Chapter 22
Using Data Analysis Tools
of Data Tables, Goal Seek,
Solver, and Scenario
Excel 2003, Volume 2
by Karen J. Jolly
© Scott/Jones Publishing, Inc.
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Outcomes
Create one- and two-variable data tables.
Use the analysis business tools.
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Goal Seek
Solver
Scenario
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About Data Analysis Tools
Data tables provide a quick comparison
of business problems when one or two
variables may change.
Goal Seek, optimizes a goal and
provides a solution when one variable
changes.
Solver provides solutions when more
than variable may be changed.
Scenarios create several different
solutions for a complex business
problem.
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What-If Analysis
What-If analysis allows businesses to
analyze their financial picture to forecast
and make other financial decisions.
Typical questions asked:

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“What if the interest rate decreases?”
“What if the markup rate increases by
1%?”
“What if the travel budget is decreased by
10%?”
“What if we increase production by 15%?”
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Basics of What-If Analysis
Analysis quickly completed with Excel.
Performed by changing values in input
cells.
Dependent cell

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usually contains a formula.
changes when input data changes.
Model worksheet contains the what-if
analysis.
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Procedures for Planning
Analysis
Define the problem
Input values
Dependent cells
Results
Complete the analysis
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Define the Problem
The problem must be clearly defined to
begin the what-if analysis.
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Scenario: a couple want to purchase a home
and cannot have payments larger than $1,200
per month.
Problem definition: what is the maximum
purchase price they can pay for a house?
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Input Values
Determine the data input values:

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Amount of the loan (principal)
Interest Rate
Length of loan
Guess
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Dependent Cells
Determine which cells contain formulas –
dependent cells.
Input cells
Dependent cell
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Results
What are the results given the input data?

Monthly payment =$1,945.79
Do the results match the requirements?

No, payment must be max $1,200
If not, change the input data to obtain the
needed results.
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What happens if interest rate changes?
What happens if purchase price changes?
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Complete the Analysis
Enter variables and determine the result.
Make changes in data until desired result
is obtained.
Analysis completion will differ depending
on which what-if tool is used.
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Data Tables
A data table automates data analysis and
organizes the results when one or two
variables change.
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One-Variable Data Table
A one-variable data table is used to
evaluate financial information for decision
making.
Only one variable is changing:


In a business, what happens when net sales
change?
How do interest rates affect the monthly
payment on a car loan?
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Use a One-Variable Data Table
Define the Problem:

What effect will interest rates have on loan
payments?
Create the worksheet.
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Use a One-Variable Data Table
Enter
input
values
to
tested
Enter
formula to
determine
amount of
payment
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Use a One-Variable Data Table
1. From the Data menu select Table.
2. Determine if input values have been
entered as columns or as rows.
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Use a One-Variable Data
Table—Cont.
3. Enter the input cell – the cell in the
original worksheet that contains the
variable (interest rate).
4. Enter input cell as absolute value.
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Completed Data Table
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Two-Variable Data Table
Makes financial comparisons when two
variables change.
Uses one formula to evaluate two sets of
variables.

Example: What happens if interest rate and
length of loan change?
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Use a Two-Variable Data Table
1. Complete the worksheet.
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Use a Two-Variable Data Table
2. Place the formula between
the two variables
3. Create a data table with
both variables
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Use a Two-Variable Data Table
4. In Row input cell, input cell that
contains the original value of the
principal.
5. In Column input cell, input cell that
contains the original value of the interest
rate.
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Completed Two-Variable Data
Table
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Goal Seek
Only one variable will change.
Maximizes the results within the other
financial constraints.
Example: maximize the cost of a
remodeling project where payments do not
exceed $1200 per month.
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Use Goal Seek
1. Complete the worksheet.
2. Select the cell containing the formula.
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Use Goal Seek
3. From the Tools menu select Goal
Seek
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Use Goal Seek
Set cell contains
the formula
To value is the value
you want the set cell
to be (max payment)
The cell to change
to obtain desired
result (principal)
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Completed Goal Seek
Maximum amount of loan
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Solver
What-if solutions often affect more than
one factor.

Example: how to change production
quantity given multiple variables; i.e.
multiple product lines, available resources.
Solver determines optimum value of
data by changing other data factors.
Constraints can be used to limit how
values change.
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Prepare for Solver
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Use Solver
1. From the Tools menu select Solver.
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Use Solver
2. Determine
target cell – the
limiting
conditions for
the problem.
3. Determine if the
target cell
Solver Parameters Dialog Box
should be
maximized,
minimized or
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equal to a value.© Scott/Jones Publishing, Inc.
Use Solver
4. Enter the changing (or adjusting) cells
that contain variables that will change the
results.
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Use Solver
5. Determine the constraints that will limit
the changing values.

Cells that change are called changing or
adjustable cells.
6. Click Add to add a new constraint.
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Use Solver
Completed Solver Parameter
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Use Solver
7. Click Solve.
Solver has found
a solution
Keep solution or
restore original
values
Solver Results Dialog Box
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Solver Results
Changing
cells
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Scenario Manager
Use Scenario Manager to solve complex
business solutions when more than one
factor can be used.
A scenario is a set of values used to
forecast results of a what-if model.
A what-if model is a worksheet that
contains different sets of values for the
variables.
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Scenario Manager
Scenarios are useful when data is
uncertain.
A scenario may contain up to 32 variables.
Use Scenario Manager to determine best
case and worst case scenarios.
Scenario Manager finds solutions to
complex business problems.
Use named cells to help analyze results.
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Use Scenario Manager
1. Create a worksheet with known
information.
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Use Scenario Manager
Create Scenarios
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Use Scenario Manager
2. From the Tools menu select
Scenarios.
Click on
Add
Scenario
Manager Dialog Box
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Use Scenario Manager
3. Name the scenario.
4. Identify changing
cells on original
worksheet.
5. Add comments as
needed.
6. Click OK.
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Use Scenario Manager
Scenario Values Dialog Box
Edit the amounts for
that specific scenario.
For each scenario
enter the variables
that apply.
Continue to add
scenarios until each
has been set up.
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Use Scenario Manager
7. Select a scenario.
8. Click Show.
9. Variables in the current worksheet are
replaced by those in the scenario.
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Scenario Summary Report
A summary of the results of all scenarios
can be displayed in a separate worksheet.
Access Scenario Summary dialog box.
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Scenario Summary Report
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Scenario Summary Pivot Table
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