Chapter 8 - What-If Analysis

Question 1

What asks a what-if question involving a range of cells?

Answer 1

A data table

Question 2

What performs many calculations at once, then compares results on a single worksheet?

Answer 2

A data table

Question 3

What runs a simulation with a two-variable data table?

Answer 3

A data table

Question 4

What consolidates multiple what-if models in one worksheet?

Answer 4

The scenario manager

Question 5

True or False:

When you are using the scenario manager you can switch between scenarios to see how sets of assumptions affect results

Answer 5

True

Question 6

What aims to specify possible courses of action, together with their risks, costs and benefits?

Answer 6

The systems theory

Question 7

What is the layout of the systems theory?

Answer 7

Input -> system -> output

Question 8

What does input represent in the systems theory?

Answer 8

Data

Question 9

What does system represent in the systems theory?

Answer 9

Process

Question 10

What does output represent in the systems theory?

Answer 10

Information

Question 11

Which type of decision means that you have processes in place to handle the situation?

Answer 11

A structured decision

Question 12

Which type of decision requires judgement, evaluation and insight to solve the problem?

Answer 12

An unstructured decision

Question 13

Which type of decision is partially programmable but still requires human judgement?

Answer 13

A semi-structured decision

Question 14

Fill in the Blanks: Known, Partially Known, Unknown, or ?

When the decision is structured the input is _____, the process is _____, and the output is _____

Answer 14

1. Known
2. Known
3. Known

Question 15

Fill in the Blanks: Known, Partially Known, Unknown, or ?

When the decision is semi-structured the input is _____, the process is _____, and the output is _____

Answer 15

1. Partially known
2. Known
3. ?

Question 16

Fill in the Blanks: Known, Partially Known, Unknown, or ?

When the decision is un-structured the input is _____, the process is _____, and the output is _____

Answer 16

1. Unknown
2. Unknown
3. Unknown

Question 17

What is a type of what-if analysis that concentrates on an activity at or around the point at which a product breaks even?

Answer 17

The break-even analysis

Question 18

What is a type of what-if analysis that attempts to examine how sensitive the results of an analysis are to changes in the assumptions?

Answer 18

Sensitivity analysis

Question 19

What is a range of cells containing values and formulas?

Answer 19

A data table

Question 20

True or False:

If you change the values in a data table the results don’t change

Answer 20

False

Question 21

What 2 things are data tables useful for?

Answer 21

Break-even and sensitivity analyses

Question 22

Which type of data table requires a set of input values to be arranged perpendicular to the set of output formulas, with no value or formula located at the intersection of the set of input values and output formulas?

Answer 22

The one-variable data table

Question 23

Which type of data table requires two sets of input values to be set up perpendicular to each other, and the output formula must be in the cell at the intersection of the two sets of input values?

Answer 23

The two-variable data table

Question 24

What enables you to perform what-if analysis with more than two input cells?

Answer 24

The Excel scenario manager

Question 25

What are the sets of values you define and save in the Excel scenario manager called?

Answer 25

Scenarios

Question 26

List the 3 requirements for running a scenario

Answer 26

1. Well-structured input and output sections
2. Output depends on input through the use of formulas
3. The changing and result cells must be on the same worksheet

Question 27

True or False:

When running a scenario you can’t spam worksheets

Answer 27

True