1 00:00:00,410 --> 00:00:03,520 The CHOOSE function allows you to enter an index number and 2 00:00:03,520 --> 00:00:06,390 return a value based on that index number. 3 00:00:06,390 --> 00:00:08,300 We use the CHOOSE function regularly for 4 00:00:08,300 --> 00:00:11,410 applying different scenarios to our forecasting tools. 5 00:00:11,410 --> 00:00:14,620 In this example we're looking at a very simple business, 6 00:00:14,620 --> 00:00:20,150 we have sales, costs, then profit or loss. 7 00:00:20,150 --> 00:00:23,420 We can use the CHOOSE function to determine how different amounts of sales 8 00:00:23,420 --> 00:00:25,228 will impact our profit or loss. 9 00:00:25,228 --> 00:00:31,730 So here, we've entered CHOOSE, then we have the index number, 10 00:00:31,730 --> 00:00:36,690 B13, in this case B13, then all the different indexes. 11 00:00:36,690 --> 00:00:40,640 So, let's retype this formula so we can learn it together. 12 00:00:41,770 --> 00:00:45,270 CHOOSE index, 13 00:00:46,700 --> 00:00:53,370 in this case cell B13 then a comma and then all the different choices. 14 00:00:53,370 --> 00:00:56,702 In this case we want different scenarios for the amount of sales we get, so 15 00:00:56,702 --> 00:01:01,360 I'm gonna select E13 as the first choice. 16 00:01:01,360 --> 00:01:04,740 Then choice two, then choice three, so forth and so 17 00:01:04,740 --> 00:01:09,680 on, until I've selected all the different choices. 18 00:01:09,680 --> 00:01:12,380 I'm gonna close the parentheticals, and hit Enter. 19 00:01:13,630 --> 00:01:18,681 So, because the index number here is 5, 1, 20 00:01:18,681 --> 00:01:24,781 2, 3, 4, 5, the formula returns 50,000. 21 00:01:24,781 --> 00:01:30,670 If I chose 1 as the index number, it would return the first choice, or \$10,000.00. 22 00:01:30,670 --> 00:01:34,903 Let's see what happens when we apply different cost scenarios too. 23 00:01:34,903 --> 00:01:39,265 With \$10,000.00 in sales and 24 00:01:39,265 --> 00:01:42,704 \$45,000.00 in costs, we lose \$35,000.00. 25 00:01:44,550 --> 00:01:51,470 What kind of cost will we need to turn a profit in the \$10,000 sales scenario? 26 00:01:51,470 --> 00:01:59,912 So I'm going to make this cost, Now based on the index number as well. 27 00:02:02,773 --> 00:02:04,681 I'm selecting the different choices. 28 00:02:08,558 --> 00:02:12,964 And you can see that in this hypothetical example when we sell \$10,000 and 29 00:02:12,964 --> 00:02:16,830 have \$10,000 in costs, then we have no profit. 30 00:02:16,830 --> 00:02:21,513 But what if I wanna play around with these numbers so I can show a profit? 31 00:02:21,513 --> 00:02:27,693 Well, 5,000, 6,000, I can just change the index number and 32 00:02:27,693 --> 00:02:31,037 it'll return different scenarios and 33 00:02:31,037 --> 00:02:36,220 automatically update the cells that are referencing them.