To determine the correct formula used to compute the TOTAL VALUE in cell D7 of the provided Excel table, we need to analyze the data and understand how the values in column D are calculated.
Step-by-Step Explanation
- Understanding the Table Structure:
- The table lists various stocks along with their share units and current unit prices.
-
The columns are as follows:
- Column A: Stock Names
- Column B: Share Units in Thousands
- Column C: Current Unit Price
- Column D: Value (which is the product of Share Units and Current Unit Price)
-
Calculating the Value for Each Stock:
- The value for each stock in column D is calculated using the formula:
[
\text{Value} = \text{Share Units} \times \text{Current Unit Price}
]
-
Let's calculate the values for the stocks listed:
- TANZEL PLC:
[
44 \text{ (thousands)} \times 50 \text{ (#)} = 2200.00
]
- KAPTOL:
[
125 \text{ (thousands)} \times 80 \text{ (#)} = 10000.00
]
- BANK KLM:
[
75 \text{ (thousands)} \times 140 \text{ (#)} = 10500.00
]
- ARIX OIL:
[
10 \text{ (thousands)} \times 250 \text{ (#)} = 2500.00
]
-
Identifying the Range for the TOTAL VALUE:
- The TOTAL VALUE in cell D7 should sum all the calculated values from D3 to D6.
- The values we have calculated are:
- D3: 2200.00
- D4: 10000.00
- D5: 10500.00
- D6: 2500.00
-
Therefore, the formula to compute the TOTAL VALUE in D7 should be:
[
\text{TOTAL VALUE} = \text{SUM}(D3:D6)
]
-
Evaluating the Options:
- Option A:
=SUM(D2:D7): This is incorrect because it includes D2, which does not contain a value (it is a header).
- Option B:
=SUM(D3:D7): This is incorrect because it includes D7 itself, which is where the total is being calculated, leading to an incorrect total.
- Option C:
=SUM(D2:D6): This is incorrect because it includes D2, which is a header and does not contain a value.
- Option D:
=SUM(D3:D6): This is the correct option as it sums only the relevant cells that contain the calculated values.
Conclusion
The correct formula to compute the TOTAL VALUE in cell D7 is:
D. =SUM(D3:D6)
Revision Summary
- The TOTAL VALUE is calculated by summing the values of stocks from D3 to D6.
- Each stock's value is determined by multiplying the share units by the current unit price.
- The correct formula excludes headers and the cell where the total is displayed.
- Always ensure to check the range of cells included in the SUM function to avoid errors.