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Formulas can get very complicated very quickly. So when you start getting answers that don't look right or maybe you just want to double check to see that they are right, the Evaluation feature can help you examine a formula piece by piece. If you watched the movie on the IF function, this is a similar worksheet and here's what this worksheet is saying. It's looking at the sales of all of these people and it's evaluating, it's creating an average. If you take a look at any of the commission rates and look at this complicated formula, what the formula is doing is it's saying if the amount that the person's sold is at least average or average or above average, then let's give them a higher commission rate.
If not, if they're selling below the average then we give them a lower commission rate and we're finding the commission rates over here in Column F. So let's go and evaluate this formula piece by piece to make some sense out of it. So go up to the Formulas tab and over here under Formula Auditing, click Evaluate Formula and this comes up, let me just move it out of the way. So this is showing us the formula as it exists now and you notice this B5 is underlined because that's what it's starting at. So click Evaluate and it says IF B5. What is B5? Well, B5 is 509.7 and there is 509.7.
Well, is this greater than or equal to this average? Now this average is underlined so when you click Evaluate, it's going to evaluate that underline. Oh okay, if 509.7 is at least 537 point a bunch of numbers, that's the average, okay. Click Evaluate and now it says IF False, meaning that okay now it evaluated the fact that 509.70 is false, that it's equal to or greater than the average. Now, the whole thing is underlined, click Evaluate again and it evaluates that statement to 5% and then we click Close and we're back to where we were.
So by evaluating this formula, we can see exactly why this number is 5%.
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