In Excel, what does the 'VLOOKUP' function do?

The 'VLOOKUP' function in Excel is specifically designed to look up data in a table based on a matching value. It searches for a specified value in the first column of a table range and returns a value in the same row from a specified column in that range. This is particularly useful when you have a large dataset and want to retrieve associated values efficiently. For example, if you have a list of products and their prices, you can use VLOOKUP to find the price of a specific product by entering the product name.

The other options do not accurately describe the function of VLOOKUP. While summarizing data may be achieved through various methods like using SUM functions, creating pivot tables is a different Excel feature that organizes and summarizes data dynamically. Formatting cells pertains to how cell data is visually displayed, such as adjusting font styles or colors, and is unrelated to data lookup functions. Thus, the correct understanding of VLOOKUP is pivotal for working effectively with data in Excel.