INSY 2299 · Information Systems

Session 2

Intro to Excel: from a business question to a formula

Dominik Molitor · Fall 2026 | Session 2

INSY 2299 · Session 2Fordham University
Session 2

Agenda

Click a topic to jump to it.

INSY 2299 · Session 2Fordham University
Intro to Excel

Excel as an Analytics Tool

Excel is not primarily a calculator; it is a simple analytical modeling tool.

Click a part of the workbook to see what it is doing.
Excel workbook 'Global Sales Analysis': a sales table by country and company, the Data tab's New Query menu listing data sources, and a Pareto chart of revenue contribution by company
INSY 2299 · Session 2Fordham University
Cell references

Two Spreadsheets. Same Answer.

Model A

AB
2Quantity180
3Unit price$270
4Revenue$48,600
B4: =B2*B3

Formula uses labeled inputs

Model B

Answer$48,600Formula=180*270

What does 180 mean? What happens when the price changes?

Which workbook would you trust more if the price changes tomorrow?

Your vote:
Pick one, then go to the next slide.
INSY 2299 · Session 2Fordham University
Cell references

Answer: Model A is auditable

The price changes tomorrow. Unit price (B3)
$270
Change the price and watch which model keeps up.

Model A

Auditable
AB
2Quantity180
3Unit price$270
4Revenue$48,600
B4: =B2*B3

Formula uses labeled inputs

Model B

Fragile
Answer$48,600Formula=180*270

The changeable inputs are hidden inside the formula.

Which workbook would you trust more if the price changes tomorrow?

INSY 2299 · Session 2Fordham University
Intro to Excel

What does Excel proficiency mean?

Given a business question and relevant data, can you structure the data, choose an analysis, verify the result, and communicate a decision-relevant answer?

Click a skill to see where today’s session practices it.

Knowing a function name is useful. Knowing when to use it is an analytical skill.

INSY 2299 · Session 2Fordham University
Basic Analytics Workflow

Analytics is a sequence, not a formula

Excel functions mainly implement:

  • calculations
  • summaries and comparisons

Your analytical judgement determines:

  • what to analyze
  • what the result means
INSY 2299 · Session 2Fordham University
Basic Analytics Workflow

Basic Analytics Workflow: an example

Example: “Which stores are performing best?” Fill in each step before revealing it.
INSY 2299 · Session 2Fordham University
Business questions and calculations

Our Business Question

A sales manager wants to understand which transactions are driving revenue and gross margin.

  1. Which transaction generated the most revenue?
  2. Is the highest-revenue transaction also the most profitable?
  3. Which transaction deserves managerial attention first?

Before opening Excel: what data and calculations would we need to answer these questions?

Discuss first, then reveal.
INSY 2299 · Session 2Fordham University
Data types

Well-structured data follows a few practical rules

Click a rule to see it in the data.
transaction_idorder_dateregionproductquantityunit_price
T-1019/3/2026EastMonitor4$125.00
T-1029/3/2026WestKeyboard10$55.00

Question: transaction_id contains digits. Why is it not a numeric measure?
INSY 2299 · Session 2Fordham University
Data types

Sample data: One row is one transaction

ColumnMeaningRole/type
transaction_idLabels one transactionIdentifier/Text
order_dateWhen it occurredDate
region, channel, productDescribes a groupCategorical/Text
quantityNumber of unitsNumeric count
unit_price, unit_costDollar per unitNumeric currency

Try it: one value, five formats

125
Value Excel stores125

margin % is T-101’s gross margin ÷ revenue, $340 ÷ $500 (slide 18).

Formatting provides units [time, percentage, etc.]. It does not change the underlying value.

INSY 2299 · Session 2Fordham University
Data types

An Excel Table makes the data usable

A1transaction_id
ABCDEF
Click the steps above, in order.

Sorting locates extreme and unusual values.

Filtering focuses attention on a meaningful subset.

*Ctrl + T or Insert > Table

INSY 2299 · Session 2Fordham University
Business questions and calculations

Start with the business definition

Apply it to
MeasureMeaningSpreadsheet logicT-101

Quantities, prices and results are the three transactions on slide 18; unit_cost is that slide’s total_cost ÷ quantity.

Think about the relationship first (e.g., gross margin = revenue − total cost). Then write the formula.

INSY 2299 · Session 2Fordham University
Formulas & Excel Applications

Parentheses make an intended calculation explicit

Predict each result before Excel calculates it.

Without parentheses

=50+10*5

With parentheses

=(50+10)*5

Which operation happens first in each formula? Result?

INSY 2299 · Session 2Fordham University
Formulas & Excel Applications

Parentheses make an intended calculation explicit

Step through each formula the way Excel’s Evaluate Formula does: one operation per click.

Without parentheses

    Multiplication happens first, so Excel adds 50 to 10*5.

    With parentheses

      Parentheses force the addition first; then 60 is multiplied by 5.

      Which operation happens first in each formula? Result?

      INSY 2299 · Session 2Fordham University
      Formulas & Excel Applications

      Basic Arithmetic in Excel – “PEMDAS”

      Excel uses standard “PEMDAS” order of operations for arithmetic: “Parentheses, Exponents, Multiplication and Division, and Addition and Subtraction”.

      5Parentheses"(6-3)"
      6Exponents - use caret"^"
      7Multiplication - use asterisk"*"
      8Division - use slash"/"
      9Addition"+"
      10Subtraction"-"

      For example, “six squared” is 6^2; “square root of six” is 6^(.5). * and / share a rank and go left to right; so do + and −.

      Assume we want (6-3)(4+2) = 18

        INSY 2299 · Session 2Fordham University
        Formulas & Excel Applications

        Calculated columns turn raw data into measures

        Blue cells are inputs: type a new quantity, price or cost. Shaded columns recalculate. Click a row to run the quick checks on it.
        transaction_idquantityunit_priceunit_costrevenuetotal_costgross_margin

        Quick check 1

        Pick one row. Verify revenue with mental arithmetic.

        Quick check 2

        Verify gross margin equals revenue minus total cost.

        INSY 2299 · Session 2Fordham University
        Formulas & Excel Applications

        Choose the operation before the function

        Business questionExcel translation
        What is total revenue?=SUM(A1:A3)
        What is the average value per transaction?=AVERAGE(A1:A3)
        What is the highest transaction revenue?=MAX(A1:A3)
        A5
        A
        1$500
        2$550
        3$480
        4
        5

        A1:A3 hold the revenue of T-101, T-102, T-103 (slide 18).

        MAX returns the largest value, not the transaction that produces it. Sort revenue descending to inspect the full row.
        INSY 2299 · Session 2Fordham University
        Demo

        Excel Demo + Lab Exercise

        Blackboard content: the Datasets folder containing Excel Intro Download

        On Blackboard: Datasets → Excel Intro.

        INSY 2299 · Session 2Fordham University

        Available on Blackboard (Class Sessions → Session 2)

        Lab Exercise #1

        INSY 2299 · Session 2Fordham University
        Lab Exercise #1

        Lab Exercise #1

        1. Structure

        • Explain what one row represents
        • Convert data to a Table

        3. Analyze

        • Total and average revenue
        • Maximum and its transaction
        • Five largest transactions

        2. Calculate

        • Revenue
        • Total Cost
        • Gross Margin

        4. Interpret

        • Compare max with average revenue
        INSY 2299 · Session 2Fordham University
        Wrap-up

        Before you leave

        Reminder

        Tonightby 11:00 pm

        Excel Tutorial Module #2 is due tonight by 11:00 pm (MindTap)

        09/11by 11:00 pm

        Excel Tutorial Module #3 is due next week (09/11) by 11:00 pm (MindTap)