vlookup problem

Windows XP SP3, Excel 2K SP3, Excel newbie.

Please see the attached Excel file for a problem I am having with VLOOKUP.

Maybe I'm not understanding VLOOKUP properly:  Look at Sheet1! cell B3.  It contains a VLOOKUP formula.

Since the value of A3 does not occur in the lookup table, I was expecting (and hoping) that B3 would return "FALSE" or "N/A" or leave the cell blank.  Instead, it returns "2".  Why?
Who is Participating?
Because VLOOKUP acts kind of like The Price is Right (closest without going over) unless you tell it otherwise.  Use this formula:

It will return "#N/A" if it doesn't find a match.
EEuser5551212Author Commented:
Great explanation.  Thanks!
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