ACOT Intro/Copyright
Succeeding in Business with Microsoft Excel 2010: Chapter
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Course Learning Outcomes
Upon completion of this course, students will be able to:
• Navigate online computer platforms to acquire and distribute information.
• Apply Excel skills and tools in business problem solving.
• Solve problems with statistical analysis tools.
• Apply logic in decision making.
• Retrieve data for computation, analysis, and reference.
• Evaluate the financial impact of loans and investments.
• Organize data for effective analysis.
• Apply data tables and excel scenarios for what-if analysis.
• Synthesize smart worksheets.
• Enhance decision making with Solver.
Succeeding in Business with Microsoft Excel 2010: Chapter
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• Chapter 8
Roadmap
Using Data Tables and Excel Scenarios
for What-If Analysis
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Chapter Objectives
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Conducting Break-Even and Sensitivity Analyses
• Break-even analysis
– Type of what-if analysis that concentrates on an
activity at or around the point at which a product
breaks even
• Sensitivity analysis
– Type of what-if analysis that attempts to examine
how sensitive the results of an analysis are to
changes in the assumptions
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Break-Even Point
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Sensitivity Analysis
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Analyzing What-If Results with Data Tables
• Data table
– Range of cells containing values and formulas
– Change the values, the results change
– Can compare results of many calculations; useful
for break-even and sensitivity analyses
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Types of Data Tables
One-variable data tables
Two-variable data tables
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•
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One input cell and many result
cells
Set of input values must 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
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Two input cells, only one result
cell; determines how two values
affect a single result
The two sets of input values
must 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
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Preparing a Worksheet for Data Tables
• Data table depends on values and formulas
used in a worksheet and must appear on the
same worksheet that contains this data
• Worksheet must:
– Use input cells that contain values you want to
modify in a what-if analysis
– Use result cells containing formulas that calculate
the values you want to analyze
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Input and Result Cells
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Formulas
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Varying One Value
in a What-If Analysis
1. Set up the structure for the data table
– Create a set of input values you want to use in a
what-if analysis
– Indicate the results you want to see in the data
table
2. Instruct Excel about how the data table’s
structure relates to the input section of the
worksheet
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Setting Up a One-Variable Data Table’s
Structure
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Completing a One-Variable
Data Table
• Select the range that includes the input and
results cells
• Specify whether input cells are arranged in
column or row (Table dialog box)
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Interpreting One-Variable
Data Tables
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Varying Two Values
in a What-If Analysis
1. Set up the structure for the data table
2. Indicate how the data table’s structure relates
to the input section of the worksheet
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Setting Up a Two-Variable
Data Table’s Structure
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Setting Up a Two-Variable
Data Table’s Structure
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Completing a Two-Variable
Data Table
• Select the range that will constitute the
completed data
• Specify how data table is structured and which
cells in the worksheet’s input section relate to
the table’s values (Data Table dialog box)
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Completing a Two-Variable
Data Table
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Interpreting Two-Variable
Data Tables
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Comparing the Results of Complex Analyses
• Excel Scenario Manager
– Perform what-if analysis with more than two input
cells
– Define and save sets of values as scenarios; view and
change them to produce and compare different
results
• Requirements for running a scenario
– Well-structured input and output sections
– Output depends on input through use of formulas
– Changing cells and results cells must be on same
worksheet; cannot span worksheets
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Planning Scenarios
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•
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Prepare the inputs
Prepare the outputs
Set up a scenario
Prepare a worksheet for scenarios
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Preparing the Inputs
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Preparing the Outputs
SUMPRODUCT function can be used to sum a series of
products (the results of a multiplication task)
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Setting up a Scenario
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Preparing a Worksheet for Scenarios
• Determine the changing cells in the worksheet
• Name the input and result cells you want to
use
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Adding Scenarios to a Worksheet
• Use Add Scenario dialog box in Scenario
Manager
– Each scenario must have a name
• Indicate scenario’s changing cells in Changing
cells box
• Enter specific assumptions for changing cells
in the Scenario Values dialog box
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Scenario Manager Dialog Box
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Working with Scenarios
• Viewing and Analyzing Scenarios
– Click the scenario name in the Scenario Manager
dialog box
– Click the Show button
– Compare different scenarios
• Editing and Deleting Scenarios
– Use the Scenario Manager dialog box
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Generating Scenario Reports
• Use Scenario Manager to create two types of
scenario reports
– Scenario summary
– Scenario PivotTable
• Before printing a report, indicate which result
cells are of interest
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Creating Scenario Summaries
• Shows values for all changing cells and for all
indicated result cells for all scenarios in the
worksheet
• Tabular format makes it easy to compare
results
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Creating Scenario PivotTable Reports
• Summarize result cells from a scenario
• Can change the view of the data to see more
or fewer details
• Can edit and format the report
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Understanding Simulation in Business
• Simulated results
– Based on realistic, but not actual, data
• Excel functions for comparing simulated
results
– RAND
– VLOOKUP
– Can also create a two-variable data table that
contains probable data and generates simulated
results
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Preparing a Worksheet for a Simulation Using a
Data Table
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Developing a Simulation with a Two-Variable
Data Table
• Structuring a two-variable data table for a
simulation
– One set of input values must be a sequence of
numbers that represent the number of iterations of
the simulation
• Completing a two-variable data table for a
simulation
– Highlight entire table range and tell Excel to which
input cells the sets of input values relate
– Iteration values are directed to any empty cell in the
worksheet
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Structuring a Two-Variable Data Table for a
Simulation
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Completing a Two-Variable Data Table for a
Simulation
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Calculating Simulation Statistics
• Calculate some statistics about the data; base
the analysis on those statistics, not the raw
data itself
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Interpreting Simulation Results
• Can quantify differences in prices and allow
you to make more informed decisions
• Can be facilitated using a method of
aggregating the data, such as statistics
functions
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• Conduct break-even and sensitivity analyses
• Plan, create, edit, and delete scenarios using
Scenario Manager
• Create and interpret scenario reports
• Prepare worksheets for simulations using data
tables, run simulations using data tables,
conduct statistical analysis and interpret the
results
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