Chapter 8 - What-If Analysis Flashcards
What asks a what-if question involving a range of cells?
A data table
What performs many calculations at once, then compares results on a single worksheet?
A data table
What runs a simulation with a two-variable data table?
A data table
What consolidates multiple what-if models in one worksheet?
The scenario manager
True or False:
When you are using the scenario manager you can switch between scenarios to see how sets of assumptions affect results
True
What aims to specify possible courses of action, together with their risks, costs and benefits?
The systems theory
What is the layout of the systems theory?
Input -> system -> output
What does input represent in the systems theory?
Data
What does system represent in the systems theory?
Process
What does output represent in the systems theory?
Information
Which type of decision means that you have processes in place to handle the situation?
A structured decision
Which type of decision requires judgement, evaluation and insight to solve the problem?
An unstructured decision
Which type of decision is partially programmable but still requires human judgement?
A semi-structured decision
Fill in the Blanks: Known, Partially Known, Unknown, or ?
When the decision is structured the input is _____, the process is _____, and the output is _____
- Known
- Known
- Known
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 _____
- Partially known
- Known
- ?
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 _____
- Unknown
- Unknown
- Unknown
What is a type of what-if analysis that concentrates on an activity at or around the point at which a product breaks even?
The break-even analysis
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?
Sensitivity analysis
What is a range of cells containing values and formulas?
A data table
True or False:
If you change the values in a data table the results don’t change
False
What 2 things are data tables useful for?
Break-even and sensitivity analyses
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?
The one-variable data table
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?
The two-variable data table
What enables you to perform what-if analysis with more than two input cells?
The Excel scenario manager
What are the sets of values you define and save in the Excel scenario manager called?
Scenarios
List the 3 requirements for running a scenario
- Well-structured input and output sections
- Output depends on input through the use of formulas
- The changing and result cells must be on the same worksheet
True or False:
When running a scenario you can’t spam worksheets
True
