Microsoft Office Tutorials and References
In Depth Information
Using Functions in Formulas
You do not have to use the Insert Function dialog box to enter functions into
cells. It is there for convenience. As you become familiar with certain
functions that you use repeatedly, you may find it faster to just type the function
directly into the cell.
Nesting is something a bird does, isn’t it? Well, a bird expert would know the
answer to that one, but we do know how to nest Excel functions. A nested
function is tucked inside another function, as one of its arguments. Nesting
functions let you return results you would have a hard time getting to
otherwise. (Nested functions are used in examples in various places in the topic.
The COUNTIF, AVERAGE, and MAX functions are discussed in Chapter 9.)
Figure 1-26 shows the daily closing price for the S&P 500, for the month of
September 2004. A possible analysis is to see how many times the closing
price was higher than the average for the month. Therefore, the average
needs to be calculated first, before you can compare any single price. By
embedding the AVERAGE function inside another function, the average is
When a function is nested inside another, the inner function is calculated first.
Then that result is used as an argument for the outer function.