Advanced Excel Functions encompass a variety of powerful tools and capabilities within Microsoft Excel MasterClass These functionalities enable users to execute intricate computations, conduct comprehensive data analysis, and accomplish numerous other tasks.
Within the following piece, you will gain insights into a selection of frequently utilized advanced Excel functions.
What-If Analysis with Solver
The technique of conducting a What-If Analysis involves altering values to explore different scenarios for formulas in Advanced Excel.
This method allows for the utilization of various value sets in one or multiple Advanced Excel formulas to observe different outcomes.
For effective What-If analysis, the Solver add-in in Microsoft Excel proves to be highly beneficial. It serves as an additional program that assists on multiple levels.
The Solver feature aids in determining an optimal value for a formula in a specific cell referred to as the objective cell. However, certain constraints or limitations may apply to other formula cell values within a worksheet.
The Solver operates by utilizing decision variables, which are a group of cells involved in computing the formulas for the objective and constraint cells. By adjusting the value of the decision variable cells, the Solver ensures compliance with the constraints imposed on the constraint cells. This iterative process facilitates the determination of the desired outcome for the objective cell.
To activate the Solver add-in:
- Access the Options menu by clicking on the File tab.
- Navigate to the Add-ins section, choose the Solver Add-in, and click the Go button.
- Verify the presence of the Solver Add-in and select the OK button.
After activating the Solver add-in, you will notice the addition of the Solver option in the Analyze group within the Data tab.
If-Else
The IF-ELSE function is utilized to evaluate a condition and provide a specific value if the condition is true, or an alternative value if the condition is false.
Syntax: =IF(test condition, value if true, value if false)
If-Error
The function IF-ERROR in Excel provides a different outcome when a formula encounters an error and a desired outcome when there is no error detected.
Syntax: =IFERROR (value, value_if_error)
Goal Seek
Goal Seek is an inherent feature of Advanced Microsoft Excel Functions that allows you to achieve the desired output by adjusting the assumptions. It relies on a trial-and-error method to reach the intended outcome.
To better understand, let's consider an example.
Example:Suppose we want to determine the interest rate needed to make monthly payments of $5000 toward a loan.
The PMT function is used to calculate the monthly payment required to settle a loan amount.
Now, let's break down the steps to calculate the interest rate that would settle a $400,000 loan with a monthly payment of $5,000.
- Enter the PMT formula in the adjacent cell designated for payment. Currently, the interest rate cell has no value, so Excel assumes a 0% interest rate and provides a payment of $3,333.33.
- Access the "Data" tab and select the option "What-If Analysis."
- Proceed to click on "Goal Seek."
- Set the monthly payment to -5,000. The negative value indicates a deduction in the amount.
- Set the interest rate as the changing cell.
- Click OK. The goal-seek function will automatically provide the required interest rate to pay off the loan amount.
- Move to the "Home" tab and navigate to the "Number" section.
- Adjust the value to a percentage by modifying the settings.
Pivot Tables
A Pivot table serves as a powerful tool within Excel that allows users to quickly analyze and summarize data, enabling them to identify trends and patterns efficiently.
By utilizing the drag-and-drop functionality and selecting appropriate functions, users can generate comprehensive summaries of their data across different sections.
Data Example
For the purpose of understanding pivot tables, let's consider a sample dataset comprising 41 records with five fields containing buyer information. This dataset is ideal for grasping the concept of pivot tables.
Inserting Pivot Tables
To insert a pivot table into your Excel sheet, you can follow the steps below:
- Select any cell within the dataset.
- Navigate to the Insert tab and locate the Tables group.
- Click on the PivotTable option.
- Upon clicking, a dialog box will appear with Excel automatically selecting your dataset. Additionally, a new worksheet will be created specifically for your pivot table.
- Click Ok to proceed, and Excel will generate the pivot table worksheet.
Field Placement
To determine the total number of items bought by each buyer, arrange the following fields in their respective areas:
- Drag the "Buyer" field to the Rows area.
- Drag the "Items" field to the Values area.
Index and Match
The Index and Match function in Excel allows you to find the position of a specific value within a given range using the Match function. On the other hand, the Index function enables you to retrieve the corresponding value from a one-dimensional range.
By using the Match function, you can determine the position of the desired ID.
Then, with the help of the Index function, you can retrieve the salary value associated with that position.