4a Modelling *

Question 0

The company can use formulae and functions within the software to create what-if calculations.

Describe two other characteristics of spreadsheet software that the company could use to model future sales.

Answer 0

2 from, 2 marks each:
formulae/functions (1)
 (auto)Recalculation (1) when a value is changed all related functions/formulae automatically update (1)
 Cell references (1) referencing other formulae/functions/cells for use in calculations (1)
 Graphs (1) to show trends/predictions / give pictorial representation (1)
 Variables (1) hold values to be changed by end user (1)
 Relative/absolute referencing (1) referencing cells for use on formulae/functions
 Sequencing (1) creating single formulae/functions and copying them (1)
 Conditional formatting (1) highlighting cells based on rules (1)

Question 1

Over time, the landscape gardening business has grown and Miss Jones wants to take over a local competitor.

(a) Miss Jones has been advised to use software to model the expansion of her business.
Give two reasons why Miss Jones should use a model to predict this expansion.

Answer 1

Two from eg:
Can make changes without altering basic model/see what will happen (1) Can present in table or graph format (1)
More likely to make a profit with new business (1)
Knows whether to hire more staff/bigger premises (1)
Can forecast cash flow of the new business (1).

Question 2

EJO is considering expanding their building.

(a) Explain two advantages of using modelling software to create a model of the expansion.

Answer 2

Two from, 2 marks each, 1st for identification, 2nd for explanation:
 Allows what if to be used (1) different scenarios can be tried to find the
4 Allow financial or 3D modelling
best one (1)
 Variables can be used (1) these can be changed to try different scenarios
without rebuilding the model(1)
 Time can be decreased (1) allowing the impact on a long time in the future