4c What-if question *

Question 0

A furniture company is looking to expand its business with the purchase of an additional shop. They have created a spreadsheet model to help them.

(a) State two ‘what-if?’ questions the furniture business could use the spreadsheet model to answer

Answer 0

2 from, examples:
How much can be spent on the new shop and still make a profit?
(1)
If we take on 5 extra staff, how much profit does the new shop
need to make to make a profit overall ? (1)

Question 1

Explain three advantages to the company of using spreadsheet software to answer what-if questions

Answer 1

3 from, 2 marks each:
 Make changes/alter the model (1) to try different scenarios (1)
 See the effect of changes (1) without having to build a new model (1)
 No additional cost (1) likely to already have the software (1)
 Staff expertise (1) likely to be able to use spreadsheet software without additional training (1)

Question 2

Describe two advantages of using a spreadsheet to answer ‘what-if?’ questions

Answer 2

2 from, 2 marks each:
Automatic recalculation (1) make a change and see the result
(1)
Use of variables (1) can lock formulas so they cannot be
changed (1)
Goal seeking (1) gives variables based on results required (1) Familiarity with software (1) no need for training (1)
No need to purchase (1) reduced expenditure (1)
Graphs (1) can extrapolate and best fit (1)

Question 3

Describe three features of a spreadsheet model that could be used to help predict the sales and profit over the next twelve months for the car dealership.

Answer 3

3 from, 2 marks each: 
graphs/charts (1) representation of data in graphical form (1)/used to show trend lines to predict sales based on
existing data (1)
formulae/functions (1) built in mathematical calculations (1) used to add/subtract/count/total (1)
auto recalculation (1) one variable changes and all functions/formulae based on it will be updated (1)
goal seeking (1) a target is given and the value of the variables required to achieve that target are given (1) variables (1) cells /values that can be changed to different figures (1)
absolute/relative referencing (1) individuals cells retained when copying function/formulae (1)