DATA ANALYSIS

WEEK 1 LECTURE

FOUNDATIONS , DATA , DATA EVERYWHERE

TOPIC 2: INTRODUCTION TO Spreadsheets, Computations

and Calculations, Formulas and Function

Cell Referencing

Cells are the boxes you see in the grid of an Excel worksheet, like this
one. Each cell is identified on a worksheet by its reference, the column letter
and row number that intersect at the cell's location. It is a combination of rows
and columns.
A cell reference refers to a cell or a range of cells on a worksheet and can be
used in a formula so that Microsoft Office Excel can find the values or data that
you want that formula to calculate.
In one or several formulas, you can use a cell reference to refer to:
1. Data from one or more contiguous cells on the worksheet.
2. Data contained in different areas of a worksheet.
3. Data on other worksheets in the same workbook.
Data Formats

There are 5 data formats in Excel, this formats determine how the
contents of your cell is structured.
They are Number , Alignment, fill, protection and Border

To access the data formats, left click on your cell, scroll your mouse
indicator to format cells, you can then access your cell formats.
Number Formats in Excel
How to Change Number Formats
1. Select a cell or a cell range.
2. On the Home tab, select Number from the drop-down.
3. Select the format you want
 Number Formats in Excel
Types of Number Formats

Format Description
General The default number format that Excel
applies when you type a number. For the
most part, numbers that are formatted
with the General format are displayed just
the way you type them. However, if the
cell is not wide enough to show the entire
number, the General format rounds the
numbers with decimals.
The General number format also uses
scientific (exponential) notation for large
numbers (12 or more digits).

Number Used for the general display of numbers.

You can specify the number of decimal
places that you want to use, whether you
want to use a thousands separator, and
how you want to display negative
numbers.
Number Formats in Excel
Types of Number Formats

Currency Used for general monetary values and

displays the default currency symbol
with numbers. You can specify the
number of decimal places that you
want to use, whether you want to use a
thousands separator, and how you
want to display negative numbers.

Accounting Also used for monetary values, but it

aligns the currency symbols and
decimal points of numbers in a column.
Number Formats in Excel
Date Displays date and time serial numbers as date
values, according to the type and locale
(location) that you specify. Date formats that
begin with an asterisk (*) respond to changes in
regional date and time settings that are specified
in Control Panel. Formats without an asterisk are
not affected by Control Panel settings.

Time Displays date and time serial numbers as time

values, according to the type and locale
(location) that you specify. Time formats that
begin with an asterisk (*) respond to changes in
regional date and time settings that are specified
in Control Panel. Formats without an asterisk are
not affected by Control Panel settings.

Percentage Multiplies the cell value by 100 and displays the

result with a percent (%) symbol. You can specify
the number of decimal places that you want to
use.
Number Formats in Excel

Percentage Multiplies the cell value by 100 and

displays the result with a percent (%)
symbol. You can specify the number of
decimal places that you want to use.
Fraction Displays a number as a fraction,
according to the type of fraction that
you specify.
Scientific Displays a number in exponential
notation, replacing part of the number
with E+n, where E (which stands for
Exponent) multiplies the preceding
number by 10 to the nth power. For
example, a 2-decimal Scientific format
displays 12345678901 as 1.23E+10,
which is 1.23 times 10 to the 10th
power. You can specify the number of
decimal places that you want to use.
Number Formats In Excel

Text Treats the content of a cell as text and

displays the content exactly as you type it,
even when you type numbers.

Special Displays a number as a postal code (ZIP

Code), phone number, or Social Security
number.
Custom Allows you to modify a copy of an existing
number format code. Use this format to
create a custom number format that is added
to the list of number format codes. You can
add between 200 and 250 custom number
formats, depending on the language version
of Excel that is installed on your computer.
For more information about custom formats
 Basic Computations
Order of Computation
Pemdas
The order of operations is a rule that tells the correct sequence of steps for evaluating a
math expression. We can remember the order using PEMDAS: Parentheses, Exponents,
Multiplication and Division (from left to right), Addition and Subtraction (from
left to right).
Functions in Excel

Sum Function : The SUM function adds values. You can add
individual values, cell references or ranges or a mix of all three.
Syntax= “SUM(number1,[number2] ,…)” The “number1” and
“number2” are the first and second numeric values to be added.

Average Function: The Average Function returns the average

(arithmetic mean) of the arguments.
Syntax= For example, if the range A1:A20 contains numbers, the
formula =AVERAGE(A1:A20) returns the average of those
numbers.
Functions In Excel

Min Function : The Excel MIN function returns the smallest

numeric value in the data provided. The MIN function ignores empty
cells, the logical values TRUE and FALSE, and text values.
Syntax: MIN(number1, [number2], …) number1, [number2]

Small Function: The Excel SMALL function returns a numeric

value based on its position in a list when sorted by value in
ascending order. In other words, SMALL can return the "nth
smallest" value (1st smallest value, 2nd smallest value, 3rd smallest
value, etc.) from a set of numeric data
Syntax: Small(array,nth position)
Functions In Excel

Max Function: The MAX function returns the largest numeric

value in the data provided. The MAX function can be used to
return the largest value from any type of numeric data.
Syntax: MAX(number1, [number2], …)

Large Function:The Excel LARGE function returns a numeric

value based on its position in a list when sorted by value in
descending order. In other words, LARGE can retrieve the "nth
largest" value .
Syntax:LARGE(array,k)
Functions in Excel

Round: The Excel ROUND function returns a number rounded to

a given number of digits
Syntax: Round(number,num_digits)
Roundup: To round up to the nearest specified place,
Syntax: Roundup(number,num_digits)

Rounddown:To round down to the nearest specified place,

Syntax:Rounddown(number,num_digits)
Functions In Excel

Sumproduct: The SUMPRODUCT function returns the sum of the

products of corresponding ranges or arrays.
Syntax: SUMPRODUCT(array1, [array2], [array3], ...)

Count Function: COUNT function is used to get the number of

entries in a number field that is in a range or array of
numbers.
Syntax: Count(value1,[value2],...)
Functions in Excel

Len Function: LEN function is a text function in excel that returns

the length of a string/ text. LEN Function in Excel can be used to
count the number of characters in a text string and able to count
letters, numbers, special characters, non-printable characters, and
all spaces from an excel cell.
Syntax: LEN(cell)

Transpose Function: The TRANSPOSE function converts a

vertical range of cells to a horizontal range of cells, or a horizontal
range of cells to a vertical range of cells.
Syntax: Transpose(array)
Days Functions In Excel

 Days Function: Returns the number of days between two dates

Syntax: DAYS(D4,C4)

Now Function: Returns the current system date and time

Syntax : Now(Cell)

Today Function: Returns the current date.

Syntax: Today()
Date Functions

Workday Function: Returns the serial number of the date before

or after a specified number of workdays.
Syntax: workdays(start_date,days,[holidays])
Year Function: Converts a Serial Number to a year
Syntax: Year(Cell)

YearFrac: Returns the year fraction representing the number of

whole days between start_date and end_date.
Syntax: yearfrac(start_date,end_date,[basis])
Financial Functions
NPV
Net present value is the present value of cash inflows minus present
value of cash outflows. It is used for making capital budgeting/
investment decisions. Decisions could be for an investment in or
replacement of a fixed asset, investment or acquisition of a Company or
Investment in a Capital-intensive project.
The Syntax for calculating NPV is (rate, Value1, [value2]….)

IRR
IRR is the internal rate of return for a series of cash flows.
Internal rate of return is the rate at which present value of
cash inflows is equal to the present value of cash outflows (ie,
rate at which NPV of the cash flows is Zero). IRR is used to
analyze potential investment decisions.
If IRR is greater than cost of capital the project is value
creating.
If IRR is less than the cost of capital the project is value
destroying.
IRR Syntax= IRR(Values, [Guess])
 Financial Functions

PMT
The PMT or payment function helps calculate the loan EMI.
PMT SYNTAX
=PMT(rate,nper,PV,[FV],[type])
Rate is the interest rate for the loan.
Nper is the total no. of instalments.
PV is the present value of the loan
FV is the future value of the loan after the last payment is made.
Financial Functions

NPER
NPER calculates the number of periodic payments (instalments) to be made if the rate of
interest remains constant and the opening and closing balances are known.
This is generally used to calculate the Tenure of the Loan EMI, if the interest rate, Principal
loan amount and outstanding balance at the end of the period and monthly payment is
known.
NPER SYNTAX
=Nper(Rate,PMT,PV,[FV],Type)
Rate is the interest rate for the loan.
PMT is the periodic cash outflow.
PV is the present value of the loan
FV is the future value of the loan after the last payment is made.
Type is the logical value; you should enter 1 if the EMI payment is at the beginning of the
period, or 0 if the EMI payment is at the end of the period. You can also leave it blank. In that
case it will be considered as 0 by excel.
Financial Functions

Rate function calculates the rate of interest on the loan or investment.

RATE SYNTAX
=Rate(NPER,PMT,PV,[FV],[Type])
NPER is the total no. of instalments.
PMT is the periodic payment made. This amount remains constant
during the tenure of the loan or investment.
PV is the present value of the loan
FV is the future value of the loan after the last payment is made.
Type is the logical value; you should enter 1 if the EMI payment is at the
beginning of the period, or 0 if the EMI payment is at the end of the
period. You can also leave it blank. In that case it will be considered as 0
by excel.
Financial Functions

IPMT function returns the interest payment for a given loan based
on periodic constant payments and constant interest rate.
IPMT SYNTAX
=IPMT(Rate,Per,Nper,PV,[FV],[Type])
Rate is the interest rate for the loan.
Per specifies the period and must be between 1 and NPER.