R2║R4 is (R2R4)/(R2 + R4) -- if the switch is open, then it becomes merely R2
R1║R3 is (R1R3)/(R1 + R3) -- if the switch is open, then it becomes merely R1
V[sub]A[/sub] is the output voltage that is fed to the Arduino Analog input
And, FYI, your circuit is drawn incorrectly. The switches are wired wrong. For example, the side of R4 that connects to the switch, needs to be moved to the currently unused terminal. Otherwise, the path between R4 and GND, will always be open. The same for the switch on R3. And, also, technically, that is not the symbol for a SPST. Those are SPDT.
Yes. Choose resistors (zero Ohms is an option) that divide up the total voltage interval into the largest possible segments. Something like the circuit in reply #2 is convenient, because that just uses the switches to pick a different divider.