REFERENCE FUNCTIONS
In the previous chapter it was shown how IF functions can be nested to decide between a set of
possible outcomes. However, it quickly becomes apparent after two or three levels of nesting
this method can be cumbersome and time consuming to implement.
For example, in Figure 1 cells B1:C5 contain a grading
scale. A student’s letter grade is determined by that
scale. Percentages lower than 60% will receive an E,
percentages of at least 60% but less than 70% will
receive a D, percentages of at least 70% but less than
80% will receive a B, and percentages of 90% or more
will receive an A. In cells A7:B10 is a list of students
and their percentage grade. In cell C7, we want to
write a formula to determine James Brown’s letter
grade. This formula should be copied down the
column to determine the letter grades for each student
on the list. We could use the nested IF below to
accomplish this to create this formula.
Figure 1
=IF(B7>=B$5,C$5,IF(B7>=B$4,C$4,IF(B7>=B$3,C$3,IF(B7>=B$2,C$2,C$1))))
While this function works, it’s somewhat tedious to write and if more levels are added,
i.e. A-, B+, B-, etc., the formula will be difficult to maintain. Furthermore, the IF
function is limited to 64 nested IFs. A more efficient method of solving this problem is
to use a reference function which is designed to look up values from a given list
and return a corresponding value. In this class we will learn about the VLOOKUP and
HLOOKUP functions.
Page 1
THE VLOOKUP FUNCTION
The VLOOKUP function searches for a value in the first column of a vertical table array and
returns a value in the same row from another column in the table array.
The syntax of the VLOOKUP function is:
VLOOKUP (lookup_value,table_array,col_index_num,[range])
The arguments of the VLOOKUP Function are as follows:
Lookup_value: The value to search in the first column of the table array (list). This value can
be a number, text, logical value, or a name or reference that refers to a value. It can be thought
of as the criteria you wish to match.
Table Array: The range of cells that contains the data
Col index num: The column number in the table_array that should be returned if a match is
found. A col_index_num of 1 returns the value in the first column of the table array. A
col_index_num of 2 returns the value in the second column of the table array, etc.
Range: Specifies whether you want VLOOKUP to find an exact match or an approximate match.
True: Finds an exact match in the table_array or finds the lowest value without going over
o Leftmost column should contain the table range
o Rightmost column should contain the value
o Leftmost column must be in ascending order
o Beginning value in table array must be the lowest value of a lookup value or the
error message #N/A will be displayed
False: Finds an exact match in your table array
o Leftmost column should contain the table range
o Rightmost column should contain the value
o Finds the exact match in your table array
o If no match is found, the error message #N/A is displayed
Page 2
VLOOKUP with a range argument of True
In cell C7 of figure 1 we wrote a formula using a nested IF to obtain the correct letter grade
for each student. Now we will use a VLOOKUP function to obtain the letter grade.
=VLOOKUP(B7,B$1:C$5,2,TRUE)
The first argument in the function is the look up value, which in this case is 55%.
The second argument is the table array or list of values to search.(Cells B1:C5)
The third argument specifies the column to return if a “match” is found.
Because the final argument is true, Excel will find an exact match or the lowest value without
going over.
The function will try to match the value “55%” to the entries in the table array B1:C5.
Because we have True as the range argument if “55% does not appear in the table array it will
find the “closest” match without going over.
In this case the closest value is “0%”, so the corresponding value in column 2 of the table
array (“E”) will be displayed.
VLOOKUP with a range argument of False
If we type in the above formula in cell C7, but change the range argument to false we would
obtain different results because we are now looking for an exact match. Cell C7 would now
display a #N/A.
=VLOOKUP(B7,B$1:C$5,2,FALSE)
Page 3
THE HLOOKUP FUNCTION
The HLOOKUP function is used if the table array is in a horizontal format. In Figure 2 cells
A1:E2 contain a tax schedule. Taxes are calculated on a progressive scale: incomes under
$25,000 have no tax (0%), incomes of at least $25,000 but less than $50,000 are taxed at 10%
of income, incomes of at least $50,000 but less than $100,000 are taxed at 15% of income, and
incomes of $100,00 or more are taxed at the rate of 23%. In cell A5:C10 is a list of employees
and their taxable income. In cell C6, write a formula to determine the income tax for the
employee Jonas, such that it can be copied down the column.
A
1
2
3
4
5
6
7
8
9
10
Income:
Rate:
Employee:
Jonas
Maria
Zev
Marta
Alex
B
$
$
$
$
$
$
C
Income Tax Rates:
$
25,000 $
0%
10%
Income
73,250
27,350
1,094
92,125
48,999
$
$
$
$
$
D
50,000 $
15%
E
100,000
23%
Tax Due
10,987.50
2,735.00
13,818.75
4,899.90
=B6*HLOOKUP(B6,B$2:E$3,2,TRUE)
This formula will multiply the value $73,250, the income in cell B6, by corresponding tax rate.
To find the corresponding tax rate the LOOKUP function will match the value in cell B6, the first
argument of the function, to the values in the range B2:E3, as specified in the second argument
of the function. Once a match is found, the corresponding value in the 2nd row will be returned.
Page 4
A MORE COMPLEX EXAMPLE:
A
B
C
1
Price List:
2 Shipping $/lb.
$
0.50
3
4 Item No. $/each
Weight (lbs)
5
124 $
332
19
6
125 $
55
5
7
126 $
224
14
8
127 $
483
16
9
128 $
41
2
10
129 $
83
20
11
130 $
9
14
12
131 $
268
2
13
132 $
139
17
14
133 $
52
11
15
134 $
474
18
16
135 $
294
20
17
136 $
411
3
A
1
2
3
4
5
6
7
B
C
Customer Orders
Customer Item#
Qty
Zael
134
3
Orwich
127
4
Wagma
104
2
PT
134
10
PT
128
1
D
Total Price
$ 1,449.00
$ 1,964.00
#N/A
$ 4,830.00
$
42.00
Orders
Figure 2
Pricing
A more complex example is given in Figure 3. This workbook example contains two worksheets:
Sheet Pricing contains a list of items numbers for various items you have for sale on E-Bay,
their corresponding cost per unit, and weight in pounds (lbs) per unit. Also given on this
worksheet is the shipping cost per pound. Worksheet Orders contains a list of recent orders,
including the item number being ordered and quantity. To complete the Orders worksheet
column D requires a formula to total the cost of this customer’s order, including the cost of all
items and shipping.

Step 1 - Understand the Problem.
Mathematically the customer’s order total is Quantity * (Price/Item + Shipping Cost/Item).
Since just the shipping weight in pounds (lbs) and cost per pound ($/lb) are given, this formula
can be further expanded to the following:
Quantity * (Price/Item + Weight/Item * $/lb to ship)

Step 2 – Translate to Excel Syntax.
If this formula is written directly, just substituting the appropriate values for Zael’s order, then
the cost per unit and weight would not necessary copy down correctly. Both of these values are
variable, but change by item number and not by relative position. Thus a LOOKUP will be
required. Can a single LOOKUP function return both the cost per item and shipping weight?
No, the LOOKUP function can return only one value at a time. So each variable, price/item, and
weight/item, will require a separate LOOKUP.
Page 5
In pseudo code this formula will be: Quantity * (Lookup(item number, range of item numbers
an prices, column number to return) + Lookup(item number, range of item numbers and
weights, column number to return) * $/lb to ship). The cell references are as follows:
o
o
o
o
o
o
The quantity is on the same worksheet as the formula (Orders) in cell C3.
The item number to be looked up is on the same worksheet as the formula in cell B3.
The range containing the item numbers to lookup is on sheet Pricing! in cells A5 through A17.
The range containing the corresponding prices is on sheet Pricing! in cells B5 through B17.
The range containing the corresponding weight is on sheet Pricing! in cells B5 through B17.
The cost per pound to ship is on sheet Pricing in cell C2.
Applying these cell references the formula is:
=C3*(VLOOKUP(B3,Pricing!A5:B17,2,true) + VLOOKUP(B3,Pricing!A5:C17,3,true)*Pricing!C2)

Step 3 – Copying.
In addition to knowing that a LOOKUP function is needed so that the formula can be copied,
some of the arguments of the LOOKUP and the other operands must be considered. The
Quantity and Item Number will change relatively as the formula is copied down the column so
thus C3 and B3 are relative references. However, the table array does not change when copied
and therefore must contain an absolute row reference. Lastly, the $/lb for shipping in cell
Pricing!C2 needs to be considered. Again this value does not change when the formula is copied
and thus requires an absolute row reference. The final formula will be:
=C3*(VLOOKUP(B3,Pricing!A$5:B$17,2,true) + VLOOKUP(B3,Pricing!A$5:C$17,3,true)*Pricing!C$2,true)
One point worth noting is the value that results in cell Orders!D5 is #N/A. This is an error
message indicating that there is no corresponding answer. The reason for this is the
lookup_value 104 is below the smallest value in the table array list (124). This error can be
corrected either by changing the item number on the order to an existing item number from the
list, or by adding item 104 to the top of the price list. A more serious error would be using an
item number that is between the values in the lookup range or greater than those values and a
range of true. For example if the value 138 is used as an item number, Excel will return the
greatest value on the list that does not exceed 138. Hence the pricing information for item 136
will be returned and not an error message. This could be remedied by changing the range
argument to False.
Page 6
PRACTICE PROBLEM 6.1 REFERENCE FUNCTIONS: PRICING COPIES
A
1
2
3
4
5
6
7
8
B
The Lookup Table for Sliding-Scale Prices:
Number of copies
Price per copy
1
10
100
200
500
1000
PRICING
0.07
0.06
0.05
0.04
0.03
0.02
9
10
11
Copies Made:
Total Cost:
12
DELIVERY
3
10
200
1001
13
14
15
16
1. Write a formula in cell B13, which can be copied down the column, to determine the total cost
of making copies. The number of copies to be made is listed in Column. A.
2. The company also offers delivery. Their delivery charges are as follows:



For orders under $5, there is a $5 delivery fee.
Orders at least $5 but smaller than $20 have a $7 delivery fee,
Orders of $20 or more are delivered free of charge.
Set up a reference table on the Delivery! worksheet so that you can write a reference
function to calculate the delivery cost for each order. Organize the table in a horizontal
format.
3. Write a formula that can be copied down for Delivery Cost. (cell PRICING!C13). Use the
reference table you created in question 2.
Page 7
PRACTICE PROBLEM 6.2 GRADE BOOK
scores
Grades1
Grades2
Page 8
1. Write the formula in cell scores!G2, which can be copied down, to determine the percent of
total possible points Mickey Mouse earned.
2. Write a formula in cell scores!H2, which can be copied down the column, to determine Mr.
Mouse’s final letter grade. Use a reference function and the grade listing on sheet Grades1
when solving this problem.
3. Write another formula in cell scores!H2, which can be copied down the column, to determine
Mr. Mouse’s final letter grade. This time use a reference function and the grade listing on sheet
Grades2 when solving this problem.
4. How could you solve this problem without using a reference function?
Page 9
PRACTICE PROBLEM 6.3 SALES ORDER PRICING
A
1
2
3
4
5
6
7
8
9
B
Company
ABC Inc.
DEF Inc.
GHI Corp.
LLL Ind.
NYPD Inc.
PQ Ltd.
RFG Inc.
XYZ Inc.
City
Columbus
Philadelphia
Scranton
Long Island
Brooklyn
Warren
Columbus
Cleveland
Disc
C
D
E
Discount Discount
A
B
State
OH
5%
8%
PA
5%
10%
PA
7%
10%
NY
7%
15%
NY
5%
12%
OH
5%
10%
OH
7%
8%
OH
6%
8%
A
B
C
D
Total cost
Customer Sales
w/o
Amount Ship Cost Discount
1 Name
E
F
Total Cost
Shipping Cost
with Discount >$25
2 ABC Inc.
345 $
34.50
$
379.50
$
349.14
TRUE
3 DEF Inc.
92 $
18.40
$
110.40
$
104.88
FALSE
4 ABC Inc.
$ 2,100.00
$
1,932.00
TRUE
32 $
6.40
$
38.40
$
36.48
FALSE
6 RFG Inc.
99 $
19.80
$
118.80
$
110.48
FALSE
7 DEF Inc.
101 $
10.10
$
111.10
$
105.55
FALSE
$ 3,360.00
$
3,091.20
TRUE
5 NYPD Inc.
8 ABC Inc.
2000 $ 100.00
3200 $ 160.00
sales
A
B
1 Shipping Table #1
sale
percent
shipping
2 amount
3
1000
5%
4
100
10%
5
1
20%
A
1 Shipping Table #2
2 sales amount
3 percent shipping
B
C
D
1
100
1000
20%
10%
5%
Ship2
Ship1
Above are some worksheets you have prepared to keep track of customer sales. The worksheet sales! lists
each sale made by your company. It will be your job to calculate the shipping costs and factor in the
appropriate discounted sales price for each sale. Shipping charges from $1 to $99.99 are 20% of the total
sale, from $100 to $999.99 shipping charges are 10% of the total sale and over $1000 are 5% of the total
sale. Each company has negotiated different discount rates for discount types A and B. Discount A is
applied to sales under $200. Discount B is applied to sales of $200 and above. Discounts are calculated
based total cost w/o discount (sales plus shipping) – that you will calculate in column D.
1. If you were to use a reference function in cell sales!C2 to calculate the shipping cost of the
$345 sale (cell sales!B2), would you want to use the data on sheet ship1! as the reference table or
the data on sheet ship2! as the reference table and why?
2. Write the formula in cell sales!C2, which can be copied down the column, to calculate the
shipping cost of the corresponding sale in that row. Assume you will be copying this
formula down the column.
Page 10
3. Without using a reference function, write another formula which could be written in
cell sales!C2 to calculate the cost of the shipping. Assume you can copy this formula down the
column.
4.Write a formula in cell sales!D2, which can be copied down the column, to calculate the total
cost before discounts (list price plus shipping).
5. Write a formula in cell sales!E2, which can be copied down the column, to determine the
discounted price of the order. Remember that discounts are based on a company’s negotiated
discount rate, and the total cost of the order (discount A for <$200, discount B for >=$200).
6. Your competitor charges $25 flat rate per order. Write a formula (True/False) in cell sales!F2
to determine if your customer paid more than $25 for his/her shipping.
Page 11
PRACTICE PROBLEM 6.4
The three spreadsheets on the following page are all worksheets in a single workbook. The
worksheet named Prod! Lists product information (shipping time, cost, shipping cost) by
product number. The worksheet named ship! is a table of shipping costs for the corresponding
product costs. The worksheet named Order! is a list of customer orders (one item type per
order), and the order quantity.
1. (1 point) Write a formula in cell Prod!C20 to automatically determine the item number of
the product with the highest cost.
__________________________________________________________________
2. (1 point) Write a formula in cell Prod!D3, using a reference function, to calculate the
shipping cost for product 0001. Write the formula so that it can be copied down the column.
__________________________________________________________________
3.
(2 points) Write a formula in cell Order!D3 to calculate the total cost of this order (product
costs and shipping costs). Write the formula so that it can be copied down the column.
__________________________________________________________________
________________________________________
4. (2 points) Write a formula in cell order!G3 to determine (true/false) if the shipment was late.
A shipment is late if it took more that the required number of shipping days to be received.
Write the formula so that it can be copied down the column.
__________________________________________________________________
5. (2 points) Write a formula in cell Order!G20 to determine the customer name of the
customer with the lowest value order.
__________________________________________________________________
6. (2 points) Write a formula in cell Prod!D3, using a nested if function, to calculate the
shipping cost for product 0001. Write the formula so that it can be copied down the column.
__________________________________________________________________
_________________________________________________________________
A
1
2
Prod
3
4
5
6
7
8
9
10
11
12
13
14
15
B
Product Information
Shipping
Product Days
ID
Required
0001
0012
0023
0034
0045
0067
0089
0032
0043
0010
0011
0078
0013
Ship
1
4
7
3
5
1
7
3
4
2
7
6
3
A
Product Cost
3 Shipping Cost
B
Product
Costs
$
25
$
65
$
85
$
48
$
32
$
64
$ 189
$
76
$
58
$
15
$
97
$
64
$
89
Shipping
Cost per
item
$
3
$
5
$
7
$
3
$
3
$
5
$
9
$
7
$
5
$
3
$
7
$
5
$
7
Product ID
0001
0012
0023
0034
0045
0067
0089
0032
0043
0010
0011
0078
0013
C
C
D
D
E
F
E
75 $
7 $
100
9
G
H
Customer Orders
Product
Number
3 Fraiser
0045
4 Johnson
0067
5 Jordon
0001
6 Chamberlain 0012
7 Reed
0023
8 Monroe
0034
9 Bird
0089
10 Barry
0032
11 Lucas
0043
12 Bradley
0010
13 DeBusher
0011
14 Rodman
0078
15 Malone
0013
2
E
Shipping Costs
0 $
50 $
$
3 $
5 $
2
A
D
B
1
1
C
Customer
Order
QTY
1
1
1
1
2
3
2
3
1
1
4
1
1
Total
Order
Ship
Receipt
Cost
Date
Date
$
35
2/8/98
2/12/98
$
69
2/8/98
2/16/98
$
28
2/8/98
2/9/98
$
70
2/8/98
2/15/98
$ 184
2/8/98
2/9/98
$ 153
2/8/98
2/11/98
$ 396
2/8/98
3/1/98
$ 249
2/8/98
2/14/98
$
63
2/8/98
2/13/98
$
18
2/8/98
2/15/98
$ 416
2/8/98
2/10/98
$
69
2/8/98
2/9/98
$
96
2/8/98
2/21/98
Late?
FALSE
TRUE
FALSE
TRUE
FALSE
FALSE
TRUE
TRUE
TRUE
TRUE
FALSE
FALSE
TRUE
Customer
Fraiser
Johnson
Jordon
Chamberlain
Reed
Monroe
Bird
Barry
Lucas
Bradley
DeBusher
Rodman
Malone