Introduction to Excel
 These very sketchy notes are meant to help with the terminology I use
when talking about spreadsheets. They will give us a common
vocabulary to use in our discussion. They also serve as a place to write
your own notes. We will go over most of the procedures discussed here
in the class.
 What is a spreadsheet? A (computer) spreadsheet is a piece of
software that allows you to organize and analyze information. For me, a
spreadsheet fills three useful purposes. It acts as (1) a database, (2) a
computational tool, and (3) graphing software.
 How is a spreadsheet organized? The most recent versions of Excel
refer to documents as workbooks. A workbook consists of a number of
worksheets. A worksheet consists of columns and rows. The columns
are identified by letters, and the rows are identified by numbers. The
intersection of a row and column is called a cell. Cells are referenced by
the spreadsheet by their respective column letter and row number. The
cell in the top left hand corner is cell A1. Last time I checked, there
were 16,384 rows and 256 columns available in Microsoft Excel on one
worksheet.
To move between cells we can use the mouse (click on the cell you want
to move to), the arrow keys (they move the cursor one cell at a time in
the direction of the arrow), and the tab key (TAB moves right, SHIFTTAB moves left). After entering data or a function into a cell, you must
hit ENTER for the entry to take effect. Depending on your
configuration of Excel, the ENTER key will also move the cursor down
one cell (and SHIFT-ENTER will move you up).
 How can a spreadsheet help me? As I mentioned, a spreadsheet can
help as a database, a computational tool, or as a graphing device. It is
simple to use, and it is very powerful. It is also a general-purpose
program. This means that it can do a lot, but it is not as sophisticated as
many special purpose programs. For example, a spreadsheet can be used
to perform numerous statistical analyses, but it is not nearly as powerful
as a special-purpose statistical package.
Using the Spreadsheet as a Computational Tool
 We can use the spreadsheet to make many kinds of computations. A
spreadsheet can do simple arithmetic computations, matrix
manipulations, as well as engineering, financial and statistical
computations. It can also be used to do optimization, simulation, and
statistical analyses. Using the spreadsheets macro capabilities, you can
get it to do just about anything you want.
 Most of the time we make computations in Excel by entering a function
into a cell. In some cases we use some of Excel’s built in tools to do
more complex computations.
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Using Functions
 To enter a function in Excel we begin by typing =. To do simple
arithmetic, we can enter functions into cells using symbols close to the
ones we learned in beginning math classes.
Computation
Add
Subtract
Multiply
Divide
Raise to a power
Symbol
+
*
/
^
Example
=5+2
=10-3
=4*5
=15/3
=2^4
Example Result
7
7
20
5
16
 Most computations are accomplished by the use of functions. There are
too many functions to list them all, but some examples are listed below.
We will discuss many others as the course progresses. A function
consists of the function name, and the arguments. Almost always one of
the arguments is a list of numbers or the cell reference(s) to a set of
numbers.
Computation
Add
Average
Absolute Value
Future Value
Binomial Probability
Excel Function
=sum(number1, number2, …)
=average(number1, number2, …)
=abs(number)
=fv(rate,nper,pmt,pv,type)
=binomdist(X,n,p,cumulative)
 You can get a list of functions quickly in Excel by clicking on the tool
bar button that looks like a script fx. It is called the Paste Function
button. It is a very useful tool for building functions that you have not
used before.
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 Once you select the button the following dialog box will be presented.
 From the column on the left, select the category that you are interested
in. If you are not sure what category to use, you can select “All.” Next
you will be presented with a list of statistical functions in the “Function
name” column on the right. The functions are listed alphabetically.
When you click on a function, it is described at the bottom of the box.
When you say OK, you are presented with a function-specific dialog box
to help you enter the appropriate arguments.
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 Suppose that you were interested in creating a frequency distribution.
This is a statistical function, so if you select the Statistical category, the
function FREQUENCY appears on the right hand side. Once you select
it, you will obtain the following dialog box.
 When you click in the second argument box, a description of that
argument is presented.

Once you become more familiar with the functions, you will not have
to go through all of these steps. You will be able to type in the
functions directly.
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Using Cell References
 The power of a spreadsheet (for me) lies in its ability to do what-if
analysis, and to do repetitious computations. To take advantage of this
power in Excel, we use cell references rather than numbers in functions.
For example, suppose that we had the numbers 10 and 3 in cells A1 and
A2. If we wanted to add the numbers, we could use =10+3 or we could
use =A1+A2. By using the second entry (the one that uses the cell
references), we have much more flexibility for doing further analysis.
For example, if we decide that we did not want 10+3, but instead wanted
10+5, we don’t have to change the function. Instead, we just change the
entry in cell A2 and the function automatically updates.
 Using cell references also lets us repeat computations with very little
effort. For example, suppose that we had 24 entries in each of 30
columns and we want to know the average of the 24 numbers in each
column. By using cell references, we can enter the function for the first
column, and then copy it to the other 29 columns to repeat the
computation for their entries.
 For the above example, we need to refer to more cell than one in the
function. In Excel we can refer to a contiguous set of cells by putting a
colon between the references. For example, A1:A10 refers to cells A1
through A10 inclusive. For some functions it is possible to refer to
multiple noncontiguous cells by using commas to separate the
references. The reason it doesn’t work for every function is that commas
are also used to separate function arguments.
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Relative vs. Absolute Cell Referencing (IMPORTANT!)
 When copying functions, we need to understand the concept of absolute
and relative references. An absolute reference (identified by placing a $
symbol in front of the reference) means that no matter where you copy
the function to, the reference will not change. A relative reference,
however, will change.
 For example, if in cell A10 we had the function =sum(A1:A9), and we
copy the function to cell C11, the function will change to be
=sum(C2:C10). The reason for the change is that in moving from A10 to
C11, we moved over 2 columns and down one row. Since the reference
is relative, it causes every thing to shift by 2 columns and one row.
 If the original function had been =sum($A1:A$9) (so now column A in
the first part and row 9 in the second part are absolute), then the copied
function in cell C11 would be =sum($A2:C$9). In this case only the row
entry changed for the first part (because A is absolute it does not change)
and the column part for the second entry (because the 9 was absolute).
 You can use the function key F4 to quickly make a cell reference
absolute. By repeatedly hitting the F9 key you can toggle through all
possible combinations of absolute and relative references.
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Array Functions
 In some cases the result that we are looking for is a matrix or vector. In
those cases, we use what Excel calls an array function. Entering array
functions is different than other functions in two ways. First, before
entering the function, you need to highlight the cells where the entire
answer will go. For example, if we were multiplying a 3x1 vector (that
was in cells A1:A3) by a 1x5-transposed vector (in cells A5:E5), the
answer will be a 3x5 matrix. We must tell Excel that the answer will go
in 3 rows and 5 columns by highlighting the appropriate 15 cells. For
example, we could highlight the cells A7:E9. Once the cells are
highlighted, you can enter the function name and arguments in the upper
left-hand cell (A7 in the example). Be sure not to click on the upper lefthand cell before entering the function, or your highlighting will be
nullified. For the matrix multiplication example, we would type in the
function =MMULT(A1:A3, A5:E5).
 The second difference with array functions is that we don’t use the enter
key alone to enter the function. Instead, we must hold down both the
CNTRL and SHIFT keys, and while holding them down hit the ENTER
key.
 When Excel is done, it puts curly brackets around it to identify the
function as an array function. In our example the cells A7:E9 would all
have {=MMULT(A1:A3,A5:E5)} in them.
 Excel will not allow you to change any part of an array. In the example
above, if you tried to change the function in cell A8, an error message
would appear. You have to change the entire array to change any part of
it.
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Using Built-in Computational Routines
 There are also some menu items that can be used to do numerical
computations. They are almost all under the TOOLS menu. For
example, you can do optimization. In Excel the tool is referred to as the
SOLVER. You can also do a number of statistical analyses (which will
be the main thing we will be doing in our class). Once you select these
tools, you will be presented with a dialogue box. We will spend a lot of
time on these later in the class, so I have not provided any examples at
this point.
Formatting
 There are a number of formatting options available to help make the
spreadsheet look nice. In Excel, there are several ways to change the
formatting. The most general way is to select the menu item FORMAT
and then CELLS. With this menu item you can change the font, the
numeric format, the borders of the cells, the colors and the alignment.
The spreadsheet also provides numerous toolbar buttons that can be used
to change the formatting.
 It is also possible to rename the sheets within the workbook or notebook.
Double click the current name of the sheet (at the bottom of the
workbook on small tabs), and you will then be able to change the name.
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Naming Cells
 Rather than using cell locations all of the time, it is often helpful to give
a cell or a range of cells a name. The easiest way I have found to do this
is to use the top row of entered data as labels. Then highlight the data,
including the header row. In Excel, select INSERT/NAME/CREATE.
Then click in the box next to TOP ROW.
 You can also use INSERT/NAME/DEFINE for a more general way to
name the cells. Finally, near the upper right-hand corner of the
spreadsheet (directly above the row headings) there is a box showing the
current cell location. You can click in that box and change the cell
location to a name (be sure to hit enter when you are done). If you want
to give a name to a range of cells, highlight the cells first and then
change the name in the box.
 There are rules about eligible names in Excel. For example, most special
characters (e.g., %, &) are not allowed. One character that is allowed is
the underscore character. Similarly, you cannot put a space in cell
names. A notable ineligible name is one that begins with one or two
letters and ends with a number (e.g., AB10). These names are reserved
in Excel because they identify cell references. I am sure there is a limit
on the length of a name, but I don’t know what the limit is.
 Once you have named the cells, you can use the names rather than cell
addresses in functions. For example, if I give the range of cells A1 to
A10 the name income, I can find the total income entering the function
=SUM(income) or =SUM(A1:A10). Either one will give the same result.
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Graphing
 The spreadsheet can be used to do many types of graphs. The easiest
way to create a graph is to click on the ChartWizard button (the button
that look like a small bar chart). You can either highlight the data you
want to graph before or after you click on the Chart Wizard button.
Excel will then guide you in the construction of the graph.
Editing the Graph
 If you placed the graph on its own separate sheet, then you should be
able to edit it directly. If the graph was placed on a worksheet, you will
need to double click the graph before editing it.
 In Excel, you can do most editing that you need to by double clicking on
the item you want to change. You can also use the INSERT and
FORMAT menus, as well as many of the toolbar buttons (for text
formatting).
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Database Capability
 The spreadsheet can also be used as database software.
 To use the database tools, data should be entered in columns, and each
column should be given a heading. Excel automatically creates the lists
created as a database. Each row is treated as a record, and each column
as a field.
 Once you have entered the header row, if you prefer you can select
DATA/FORM. You will be presented with a form that can then be used
to enter data.
 The other menu items that are quite useful are SORT and FILTER.
SORT allows you to sort the data based on any of the entered fields, in
both descending and ascending order. FILTER allows you to view and
work with records that fit certain criteria. The easiest filter is the
AUTOFILTER. The ADVANCED FILTER lets you input more
complicated search criteria.
 When manipulating data that has been filtered, special functions
(database functions) should be used.
When working with databases (and any fairly large spreadsheet), using
the WINDOW/FREEZE PANES menu item is quite helpful. It allows
you to scroll through the spreadsheet while always being able to see the
header row. To use this utility, place the cursor under the row(s) and to
the right of the column(s) that you always want to see. Then select
WINDOW/FREEZE PANES.
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Pivot Tables
 Excel has a utility called a Pivot Table that allows us to create and
analyze tabular summaries (contingency tables) of qualitative data. It
can also be used with quantitative data or combinations of quantitative
and qualitative data.
 To use the pivot table feature, data must be entered in columns and each
column must have a title or header. Before invoking the procedure, be
sure that the cursor is in one of the cells containing a header or data.
 To start the “wizard,” go to Data/PivotTable and PivotChart Report. In
the first step, just click on Next (the default values are what we want). In
the second step, verify that the data range shown contains all of the data
that you want to analyze, then click on Next again.
 In step 3, click on the button called “Layout.” You will be presented
with the dialog box on the following page (except the buttons on the
right will change according to the data set you are using).
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 At this point, click on and drag the button corresponding to the variable
that you want to be on the rows of your output table to the area labeled
“Row” and the variable you want in columns to the area that says
“Column.” Then drag either of the two buttons that you just used to the
“Data” area. I recommend always dragging one of the qualitative
variables’ buttons. The button should change to say “Count of
VARIABLE” “where VARIABLE is the name of the variable that you
dragged to the middle. Then say OK.
 To complete the procedure there are a few other options you can change
if you desire, but I usually just click on Finish at this point and change
options later if the output is not what I desire. If you have used a
quantitative variable, you will likely want to group it. To do so, right
click on the variable name in the table. One item in the pop-up menu
should say Group. Choose it, and then specify how you want the
variable to be grouped.
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 The pivot table can display several different types of summary measures.
The default or “normal” state is to display total counts. There may be
times that you want to display the numbers in the table as overall
percentages, as row percentages, etc. To change the display, click any
where in the table and go again to the Data/PivotTable and PivotChart
Report menu item. You should be at step 3 again. Click on Layout and
then double click what is in the middle of the table (it should say “Count
of…”). Then select options. A drop down menu that says “Show Data
As” will be in the middle of the dialog box. Use the drop down menu to
say how you want to display the data. Then exit out of all of the boxes.
 The default way that Excel lists the categories in qualitative variables is
alphabetically. You may want them listed in some kind of logical
ascending order (for example, you may want to list class standing as
Freshman, Sophomore, Junior and Senior). To tell Excel how you want
the labels to be ordered, go to the Tools menu, select options, and then
click on the tab called “Custom Lists.” Then you can type in the list
items in the order you want them (separate them with a comma or return)
in the List Entries section. Or you can import the list in the order that
you want by identifying the cells where they are listed.
 Below is a portion of an Excel worksheet with both qualitative and
quantitative variables. It shows both a portion of the original data and
the the resulting pivot table. I created a custom list in Excel as “Good,
Very Good, Excellent.”
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