**Business Modeling**

Everyone uses models to make decisions. For example,
if you are arranging the furniture in your house, you mentally model your room
space and create a model in your mind to keep the furniture in a certain way. Similarly, a road
map, which is a visual model, helps you in reaching your destination. Miniature model of a
structure helps in visualizing the structure once it is complete.

**Refer class ppt**

A Data
Model allows the building of a “model” where data from different sources are
combined by creating “relationships” between the data sources.

**What is Microsoft Excel?**

Excel is a spreadsheet program in the Microsoft Office
system. You can use Excel to create and format workbooks (a collection of
spreadsheets) in order to analyze data and make more informed business
decisions. Specifically, you can use Excel to track data, build models for
analyzing data, write formulas to perform calculations on that data, pivot the
data in numerous ways, and present data in a variety of professional looking
charts.

·

**Accounting:**You can use the powerful calculation features of Excel in many financial accounting statements—for example, a cash flow statement, income statement or profit and loss statement.
·

**Budgeting:**Whether your needs are personal or business related, you can create any type of budget in Excel—for example, a marketing budget plan, an event budget, or a retirement budget.
·

**Billing and sales:**Excel is also useful for managing billing and sales data, and you can easily create the forms that you need—for example, sales invoices, packing slips, or purchase orders.
·

**Reporting:**You can create various types of reports in Excel that reflect your data analysis or summarize your data—for example, reports that measure project performance, show variance between projected and actual results, or reports that you can use to forecast data.
·

**Planning:**Excel is a great tool for creating professional plans or useful planners—for example, a weekly class plan, a marketing research plan, a year-end tax plan, or planners that help you organize weekly meals, parties, or vacations.
·

**Tracking:**You can use Excel to keep track of data in a time sheet or list—for example, a time sheet for tracking work, or an inventory list that keeps track of various equipment.**Data Entry****Enter data in a worksheet**

1. Click
the

**cell**where you want to enter the data.
2. Type
the data in the cell – You can type numbers, texts or dates

3. Press
enter or tab to move to the next cell.

**Formatting Data**

1. Select
the cells that you want to format.

2. On
the

**Home**tab, in the**Number**group, click the**Dialog Box Launcher**next to**Number**(or just press CTRL+1).3. In the

**Category**list, click the format that you want to use, and then adjust settings, if necessary. For example, if you are using number format, you can select different options for representing numbers – decimal points, -ve numbers. If you’re using the Currency format, you can select a different currency symbol, show more or fewer decimal places, or change the way negative numbers are displayed.

**Create a formula**

1. In
a cell, type an equal sign (

**=**) to start the formula.
2. Type
a combination of numbers and operators; for example,

**3+5*7**.
3. Use
the mouse to select other cells (inserting an operator between them). For
example, select B1 and then type a plus sign (

**+**), select C1 and type**+**, and then select D1.
4. Press
ENTER when you finish typing to complete the formula.

**What are Excel Functions?**

Excel
functions are the set of formulas that are built-in inside the Excel
application to do calculations and provide only the desired values in a cell.

The MS Excel application supports several functions which
are classified into the following categories:

·
Math and trigonometry – Supports mathematical
calculations such as calculating cosines, tangents, logarithms, roots, etc.

·
Financial – Facilitates the calculation and
generation of financial models for the calculation of interest, depreciation,
payments, etc.

·
Statistics – To facilitate the calculation of
statistical models to calculate the mean, variance, distributions, hypothesis
testing, etc.

·
Database - Functions to manage and calculate
list of data that are in our Excel spreadsheets.

·
Engineering - To perform calculations
relating to engineering-based models

·
Text - Functions to manipulate, convert and
calculate strings

·
Logic – Excel functions to establish logical
conditions for calculations (such as AND, OR, IF, etc.)

·
User
Defined – You can create your own functions called macros that can be
incorporated into your spreadsheets

**Function: AVERAGE**

Returns the average (arithmetic mean) of the arguments. For
example, if the range
B2:B12 contains numbers, the formula

**=AVERAGE(B2:B12)**returns the average of those numbers.**Syntax**

**Number1: Required.**The first number, cell reference, or range for which you want the average

**Number2: Optional:**Additional number, cell references or ranges

**Step 1:**In cell B13, enter = AVERAGE(B2:B12)

**Step 2:**Hit enter

**Function: MAX**

Returns the largest value in a set
of values

**Syntax**

Number1,
number2…

·

**Number1, number2, ...**Number1 is required, subsequent numbers are optional.**Example:**

**Step 2:**Hit enter

The answer is 20

To find the
maximum number of B2 to B12 and 25:

**Step 1:**=MAX(B2:B12,25)

**Function: MIN**

MIN function
Returns

**the smallest number**in a set of values.
Number1,
number2…

·

**Number1, number2, ...**Number1 is required, subsequent numbers are optional.**Function: SUM**

The

**SUM**function adds all the numbers that you specify. Each argument can be a range, a cell reference, an array.**SUM(B2:B12)**adds all the numbers that are contained in cells B2 through B12.

For
another example,

**SUM(B2, B3, B7)**adds the numbers that are contained in cells B2, B3, and B7.**Function: IF**

The

**IF**function returns one value if a condition you specify evaluates to TRUE, and another value if that condition evaluates to FALSE. For example, the formula**=IF(B2>17,"Greater than 10", "Less than 10")**returns "Greater than 10" if B2 is greater than 10, and "Less than 10" if B2 is less than or equal to 10.
The
IF function syntax has the following arguments:

·

**logical_test (**Required)**:**Any value or expression that can be evaluated to TRUE or FALSE.
·

**value_if_true**(Optional): The value that you want to be returned if the**argument evaluates to TRUE.***logical_test*
·

**value_if_false**(Optional): The value that you want to be returned if the**argument evaluates to FALSE.***logical_test***Example:**

1. Step 1: B2 = 15

2. Step 2: Enter in C3
=IF(B2>=17,"greater than 17”, “Less than 17”)

3. If
you want to assign grade for cell B2 > 15 = A+, if less than 15 is B