Chapter 4
What is the result of a Boolean logical test/statement?
True or False
How must the data be organized to use a ‘HLOOKUP’ function?
Horizontally or by rows.
What does 'nper' argument indicate in the financial functions?
The number of periods for the entire loan.
All of the following are variable costs EXCEPT: A. Materials B. Labor Workers C. Advertising D. Distribution per unit
C. Advertising, all other costs are dependent upon the quantity of items sold.
What are the 3 arguments in the IF function?
=IF( logical_test, value_if_true, value_if_false) 1- logical test 2-value if true 3-value if false
TRUE/ FALSE A Boolean Logical Function can evaluate if all the criteria is met, at least one of the criteria is met, or none of the criteria is met.
TRUE!! These functions can evaluate any of the listed statements.
TRUE/FALSE You can type ranges of values in a Lookup Table (ex: 0-99, 100-199, etc.)
FALSE! You must use a single value in the lookup range in order for the approximate (TRUE) lookup functions to work properly.
What function can I use to determine the end result of a C.D. investment I made if given the interest rate, starting amount, duration in years, and how its compounded.
The 'FV' function
Break-Even Analysis involves examining _____________________________________. A. how sensitive the results are to changes in inputs values B. the point at which the revenue and the cost are equal C. the point at which the fixed expenses equal the variable expenses
B. The point at which the revenue and the cost are equal
List 5 of the 9 'IS' functions.
=ISBLANK() =ISERR() =ISERROR() =ISTEXT() =ISNONTEXT() =ISNUMBER() =ISNA() =ISREF() =ISLOGICAL()
What is the output (answer) for the following formula: = AND(FALSE, FALSE, TRUE)
FALSE! The AND function asks if ALL of the statements are TRUE. If all are TRUE then the result is TRUE.
What does the ‘#N/A’ message indicate when specifically using a lookup function?
The lookup value was not found in the lookup range specified in the table array. In other words, the lookup value could not be matched in the table array in order to bring back a corresponding value.
How do you calculate/determine the 'rate' argument in the PMT function? =PMT(rate, nper, pv, [fv], [type])
Divide the annual interest rate by the number of periods per year.
A One Variable Data Table involves _________ input variable(s) and ________________ output variable(s). A. 1, 2 B. 2, 1 C. 2, Multiple D. 1, Multiple
D. 1 input and Multiple outputs
The OR function evaluates if ________________________.
...any of the logical tests are TRUE. Only returns FALSE if all are FALSE.
TRUE/FALSE The ‘NOT’ function returns a negated value for ANY input value in its parentheses.
FALSE! It only returns the opposite of a TRUE or FALSE value.
Explain what the ‘ISTEXT’ function does.
Tests whether a specified cell has text in it or not. Returns a value of TRUE if the cell has text in it and a value of FALSE if the cell does not have text in it.
What is compound interest?
Interest that is computed by adding the interest to principal at each period before calculating the next periods interest amount.
A specific analysis that examines how sensitive the results are to changes in the input values is called___________________
Sensitivity Analysis
Explain what the 'col_index_num' argument is in a ‘VLOOKUP’ function: =VLOOKUP(lookup_value, table_array, col_index_num, range_lookup)
It is the number of the corresponding column in which to pull back from when the lookup value is found. The area in which to search for the lookup value is the first column...
Provide one example of a logical test.
=2>5 =A1>100 =A1="FSU" Etc...
In what instance would you use the LOOKUP function in place of the VLOOKUP or HLOOKUP functions?
When the corresponding range is not located adjacent to the lookup range. In other words, when the lookup range and the corresponding range are located in different areas of a spreadsheet or workbook.
What function can I use to determine the amount of a specific payment that goes to the principle.
The =PPMT function
In order to create a One Variable Data Table, what must you do to the result (output) labels (before you can highlight the table and actually perform the Data Table function).
Cell reference the labels with the corresponding output cells
Explain the purpose of a Data Table
To examine how changing the input variable(s) to numerous values affects the result or output variable(s), all at once.