Explain what this formula does?

**zudecke** · 02-24-2011, 11:55 AM

Hi,

Looking at a spreadsheet and see the formula: " =(B7*12)*0.33 ".

The aim was to take a one month sample and estimate the amount for a 12 month period. But don't get what the *0.33 does here?

Regards,

Z

**NBVC** · 02-24-2011, 11:59 AM

It seems to be be basically dividing the result of B7*12 by 3 (i.e. getting 1/3 rd of the multiplication result) which means a 4 month sampling...

**zudecke** · 02-24-2011, 12:03 PM

So the author is saying that consistent month-on-month growth is unlikely and he's predicting a dip in this forecast?

**NBVC** · 02-24-2011, 12:08 PM

That I don't know... all I can see is that whatever is in B7 is multiplied by 12 and then divided by 3... so it looks like a tertile (4-month) estimate.

**scottylad2** · 02-24-2011, 12:13 PM

(B7*12)*0.3 what the author is saying B7, say an amount 1500, he's saying 1500*12 which would be 18000, he appears to be showing what a third of that is.
To be relating this to month on month growth with just that formula is wrong, it's merley displaying what the total over a year is divided by three....is there three accounting parts to the year or something? Is this a part of an overall formula?

**zudecke** · 02-24-2011, 01:05 PM

Okay, I spoke to author and he's basically explained the reasoning behind the dividing by a third. Sort of makes sense in the context.

Once again Excel Forum came through - I can't rate this place highly enough.

Thank you guys - it's appreciated.

Do you know where I can get a mathematician / excel expert on freelance?