chapter 4 applying logic in decision makingcs385.cs.ua.edu/chapter.04.pdf · applying logic in...
TRANSCRIPT
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Applying Logic in Decision Making
Chapter 4
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Chapter Introduction
• Tools that allow comparison of data as well as analysis of sets of data using multiple criteria
• Boolean logical values (TRUE and FALSE)
• Boolean logical functions (AND, OR, and NOT)
• Specifying different cell formats based on whether a set of criteria is met
• Application of different outcomes to results of logical tests that are TRUE versus those that are FALSE
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Chapter Introduction (continued)
• Functions covered in this chapter: AND, IF, NOT, OR
To go to Level 1, click here
To go to Level 2, click here
To go to Level 3, click here
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Functions Covered in this Chapter
• AND
• IF
• NOT
• OR
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Level 1 Objectives: Analyzing Data Using Relational Operators & Boolean Logical
Functions
• Understand the Boolean logical values TRUE and FALSE
• Build formulas with relational operators
• Evaluate criteria using the Boolean logical functions AND, OR, and NOT
• Apply conditional formatting to highlight key information in a worksheet
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Reviewing Financial Criteria Related to Credit
• Dun & Bradstreet® (D&B)
– Widely used financial reporting services
– Provides financial information about corporations and institutions and extensive analyses on each company’s creditworthiness and payment history (PAYDEX® index)
• Create formulas by applying several credit approval indicator rules to each customer’s data
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Sample Worksheet
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D&B data includes credit
rating class, PAYDEX
score, and stress risk
class.
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Using Relational Operators to Compare Two Values
• To determine if the relational expression is TRUE or FALSE
• Can be used to compare
– Two values
– Text labels
– Dates
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Using Relational Operators
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Using Relational Operators
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Using Boolean Logical Functions to Evaluate a List of Values and Determine a Single True or False Value
AND Used to determine if all arguments are TRUE
OR Used to determine if either argument is TRUE
NOT Evaluates only one logical argument to determine
if it is FALSE
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Outcomes for the AND Function Using Two Inputs
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Outcomes for the OR Function Using Two Inputs
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Outcomes of the NOT Function (Single Input)
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Using the OR Function to Evaluate Criteria
• OR (logical1,logical2,….)
• Returns a value of TRUE if either criteria is met
• Returns a value of FALSE only if all arguments in the function are FALSE
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Using the OR Function
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Using the AND Function to Evaluate Criteria
• AND (logical1,logical2,…)
• Returns a value of TRUE only if all arguments in the function are TRUE
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Using the AND Function
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Using the AND Function
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Using the NOT Function to Evaluate Criteria
• NOT (logical1)
• Takes only one argument and changes a single TRUE value to FALSE or vice versa
– NOT(TRUE) returns the value of FALSE
– NOT(FALSE) returns the value of TRUE
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Using the NOT Function
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Applying Conditional Formatting to a Worksheet
• Identifies a set of conditions and specifies formatting of a cell if those conditions are met
• Criteria can be specified based on:
– Value in the cell being formatted
– Results of a specified formula that returns a Boolean value
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Applying Conditional Formatting Based on Cell Value
• Select cell or cell range to be formatted
• Click Conditional Formatting button arrow in Styles group on Home tab
• Select Data Bars, Color Scales, or Icon Sets from the menu to open a gallery of options
• Point to a format to preview it in the selected cells, and click the desired format to apply it
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Applying Conditional Formatting Based on Cell Value
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Conditional Formatting Based on Cell Value
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Conditional Formatting Based on Cell Value
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Conditional Formatting Based on Cell Value
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Applying Conditional Formatting Based on the Results of a Formula
• Highlight a single row as the range
• Specify two separate conditions based on two different formulas
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Conditional Formatting Based on the Results of a Formula
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Conditional Formatting Based on the Results of a Formula
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Level 1 Summary
• Tools that allow you to evaluate and compare both text and numeric data
– Relational operators (>,<,>=, <=, =, <>)
– Boolean logical functions (AND, OR, and NOT)
• Both relational operators and Boolean functions return a Boolean logical value, TRUE or FALSE
• Using the Conditional Formatting tool
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Level 2 Objectives: Analyzing Data Using IF Functions and Nested
Functions
• Understand how to build formulas with nested functions
• Write IF functions to evaluate TRUE/FALSE values and perform calculations
• Nest functions within an IF statement
• Construct a simple nested IF function
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Introduction to IF Functions and Nested Functions
• IF function – Boolean logical function that returns different values
(TRUE or FALSE) depending on how the specified condition evaluates
– =IF(logical_test,value_if_true,value_if_false)
• Nested function (permitted by IF function) – Contains additional formulas and/or functions as one or
more of its arguments
• Provides flexibility of choosing between two different sets of criteria, and up to seven different levels of logical tests
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Writing an IF Function with a Logical Test That Evaluates TRUE/FALSE Values
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Writing an IF Function with a Logical Test That Performs a Simple Calculation
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Writing an IF Function with a Logical Test That Performs a Simple Calculation
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Writing IF Functions with Nested Functions
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Constructing a Simple Nested IF Function
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Nesting IF functions, one inside the other, allows
you to ask a question, then another question
depending on the outcome of the first question,
and so on
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Constructing a Simple Nested IF Function
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Constructing a Simple Nested IF Function
• An IF function can be used to evaluate a logical test.
• However, if the logical test results in a FALSE value, another calculation is needed.
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Constructing a Simple Nested IF Function
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Order of Logical Tests
• Must match established criteria for non-mutually exclusive criteria
• Can be placed in any order for mutually exclusive criteria
• Using a specific order can save considerable amount of work for criteria between a range of values
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Order of Logical Tests
• Order of logical tests for non-mutually exclusive criteria
• Order of logical tests for mutually exclusive criteria
• Order of logical tests for criteria between a range of values
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Level 2 Summary
• Applying Boolean logic within an IF statement
• IF function allows you to determine if an expression is TRUE or FALSE, and to return a value other than TRUE or FALSE (e.g., text or numeric values)
• Additional IF statements and other Excel functions can be nested within an IF function
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Level 3 Objectives: Creating Complex Logical Constructs for Solving
Problems
• Combine sets of criteria in an IF function
• Create a none of construct to perform a logical test
• Create an only construct to perform a logical test
• Solve more complex problems using nested IFs and Boolean logical functions
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Evaluating More Complex Criteria
• Techniques to create more complex logical constructs (combinations of multiple logical operations) to determine if none of the criteria are TRUE for a list of items, even if only certain criteria are TRUE for a list of items
• By nesting levels of IF functions, multiple sets of criteria can be sequentially analyzed until a final value is returned
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Using an IF Function to Combine Sets of Criteria
• Reject
• Further Evaluate
• Accept
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Using an IF Function to Combine Sets of Criteria
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Using an IF Function to Combine Sets of Criteria
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Using the None Of Construct
• Evaluates if none of the rules are met
• Combines two steps into one by nesting the formula
• Example: =NOT(OR(K3:K21))
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Using the None Of Construct
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Using the Only Construct
• Determines if only Rule #1 evaluates to TRUE, and, if so, to recommend further evaluation; OR if only Rule #2 and/or Rule #3 evaluates to TRUE and not Rule #1
• Always has a positive condition to be evaluated AND a negative condition to be evaluated – An OR function is required for either the positive
condition or the negative condition if more than one item being evaluated falls in that category
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Using the Only Construct
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Using the Only Construct
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Nesting Boolean Logical Operators to Analyze Criteria
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Evaluate all parts of the
Further Evaluate criteria
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Completing the Complex Nested IF Formula
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Completing the Complex Nested IF Formula
Succeeding in Business with Microsoft Excel 2010 57 Level 3 home
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Level 3 Summary
• More complex logical constructs
– “None of” construct
– “Only” construct
• Combining constructs to solve more complex logical tasks, nesting IF functions, relational operators, and Boolean functions within the same formula
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Chapter Summary
• Relational operators (>, <, >=, <=, =, <>) and the Boolean logical functions AND, OR, and NOT allow you to evaluate and compare both text and numeric data.
• Applying Boolean logic with an IF statement – TRUE/FALSE
• Complex logical constructs – None of
– Only
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Chapter Summary
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