Microsoft Office Tutorials and References

In Depth Information

Exhibit 3.3
The insert function

containing data of interest. In Exhibit 3.2 we see a fraction of the analysis tools

available, including
Descriptive Statistics
,
Correlation
, etc. You simply select a

tool and click the
OK
button. More on this process in the next section—
Data

Analysis for Two Data Sets.

2) In a more direct approach to analysis, Excel provides dozens of statistical func-

tions through the function utility (
f
x
Insert Function) in the
Formulas
ribbon.

Simply choose the
Statistical
category of functions in the
Function Library

group, select the function you desire, and insert the function in a cell. In the

statistical category there are almost one hundred functions that relate to impor-

tant theoretical data distributions and statistical analysis tools. In Exhibit 3.3

you can see that the
Financial
function category has been selected,
NPV
(net

present value
)
in particular. Once the function is selected, Excel takes you to a

dialogue box for insertion of the NPV data as shown Exhibit 3.4. The dialogue

box requests several inputs—e.g. discount rate (
Rate
) and values (Value1, etc.)

to be discounted to the present. The types of functions that can be inserted vary

from
Math & Trig
,
Date and Time
,
Statistical
,
Logical
,toeven
Engineering
,

just to name a few. By selecting the
f
x
Insert Function at the far left of the

Function Library
group, you can also select speciﬁc functions. Exhibit 3.5 shows

the dialogue box where these choices are made from the
Or select a category:

pull-down menu. As you become familiar with a function, you need only begin

the process of keying in the function in a cell preceded by an equal sign; thus,

the process of selection is simpliﬁed. You can also see from Exhibit 3.6 that by

placing the cursor in cell C4 and typing

NPV(
. Then a small box opens that

guides you through the data entry required by the function. The process also

provides error checking to insure that your data entry is correct.

=

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