Excel Ch6 Flashcards
Spreadsheet Model
Spreadsheet model is generally used to represent the logic of a more complicated logical process.
What-If Analysis
If your model is flexible enough, you could even use it to see how hypothetical changes in your life (such as buying a new car or getting a new job) may impact your financial situation. When you use an existing model to examine the impact of hypothetical changes in the model inputs, you are conducting “What-if” analysis.
Scenario Manager
The scenario manager is useful for examining the impact of several inputs to a spreadsheet model changing at the same time. Scenario manager is sophisticated enough to allow you to create a number of different scenarios based on different states of the same set of inputs. In this way, you can compare a number of different hypothetical situations at the same time.
Goal Seek
Scenario manager is a powerful way to modify several inputs to a spreadsheet model at the same time to analyze how these changes impact model outcomes. “Goal Seek”, on the other hand, is used to work backwards from an outcome calculation to determine an input condition necessary to arrive at the desired outcome. Goal seeks allows the user to specify the desired value for an outcome cell and select an input cell that Excel should modify to achieve the desired outcome.
Data Tables
The final method for conducting what-if analysis presented in this lesson is data tables. Using data tables, we can specify a number of different possible states for one or two input variables and construct a table in our worksheet that calculates an outcome for our model based on each state of the input variables. When one input variable is used, the analysis is called a one-way data table. Examining the effect of two variables at once requires a two-way data table.
Goal Seek (Set Cell)
Value which you want to control in desired value
Goal Seek (To Value)
What you want the value to be
Goal Seek (Changing Cell)
The value you’re analyzing
