What is a 'Named Range' in Excel?

A 'Named Range' in Excel refers to a user-defined name that is assigned to a specific cell or range of cells within a worksheet. This functionality allows users to easily refer to that range in formulas, making spreadsheets more readable and easier to manage. Instead of using traditional cell references like A1 or B2, a named range provides a meaningful name, which enhances clarity. For example, instead of writing a formula that includes a range reference, a user could simply use the name, making it easier to understand what the formula does at a glance.

Named ranges also simplify the process of managing data. If there are updates to the data range, the named range will automatically adjust without needing to re-write formulas that use that range. This feature is especially useful in large spreadsheets or in cases where ranges are frequently utilized across multiple formulas, as it ensures accuracy and consistency.

While other options mention pre-defined formulas, external data referencing tools, or methods for illustrating trends, they do not pertain to the specific concept of naming a range of cells for easier reference and management in Excel.