Excel - Nested IF functions Tutorial

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Objectifs :

Understand the use of IF functions in Excel, including nested IF functions, to evaluate multiple criteria and determine outcomes such as grades and commissions based on specific conditions.

Chapitres :

Introduction to IF Functions
The IF function in Excel allows users to perform logical tests and return different values based on whether the test evaluates to true or false. This is particularly useful for scenarios where decisions need to be made based on specific criteria.
Nested IF Functions
Nested IF functions enable users to test multiple criteria within a single formula. This means you can place one IF function inside another, allowing for more complex decision-making processes. For example, to determine a student's grade based on their score, we can use nested IF functions.
Example: Determining Student Grades
To determine a student's grade based on their score, we can set up a formula that evaluates different score ranges. If Bob's score in cell B2 is 90, the formula will return an 'A'. If the score is not 90, we then check if it is 80, and so on for grades C, D, and F. The order of evaluation is crucial: - If B2 >= 90, return 'A'. - If B2 >= 80, return 'B'. - If B2 >= 70, return 'C'. - If B2 >= 60, return 'D'. - Otherwise, return 'F'.
Understanding Formula Evaluation Order
The order in which conditions are evaluated in a nested IF function is important. For instance, if the first condition (B2 >= 90) is true, the formula returns 'A' and stops evaluating further. If it is false, the next condition (B2 >= 80) is evaluated, and this process continues until a true condition is found or all conditions are evaluated.
Example: Calculating Sales Commissions
Another practical application of IF functions is calculating commissions for sales staff based on their sales figures. For example, if Bob's sales in cell B2 are $10,000, he earns a 5% commission. If his sales are $5,000, he earns a 2% commission; otherwise, he earns nothing. The formula would be structured as follows: - If B2 >= 10,000, commission is 5%. - If B2 >= 5,000, commission is 2%. - If neither condition is met, commission is 0%. The order of these evaluations is also critical, as the highest sales threshold must be checked first.
Conclusion
In summary, mastering IF functions and their nested variations in Excel allows users to create dynamic formulas that can handle multiple criteria and outcomes. This skill is essential for tasks such as grading and commission calculations, where precise evaluations are necessary for accurate results.

FAQ :

What is an IF function in Excel?

An IF function in Excel is a logical function that allows you to perform a test and return one value if the test is true and another value if it is false.

How do nested IF functions work?

Nested IF functions allow you to test multiple conditions by placing one IF function inside another. This enables you to evaluate several criteria and return different outcomes based on those evaluations.

What is the purpose of using absolute cell references?

Absolute cell references are used in formulas to ensure that the reference to a specific cell does not change when the formula is copied to another location. This is crucial for maintaining consistent calculations.

How can I calculate commissions using IF functions?

You can calculate commissions by using IF functions to evaluate sales amounts against predefined thresholds. Depending on the sales figure, the function can return different commission rates.

What happens if none of the IF conditions are met?

If none of the IF conditions are met, the function will return the final value specified in the last IF statement, which is often a default value like zero.

Can I use AND and OR functions with IF?

Yes, you can combine IF functions with AND and OR functions to evaluate multiple conditions simultaneously, allowing for more complex logical tests.

Quelques cas d'usages :

Grading System

Using nested IF functions to determine student grades based on their scores. For example, if a student's score is 90 or above, they receive an 'A'; if it's between 80 and 89, they receive a 'B', and so on. This application helps educators quickly assess student performance.

Sales Commission Calculation

Implementing IF functions to calculate commissions for sales staff based on their sales figures. For instance, if a salesperson sells $10,000 or more, they earn a 5% commission; if they sell between $5,000 and $9,999, they earn 2%. This method ensures that sales teams are incentivized based on their performance.

Budget Allocation

Using IF functions to allocate budget based on department performance. For example, departments that meet their sales targets could receive additional funding, while those that do not may have their budgets reduced. This approach helps organizations manage resources effectively.

Loan Approval Process

Applying nested IF functions in a loan approval process to evaluate applicants based on credit scores and income levels. For example, applicants with a credit score above 700 and a stable income may be approved, while others may be denied or referred for further review.

Employee Performance Reviews

Using IF functions to categorize employee performance during reviews. For instance, employees can be rated as 'Excellent', 'Satisfactory', or 'Needs Improvement' based on their performance metrics, helping HR make informed decisions about promotions and raises.

Glossaire :

IF function

A logical function in Excel that returns one value if a condition is true and another value if it is false.

Nested IF functions

An IF function placed inside another IF function, allowing for multiple criteria to be tested and more than two possible outcomes.

Absolute cell reference

A cell reference that remains constant when a formula is copied to another cell, indicated by the dollar sign (e.g., $B$2).

Commission

A payment to an employee based on the sales they generate, often expressed as a percentage of the sales amount.

Criteria

The conditions or standards used to evaluate or make decisions in functions like IF.

Sales threshold

A specific sales amount that must be met or exceeded to qualify for a certain commission rate.

00:00:07

True or false.

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Nested IF functions, meaning one IF function inside of another,

00:00:14

allows you to test multiple criteria and increase the number of possible outcomes.

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We want to determine a student's grade based on their score.

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If Bob's score in B2

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is >=90,

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return an A.

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We nest an IF function by setting Value if false to

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IF B2 >=80,

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return B.

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we use additional nested IF functions to test for C, D and F grades.

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I'm copying the formula.

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In this formula, we must test B2 >=90 first

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and then B2 >= 80, and so on.

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Let me show you why:

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If B2 >= 90 evaluates to true,

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the formula returns A and we're done.

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If it's false, B2 >= 80 is evaluated;

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since B2 >= 90 has already been evaluated to false,

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greater than or equal to 80 is essentially

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greater than or equal to 80 and less than 90.

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This continues for greater than or equal to 70 and 60.

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F is the final value of false.

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Here's another example: I want to determine commissions

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for our sales staff, but the commission percentage varies

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depending on how much they've sold.

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If Bob's sales, B2 >= to 10,000,

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the cursor is next to the cell reference.

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I'm pressing F4 to make it an absolute cell reference,

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the commission is 5%.

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I'm pressing F4 again.

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If Bob's sales are >= 5,000,

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his commission is 2%, otherwise his commission is zero.

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We then multiply the result by his sales.

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This is another example where the order of the formula matters.

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Sales greater than or equal to 10,000 is tested first.

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If it evaluates to True, it returns a value in G2: 5%.

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If it evaluates to False, sales greater than or equal to 5,000 is evaluated next.

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Since 10000 has already been evaluated as false,

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sales greater than or equal to 5,000 is essentially,

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greater than or equal to 5,000 and less than 10,000.

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If neither are greater than or equal to 10,000,

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or greater than or equal to 5,000 is true,

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the function returns a value in G4: zero.

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Up next: IF with AND and OR functions.

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