the supply and demand lines require quantitative values on both the X
and Y axes. The Y axis contains the price of a certain good or item; the X axis contains the quantity
sold for that good or item. Fundamental economic laws state that as prices rise, sellers are willing to
increase supply and sell more goods. However, the reverse is true for consumers. As prices rise, con-
sumers purchase fewer goods. The Price and Quantity worksheet contains hypothetical data for
the supply and demand of breakfast cereal. There are 15 data points to show the change in supply
and demand as the price changes in column A. The values in this worksheet are all formula out-
puts driven by the percentage in cell H1. For example, if the percentage in cell H1 is changed to the
number 10, each price listed in column A will increase, as shown in Figure 9.55.

FIGURE 9.55 Supply and Demand Data

The scatter chart will be used to study the change in quantity supplied and demanded as the
price increases over 15 data points shown in Figure 9.55. The following demonstrates how the scat-
ter chart is created by starting with a blank chart, which was shown earlier in the chapter.
1. Change the value in cell H1 on the Price and Quantity worksheet to zero.
2. Click cell E3 on the Price and Quantity worksheet. Note that this cell is not adjacent to any
data on the worksheet.
3. Click the Insert tab of the Ribbon.
4. Click the Insert Scatter (X, Y) or Bubble Chart button.
5. Click the Scatter with Smooth Lines and Markers button from the dropdown menu (see Figure
9.56).

FIGURE 9.56 Inserting the Scatter Chart

6. Click and drag the chart so the upper left corner is in the center of cell E3.
7. Resize the chart so the left side is locked to the left side of column E, the right side is locked to
the right side of column M, the top is locked to the top of row 3, and the bottom is locked to the
bottom of row 18.
8. Click the Select Data button in the Design tab of the Ribbon. This will open the Select Data
Source dialog box.
9. Click the Add button on the Select Data Source dialog box. This will open the Edit Series dialog
box.
10. Type the series name “Demand” which will appear in the Series name input box.
11. Tap the TAB key on your keyboard to advance to the Series X values input box on the Edit
Series dialog box.
12. Highlight the range B3:B17. This range will appear in the Series X values input box after it is
highlighted.
13. Tap the TAB key on your keyboard to advance to the Series Y values input box on the Edit
Series dialog box.
14. Highlight the range A3:A17.
15. Tap the ENTER key on your keyboard. This will close the Edit Series dialog box and return to
the Select Data Source dialog box.
16. Click the Add button on the Select Data Source dialog box.
17. Type the series name “Supply” which will appear in the Series name input box.
18. Tap the TAB key on your keyboard to advance to the Series X values input box on the Edit
Series dialog box.
19. Highlight the range C3:C17. This range will appear in the Series X values input box after it is
highlighted.
20. Tap the TAB key on your keyboard to advance to the Series Y values input box on the Edit
Series dialog box.
21. Highlight the range A3:A17.
22. Tap the ENTER key on your keyboard.
23. Click the OK button on the Select Data Source dialog box.

Why…

For Scatter Charts, Start with a Blank Chart

When creating a scatter chart, it is best to start with a blank chart and add each data series indi-
vidually. This is because Excel will not always guess correctly which values belong on the X and
Y axes since both contain numbers. For other chart types, such as column or line charts, the X
axis contains non-numeric data so it is more likely that Excel will configure the chart correctly.

Figure 9.57 shows the appearance of the scatter chart after values are assigned to the X and Y
axes for the Demand and Supply data series. Notice only two plot points are located on the chart.
This is because the price change value in cell H1 is zero. Therefore, the chart shows that at a price
of $2.00, the quantity demanded is 400 and the quantity supplied is 75.

FIGURE 9.57 Scatter Chart with Demand and Supply Data Series Added

The scatter chart is now prepared for using motion as a data visualization technique to study
the behavior of the Demand and Supply data series. However, the following elements and formats
will be added first. These elements as well as the formatting techniques were demonstrated earlier
in this chapter.
24. Add a chart title above the plot area. The title should read: “Supply and Demand Analysis”.
25. Format the title with an Arial font style and bold font.
26. Add a title to the Y axis that reads: “Price per Unit”.
27. Format the Y axis title with an Arial font style and 12-point font size.
28. Add a title to the X axis that reads: “Quantity in Units”.
29. Format the X axis title with an Arial font style and 12-point font size.
30. Format the values on the X and Y axes to Arial font style and bold font.
31. Add a legend to the right side of the plot area.
32. Change the color of the plot area to White, Background 1, Darker 5%.
33. Apply a bevel effect to the plot area. Use the Circle format option from the Bevel dropdown list
of options.

Figure 9.58 shows the appearance of the scatter chart after the elements have been added and
formatting applied.

FIGURE 9.58 Elements and Formats Added to the Scatter Chart

34. Change the value in cell H1 to 2. Then, change the value to 4 and then 8. Each time the value is
changed in cell H1, the lines on the chart will move. Change the value one more time to 11. The
motion data visualization enables the user to study how the shape of the lines change as the
price in cell H1 is changed.
Figure 9.59 shows the completed scatter chart when cell H1 is set to 11%. Notice the point in
market equilibrium
which the Demand and Supply data series intersect on the chart. This is known as the market
Where the quantity
demanded equals the equilibrium point. The market equilibrium is where the quantity demanded equals the quantity
quantity supplied at a supplied at a specific price. The price where quantity demanded equals quantity supplied is
specific price. referred to as the equilibrium price.

equilibrium price
The price where quantity
demanded equals quantity
supplied.

FIGURE 9.59 Supply and Demand When Price Change Scenario is at 11%

Skill Refresher: Inserting a Scatter Plot Chart

1. Click a blank cell that is not adjacent to any data on the worksheet.
2. Click the Insert tab of the Ribbon.
3. Click the Insert Scatter (X, Y) or Bubble Chart button.
4. Select one of the format options from the dropdown menu.
5. Move the blank chart off any cell locations containing data that will be used to create the
chart.
6. Click the Select Data button in the Design tab of the Ribbon.
7. Click the Add button on the Select Data Source dialog box.
8. Type a name for the data series in the Series name input box in the Edit Series dialog box.
9. Tap the TAB key on your keyboard to advance to the Series X values input box.
10. Highlight the range of cells on your worksheet that contain values to be plotted on the X
axis.
11. Tap the TAB key on your keyboard to advance to the Series Y values input box.
12. Highlight the range of cells on your worksheet that contain values to be plotted on the Y
axis.
13. Click the OK button in the Edit Series dialog box.
14. Repeat steps 7 through 13 for each data series that is added to the chart.
15. Click the OK button at the bottom of the Select Data Source dialog box.

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Changing the Scale of the X and Y Axes

Follow Along File: Data Analytics Project 12 continued. If starting here use Data Analytics Project
12.01.
axis scale When creating a chart, Excel will automatically establish the scale for the Y axis, and also for
The minimum and the X axis in the case of scatter charts. The axis scale is the minimum and maximum value that
maximum value that appears on an axis. For example, in Figure 9.59, the Y axis scale is set to a minimum value of zero
appears on the X or Y axis and a maximum value of 10.00. Although this is a convenient feature of Excel, the scale may need
of a chart.
to be changed depending on the needs of a project. For example, notice that when the values are
changed in cell H1 on the Price and Quantity worksheet, the lines jump or shift on the plot area of
the chart. This is because Excel keeps rearranging the scale of both the X and Y axes. When study-
ing the shape of lines using motion data visualization, it is best to set the scale so it does not change.
The following explains how this is accomplished.
1. Change the value in cell H1 on the Price and Quantity worksheet to zero.
2. Double click any value on the Y axis (vertical axis) of the chart. This will open the Format Axis
window pane on the right side of the worksheet.
3. Click in the Minimum input box (see Figure 9.60). Use the BACKSPACE button to remove the
current value of 0.0 and type “.50”.
4. Click in the Maximum input box (see Figure 9.60). Use the BACKSPACE button to remove the
current value of 2.1 and type “8.0”.
5. Click in the Major input box (see Figure 9.60). Use the BACKSPACE button to remove the cur-
rent value of 1.0 and type “.75”.
6. Click in the Minor input box (see Figure 9.60). Use the BACKSPACE button to remove the cur-
rent value of 0.15 and type “.25”.
Figure 9.60 shows the settings in the Format Axis window pane for the scale of the Y axis. Once
these settings are applied to the chart, the minimum and maximum values on the Y axis will not
change when the data is changed.

FIGURE 9.60 Scale Settings for the Y Axis

7. Click the X in the upper right corner of the Format Axis window pane.
8. Double click any value on the X axis. This will open the Format Axis window for setting the
scale of the X axis.
9. Click in the Maximum input box. Use the BACKSPACE button to remove the current value of
450.0 and type “500.0”.
10. Click in the Major input box. Use the BACKSPACE button to remove the current value of 100.0
and type “50.0”.
11. Click in the Minor input box. Use the BACKSPACE button to remove the current value of 10.0
and type “25.0”.
12. Click the X in the upper right corner of the Format Axis window pane.
13. Change the value in cell H1 to 2 and then change it to 4 and then 8. Change the value one more
time to 11. As the value in cell H1 is changed, the motion of the lines can be observed and they
no longer jump or shift since the scale of both axes is fixed.
Figure 9.61 shows the final appearance of the chart with the scale of both the X and Y axes
fixed.

FIGURE 9.61 Scatter Chart with Fixed X and Y Axes

Skill Refresher: Changing the Scale of an Axis

1. Double click any value on the axis where the scale is being set.
2. Click in the Maximum and/or Minimum input boxes.
3. Use the BACKSPACE key to remove the current values and type new values.
4. Click in the Major and/or Minor input boxes.
5. Use the BACKSPACE key to remove the current values and type new values.
6. Click the X in the upper right corner of the Format Axis window pane.

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Adding a Trendline and Equation

Follow Along File: Data Analytics Project 12 continued. If starting here use Data Analytics Project
12.02.
A trendline can be a valuable addition to a scatter plot chart. The purpose of a trendline is to
estimate or predict where plot points may occur at various points along the X and Y axes. In Excel,
the trendline feature is one of the chart elements that can be added to the scatter chart. This fea-
ture can also be used to provide an equation for the trendline that is added to a chart. The following
demonstrates how this is added to the scatter chart.
1. Set the value in cell H1 on the Price and Quantity worksheet to 8.
2. Click anywhere on the scatter chart to activate it.
3. Click the Add Chart Element button in the Design tab of the Ribbon.
4. Place the mouse pointer over the Trendline option on the dropdown menu.
5. Click the Linear option from the Trendline sub menu (see Figure 9.62).

FIGURE 9.62 Adding the Trendline to a Chart

6. Click the OK button on the Add Trendline dialog box. The Demand data series option should
be selected.
Figure 9.63 shows the scatter chart after adding the Linear Trendline. Notice the line goes
through only two points on the Demand data series line. This indicates the Linear Trendline is not
a good fit for the demand curve on the scatter chart. Finding the right Trendline shape may require
trying a few options which will be demonstrated next.

FIGURE 9.63 Supply and Demand Analysis Chart with Linear Trendline

7. Click the Add Chart Element button in the Design tab of the Ribbon.
8. Place the mouse pointer over the Trendline option on the dropdown menu.
9. Click the None option from the Trendline sub menu (see Figure 9.62). This will remove the Lin-
ear Trendline from the chart.
10. Click the Add Chart Element button in the Design tab of the Ribbon.
11. Place the mouse pointer over the Trendline option on the dropdown menu.
12. Click the More Trendline Options from the Trendline sub menu (see Figure 9.62).
13. Click the OK button on the Add Trendline dialog box. The Demand data series option should
be selected. This will open the Format Trendline window pane on the right side of the work-
sheet.
14. Click the Power Trendline option in the Format Trendline window pane (see Figure 9.64). This
will add a trendline to the scatter chart with a different shape. This shape fits the Demand data
series line so well, it cannot be seen.

FIGURE 9.64 Adding a Power Trendline Form to a Scatter Chart

15. Click the Display Equation on the chart check box at the bottom of the Format Trendline win-
dow pane (see Figure 9.64). This will add the equation for the Power Trendline that was added
to the chart.
16. Click the Fill & Line button which is the paint bucket icon on the Format Trendline window
pane (see Figure 9.64).
17. Click the Outline color button which is the paint bucket icon on the Format Trendline window
pane. This is used to change the color of the Trendline.
18. Select Black from the color palette. This will make the Trendline visible on the chart.
19. Click the X in the upper right corner of the Format Trendline window pane.
20. Click and drag the equation that was added to the chart to the upper left corner of the plot
area.
21. Click the bold font button in the Home tab of the Ribbon.
22. Click any cell on the worksheet to deactivate the chart.
Figure 9.65 shows the final appearance of the Supply and Demand Analysis scatter chart with
the Power Trendline added for the demand series. Notice that the Power Trendline fits perfectly
over the demand series in the plot area. This indicates the Trendline is an excellent fit for the
demand curve. As a result, there is a high degree of confidence in using this line to predict other
demand values along the X and Y axes. The equation that was added to the plot area can also be
used to calculate the price, or Y axis value, for each quantity value substituted for X. For example,
if the number 150 is substituted for X in the equation, the result is a price of $3.61. Using the chart
to see what price corresponds with 150 on the X axis on the demand curve, this result appears to be
accurate.

FIGURE 9.65 Final Supply and Demand Scatter Chart

Skill Refresher: Adding a Trendline

1. Click the chart to activate it.

2. Click the Design tab of the Ribbon.
3. Click the Add Chart Element button.
4. Place the mouse pointer over the Trendline option.
5. Select one of the Trendlines from the sub menu or click the More Trendline Options to
open the Format Trendline window pane.
6. Click a data series in the Add Trendline dialog box and click the OK button.

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Key Takeaways

• When creating a scatter chart, it is best to start with a blank chart and add each data series
individually. The highlight and click method is less reliable since numeric values are assigned
to both the X and Y axes.
• When using motion data visualization to study the behavior of a data series using a scatter
chart, the scale of the X and Y axes should be set at fixed values.
• The Format Trendline window pane must be used to access all different forms of Trendlines.
• The Format Trendline window pane can be used to format a Trendline and add the Trendline
equation to a chart.

9.5 Chapter Assignments and Test

Data Analytics (Skills Review)

Fashion Industry Size Analysis (Comprehensive Review Part A)

Starter File Name: Chapter 9 DA Exercise 1

Digital Downloads

Chapter 9 DA Exercise 1.xlsx

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Difficulty: Level 1
A common practice for most retailers in the fashion industry is the monitoring of apparel size
analysis reports. Understanding the most commonly purchased sizes is a critical exercise for any
company that manufactures and sells apparel. These reports help retailers determine the quan-
tity that needs to be manufactured for every size offered in an apparel line. This critical process
can be very damaging to a retailer’s business if it is not done correctly. For example, consider
a garment that is sold in 8 sizes (2-4-6-8-10-12-14-16). How many size 2s should be manufac-
tured versus size 16s? They will not all sell at the same rate. Luring customers into a store with a
great line of garments and not having their size can be very damaging to a company’s reputation
and ultimately future sales. The charts demonstrated in this chapter can be valuable tools in ana-
lyzing size information for garments. This exercise uses the concept of the frequency distribution
and frequency comparison to analyze demand by garment size for the knit tops department of
an apparel manufacturing company. The information displayed on these charts can be used to
establish the production plan for manufacturing the proper amount of each size for each gar-
ment.
Begin the exercise by opening the file named Chapter 9 DA Exercise 1. Questions that are pre-
ceded with the letters KO indicate you must only use your keyboard and not your mouse to
execute the required skill.
1. Highlight the range A4:A8 on the Size Analysis worksheet.
2. Hold the CTRL key down on your keyboard and highlight the range C4:C8.
3. Click the Insert Column or Bar Chart button in the Insert tab of the Ribbon and select the
2-D Clustered Column format option from the dropdown list.
4. Move the column chart to a new chart sheet by clicking the Move Chart button in the Design
tab of the Ribbon. The sheet tab label should read “Tops Size Chart”.

5. Format the chart title by selecting Subtle Effect – Orange, Accent 6 from the preset shape
style formats in the Format tab of the Ribbon. Change the font style of the chart title to Arial
and change the font size to 24 points.
6. Click in the chart title and delete text. Type the following: “Knit Tops Unit Sales by Size”.
7. Click any of the bars in the plot area of the chart. Click the down arrow on the Shape Fill
button in the Format tab of the Ribbon. Select the Purple, Accent 4, Lighter 40% color from
the color palette.
8. Click the Add Chart Element button in the Design tab of the Ribbon. Place the mouse pointer
over the Data Labels option and click the Inside End option from the sub menu.
9. Click any data label on the bars of the chart. Use the formatting commands in the Home tab
of the Ribbon to change the font style to Arial, the font size to 14 points, and bold the font.
10. Use the formatting commands in the Home tab of the Ribbon to format the X and Y axes.
Click anywhere on the axis to activate it. Then, change the font style to Arial, the font size to
14 points, and bold the font.
11. Click anywhere on the plot area of the chart to activate it. Click and drag the top center
sizing handle down approximately 1 inch. There should be about 1 inch of space between
the bottom of the chart title and the top of the plot area.
12. Click the Text Box button in the Insert tab of the Ribbon. Starting from the far upper left side
of the chart area, approximately ½ inch below the top, click and drag a box that is approxi-
mately 2.5 inches wide and ½ inch high.
13. Format the text box using the commands in the Home tab of the Ribbon. Change the font
style to Arial, the font size to 12 points, and select the bold and italics commands.
14. Type the following in the text box: “Based on 2020 Unit Sales”.
15. Click cell G4 on the Size Analysis worksheet.
16. Click the Insert Column or Bar Chart button in the Insert tab of the Ribbon and select the
3-D Clustered Column format from the dropdown list.
17. Move the chart so the upper left corner is in the center of cell G2.
18. Resize the chart so the left side is locked to the left side of column G, the right side is locked
to the right side of column N, the top is locked to the top of row 2, and the bottom is locked
to the bottom of row 18.
19. Click the Select Data button in the Design tab of the Ribbon.
20. Click the Add button on the Select Data Source dialog box.
21. Type “Knit Tops” in the Series name input box. Then, tap the TAB key on your keyboard,
highlight the range C4:C8, and tap the ENTER key on your keyboard.
22. Click the Add button again on the Select Data Source dialog box.
23. Type the word “Company” in the Series name input box. Then, tap the TAB key on your key-
board, highlight the range E4:E8, and tap the ENTER key on your keyboard.
24. Click the Edit button on the right side of the Select Data Source dialog box.
25. Highlight the range A4:A8 and tap the ENTER key on your keyboard. Then, click the OK but-
ton on the Select Data Source dialog box.
26. Add a chart title above the plot area of the chart. The title should state the following: “Size
Comparison 2020 Unit Sales”. Select the Underline command in the Home tab of the Rib-
bon.
27. Click the Add Chart Element button in the Design tab of the Ribbon and add a Primary Verti-
cal axis title. The title should state: “Percent of Total Unit Sales”. Change the font size of the
title to 12 points and select the Underline command in the Home tab of the Ribbon.
28. Double click any value on the Y axis. Then, click the Number option at the bottom of the
Format Axis window pane.
29. Click in the Decimal Places input box and change the value to zero. Then, click the X in the
upper right corner of the Format Axis window pane.
30. Use the formatting commands in the Home tab of the Ribbon to format the X and Y axes.
Change the font size to 12 points, and bold the font.
31. Click the green plus sign on the upper right side of the chart and add a legend to the right
of the plot area. Then, click and drag the legend so the top border of the legend aligns with

the top line of the plot area. Use the formatting commands in the Home tab of the Ribbon to
increase the font size of the legend to 12 points and select the bold and italics command.
32. Click anywhere on the plot area to activate it. Then, click the down arrow on the Shape Fill
button in the Format tab of the Ribbon and select the Tan, Background 2 option from the
color palette.
33. Click any of the bars representing the Knit Tops data series. Then, click the down arrow on
the Shape Fill button in the Format tab of the Ribbon. Select the Aqua, Accent 5, Darker
25% option from the color palette.
34. Save and close your workbook.

Fashion Retail Markdown Analysis (Comprehensive

Review Part B)

Starter File Name: Chapter 9 DA Exercise 1

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Difficulty: Level 2
Markdowns are a critical component for operating a successful fashion retail business. When
an item is marked down, the price is reduced by a certain amount with the expectation that it
will increase the number of units sold. This is also known as putting an item on sale. A surplus
of inventory can present considerable losses for a fashion retailer. Therefore, the timing and the
amount of discount taken on an item is critical in order to sell through all inventory. The increase
in the number of units sold will depend on the size of the discount offered on a particular item.
The scatter chart demonstrated in this chapter is a valuable tool in analyzing the rate in which
unit sales increase when discounts are offered on an item.
Begin the exercise by opening the file named Chapter 9 DA Exercise 1. Questions that are pre-
ceded with the letters KO indicate you must only use your keyboard and not your mouse to
execute the required skill.
1. Click cell E2 on the Markdown Analysis worksheet.
2. Click the Insert Scatter (X,Y) or Bubble Chart button on the Insert tab of the Ribbon. Select
the Scatter with Smooth Lines and Markers format option.
3. Move the chart so the upper left corner is in the center of cell E2.
4. Resize the chart so the left side is locked to the left side of column E, the right side is locked
to the right side of column M, the top is locked to the top of row 2, and the bottom is locked
to the bottom of row 18.
5. Click the Select Data button in the Design tab of the Ribbon. Then, click the Add button on
the Select Data Source dialog box.
6. Complete the inputs for the Edit Series dialog box as follows:
• Series Name: “Markdowns and Unit Sales”
• Series X Values: A3:A17
• Series Y Values: C3:C17
7. Click the OK button on the Edit Series and Select Data Source dialog boxes.
8. Double click any value on the Y axis. Change the scale of the Y axis so the minimum value is
set to 100 units. Then, click the X in the upper right corner of the Format Axis window pane.
9. Change the scale of the X axis so the maximum value is set to 70%.
10. Format the X and Y axes to an Arial font style, bold, and font size of 12 points.

11. Add an X axis title that reads “Discount Applied to Original Price”. Format the title with the
Colored Fill – Red, Accent 2 preset shape style. Change the font style to Arial, bold, italics,
and font size of 12 points.
12. Add a Y axis title that reads “Weekly Unit Sales”. Format the title with the Colored Fill – Red,
Accent 2 preset shape style. Change the font style to Arial, bold, italics, and font size of 12
points.
13. Format the chart title with the Colored Fill – Red, Accent 2 preset shape style. Change the
font style to Arial, and font size to 16 points.
14. Change the color of the plot area to Tan, Background 2.
15. Save and close your workbook.

Personal Spending and Savings Plan

Starter File Name: Chapter 9 DA Exercise 2

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Difficulty: Level 2
As demonstrated earlier in this textbook, Excel can be a valuable tool for constructing a personal
budget. One of the benefits of developing and maintaining a personal budget is that it helps to
maintain a financially healthy level of savings. Money that is saved is sometimes referred to as
an emergency fund in the event an unexpected large expense occurs. If such a fund is not avail-
able, unexpected expenses may have to be paid with borrowed funds which could come at a
high interest rate if using a credit card. These high interest debts can take years to pay off. The
purpose of this exercise is to use the charts in this chapter to evaluate a personal expense plan
and to analyze the relationship that spending and net income have on the ability to save money.
Begin the exercise by opening the file named Chapter 9 DA Exercise 2. Questions that are pre-
ceded with the letters KO indicate you must only use your keyboard and not your mouse to
execute the required skill.
1. Create a pie chart using the data in the Expense Plan worksheet. The chart should show the
percent to total for the categories in the range A3:A10 based on the Annual Spend values in
the range D3:D10. Use the 3-D pie format.
2. Move the pie chart to a separate chart sheet. The tab name for the chart sheet should read
“Expense Chart”.
3. Remove the legend from the chart.
4. Edit the title of the chart to read “Personal Expenses”. Format the chart title with an Arial font
style, bold, italics, underline, and font size of 20 points.
5. Add data labels to each section of the pie chart. Show only the category name and the per-
centage.
6. Format the data labels with an Arial font style, bold, and font size of 16 points. Notice that
the mortgage and tax categories make up over 50% of total expenses.
7. Enter a formula into cell D4 on the Savings worksheet. Your formula should add to the sav-
ings balance in cell D2 the result of subtracting the spending value in cell C4 from the net
income value in cell B4.
8. Enter a formula into cell D5 on the Savings worksheet. Your formula should add to the output
in cell D4 the result of subtracting the spending value in cell C5 from the net income value
in cell B5. Copy this formula and paste it into the range D6:D15 using the Paste Formulas
command.
9. Create a line chart using the data in the Savings worksheet. The chart should show the
months in the range A4:A15 along the X axis. The Y axis should show the dollar amounts

in the range B4:D15. There should be three data series displayed on the chart: Net Income,
Spending, and Savings. Use the Line with Markers format option.
10. Move the chart so the upper left corner is in the center of cell F3.
11. Resize the chart so the left side is locked to the left side of column F, the right side is locked
to the right side of column O, the top is locked to the top of row 3, and the bottom is locked
to the bottom of row 18.
12. Add a chart title above the plot area that reads “Savings Analysis”. Format the title with the
Moderate Effect – Purple, Accent 4 preset shape style. Then, change the font style to Arial,
the font size to 16 points, bold, and italics.
13. Add a title to the Y axis that reads “After Tax Dollars”. Format the title with the Moderate
Effect – Purple, Accent 4 preset shape style. Then, change the font style to Arial, the font
size to 12 points, and bold.
14. Format the X and Y axes by changing the font style to Arial, bold, and change the font size
to 11 points.
15. Change the scale of the Y axis so the minimum value is set to −500.
16. Format the legend by changing the font style to Arial, font size to 12, and bold font.
17. Change the color of the plot area to White, Background 1, Darker 5%.
18. Add an annotation that begins approximately 1 inch above the Dec label on the X axis. The
annotation should extend approximately 1.25 inches wide with approximately .25 inch in
height. The annotation should read “Debt Incurred”. Format the annotation by changing the
font style to Arial, bold, italics, and font size of 10 points.
19. Save and close your workbook.

Integrity Check

Starter File Name: Chapter 9 IC Exercise 3

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1. How many points of data is the analyst using on the chart? Does it make sense to use a
column chart for this analysis? If not, what would be a better choice? Place your answer
in the AnswerSheet worksheet.
2. Look at the profit values for the two companies. Does it make sense to compare these
values? If not, why and what alternative could you pursue? Place your answer in the
AnswerSheet worksheet.
3. The analyst mentioned that the profit numbers are in terms of thousands. Would this be
apparent by looking at the chart? If not, why? Place your answer in the AnswerSheet work-
sheet.
4. Looking at the X axis of the column chart you will see that the quarters keep repeating 1
through 4 for each year in column A. Can anything be done to show the year that each set
of 4 quarters represents? Place your answer in the AnswerSheet worksheet.
5. Move the chart created by the analyst to a separate chart sheet and label the sheet tab
Analyst’s Chart. Make any necessary modifications to the Profit Analysis worksheet to cre-
ate a chart that presents an appropriate comparison between the Big Company and the
Goode Company. Create a new chart comparing the profits of the Big Company and the
Goode Company. Pay careful attention to formatting details.
6. Do you agree with the Analyst’s conclusion that the firm should advise clients to invest
in the Big Company over the Goode Company? Place your answer in the AnswerSheet
worksheet.

Applying Data Analytics Skills

Hotel Occupancy and Cleaning Expenses

Starter File: Chapter 9 ADAS Assignment 4

Digital Downloads

Chapter 9 ADAS Assignment 4.xlsx

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Chapter_9_ADAS_Assignment_4-c321.xlsx

Difficulty: Level 3
The purpose of this exercise is to analyze the activity and cost data for a hotel using a scatter
chart. The data provided in the Hotel Costs worksheet can be used to establish a trendline on a
scatter chart. The equation for the trendline can then be used to determine what the hotel may
incur with regards to cleaning expenses at different levels of occupancy. This is an alternative to
the High Low method for analyzing costs presented earlier in this textbook. Your assignment is
to create the scatter chart and construct a formula that can be used for planning cleaning costs
at different levels of occupancy based on the following requirements:
1. Columns B and C in the Hotel Costs worksheet contain occupancy and cleaning cost data
for twelve months. Create a scatter chart that shows just the plot points (Scatter with only
Markers) for the occupancy and cleaning costs for each month on this worksheet. The
chart should be embedded in the Hotel Costs worksheet and should include the appropri-
ate formatting techniques covered in this chapter.
2. Adjust the scale of the X and Y axes so the minimum value is 2000.
3. Add a linear trendline to the chart and show the equation.
4. Use the trendline equation to enter a formula in cell F2 that calculates the estimated clean-
ing costs based on the occupancy level that is typed into cell F1.

Quality Control Analysis

Starter File: Chapter 9 ADAS Assignment 5

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Chapter_9_ADAS_Assignment_5-0080.xlsx

Difficulty: Level 3
Managing the costs of a quality control department for a manufacturing company is a critical
job. The expense paid to maintain and improve the quality of a company’s product line is vital to
its future success. The purpose of this exercise is to analyze how the cost to operate a quality
control department changes over time and how these changes impact the overall costs of main-
taining the quality of a product line. The Quality Control worksheet contains two years of cost
data by quality category which are Prevention, Inspection, Internal Failure, and External Failure.
The total quality costs decrease from year 1 to year 2. Create a chart that is most appropriate to
present the change in costs from one year to the next. The requirements are as follows:
1. The chart should show which quality categories are increasing or decreasing from year 1
to year 2. In addition, the dollar value for each quality category should appear on the chart
for each year.
2. The total quality control costs for each year should be specified on the chart.
3. The chart should appear in a separate chart sheet.
4. You should include appropriate formatting techniques covered in this chapter.

Chapter Skills Test

Starter File Name: Chapter 9 Skills Test

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8. Create a 100% stacked column chart using the data in the Market Share worksheet. The X
axis should show stacks for the year 2010 and 2020. There should only be two stacks, or
columns, in the plot area showing the percent to total for each company.
9. Move the 100% stacked column chart to a separate chart sheet. The tab name for the chart
sheet should read: “Market Share Chart”.
10. Remove the legend on the stacked column chart and add a data table with legend keys
below the X axis.
11. Add a title above the chart that reads: “10 Year Change in Market Share”.
12. Format the chart title using the Subtle Effect – Red, Accent 2 preset shape style. Change the
font style to Arial and the font size to 20 points.
13. Add a Y axis title that reads: “Market Share”.
14. Format the Y axis title using the Subtle Effect – Red, Accent 2 preset shape style. Change
the font style to Arial and the font size to 16 points.
15. Format the X and Y axes by changing the font style to Arial, bold font, and font size to 14
points.
16. Change the fill color of the chart area to Tan, Background 2.
17. Change the color of the plot area to White.
18. Add series lines that connect each section of the two stacks in the plot area.
19. Create a column chart showing just the Company Sales in the Sales Data worksheet. The
chart should show the Company Sales in the range B3:B13 along the Y axis. The years in
the range A3:A13 should appear on the X axis. Use the basic 2-D Clustered Column format.
The series name should be “Gross Sales”.
20. Move the column chart to a separate chart sheet. The tab name for the chart sheet should
read “Company Sales Chart”.
21. Format the X and Y axes by changing the font style to Arial, bold font, and font size to 14
points.
22. Reduce the height of the plot area by approximately 1 inch. There should be about 1 inch of
space between the bottom of the Chart Title and the top of the plot area.
23. Add an annotation above the Y axis that reads “Sales in Millions”. Format the annotation with
an Arial font style, bold font, italics font, and font size of 12 points.
24. Change the color of the bars in the plot area to dark red.
25. Create a line chart comparing the change in sales for the company and overall industry in the
Sales Data worksheet. Construct the chart as follows:
• The Y axis should show the growth percentages for the company in the range C3:C13
and the growth percentages for the industry in the range E3:E13.
• The series name for the company growth percentages should be “Company”.
• The series name for the industry growth percentages should be “Industry”.
• The years in the range A3:A13 should appear on the X axis.
• Use the Line with Markers format.
26. Move the chart so the upper left corner is in the center of cell G2.
27. Resize the chart so the left side is locked to the left side of column G, the right side is locked
to the right side of column M, the top is locked to the top of row 2, and the bottom is locked
to the bottom of row 18.
28. Adjust the scale of the Y axis so the maximum value is set to .20.
29. Add a legend to the bottom of the chart.
30. Save and close your workbook.

Index 197, 215, 232-233

Column Width tip box

19-21, 131, 135-153, 157-158, 162,
173-183, 188, 195-198, 205-206, 211,
217, 224, 247, 267, 295, 299-303,
60-61 308-309, 313-317, 323, 327-328, 352,
370, 381-386, 390, 404, 466
constant
138, 217, 227-229, 309, 398 frequency distribution
397, 421-422, 427-429, 463
contextual tabs
399 functions
7-8, 21, 131, 135, 147-151, 155-163, 168,
data analytics 173-175, 179-189, 195-197, 211-217, 224,
401K 1-470 231, 239-241, 245-248, 252-256, 261,
222, 288 265-266, 270-271, 275, 281, 285-287,
data audit 293, 297, 305-306, 310-312, 317-322,
absolute reference 12-14, 40-46, 67, 84-91, 112, 123, 131, 327, 352, 357, 363, 369-370, 375-380,
151-154, 170-177, 183, 198, 205, 135, 144-149, 180-182, 205-208, 246, 386-390
236-240, 254, 259-260, 268-270, 274-277, 301, 326, 332-341, 348-352, 357, 387-388
285-286, 294-301, 306-308, 312-317, 322, headers
361, 377-381, 392 data design 15, 31-37, 97
9-14, 38-40, 84-86, 91-92, 120-123,
accounts receivable 131-133, 181-182, 197, 322, 327, 335, Key Tips
421 381 14, 36-37

amortization table data internal controls keyboard shortcuts

186-187, 242 9-14, 40, 91, 103, 120-122, 128-131, 135, 14, 36-37
147, 168, 173, 182-185, 211, 246,
annuity 281-284, 319, 335, 350, 384-388 lease
218-220, 224 185-188, 193-197, 205-217, 232-243
data presentation
ascending order 10 lessee
98, 129, 267, 274-275, 285, 357, 392 208
data series
asset 49, 406, 427-429, 437-443, 450-455, lessor
9, 185-187, 208-210, 216, 233-235 459-467 208

Auto Fill data visualization loan

43, 48-52, 84-88, 199 7-8, 91-93, 97, 103, 126, 131, 147, 185-216, 229-243
164-166, 173-176, 266, 278-280, 285,
axis scale 291, 397-469 logical test
402-403, 456 248-265, 282-287, 293-299, 304, 308-314,
date serial number 318, 378-379, 391-392
borders 197-201, 355
68, 77-88 market equilibrium
dividends 454
cell 227, 246, 252-253
14, 19-21, 32-37, 41-42, 46-78, 82-89, 95, Merge Cells
103, 110, 121-210, 214-328, 333-348, embedded chart 68-71, 82, 390
352-363, 367-395, 399-400, 404-412, 95, 116-118
422-430, 435-441, 450-470 mortgage
equilibrium price 186-193, 197-199, 466
cell address 454
19 OneDrive
field 12-14, 26-31, 37
cell range 44-45, 92, 105-125, 129, 332-352, 357,
19, 37, 49, 74-75, 82-83, 125, 149, 166, 364-370, 392-394 parsed
266, 273-275, 283-285, 293-297, 301, 353
311, 317, 327-328, 335, 375-376, Fill Handle
388-392, 399 48-51, 84, 199-206, 251, 354, 391-392 past due
421-422, 426-445
cell reference footers
19, 135-137, 144-151, 155, 170-176, 182, 15, 31-37 personal net income
196-200, 205, 209, 234-243, 320-321, 131
381-385 Formula Bar
53, 85, 154, 160, 271, 298, 302, 308, 379 PivotChart
chart sheet 103, 115-129, 426
95-99, 116, 124-129, 414, 421, 463-470

© 2020 Boston Academic Publishing, Inc., d.b.a FlatWorld. All rights reserved.
PivotTable Ribbon Unrealized Gain/Loss
103-129, 201-202, 242, 322, 326, 14, 20-37, 47-48, 52-80, 84-86, 92-106, 257, 291, 327
332-352, 357, 364-368, 376, 387-388, 110-124, 133-146, 157, 162-168, 172-179,
392-395 188, 199, 207, 211-215, 224-226, workbook
235-240, 247, 267, 278-281, 338-345, 12-14, 18-36, 41-43, 54, 63-64, 68, 73, 80,
plot area 349-351, 367-374, 390-393, 399-455, 84-89, 95, 104, 115, 120-128, 144,
95-99, 103, 124, 129, 405, 416-418, 431, 459-465 177-185, 211-212, 220, 232-243, 266,
440-445, 453-456, 461-470 272-273, 277, 287-289, 323-326, 330-331,
S&P 500 353, 370, 386-395, 443-445, 449, 465-470
predictive analytics 398-406
13-14 worksheets
sizing handles 13-14, 18-23, 31-36, 41-43, 63-67, 80-83,
principal 94-95, 118, 373, 408, 416, 432-433, 448 121, 127-128, 132, 146, 185-188,
186-187, 191, 196, 205-210, 239-243 195-196, 217, 242, 266, 273, 285, 289,
sorting 293, 319, 385, 390
Quick Access Toolbar 21, 91, 97-109, 124
14, 21-24, 35-37, 52 Wrap Text
Status Bar 67-69, 82-85, 89, 125, 334, 387-391
records 33, 45-46, 67, 86-89, 333
245, 329-331, 365, 369, 376 X axis
template 97, 397-404, 411, 422, 427-430, 434-436,
relative references 132-135, 139, 174, 186, 370 445, 450-457, 461, 465-470
136
time value of money Y axis
217-219, 245 397-405, 411-413, 417, 422, 427-436,
442, 450-457, 461-470
Treemap chart
91-103, 121-129, 397

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