P R O B L E M - S O LV I N G C A S E S I N
M I C RO S O F T ® AC C E S S ™ A N D E XC E L ®
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P R O B L E M - S O LV I N G C A S E S I N
M I C RO S O F T ® AC C E S S ™ A N D E XC E L ®
Sixteenth Annual Edition
Ellen F. Monk
Joseph A. Brady
Emilio I. Mendelsohn
Australia • Brazil • Mexico • Singapore • United Kingdom • United States
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Problem-Solving Cases in Microsoft®
Access™ and Excel®, 16th Annual Edition
Ellen F. Monk, Joseph A. Brady,
Emilio I. Mendelsohn
© 2020, 2017 Cengage Learning, Inc.
Unless otherwise noted, all content is © Cengage.
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To Karen: Thanks for your support!
—JAB
To my problem-solving students.
—EFM
To our little bean: Although we never met you, we loved you all the same. Mom and Dad
—EIM
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BRIEF CONTENTS
Preface
ix
Pa r t 1 : Da tab as e C as e s U sing M icrosoft Access
Tutorial A
Database Design
3
Tutorial B
Microsoft Access
13
Case 1
Preliminary Case: Dog Hikes
53
Case 2
The Parks and Recreation Database
59
Case 3
The Senior Concierge Database
67
Case 4
The Fresh Fish Distributor Database
73
Case 5
The Volunteer Fire Company Database
79
Pa r t 2 : D ec is io n S u p p o r t C ases Using M icrosoft Excel Scenario
Man ag er
Tutorial C
Building a Decision Support System in Excel
89
Case 6
The Ski Resort Investment Decision
113
Case 7
The College Town Budget
121
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viii
Brief Contents
Pa r t 3 : De c is io n S u p p o r t C ases Using M icrosoft Excel Solver
Tutorial D
Building a Decision Support System Using Microsoft Excel Solver
133
Case 8
Rose Tree Regional Airline
151
Case 9
The Auto Maker Product Mix Problem
163
Pa r t 4 : I nteg ratio n C a s e s Using M icrosoft Access and Excel
Case 10
The Donation Letter Analysis
173
Case 11
San Francisco Fire Incidents
183
Case 12
San Francisco Fire Incidents: Advanced Analysis
191
Pa r t 5 : Adva n ce d S kills U sing M icrosoft Excel
Tutorial E
Guidance for Excel Cases
203
Index
219
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P R E FAC E
For more than two decades, we have taught MIS courses at the university level. From the start, we
wanted to use good computer-based case studies for the database and decision-support portions of our
courses.
At first, we could not find a casebook that met our needs! This surprised us because we thought our
requirements were not unreasonable. First, we wanted cases that asked students to think about realworld business situations. Second, we wanted cases that provided students with hands-on experience,
using the kind of software that they had learned to use in their computer literacy courses—and that they
would later use in business. Third, we wanted cases that would strengthen students’ ability to analyze
a problem, examine alternative solutions, and implement a solution using software. Undeterred by the
lack of casebooks, we wrote our own for Cengage.
This is the sixteenth casebook we have written for Cengage. The cases are all new, and the tutorials
have been updated using Microsoft Office 2019.
As with our prior casebooks, we include tutorials that prepare students for the cases, which are challenging but doable. The cases are organized to help students think about the logic of each case’s business
problem and then about how to use the software to solve the business problem. The cases fit well in an
undergraduate MIS course, an MBA information systems course, or a computer science course devoted
to business-oriented programming.
To date we have written nearly 200 cases. We are proud to say that all of them have tried to teach
students how to use software to help them make good business decisions. The business computing environment continues to evolve, and our cases should follow that evolution. To stay current, students need
to learn a broader range of data analysis activities. Therefore, we have increased the range of topics covered in our casebook. This edition contains instruction and a case on the differences between handling
operational data and analytical data. We have placed greater emphasis throughout the Excel portion of
the text on the various uses of pivot tables. In the future, we intend to further increase the range of data
analysis topics we cover. We welcome feedback from instructors on this process. If there are additional
topics you want to see covered in future editions or topics that should be covered differently, let us
know! Please contact Jaymie Falconi, our product manager at Cengage.
B O O K O R G A N I Z AT I O N
The book is organized into five parts:
•
•
•
•
•
Database cases using Access
Decision support cases using the Excel Scenario Manager
Decision support cases using Excel Solver
Integration cases and data analysis using Access and Excel
Advanced Excel skills
Part 1 begins with two tutorials that prepare students for the Access case studies. Parts 2 and 3 each
begin with a tutorial that prepares students for the Excel case studies. All four tutorials provide students
with practice in using the software’s features—the kind of support that other books about Access and
Excel do not provide. Part 4 challenges students to use both Access and Excel to find a solution to a
business problem. Part 5 is a tutorial about advanced skills students might need to complete some of the
Excel cases. The next sections explore these parts of the book in more depth.
Part 1: Database Cases Using Microsoft Access
This section begins with two tutorials and then presents five case studies.
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x
Preface
Tutorial A: Database Design
This tutorial helps students understand how to set up tables to create a database without requiring
­students to learn formal analysis and design methods, such as data normalization.
Tutorial B: Microsoft Access
The second tutorial teaches students the more advanced features of Access queries and reports—­
features that students will need to know to complete the cases.
Cases 1–5
Five database cases follow Tutorials A and B. The students must use the Access database in each case
to create forms, queries, and reports that help management. The first case is an easier “warm-up” case.
The next four cases require more effort to design the database and implement the results.
Part 2: Decision Support Cases Using Microsoft Excel Scenario Manager
This section has one tutorial and two decision support cases that require the use of the Excel Scenario
Manager.
Tutorial C: Building a Decision Support System in Excel
This section begins with a tutorial that uses Excel to explain decision support and fundamental c­ oncepts
of spreadsheet design. The case emphasizes the use of Scenario Manager to organize the output of
­multiple “what-if” scenarios.
Cases 6–7
Students can complete these two cases with Scenario Manager. In each case, students must use Excel
to model two or more solutions to a problem. Students then use the model outputs to identify and
­document the preferred solution in a memo.
Part 3: Decision Support Cases Using ­Microsoft Excel Solver
This section has one tutorial and two decision support cases that require the use of Excel Solver.
Tutorial D: Building a Decision Support System Using Microsoft Excel Solver
This section begins with a tutorial for using Excel Solver, a powerful decision support tool for solving
optimization problems.
Cases 8–9
Students use the Excel Solver tool in each case to analyze alternatives and identify and document the
preferred solution.
Part 4: Integration Cases Using Microsoft Access and Excel
Cases 10–12
These cases integrate Access and Excel. In Case 10, students will analyze data using Access queries, an
Excel table, and an Excel pivot table. Cases 11 and 12 show students how to share data between Access
and Excel to solve problems and to use the fundamentals of data analysis. For example, Case 12 illustrates the basic differences between operational and analytical data and how to minimize operational
impacts during data analysis.
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Preface
Part 5: Advanced Skills Using Microsoft Excel
This part contains one tutorial that focuses on using advanced techniques in Excel.
Tutorial E: Guidance for Excel Cases
Some cases may require the use of Excel techniques that are not discussed in other tutorials or cases
in this casebook. For example, techniques for using tables and pivot tables are explained in Tutorial E
rather than in the cases themselves.
Note that previous editions of the book included a Tutorial F for guidance on giving an oral presentation.
This tutorial is now available at the Cengage Web site. To access the tutorial, see “Using the Cases and
Tutorials” below.
INDIVIDUAL CASE DESIGN
The format of the cases uses the following template:
•
•
•
•
•
Each case begins with a Preview and an overview of the tasks.
The next section, Preparation, tells students what they need to do or know to complete the case
successfully. Again, the tutorials also prepare students for the cases.
The third section, Background, provides the business context that frames the case. The background of each case models situations that require the kinds of thinking and analysis that students will need in the business world.
The Assignment sections are generally organized to help students develop their analyses.
The last section, Deliverables, lists the finished materials that students must hand in: printouts,
a memorandum, and files. The list is similar to the deliverables that a business manager might
demand.
USING THE CASES AND TUTORIALS
We have successfully used cases like these in our undergraduate MIS courses. We usually begin the
semester with Access database instruction. We assign the Access database tutorials and then a case to
each student. Then, to teach students how to use the Excel decision support system, we do the same
thing: We assign a tutorial and then a case.
Some instructors have asked for access to extra cases, especially in the second semester of a school
year. For example, they assigned the integration case in the fall, and they need another one for the
spring. To meet this need, we have set up an online “Hall of Fame” that features some of our favorite
cases from prior editions. These password-protected cases are available to instructors on the Instructor
Companion Site for this text. Go to www.cengage.com to log in to your instructor account and search
for this textbook by title, author, or ISBN. Note that the cases are in Microsoft Office 2016 format.
T E C H N I CA L I N F O R M AT I O N
The cases in this textbook were written using Microsoft Office 2019, and the textbook was tested
for quality assurance using the Windows 10 operating system, Microsoft Access 2019, and Microsoft
Excel 2019.
DATA F I L E S A N D S O L U T I O N F I L E S
We have created “starter” data files as needed for some of the Excel cases, so students need not spend
time typing in the spreadsheet skeleton. Other cases ask students to load Access starter files. All of these
files are on the Instructor and Student Companion Sites for this text. To access the Instructor or Student
Companion Site, go to www.cengage.com, log in to your account, and search for this textbook by title,
author, or ISBN. You are granted a license to copy the data files to any computer or computer network
used by people who have purchased this textbook.
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xi
xii
Preface
Solutions to the material in the text are available to instructors on the Instructor Companion Site
for this text at www.cengage.com. Search for this textbook by title, author, or ISBN. The solutions are
password protected.
ACKNOWLEDGMENTS
We would like to give many thanks to the team at Cengage, including our product manager, ­Jaymie ­Falconi;
our developmental editor, Dan Seiter; our technical editor, John Freitas; and our content manager,
Michele Stulga. As always, we acknowledge our students’ diligent work.
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
PART
1
DATABASE CASES
USING MICROSOFT ACCESS
TUTORIAL A
Database Design, 3
TUTORIAL B
Microsoft Access, 13
CASE 1
Preliminary Case: Dog Hikes, 53
CASE 2
The Parks and Recreation Database, 59
CASE 3
The Senior Concierge Database, 67
CASE 4
The Fresh Fish Distributor Database, 73
CASE 5
The Volunteer Fire Company Database, 79
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TUTORIAL
A
DATABASE DESIGN
This tutorial has three sections. The first section briefly reviews basic database terminology. The second section
teaches database design. The third section features a database design problem for practice.
REVIEW OF TERMINOLOGY
You will begin by reviewing some basic terms that will be used throughout this textbook. In Access, a database
is a group of related objects that are saved in one file. An Access object can be a table, form, query, or report.
You can identify an Access database file by its suffix, .accdb.
A table consists of data that is arrayed in rows and columns. A row of data is called a record. A column
of data is called a field. Thus, a record is a set of related fields. The fields in a table should be related to one
another in some way. For example, a company might want to keep its employee data together by creating a
database table called Employee. That table would contain data fields about employees, such as their names
and addresses. It would not have data fields about the company’s customers; that data would go in a Customer
table.
A field’s values have a data type that is declared when the table is defined. Thus, when data is entered
into the database, the software knows how to interpret each entry. Data types in Access include the following:
•
•
•
•
•
•
Text for words
Integer for whole numbers
Double for numbers that have a decimal value
Currency for numbers that represent dollars and cents
Yes/No for variables that have only two values (such as 1/0, on/off, yes/no, and true/false)
Date/Time for variables that are dates or times
Each database table should have a primary key field—a field in which each record has a unique value. For
example, in an Employee table, a field called Employee Identification Number (EIN) could serve as a primary
key. (This assumes that each employee is given a number when hired and that these numbers are not reused
later.) Sometimes, a table does not have a single field whose values are all different. In that case, two or more
fields are combined into a compound primary key. The combination of the fields’ values is unique.
Database tables should be logically related to one another. For example, suppose a company has an
Employee table with fields for EIN, Name, Address, and Telephone Number. For payroll purposes, the company has an Hours Worked table with a field that summarizes Labor Hours for individual employees. The relationship between the Employee table and Hours Worked table needs to be established in the database, so you
can determine the number of hours worked by any employee. To create this relationship, you include the primary key field from the Employee table (EIN) as a field in the Hours Worked table. In the Hours Worked table,
the EIN field is then called a foreign key because it’s from a “foreign” table.
In Access, data can be entered directly into a table, or it can be entered into a form, which then inserts
the data into a table. A form is a database object that is created from an existing table to make the process of
entering data more user-friendly.
A query is the database equivalent of a question that is posed about data in a table (or tables). For
­example, suppose a manager wants to know the names of employees who have worked for the company for
more than five years. A query could be designed to search the Employee table for the information. The query
would be run, and its output would answer the question.
Queries can be designed to search multiple tables at a time. For this to work, the tables must be
­connected by a join operation, which links tables on the values in a field that they have in common.
The ­common field acts as a “hinge” for the joined tables; when the query is run, the query generator treats
the joined tables as one large table.
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4
Tutorial A
In Access, queries that answer a question are called select queries because they select relevant data
from the database records. Queries can also be designed to change data in records, add a record to the end
of a table, or delete entire records from a table. These queries are called update, append, and delete queries,
respectively.
Access has a report generator that can be used to format a table’s data or a query’s output.
DATABASE DESIGN
Designing a database involves determining which tables belong in the database and then creating the fields
that belong in each table. This section begins with an introduction to key database design concepts, then discusses design rules you should use when building a database. First, the following key concepts are defined:
•
•
•
Entities
Relationships
Attributes
Database Design Concepts
Computer scientists have highly formalized ways of documenting a database’s logic. Learning their notations
and mechanics can be time-consuming and difficult. In fact, doing so usually takes a good portion of a systems
analysis and design course. This tutorial will teach you database design by emphasizing practical business
knowledge; the approach should enable you to design serviceable databases quickly. Your instructor may add
more formal techniques.
A database models the logic of an organization’s operation, so your first task is to understand the operation. You can talk to managers and workers, make your own observations, and look at business documents,
such as sales records. Your goal is to identify the business’s “entities” (sometimes called objects). An entity is
a thing or event that the database will contain. Every entity has characteristics, called attributes, and one or
more relationships to other entities. Let’s take a closer look.
Entities
As previously mentioned, an entity is a tangible thing or an event. The reason for identifying entities is that
an entity eventually becomes a table in the database. Entities that are things are easy to identify. For example, consider a car rental agency. The database for the agency would probably need to contain the names
of vehicles and the names of customers who rent them, so you would have one entity named Vehicles and
another named Customer.
In contrast, entities that are events can be more difficult to identify, probably because they are more conceptual. However, events are real, and they are important. In the rental agency example, one event would be
Vehicle Rental and another event would be Hours Worked by employees.
In general, your analysis of an organization’s operations is made easier when you realize that organizations usually have physical entities such as these:
•
•
•
•
Employees
Customers
Inventory (products or services)
Suppliers
Thus, the database for most organizations would have a table for each of these entities. Your analysis also
can be made easier by knowing that organizations engage in transactions internally (within the company) and
externally (with the outside world). Such transactions are explained in an introductory accounting course, but
most people understand them from events that occur in daily life. Consider the following examples:
•
•
Organizations generate revenue from sales or interest earned. Revenue-generating transactions
include event entities called Sales and Interest Earned.
Organizations incur expenses from paying hourly employees and purchasing materials from suppliers. Hours Worked and Purchases are event entities in the databases of most organizations.
Thus, identifying entities is a matter of observing what happens in an organization. Your powers of observation are aided by knowing what entities exist in the databases of most organizations.
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Database Design
Relationships
As an analyst building a database, you should consider the relationship of each entity to the other entities you
have identified. For example, a college database might contain entities for Student, Course, and Section to
contain data about each. A relationship between Student and Section could be expressed as “Students enroll
in sections.”
An analyst also must consider the cardinality of any relationship. Cardinality can be one-to-one, one-tomany, or many-to-many:
•
•
•
In a one-to-one relationship, one instance of the first entity is related to just one instance of the
second entity.
In a one-to-many relationship, one instance of the first entity is related to many instances of the
second entity, but each instance of the second entity is related to only one instance of the first.
In a many-to-many relationship, one instance of the first entity is related to many instances of
the second entity, and one instance of the second entity is related to many instances of the first.
For a more concrete understanding of cardinality, consider again the college database with the Student,
Course, and Section entities. The university catalog shows that a course such as Accounting 101 can have
more than one section: 01, 02, 03, 04, and so on. Thus, you can observe the following relationships:
•
•
The relationship between the entities Course and Section is one-to-many. Each course has many
sections, but each section is associated with just one course.
The relationship between Student and Section is many-to-many. Each student can be in more
than one section, because each student can take more than one course. Also, each section has
more than one student.
Thinking about relationships and their cardinalities may seem tedious to you. However, as you work
through the cases in this text, you will see that this type of analysis can be valuable in designing databases. In
the case of many-to-many relationships, you should determine the tables a given database needs; in the case
of one-to-many relationships, you should decide which fields the tables need to share.
Attributes
An attribute is a characteristic of an entity. You identify attributes of an entity because attributes
become a table’s fields. If an entity can be thought of as a noun, an attribute can be considered an
­adjective that describes the noun. Continuing with the college database example, consider the Student
entity. Students have names, so Last Name would be an attribute of the Student entity and therefore
a field in the Student table. First Name would be another attribute, as well as Address, Phone Number,
and other descriptive fields.
Sometimes, it can be difficult to tell the difference between an attribute and an entity, but one good way
is to ask whether more than one attribute is possible for each entity. If more than one instance is possible,
but you do not know the number in advance, you are working with an entity. For example, assume that a
student could have a maximum of two addresses—one for home and one for college. You could specify attributes Address 1 and Address 2. Next, consider that you might not know the number of student addresses in
advance, meaning that all addresses have to be recorded. In that case, you would not know how many fields
to set aside in the Student table for addresses. Therefore, you would need a separate Student Addresses table
(entity) that would show any number of addresses for a given student.
Database Design Rules
As described previously, your first task in database design is to understand the logic of the business situation.
Once you understand this logic, you are ready to build the database. To create a context for learning about
database design, look at a hypothetical business operation and its database needs.
Example: The Talent Agency
Suppose you have been asked to build a database for a talent agency that books musical bands into nightclubs.
The agent needs a database to keep track of the agency’s transactions and to answer day-to-day questions. For
example, a club manager often wants to know which bands are available on a certain date at a certain time, or
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5
6
Tutorial A
wants to know the agent’s fee for a certain band. The agent may want to see a list of all band members and the
instrument each person plays, or a list of all bands that have three members.
Suppose that you have talked to the agent and have observed the agency’s business operation. You conclude that your database needs to reflect the following facts:
1.
A booking is an event in which a certain band plays in a particular club on a particular date,
starting and ending at certain times and performing for a specific fee. A band can play more than
once a day. The Heartbreakers, for example, could play at the East End Cafe in the afternoon and
then at the West End Cafe on the same night. For each booking, the club pays the talent agent.
The agent keeps a 5 percent fee and then gives the remainder of the payment to the band.
2.
Each band has at least two members and an unlimited maximum number of members. The agent
notes a telephone number of just one band member, which is used as the band’s contact number.
No two bands have the same name or telephone number.
3.
Band member names are not unique. For example, two bands could each have a member named
Sally Smith.
4.
The agent keeps track of just one instrument that each band member plays. For the purpose of
this database, “vocals” are considered an instrument.
5.
Each band has a desired fee. For example, the Lightmetal band might want $700 per booking and
would expect the agent to try to get at least that amount.
6.
Each nightclub has a name, an address, and a contact person. The contact person has a telephone number that the agent uses to call the club. No two clubs have the same name, contact
person, or telephone number. Each club has a target fee. The contact person will try to get the
agent to accept that fee for a band’s appearance.
Some clubs feed the band members for free; others do not.
7.
Before continuing with this tutorial, you might try to design the agency’s database on your own. Ask yourself: What are the entities? Recall that business databases usually have Customer, Employee, and Inventory
entities, as well as an entity for the event that generates revenue transactions. Each entity becomes a table in
the database. What are the relationships among the entities? For each entity, what are its attributes? For each
table, what is the primary key?
Six Database Design Rules
Assume that you have gathered information about the business situation in the talent agency example. Now
you want to identify the tables required for the database and the fields needed in each table. Observe the following six rules:
Rule 1: You do not need a table for the business. The database represents the entire business. Thus, in the
example, Agent and Agency are not entities.
Rule 2: Identify the entities in the business description. Look for typical things and events that will become
tables in the database. In the talent agency example, you should be able to observe the following entities:
•
•
Things: The product (inventory for sale) is Band. The customer is Club.
Events: The revenue-generating transaction is Bookings.
You might ask yourself: Is there an Employee entity? Isn’t Instrument an entity? Those issues will be
­discussed as the rules are explained.
Rule 3: Look for relationships among the entities. Look for one-to-many relationships between entities.
The relationship between those entities must be established in the tables, using a foreign key. For details, see
the following discussion in Rule 4 about the relationship between Band and Band Member.
Look for many-to-many relationships between entities. Each of these relationships requires a third entity
that associates the two entities in the relationship. Recall the many-to-many relationship from the college
database scenario that involved Student and Section entities. To display the enrollment of specific students
in specific sections, a third table would be required. The mechanics of creating such a table are described in
Rule 4 during the discussion of the relationship between Band and Club.
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Database Design
Rule 4: Look for attributes of each entity and designate a primary key. As previously mentioned, you
should think of the entities in your database as nouns. You should then create a list of adjectives that describe
those nouns. These adjectives are the attributes that will become the table’s fields. After you have identified
fields for each table, you should check to see whether a field has unique values. If such a field exists, designate
it as the primary key field; otherwise, designate a compound primary key.
In the talent agency example, the attributes, or fields, of the Band entity are Band Name, Band Phone
Number, and Desired Fee, as shown in Figure A-1. Assume that no two bands have the same name, so the primary key field can be Band Name. The data type of each field is shown.
BAND
Field Name
Data Type
Band Name (primary key)
Text
Band Phone Number
Text
Desired Fee
Currency
FIGURE A-1
The Band table and its fields
Two Band records are shown in Figure A-2.
Band Name (primary key)
Band Phone Number
Desired Fee
Heartbreakers
981 831 1765
$800
Lightmetal
981 831 2000
$700
FIGURE A-2
Records in the Band table
If two bands might have the same name, Band Name would not be a good primary key, so a different
unique identifier would be needed. Such situations are common. Most businesses have many types of inventory, and duplicate names are possible. The typical solution is to assign a number to each product to use as the
primary key field. A college could have more than one faculty member with the same name, so each faculty
member would be assigned an EIN. Similarly, banks assign a personal identification number (PIN) for each
depositor. Each automobile produced by a car manufacturer gets a unique vehicle identification number (VIN).
Most businesses assign a number to each sale, called an invoice number. (The next time you go to a grocery
store, note the number on your receipt. It will be different from the number on the next customer’s receipt.)
At this point, you might be wondering why Band Member would not be an attribute of Band. The answer
is that, although you must record each band member, you do not know in advance how many members are in
each band. Therefore, you do not know how many fields to allocate to the Band table for members. (Another
way to think about band members is that they are the agency’s employees, in effect. Databases for organizations usually have an Employee entity.) You should create a Band Member table with the attributes Member
ID Number, Member Name, Band Name, Instrument, and Phone. A Member ID Number field is needed because
member names may not be unique. The table and its fields are shown in Figure A-3.
BAND MEMBER
Field Name
Data Type
Member ID Number (primary key)
Text
Member Name
Text
Band Name (foreign key)
Text
Instrument
Text
Phone
Text
FIGURE A-3
The Band Member table and its fields
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7
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Tutorial A
Note in Figure A-3 that the phone number is classified as a Text data type because the field values will
not be used in an arithmetic computation. The benefit is that Text data type values take up fewer bytes than
Numerical or Currency data type values; therefore, the file uses less storage space. You should also use the
Text data type for number values such as zip codes.
Five records in the Band Member table are shown in Figure A-4.
Member ID Number (primary key)
Member Name
Band Name
Instrument
Phone
0001
Jamal Marshall
Heartbreakers
Guitar
981 444 1111
0002
Chantal Marshall
Heartbreakers
Vocals
981 444 1234
0003
Tirsa Abboud
Heartbreakers
Keyboard
981 555 1199
0004
Diego Flores
Lightmetal
Sax
981 888 1654
0005
Sue Hoopes
Lightmetal
Piano
981 888 1765
FIGURE A-4
Records in the Band Member table
You can include Instrument as a field in the Band Member table because the agent records only one
instrument for each band member. Thus, you can use the instrument as a way to describe a band member,
much like the phone number is part of the description. Phone could not be the primary key because two
members might share a telephone and because members might change their numbers, making database
administration more difficult.
You might ask why Band Name is included in the Band Member table. The common-sense reason is that
you did not include the Member Name in the Band table. You must relate bands and members somewhere,
and the Band Member table is the place to do it.
To think about this relationship in another way, consider the cardinality of the relationship between Band
and Band Member. It is a one-to-many relationship: one band has many members, but each member in the
database plays in just one band. You establish such a relationship in the database by using the primary key
field of one table as a foreign key in the other table. In Band Member, the foreign key Band Name is used to
establish the relationship between the member and his or her band.
The attributes of the Club entity are Club Name, Address, Contact Name, Club Phone Number, Preferred
Fee, and Feed Band?. The Club table can define the Club entity, as shown in Figure A-5.
CLUB
Field Name
Data Type
Club Name (primary key)
Text
Address
Text
Contact Name
Text
Club Phone Number
Text
Preferred Fee
Currency
Feed Band?
Yes/No
FIGURE A-5
The Club table and its fields
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Database Design
Two records in the Club table are shown in Figure A-6.
Club Name (primary key)
Address
Contact Name
Club Phone Number
Preferred Fee
Feed Band?
East End
1 Duce St.
Neev Kalb
981 444 8877
$600
Yes
West End
99 Duce St.
Vera Kaan
981 555 0011
$650
No
FIGURE A-6
Records in the Club table
You might wonder why Bands Booked into Club (or a similar name) is not an attribute of the Club table.
There are two reasons. First, you do not know in advance how many bookings a club will have, so the value
cannot be an attribute. Second, Bookings is the agency’s revenue-generating transaction, an event entity, and
you need a table for that business transaction. Consider the booking transaction next.
You know that the talent agent books a certain band into a certain club for a specific fee on a certain date,
starting and ending at a specific time. From that information, you can see that the attributes of the Bookings
entity are Band Name, Club Name, Booking Date, Start Time, End Time, and Fee. The Bookings table and its
fields are shown in Figure A-7.
BOOKINGS
Field Name
Data Type
Band Name (foreign key)
Text
Club Name (foreign key)
Text
Booking Date
Date/Time
Start Time
Date/Time
End Time
Date/Time
Fee
Currency
FIGURE A-7
The Bookings table and its fields—and no designation of a primary key
Some records in the Bookings table are shown in Figure A-8.
Band Name
Club Name
Booking Date
Start Time
End Time
Fee
Heartbreakers
East End
11/21/20
21:30
23:30
$800
Heartbreakers
East End
11/22/20
21:00
23:30
$750
Heartbreakers
West End
11/28/20
19:00
21:00
$500
Lightmetal
East End
11/21/20
18:00
20:00
$700
Lightmetal
West End
11/22/20
19:00
21:00
$750
FIGURE A-8
Records in the Bookings table
Note that no single field is guaranteed to have unique values, because each band is likely to be booked
many times and each club might be used many times. Furthermore, each date and time can appear more than
once. Thus, no one field can be the primary key.
If a table does not have a single primary key field, you can make a compound primary key whose field
values will be unique when taken together. Because a band can be in only one place at a time, one possible
solution is to create a compound key from the Band Name, Booking Date, and Start Time fields. An alternative solution is to create a compound primary key from the Club Name, Booking Date, and Start Time
fields.
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9
10
Tutorial A
If you don’t want a compound key, you could create a field called Booking Number. Each booking would
then have its own unique number, similar to an invoice number.
You can also think about this event entity in a different way. Over time, a band plays in many clubs,
and each club hires many bands. Thus, Band and Club have a many-to-many relationship, which signals
the need for a table between the two entities. A Bookings table would associate the Band and Club tables.
You implement an associative table by including the primary keys from the two tables that are associated. In this case, the primary keys from the Band and Club tables are included as foreign keys in the
Bookings table.
Rule 5: Avoid data redundancy. You should not include extra (redundant) fields in a table. Redundant fields
take up extra disk space and lead to data entry errors because the same value must be entered in multiple
tables, increasing the chance of a keystroke error. In large databases, keeping track of multiple instances of
the same data is nearly impossible, so contradictory data entries become a problem.
Consider this example: Why wouldn’t Club Phone Number be included in the Bookings table as a field?
After all, the agent might have to call about a last-minute booking change and could quickly look up the number in the Bookings table. Assume that the Bookings table includes Booking Number as the primary key and
Club Phone Number as a field. Figure A-9 shows the Bookings table with the additional field.
BOOKINGS
Field Name
Data Type
Booking Number (primary key)
Text
Band Name (foreign key)
Text
Club Name (foreign key)
Text
Club Phone Number
Text
Booking Date
Date/Time
Start Time
Date/Time
End Time
Date/Time
Fee
Currency
FIGURE A-9
The Bookings table with an unnecessary field—Club Phone Number
The fields Booking Date, Start Time, End Time, and Fee logically depend on the Booking Number primary
key—they help define the booking. Band Name and Club Name are foreign keys and are needed to establish
the relationship between the Band, Club, and Bookings tables. But what about Club Phone Number? It is not
defined by the Booking Number. It is defined by Club Name—in other words, it is a function of the club, not
of the booking. Thus, the Club Phone Number field does not belong in the Bookings table. It is already in the
Club table.
Perhaps you can see the practical data-entry problem of including Club Phone Number in Bookings. Suppose a club changed its contact phone number. The agent could easily change the number one time, in the
Club table. However, the agent would need to remember which other tables contained the field and change
the values there too. In a small database, this task might not be difficult, but in larger databases, having
redundant fields in many tables makes such maintenance difficult, which means that redundant data is often
incorrect.
You might object by saying, “What about all of those foreign keys? Aren’t they redundant?” In a sense,
they are. But they are needed to establish the one-to-many relationship between one entity and another, as
discussed previously.
Rule 6: Do not include a field if it can be calculated from other fields. A calculated field is made using the
query generator. Thus, the agent’s fee is not included in the Bookings table because it can be calculated by
query (here, 5 percent multiplied by the booking fee).
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Database Design
The Talent Agency Tables in Microsoft Access
The previous sections and figures describe the talent agency database tables, but the relationships between
the tables might be more clear in a graphical representation, which you can create in Microsoft Access (see
Figure A-10).
FIGURE A-10 Graphical view of talent agency tables
In Tutorial B, you will learn how to define a table in Access—in other words, you will input the fields and
their data types and designate the table’s primary key. Tutorial B also explains how to query tables graphically
in Access.
Figure A-10 shows the talent agency’s tables as they would be used in the Access query generator. The
relationships between tables are indicated by the links between the tables. For example, the Band Name field
is the primary key in the Band table and a foreign key in the Band Member table. The two tables are linked by
a common field to demonstrate that a band member is partially described by the name of a band. In a similar
way, a club’s name partially describes Bookings, and the two tables can be linked by a common field, Club
Name.
PRACTICE DATABASE DESIGN PROBLEM
Imagine that your town library wants to keep track of its business in a database, and that you have been called
in to build the database. You talk to the town librarian, review the old paper-based records, and watch people
use the library for a few days. You learn the following about the library:
1. Any resident of the town can get a library card simply by asking for one. The library considers
each cardholder a member of the library.
2. The librarian wants to be able to contact members by telephone and by email. She calls members when books are overdue or when requested materials become available. She likes to email
a thank-you note to each patron on his or her anniversary of becoming a member of the library.
Without a database, contacting members efficiently can be difficult; for example, multiple members can have the same name. Also, a parent and a child might have the same first and last name,
live at the same address, and share a phone.
3. The librarian tries to keep track of each member’s reading interests. When new books come in,
the librarian alerts members whose interests match those books. For example, long-time member
Sue Doaks is interested in reading Western novels, growing orchids, and baking bread. There must
be some way to match her interests with available books. One complication is that, although the
librarian wants to track all of a member’s reading interests, she wants to classify each book as
being in just one category of interest. For example, the classic gardening book Orchids of France
would be classified as a book about orchids or a book about France, but not both.
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11
12
Tutorial A
4. The library stocks thousands of books. Each book has a title and any number of authors. Also,
more than one book in the library might have the same title. Similarly, multiple authors might
have the same name.
5. A writer could be the author of more than one book.
6. A book will be checked out repeatedly as time goes on. For example, Orchids of France could be
checked out by one member in March, by another member in July, and by another member in
September.
7. The library must be able to identify whether a book is checked out.
8. A member can check out any number of books in one visit. Also, a member might visit the
library more than once a day to check out books.
9. All books that are checked out are due back in two weeks, with no exceptions. The librarian
would like to have an automated way of generating an overdue book list each day so she can telephone offending members.
10. The library has a number of employees. Each employee has a job title. The librarian is paid a
salary, but other employees are paid by the hour. Employees clock in and out each day. Assume
that all employees work only one shift per day and that all are paid weekly. Pay is deposited
directly into an employee’s checking account—no checks are hand-delivered. The database
needs to include the librarian and all other employees.
Design the library’s database, following the rules set forth in this tutorial. Your instructor will specify the
format of your work. Here are a few hints in the form of questions:
•
•
•
A book can have more than one author. An author can write more than one book. How would
you describe the relationship between books and authors?
The library lends books for free, of course. If you were to think of checking out a book as a sales
transaction for zero revenue, how would you handle the library’s revenue-generating event?
A member can borrow any number of books at one checkout. A book can be checked out more
than once. How would you describe the relationship between checkouts and books?
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TUTORIAL
B
MICROSOFT ACCESS
Microsoft Access is a relational database package that runs on the Microsoft Windows operating system. There
are many different versions of Access; this tutorial was prepared using Access 2019.
Before using this tutorial, you should know the fundamentals of Access and know how to use Windows.
This tutorial explains advanced Access skills you will need to complete database case studies. The tutorial
concludes with a discussion of common Access problems and how to solve them.
To prevent losing your work, always observe proper file-saving and closing procedures. To exit Access,
click the File tab and select Close, then click the Close button in the upper-right corner. Always end your
work with these steps so you will not have to redo your work.
To begin this tutorial, you will create a new database called Employee.
AT THE KEYBOARD
Open Access. Click the Blank database icon from the templates list. Name the database Employee. Click the
file folder next to the filename to browse for the folder where you want to save the file. Click the new folder,
click Open, and then click OK. Otherwise, your file will be saved automatically in the Documents folder. Click
the Create button.
A portion of your opening screen should resemble the screen shown in Figure B-1.
FIGURE B-1 Entering data in Datasheet view
When you create a table, Access opens it in Datasheet view by default. Because you will use Design view
to build your tables, close the new table by clicking the X in the upper-right corner of the table window that
corresponds to Close “Table1.” You are now on the Home tab in the Database window of Access, as shown in
Figure B-2. From this screen, you can create or change objects.
FIGURE B-2 The Database window Home tab in Access
CREATING TABLES
Your database will contain data about employees, their wage rates, and the hours they worked.
Defining Tables
In the Database window, build three new tables using the following instructions.
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14
Tutorial B
AT THE KEYBOARD
Defining the Employee Table
This table contains permanent data about employees. To create the table, click the Create tab and then click
Table Design in the Tables group. The table’s fields are Last Name, First Name, Employee ID, Street Address,
City, State, Zip, Date Hired, and US Citizen. The Employee ID field is the primary key field. Change the
lengths of Short Text fields from the default 255 spaces to more appropriate lengths; for example, the Last
Name field might be 30 spaces, and the Zip field might be 10 spaces. Your completed definition should resemble the one shown in Figure B-3.
FIGURE B-3 Fields in the Employee table
When you finish, click the File tab, select Save As, select Save Object As, click the Save As button, and
then enter a name for the table. In this example, the table is named Employee. (It is a coincidence that the
Employee table has the same name as its database file.) After entering the name, click OK in the Save As
window. Close the table by clicking the Close button (X) that corresponds to the Employee table.
Defining the Wage Data Table
This table contains permanent data about employees and their wage rates. The table’s fields are Employee
ID, Wage Rate, and Salaried. The Employee ID field is the primary key field. Use the data types shown in
­Figure B-4. Your definition should resemble the one shown in Figure B-4.
FIGURE B-4 Fields in the Wage Data table
Click the File tab and then select Save As, select Save Object As, and click the Save As button to save the
table definition. Name the table Wage Data.
Defining the Hours Worked Table
The purpose of this table is to record the number of hours that employees work each week during the year.
The table’s three fields are Employee ID (which has a Short Text data type), Week # (number–long integer),
and Hours (number–double). The Employee ID and Week # are the compound keys.
In the following example, the employee with ID number 08965 worked 40 hours in Week 1 of the year and
52 hours in Week 2.
Employee ID
Week #
Hours
08965
1
40
08965
2
52
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Microsoft Access
Note that no single field can be the primary key field because 08965 is an entry for each week. In other
words, if this employee works each week of the year, 52 records will have the same Employee ID value
at the end of the year. Thus, Employee ID values will not distinguish records. No other single field can
­distinguish these records either, because other employees will have worked during the same week number and
some employees will have worked the same number of hours. For example, 40 hours—which corresponds to a
full-time workweek—would be a common entry for many weeks.
All of this presents a problem because a table must have a primary key field in Access. The solution is to
use a compound primary key; that is, use values from more than one field to create a combined field that will
distinguish records. The best compound key to use for the current example consists of the Employee ID field
and the Week # field, because as each person works each week, the week number changes. In other words,
there is only one combination of Employee ID 08965 and Week # 1. Because those values can occur in only
one record, the combination distinguishes that record from all others.
The first step of setting a compound key is to highlight the fields in the key. Those fields must appear one
after the other in the table definition screen. (Plan ahead for that format.) As an alternative, you can highlight
one field, hold down the Control key, and highlight the next field.
AT THE KEYBOARD
In the Hours Worked table, click the first field’s left prefix area (known as the row selector), hold down the
mouse button, and drag down to highlight the names of all fields in the compound primary key. Your screen
should resemble the one shown in Figure B-5.
FIGURE B-5 Selecting fields for the compound primary key for the Hours Worked table
Now click the Key icon. Your screen should resemble the one shown in Figure B-6.
FIGURE B-6 The compound primary key for the Hours Worked table
You have created the compound primary key and finished defining the table. Click the File tab and then
select Save As, select Save Object As, and click the Save As button to save the table as Hours Worked.
Adding Records to a Table
At this point, you have set up the skeletons of three tables. The tables have no data records yet. If you printed
the tables now, you would only see column headings (the field names). The most direct way to enter data into
a table is to double-click the table’s name in the navigation pane at the left side of the screen and then type
the data directly into the cells.
NOTE
To display and open the database objects, Access 2019 uses a navigation pane, which is on the left side of the Access
window.
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15
16
Tutorial B
AT THE KEYBOARD
In the navigation pane, double-click the Employee table. Your data entry screen should resemble the one
shown in Figure B-7.
FIGURE B-7 The data entry screen for the Employee table
The Employee table has many fields, some of which may be off the screen to the right. Scroll to see obscured
fields. (Scrolling happens automatically as you enter data.) Figure B-7 shows all of the fields on the screen.
Enter your data one field value at a time. Note that the first row is empty when you begin. Each time you
finish entering a value, press Enter to move the cursor to the next cell. After you enter data in the last cell in
a row, the cursor moves to the first cell of the next row and Access automatically saves the record. Thus, you
do not need to click the File tab and then select Save after entering data into a table.
When entering data in your table, you should enter dates in the following format: 6/15/2020. Access
­automatically expands the entry to the proper format in output.
Also note that Yes/No variables are clicked (checked) for Yes; otherwise, the box is left blank for No. You
can change the box from Yes to No by clicking it.
Enter the data shown in Figure B-8 into the Employee table. If you make errors in data entry, click the
cell, backspace over the error, and type the correction.
FIGURE B-8 Data for the Employee table
Note that the sixth record is your data record. Assume that you live in Elkton, Maryland; were hired on today’s
date (enter the date); and are a U.S. citizen. Make up a fictitious Employee ID number. For purposes of this tutorial,
the sixth record has been created using the name of one of this text’s authors and the employee ID 09911.
After adding records to the Employee table, open the Wage Data table and enter the data shown in Figure B-9.
FIGURE B-9 Data for the Wage Data table
In this table, you are again asked to create a new entry. For this record, enter your own employee ID.
Also assume that you earn $8 an hour and are not salaried. Note that when an employee’s Salaried box is not
checked (in other words, Salaried 5 No), the implication is that the employee is paid by the hour. Because
salaried employees are not paid by the hour, their hourly rate is 0.00.
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Microsoft Access
When you finish creating the Wage Data table, open the Hours Worked table and enter the data shown in
Figure B-10.
FIGURE B-10 Data for the Hours Worked table
Notice that salaried employees are always given 40 hours. Nonsalaried employees (including you) might
work any number of hours. For your record, enter your fictitious employee ID, 60 hours worked for Week 1,
and 55 hours worked for Week 2.
CREATING QUERIES
Because you know how to create basic queries, this section explains the advanced queries you will create in
the cases in this book.
Using Calculated Fields in Queries
A calculated field is an output field made up of other field values. A calculated field can be a field in a table;
here it is created in the query generator. The calculated field here does not become part of the table—it is just
part of the query output. The best way to understand this process is to work through an example.
AT THE KEYBOARD
Suppose you want to see the employee IDs and wage rates of hourly workers, and the new wage rates if all
employees were given a 10 percent raise. To view that information, show the employee ID, the current wage rate,
and the higher rate, which should be titled New Rate in the output. Figure B-11 shows how to set up the query.
FIGURE B-11
Query setup for the calculated field
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Tutorial B
To set up this query, you need to select hourly workers by using the Salaried field with Criteria 5 No.
Note in Figure B-11 that the Show box for the field is not checked, so the Salaried field values will not appear
in the query output.
Note the expression for the calculated field, which you can see in the far-right field cell:
New Rate: 1.1 * [Wage Rate]
The term New Rate: merely specifies the desired output heading. (Don’t forget the colon.) The rest of the
expression, 1.1 * [Wage Rate], multiplies the old wage rate by 110 percent, which results in the 10 percent
raise.
In the expression, the field name Wage Rate must be enclosed in square brackets. Remember this
rule: Any time an Access expression refers to a field name, the field name must be enclosed in square
brackets.
If you run this query, your output should resemble the one in Figure B-12.
FIGURE B-12
Output for a query with calculated field
Notice that the calculated field output is not shown in Currency format but as a Double—a number with
digits after the decimal point. To convert the output to Currency format, select the output column by clicking
the line above the calculated field expression. The column darkens to indicate its selection. Your data entry
screen should resemble the one shown in Figure B-13.
FIGURE B-13
Activating a calculated field in query design
Then, on the Design tab, click Property Sheet in the Show/Hide group. The Field Properties sheet appears,
as shown on the right in Figure B-14.
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Microsoft Access
FIGURE B-14
Field properties of a calculated field
Click Format and choose Currency, as shown in Figure B-15. Then click the X in the upper-right corner of
the window to close it.
FIGURE B-15
Currency format of a calculated field
When you run the query, the output should resemble the one in Figure B-16.
FIGURE B-16
Query output with formatted calculated field
Next, you examine how to avoid errors when making calculated fields.
Avoiding Errors When Making Calculated Fields
Follow these guidelines to avoid making errors in calculated fields:
•
Do not enter the expression in the Criteria cell as if the field definition were a filter. You are
making a field, so enter the expression in the Field cell.
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Tutorial B
•
Spell, capitalize, and space a field’s name exactly as you did in the table definition. If the table
definition differs from what you type, Access thinks you are defining a new field by that name.
Access then prompts you to enter values for the new field, which it calls a Parameter Query field.
This problem is easy to debug because of the tag Parameter Query. If Access asks you to enter
values for a parameter, you almost certainly misspelled a field name in an expression in a calculated field or criterion.
For example, here are some errors you might make for Wage Rate:
Misspelling: (Wag Rate)
Case change: (wage Rate/WAGE RATE)
Spacing change: (WageRate/Wage Rate)
•
Do not use parentheses or curly braces instead of the square brackets. Also, do not put parentheses inside square brackets. You can, however, use parentheses outside the square brackets in the
normal algebraic manner.
For example, suppose that you want to multiply Hours by Wage Rate to get a field called Wages
Owed. This is the correct expression:
Wages Owed: [Wage Rate] * [Hours]
The following expression also would be correct:
Wages Owed: ([Wage Rate] * [Hours])
But it would not be correct to omit the inside brackets, which is a common error:
Wages Owed: [Wage Rate * Hours]
“Relating” Two or More Tables by the Join Operation
Often, the data you need for a query is in more than one table. To complete the query, you must join the
tables by linking the common fields. One rule of thumb is that joins are made on fields that have common
values, and those fields often can be key fields. The names of the join fields are irrelevant; also, the names of
the tables or fields to be joined may be the same, but it is not required for an effective join.
Make a join by bringing in (adding) the tables needed. Next, decide which fields you will join. Then click
one field name and hold down the left mouse button while you drag the cursor over to the other field’s name
in its window. Release the button. Access inserts a line to signify the join. (If a relationship between two tables
has been formed elsewhere, Access inserts the line automatically, and you do not have to perform the clickand-drag operation. Access often inserts join lines without the user forming relationships.)
You can join more than two tables. The common fields need not be the same in all tables; that is, you can
daisy-chain them together.
A common join error is to add a table to the query and then fail to link it to another table. In that case,
you will have a table floating in the top part of the query by example (QBE) screen. When you run the query,
your output will show the same records over and over. The error is unmistakable because there is so much
redundant output. The two rules are to add only the tables you need and to link all tables.
Next, you will work through an example of a query that needs a join.
AT THE KEYBOARD
Suppose you want to see the last names, employee IDs, wage rates, salary status, and citizenship only for
U.S. citizens and hourly workers. Because the data is spread across two tables, Employee and Wage Data, you
should add both tables and pull down the five fields you need. Then you should add the Criteria expressions.
Set up your work to resemble the one in Figure B-17. Make sure the tables are joined on the common field,
Employee ID.
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Microsoft Access
FIGURE B-17
A query based on two joined tables
You should quickly review the criteria you will need to set up this join: If you want data for employees
who are U.S. citizens and who are hourly workers, the Criteria expressions go in the same Criteria row. If you
want data for employees who are U.S. citizens or who are hourly workers, one of the expressions goes in the
second Criteria row (the one with the or: notation).
Now run the query. The output should resemble the one in Figure B-18, with the exception of the name
“Brady.”
FIGURE B-18 Output of a query based on two joined tables
You do not need to print or save the query output, so return to Design view and close the query. Another
practice query follows.
AT THE KEYBOARD
Suppose you want to see the wages owed to hourly employees for Week 2. You should show the last name,
the employee ID, the salaried status, the week #, and the wages owed. Wages will have to be a calculated field
([Wage Rate] * [Hours]). The criteria are No for Salaried and 2 for the Week #. (This means that another
“And” query is required.) Your query should be set up like the one in Figure B-19.
FIGURE B-19
Query setup for wages owed to hourly employees for Week 2
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Tutorial B
NOTE
In the query in Figure B-19, the calculated field column was widened so you could see the whole expression. To widen a
column, click the column boundary line and drag to the right.
Run the query. The output should be similar to that in Figure B-20, if you formatted your calculated field
to Currency.
FIGURE B-20 Query output for wages owed to hourly employees for Week 2
Notice that it was not necessary to pull down the Wage Rate and Hours fields to make the query work. You
do not need to save or print the query output, so return to Design view and close the query.
Summarizing Data from Multiple Records (Totals Queries)
You may want data that summarizes values from a field for several records (or possibly all records) in a table.
For example, you might want to know the average hours that all employees worked in a week or the total
(sum) of all of the hours worked. Furthermore, you might want data grouped or stratified in some way. For
example, you might want to know the average hours worked, grouped by all U.S. citizens versus all non-U.S.
citizens. Access calls such a query a Totals query. These queries include the following operations:
Sum
The total of a given field’s values
Count
A count of the number of instances in a field—that is, the number of records. In the
current example, you would count the number of employee IDs to get the number of
employees.
Average
The average of a given field’s values
Min
The minimum of a given field’s values
Var
The variance of a given field’s values
StDev
The standard deviation of a given field’s values
Where
The field has criteria for the query output
AT THE KEYBOARD
Suppose you want to know how many employees are represented in the example database. First, bring the
Employee table into the QBE screen. Because you will need to count the number of employee IDs, which is a
Totals query operation, you must bring down the Employee ID field.
To tell Access that you want a Totals query, click the Design tab and then click the Totals button in the
Show/Hide group. A new row called the Total row opens in the lower part of the QBE screen. At this point, the
screen resembles the one in Figure B-21.
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Microsoft Access
FIGURE B-21 Totals query setup
Note that the Total cell contains the words Group By. Until you specify a statistical operation, Access
assumes that a field will be used for grouping (stratifying) data.
To count the number of employee IDs, click next to Group By to display an arrow. Click the arrow to
reveal a drop-down menu, as shown in Figure B-22.
FIGURE B-22 Choices for statistical operation in a Totals query
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Tutorial B
Select the Count operator. (You might need to scroll down the menu to see the operator you want.) Your
screen should resemble the one shown in Figure B-23.
FIGURE B-23
Count in a Totals query
Run the query. Your output should resemble the one in Figure B-24.
FIGURE B-24
Output of Count in a Totals query
Notice that Access created a pseudo-heading, “CountOfEmployee ID,” by splicing together the statistical operation (Count), the word Of, and the name of the field (Employee ID). If you wanted a phrase such as
“Count of Employees” as a heading, you would go to Design view and change the query to resemble the one
shown in Figure B-25.
FIGURE B-25 Heading change in a Totals query
When you run the query, the output should resemble the one in Figure B-26.
FIGURE B-26 Output of heading change in a Totals query
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You do not need to print or save the query output, so return to Design view and close the query.
AT THE KEYBOARD
As another example of a Totals query, suppose you want to know the average wage rate of employees, grouped
by whether the employees are salaried. Figure B-27 shows how to set up your query.
FIGURE B-27 Query setup for average wage rate of employees
When you run the query, your output should resemble the one in Figure B-28.
FIGURE B-28 Output of query for average wage rate of employees
Recall the convention that salaried workers are assigned zero dollars an hour. Suppose you want to eliminate the output line for zero dollars an hour because only hourly-rate workers matter for the query. The query
setup is shown in Figure B-29.
FIGURE B-29 Query setup for nonsalaried workers only
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Tutorial B
When you run the query, you will get output for nonsalaried employees only, as shown in Figure B-30.
FIGURE B-30 Query output for nonsalaried workers only
Thus, it is possible to use Criteria in a Totals query, just as you would with a “regular” query. You do not
need to print or save the query output, so return to Design view and close the query.
AT THE KEYBOARD
Assume that you want to see two pieces of information for hourly workers: (1) the average wage rate, which
you will call Average Rate in the output, and (2) 110 percent of the average rate, which you will call the
Increased Rate. To get this information, you can make a calculated field in a new query from a Totals query. In
other words, you use one query as a basis for another query.
Create the first query; you already know how to perform certain tasks for this query. The revised heading for the average rate will be Average Rate, so type Average Rate: Wage Rate in the Field cell. Note that you
want the average of this field. Also, the grouping will be by the Salaried field. (To get hourly workers only,
enter Criteria: No.) Confirm that your query resembles the one in Figure B-31, then save the query and
close it.
FIGURE B-31 A totals query with average
Now begin a new query. However, instead of bringing in a table to the query design, select a query. To
start a new query, click the Create tab and then click the Query Design button in the Queries group. The
Show Table window appears. Click the Queries tab instead of using the default Tables tab, and select the query
you just saved as a basis for the new query. The most difficult part of this query is to construct the expression
for the calculated field. Conceptually, it is as follows:
Increased Rate: 1.1 * [The current average]
You use the new field name in the new query as the current average, and you treat the new name like a
new field:
Increased Rate: 1.1 * [Average Rate]
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Microsoft Access
The query within a query is shown in Figure B-32.
FIGURE B-32 A query within a query
Figure B-33 shows the output of the new query. Note that the calculated field is formatted.
FIGURE B-33 Output of an Expression in a Totals query
You do not need to print or save the query output, so return to Design view and close the query.
Using the Date() Function in Queries
Access has two important date function features:
•
•
The built-in Date() function gives you today’s date. You can use the function in query criteria or
in a calculated field. The function “returns” the day on which the query is run; in other words, it
inserts the value where the Date() function appears in an expression.
Date arithmetic lets you subtract one date from another to obtain the difference—in number of
days—between two calendar dates. For example, suppose you create the following expression:
10/9/2020 2 10/4/2020
Access would evaluate the expression as the integer 5 (9 minus 4 is 5).
As another example of how date arithmetic works, suppose you want to give each employee a one-dollar
bonus for each day the employee has worked. You would need to calculate the number of days between the
employee’s date of hire and the day the query is run, and then multiply that number by $1.
You would find the number of elapsed days by using the following equation:
Date() 2 [Date Hired]
Also suppose that for each employee, you want to see the last name, employee ID, and bonus amount. You
would set up the query as shown in Figure B-34.
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Tutorial B
FIGURE B-34 Date arithmetic in a query
Assume that you set the format of the Bonus field to Currency. The output will be similar to that in
­Figure B-35, although your Bonus data will be different because you used a different date.
FIGURE B-35
Output of query with date arithmetic
Using Time Arithmetic in Queries
Access also allows you to subtract the values of time fields to get an elapsed time. Assume that your database
has a Job Assignments table showing the times that nonsalaried employees were at work during a day. The
definition is shown in Figure B-36.
FIGURE B-36
Date/Time data definition in the Job Assignments table
Assume that the DateWorked field is formatted for Long Date and that the ClockIn and ClockOut fields
are formatted for Medium Time. Also assume that for a particular day, nonsalaried workers were scheduled as
shown in Figure B-37.
FIGURE B-37
Display of date and time in a table
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Microsoft Access
You want a query showing the elapsed time that your employees were on the premises for the day.
When you add the tables, your screen may show the links differently. Click and drag the Job Assignments,
Employee, and Wage Data table icons to look like those in Figure B-38.
FIGURE B-38 Query setup for time arithmetic
Figure B-39 shows the output, which looks correct. For example, employee 09911 was at work from
8:30 a.m. to 4:30 p.m., which is eight hours. But how does the odd expression that follows yield the correct
answers?
FIGURE B-39 Query output for time arithmetic
([ClockOut] 2 [ClockIn]) * 24
Why wouldn’t the following expression work?
[ClockOut] 2 [ClockIn]
Here is the answer: In Access, subtracting one time from the other yields the decimal portion of a 24-hour
day. Returning to the example, you can see that employee 09911 worked eight hours, which is one-third of
a day, so the time arithmetic function yields .3333. That is why you must multiply by 24—to convert from
­decimals to an hourly basis. Hence, for employee 09911, the expression performs the following calculation:
1/3 3 24 5 8.
Note that parentheses are needed to force Access to do the subtraction first, before the multiplication.
Without parentheses, multiplication takes precedence over subtraction. For example, consider the following
expression:
[ClockOut] 2 [ClockIn] * 24
In this example, ClockIn would be multiplied by 24, the resulting value would be subtracted from
­ClockOut, and the output would be a nonsensical decimal number.
Deleting and Updating Queries
The queries presented in this tutorial so far have been Select queries. They select certain data from specific tables based on a given criterion. You also can create queries to update the original data in a database.
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Tutorial B
Businesses use such queries often, and in real time. For example, when you order an item from a Web site, the
company’s database is updated to reflect your purchase through the deletion of that item from the company’s
inventory.
Consider an example. Suppose you want to give all nonsalaried workers a $0.50 per hour pay raise.
Because you have only three nonsalaried workers, it would be easy to change the Wage Rate data in the table.
However, if you had 3,000 nonsalaried employees, it would be much faster and more accurate to change the
Wage Rate data by using an Update query that adds $0.50 to each nonsalaried employee’s wage rate.
AT THE KEYBOARD
Now you will change each of the nonsalaried employees’ pay via an Update query. Figure B-40 shows how to
set up the query.
FIGURE B-40 Query setup for an Update query
So far, this query is just a Select query. Click the Update button in the Query Type group, as shown in
­Figure B-41.
FIGURE B-41 Selecting a query type
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Notice that you now have another line on the QBE grid called Update To:, which is where you specify the
change or update the data. Notice that you will update only the nonsalaried workers by using a filter under
the Salaried field. Update the Wage Rate data to Wage Rate plus $0.50, as shown in Figure B-42. Note that the
update involves the use of brackets [ ], as in a calculated field.
FIGURE B-42 Updating the wage rate for nonsalaried workers
Now run the query by clicking the Run button in the Results group. If you cannot run the query because
it is blocked by Disabled Mode, click the Enable Content button on the Security Warning message bar. When
you successfully run the query, the warning message in Figure B-43 appears.
FIGURE B-43 Update query warning
When you click Yes, the records are updated. Check the updated records by viewing the Wage Data table.
Each nonsalaried wage rate should be increased by $0.50. You could add or subtract data from another table
as well. If you do, remember to put the field name in square brackets.
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Tutorial B
Another type of query is the Delete query, which works like Update queries. For example, assume that
your company has been purchased by the state of Delaware, which has a policy of employing only state
residents. Thus, you must delete (or fire) all employees who are not exclusively Delaware residents. To do
that, you would create a Select query. Using the Employee table, you would click the Delete button in the
Query Type group, then bring down the State field and filter only those records that were not in Delaware
(DE). Do not perform the operation, but note that if you did, the setup would look like the one in Figure B-44.
FIGURE B-44 Deleting all employees who are not Delaware residents
Using Parameter Queries
A Parameter query is actually a type of Select query. For example, suppose your company has 5,000
employees and you want to query the database to find the same kind of information repeatedly, but about
different employees each time. For example, you might want to know how many hours a particular employee
has worked. You could run a query that you created and stored previously, but run it only for a particular
employee.
AT THE KEYBOARD
Create a Select query with the format shown in Figure B-45.
FIGURE B-45 Design of a Parameter query beginning as a Select query
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In the Criteria line of the QBE grid for the Employee ID field, type what is shown in Figure B-46.
FIGURE B-46 Design of a Parameter query, continued
Note that the Criteria line uses square brackets, as you would expect to see in a calculated field.
Now run the query. You will be prompted for the employee’s ID number, as shown in Figure B-47.
FIGURE B-47 Enter Parameter Value window
Enter your own employee ID. Your query output should resemble the one in Figure B-48.
FIGURE B-48
Output of a Parameter query
MAKING SEVEN PRACTICE QUERIES
This portion of the tutorial gives you additional practice in creating queries. Before making these queries, you
must create the specified tables and enter the records shown in the “Creating Tables” section of this tutorial.
The output shown for the practice queries is based on those inputs.
AT THE KEYBOARD
For each query that follows, you are given a problem statement and a “scratch area.” You also are shown what
the query output should look like. Set up each query in Access and then run the query. When you are satisfied
with the results, save the query and continue with the next one. Note that you will work with the Employee,
Hours Worked, and Wage Data tables.
1.
Create a query that shows the employee ID, last name, state, and date hired for employees who
live in Delaware and were hired after 12/31/99. Perform an ascending sort by employee ID.
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Tutorial B
First click the Sort cell of the field, and then choose Ascending or Descending. Before creating
your query, use the table shown in Figure B-49 to work out your QBE grid on paper.
Field
Table
Sort
Show
Criteria
Or:
FIGURE B-49 QBE grid template
Your output should resemble the one in Figure B-50.
FIGURE B-50 Number 1 query output
2.
Create a query that shows the last name, first name, date hired, and state for employees who live
in Delaware or were hired after 12/31/99. The primary sort (ascending) is on last name, and the
secondary sort (ascending) is on first name. The Primary Sort field must be to the left of the Secondary Sort field in the query setup. Before creating your query, use the table shown in Figure
B-51 to work out your QBE grid on paper.
Field
Table
Sort
Show
Criteria
Or:
FIGURE B-51 QBE grid template
If your name were Joseph Brady, your output would look like the one in Figure B-52.
FIGURE B-52 Number 2 query output
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Microsoft Access
3.
Create a query that sums the number of hours worked by U.S. citizens and the number of hours
worked by non-U.S. citizens. In other words, create two sums, grouped on citizenship. The
heading for total hours worked should be Total Hours Worked. Before creating your query, use
the table shown in Figure B-53 to work out your QBE grid on paper.
Field
Table
Total
Sort
Show
Criteria
Or:
FIGURE B-53 QBE grid template
Your output should resemble the one in Figure B-54.
FIGURE B-54 Number 3 query output
4.
Create a query that shows the wages owed to hourly workers for Week 1. The heading for the
wages owed should be Total Owed. The output headings should be Last Name, Employee ID,
Week #, and Total Owed. Before creating your query, use the table shown in Figure B-55 to work
out your QBE grid on paper.
Field
Table
Sort
Show
Criteria
Or:
FIGURE B-55 QBE grid template
If your name were Joseph Brady, your output would look like the one in Figure B-56.
FIGURE B-56 Number 4 query output
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Tutorial B
5.
Create a query that shows the last name, employee ID, hours worked, and overtime amount
owed for hourly employees who earned overtime during Week 2. Overtime is paid at 1.5 times
the normal hourly rate for all hours worked over 40. Note that the amount shown in the query
should be just the overtime portion of the wages paid. Also, this is not a Totals query—amounts
should be shown for individual workers. Before creating your query, use the table shown in
Figure B-57 to work out your QBE grid on paper.
Field
Table
Sort
Show
Criteria
Or:
FIGURE B-57 QBE grid template
If your name were Joseph Brady, your output would look like the one in Figure B-58.
FIGURE B-58 Number 5 query output
6.
Create a Parameter query that shows the hours employees have worked. Have the Parameter
query prompt for the week number. The output headings should be Last Name, First Name, Week
#, and Hours. This query is for nonsalaried workers only. Before creating your query, use the
table shown in Figure B-59 to work out your QBE grid on paper.
Field
Table
Sort
Show
Criteria
Or:
FIGURE B-59 QBE grid template
Run the query and enter 2 when prompted for the week number. Your output should look like the
one in Figure B-60.
FIGURE B-60 Number 6 query output
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Microsoft Access
7.
Create an Update query that gives certain workers a merit raise. First, you must create an
­additional table, as shown in Figure B-61.
FIGURE B-61 Merit Raises table
Create a query that adds the Merit Raise to the current Wage Rate for employees who will receive
a raise. When you run the query, you should be prompted with You are about to update two
rows. Check the original Wage Data table to confirm the update. Before creating your query, use
the table shown in Figure B-62 to work out your QBE grid on paper.
Field
Table
Update to
Criteria
Or:
FIGURE B-62 QBE grid template
CREATING REPORTS
Database packages let you make attractive management reports from a table’s records or from a query’s output. If you are making a report from a table, the Access report generator looks up the data in the table and
puts it into report format. If you are making a report from a query’s output, Access runs the query in the background (you do not control it or see it happen) and then puts the output in report format.
There are different ways to make a report. One method is to create one from scratch in Design view, but
this tedious process is not explained in this tutorial. A simpler way is to select the query or table on which
the report is based and then click Report on the Create tab. This streamlined method of creating reports is
explained in this tutorial.
Creating a Grouped Report
This tutorial assumes that you already know how to create a basic ungrouped report, so this section teaches
you how to make a grouped report. If you do not know how to create an ungrouped report, you can learn by
following the first example in the upcoming section.
AT THE KEYBOARD
Suppose you want to create a report from the Hours Worked table. Select the table by clicking it once. Click
the Create tab, then click Report in the Reports group. A report appears, as shown in Figure B-63.
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Tutorial B
FIGURE B-63 Initial report based on a table
On the Design tab, select the Group & Sort button in the Grouping & Totals group. Your report will have
an additional selection at the bottom, as shown in Figure B-64.
FIGURE B-64 Report with grouping and sorting options
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Microsoft Access
Click the Add a group button at the bottom of the report, and then select Employee ID. Your report will be
grouped as shown in Figure B-65.
FIGURE B-65 Grouped report
To complete this report, you need to total the hours for each employee by selecting the Hours column
heading. Your report will show that the entire column is selected. On the Design tab, click the Totals button in
the Grouping & Totals group, and then choose Sum from the menu, as shown in Figure B-66.
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Tutorial B
FIGURE B-66
Totaling the hours
Your report will look like the one in Figure B-67.
FIGURE B-67
Completed report
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Microsoft Access
Your report is currently in Layout view. To see how the final report looks when printed, click the Design
tab and select Report View from the Views group. Your report looks like the one in Figure B-68, although only
a portion is shown in the figure.
FIGURE B-68
Report in Report view
NOTE
To change the picture or logo in the upper-left corner of the report when in Layout view, click the notebook symbol and press the
Delete key. You can insert a logo in place of the notebook by clicking the Design tab and then clicking the Insert Image button in
the Controls group.
Moving Fields in Layout View
If you group records based on more than one field in a report, the report will have an odd “staircase” look or
display repeated data, or it will have both problems. Next, you will learn how to overcome these problems in
Layout view.
Suppose you make a query that shows an employee’s last name, first name, week number, and hours
worked, and then you make a report from that query, grouping on last name only. See Figure B-69.
FIGURE B-69
Query-based report grouped on last name
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Tutorial B
As you preview the report, notice the repeating data from the First Name field. In the report shown in
Figure B-69, notice that the first name repeats for each week worked—hence, the staircase effect. The Week #
and Hours fields are shown as subordinate to Last Name, as desired.
Suppose you want the last name and first name to appear on the same line. If so, take the report into Layout view for editing. Click the first record for the First Name (in this case, Zarif) and drag the name up to the
same line as the Last Name (in this case, Amari). Your report will now show the First Name on the same line
as Last Name, thereby eliminating the staircase look, as shown in Figure B-70.
FIGURE B-70
Report in Layout view with Last Name and First Name on the same line
You can now add the sum of Hours for each group. Also, if you want to add more fields to your report,
such as Street Address and Zip, you can repeat the preceding procedure.
IMPORTING DATA
Text or spreadsheet data is easy to import into Access. In business, it is often necessary to import data
because companies use disparate systems. For example, assume that your healthcare coverage data is on the
human resources manager’s computer in a Microsoft Excel spreadsheet. Open the Excel application and then
create a spreadsheet using the data shown in Figure B-71.
FIGURE B-71 Excel data
Save the file and then close it. Now you can easily import the spreadsheet data into a new table in Access.
With your Employee database open, click the External Data tab, then click New Data Source in the Import &
Link group. In the drop-down list, choose From File 2 Excel. Browse to find the Excel file you just created,
and make sure the first radio button is selected to import the source data into a new table in the current database (see Figure B-72). Click OK.
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Microsoft Access
FIGURE B-72 Importing Excel data into a new table
If necessary, choose the correct worksheet, as illustrated in Figure B-73. If the Excel file has only one
sheet, move on to the next step, as shown in Figure B-74.
FIGURE B-73
First screen in the Import Spreadsheet Wizard
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Tutorial B
Choose Next, and then make sure to select the First Row Contains Column Headings box, as shown in
Figure B-74.
FIGURE B-74
Choosing column headings in the Import Spreadsheet Wizard
Choose Next. Accept the default setting for each field you are importing on the screen. Each field is
assigned a text data type, which is correct for this table. Your screen should look like the one in Figure B-75.
FIGURE B-75
Choosing the data type for each field in the Import Spreadsheet Wizard
Choose Next. In the next screen of the wizard, you will be prompted to create an index—that is, to define
a primary key. Because you will store your data in a new table, choose your own primary key (Employee ID),
as shown in Figure B-76.
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Microsoft Access
FIGURE B-76
Choosing a primary key field in the Import Spreadsheet Wizard
Continue through the wizard, giving your table an appropriate name. After importing the table, take
a look at its design by right-clicking the table and choosing Design View. Note that each field is very wide.
Adjust the field properties as needed.
MAKING FORMS
Forms simplify the process of adding new records to a table. Creating forms is easy, and they can be applied to
one or more tables.
When you base a form on one table, you simply select the table, click the Create tab, and then select
Form from the Forms group. The form will then contain only the fields from that table. When data is entered
into the form, a complete new record is automatically added to the table. Forms with two tables are discussed
next.
Making Forms with Subforms
You also can create a form that contains a subform, which can be useful when the form is based on two or
more tables. Return to the example Employee database to see how forms and subforms would be useful for
viewing all of the hours that each employee worked each week. Suppose you want to show all of the fields
from the Employee table; you also want to show the hours each employee worked by including all fields from
the Hours Worked table as well.
To create the form and subform, first create a simple one-table form on the Employee table. Follow these
steps:
1.
Click once to select the Employee table. Click the Create tab, then click Form in the Forms
group. After the main form is complete, it should resemble the one in Figure B-77.
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Tutorial B
FIGURE B-77
2.
The Employee form
To add the subform, take the form into Design view. On the Design tab, make sure that the Use
Control Wizards option is selected, scroll to the bottom row of buttons in the Controls group, and
click the Subform/Subreport button, as shown in Figure B-78.
Subform/Subreport button
FIGURE B-78
The Subform/Subreport button
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Microsoft Access
3.
FIGURE B-79
4.
FIGURE B-80
Use your cursor to stretch out the box under your main form. You might need to expand the area
beneath the main form. The window shown in Figure B-79 appears.
Adding a subform
Select Use existing Tables and Queries, click Next, and then select Table: Hours Worked from
the Tables/Queries drop-down list. Select all available fields. Click Next, select Choose from a
list, click Next again, and then click Finish. Select the Form view. Your form and subform should
resemble Figure B-80. You may need to stretch out the subform box in Design view if all fields are
not visible.
Form with subform
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Tutorial B
FORMING RELATIONSHIPS
At times you might want to form relationships between the tables in an Access database to enforce referential
integrity. Relationships are similar to the joins made in queries; however, referential integrity requires that a
value in a table’s foreign key match the other table’s primary key. A foreign key is a field in a table that links
to a primary key in another table. If a relationship is formed, then the tables in a query will not need to be
manually joined.
To form a relationship between two tables, such as the Employee table and the Hours Worked table, the
two fields to be joined are both named Employee ID. In Access, you follow these steps:
1.
Choose Database Tools, then select Relationships, and then select Relationships
(see Figure B-81).
FIGURE B-81 Forming a relationship
2.
3.
In the Show Table dialog box, choose the Employee table and the Hours Worked table. Close the
dialog box.
Draw a join line between the two tables on Employee ID. A dialog box appears (see Figure B-82).
FIGURE B-82 Edit Relationships dialog box
4.
5.
Choose Enforce Referential Integrity and click Create.
A one-to-many relationship is formed automatically (see Figure B-83).
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Microsoft Access
FIGURE B-83 A one-to-many relationship
TROUBLESHOOTING COMMON PROBLEMS
Access is a powerful program, but it is complex and sometimes difficult for new users. People sometimes unintentionally create databases that have problems. Some of these common problems are described below, along
with their causes and corrections.
1.
2.
3.
4.
5.
“I saved my database file, but I can’t find it on my computer! Where is it?”
You saved your file to a fixed disk or a location other than the Documents folder. Use the Windows Search option to find all files ending in .accdb (search for * .accdb). If you saved the file, it
is on the hard drive (C:\) or a network drive. Your site assistant can tell you the drive designators.
“What is a ‘duplicate key field value’? I’m trying to enter records into my Sales table. The first
record was for a sale of product X to customer 101, and I was able to enter that one. But when
I try to enter a second sale for customer #101, Access tells me I already have a record with that
key field value. Am I allowed to enter only one sale per customer?”
Your primary key field needs work. You may need a compound primary key—a combination of
the customer number and some other field(s). In this case, the customer number, product number, and date of sale might provide a unique combination of values, or you might consider using
an invoice number field as a key.
“My query reads ‘Enter Parameter Value’ when I run it. What is that?”
This problem almost always indicates that you have misspelled a field name in an expression in a
Criteria field or calculated field. Access is very fussy about spelling; for example, it is case sensitive. Access is also “space sensitive,” meaning that when you insert a space in a field name when
defining a table, you must also include a space in the field name when you reference it in a query
expression. Fix the typo in the query expression.
“I’m getting an enormous number of rows in my query output—many times more than I need.
Most of the rows are duplicates!”
This problem is usually caused by a failure to link all of the tables you brought into the top half
of the query generator. The solution is to use the manual click-and-drag method to link the common fields between tables. The spelling of the field names is irrelevant because the link fields
need not have the same spelling.
“For the most part, my query output is what I expected, but I am getting one or two duplicate
rows or not enough rows.”
You may have linked too many fields between tables. Usually, only a single link is needed
between two tables. It is unnecessary to link each common field in all combinations of tables; it
is usually sufficient to link the primary keys. A simplistic explanation for why overlinking causes
problems is that it causes Access to “overthink” and repeat itself in its answer.
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Tutorial B
On the other hand, you might be using too many tables in the query design. For example, you
brought in a table, linked it on a common field with some other table, but then did not use the
table. In other words, you brought down none of its fields, and/or you used none of its fields in
query expressions. In this case, if you got rid of the table, the query would still work. Click the
unneeded table’s header at the top of the QBE area and press the Delete key to see if you can
make the few duplicate rows disappear.
6. “I expected six rows in my query output, but I got only five. What happened to the other one?”
Usually, this problem indicates a data entry error in your tables. When you link the proper tables
and fields to make the query, remember that the linking operation joins records from the tables
on common values (equal values in the two tables). For example, if a primary key in one table
has the value “123,” the primary key or the linking field in the other table should be the same
to allow linking. Note that the text string “123” is not the same as the text string “ 123”—the
space in the second string is considered a character too. Access does not see unequal values as
an error. Instead, Access moves on to consider the rest of the records in the table for linking.
The solution is to examine the values entered into the linked fields in each table and fix any data
entry errors.
7. “I linked fields correctly in a query, but I’m getting the empty set in the output. All I get are the
field name headings!”
You probably have zero common (equal) values in the linked fields. For example, suppose you
are linking on Part Number, which you declared as text. In one field, you have part numbers
“001,” “002,” and “003”; in the other table, you have part numbers “0001,” “0002,” and “0003.”
Your tables have no common values, which means that no records are selected for output. You
must change the values in one of the tables.
8. “I’m trying to count the number of today’s sales orders. A Totals query is called for. Sales are
denoted by an invoice number, and I made that a text field in the table design. However, when
I ask the Totals query to ‘Sum’ the number of invoice numbers, Access tells me I cannot add
them up! What is the problem?”
Text variables are words! You cannot add words, but you can count them. Use the Count Totals
operator (not the Sum operator) to count the number of sales, each being denoted by an invoice
number.
9. “I’m doing time arithmetic in a calculated field expression. I subtracted the Time In from the
Time Out and got a decimal number! I expected eight hours, and I got the number .33333.
Why?”
[Time Out] 2 [Time In] yields the decimal percentage of a 24-hour day. In your case, eight hours
is one-third of a day. You must complete the expression by multiplying by 24: ([Time Out] 2
[Time In]) * 24. Don’t forget the parentheses.
10. “I formatted a calculated field for Currency in the query generator, and the values did show as
currency in the query output; however, the report based on the query output does not show the
dollar sign in its output. What happened?”
Go to the report Design view. A box in one of the panels represents the calculated field’s value.
Click the box and drag to widen it. That should give Access enough room to show the dollar sign
as well as the number in the output.
11. “I cannot get a query output field to format to a specific number of decimals using the standard
format with a specified number of decimal places.”
In the property sheet format box, choose Fixed, not Standard. The Fixed setting will force the
specified number of decimal places.
12. “I told the Report Wizard to fit all of my output to one page. It does print to one page, but some
of the data is missing. What happened?”
Access fits all the output on one page by leaving data out. If you can tolerate having the output
on more than one page, deselect the Fit to a Page option in the wizard. One way to tighten output
is to enter Design view and remove space from each box that represents output values and labels.
Access usually provides more space than needed.
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Microsoft Access
13. “I grouped three fields in the Report Wizard, and the wizard prints the output in a staircase
fashion. I want the grouping fields to be on one line. How can I do that?”
Make adjustments in Design view and Layout view. See the “Creating Reports” section of this
tutorial for instructions on making these adjustments.
14. “When I create an Update query, Access tells me that zero rows are updating or more rows are
updating than I want. What is wrong?”
If your Update query is not set up correctly (for example, if the tables are not joined properly),
Access will either try not to update anything, or it will update all of the records. Check the query,
make corrections, and run it again.
15. “I made a Totals query with a Sum in the Group By row and saved the query. Now when I go
back to it, the Sum field reads ‘Expression,’ and ‘Sum’ is entered in the field name box. Is that
wrong?”
Access sometimes changes the Sum field when the query is saved. The data remains the same,
and you can be assured your query is correct.
16. “I cannot run my Update query, but I know it is set up correctly. What is wrong?”
Check that you have clicked the Enable Content button on the Security Warning message bar.
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CASE
1
PRELIMINARY CASE: DOG HIKES
Setting Up a Relational Database to Create Tables,
Forms, Queries, and Reports
PREVIEW
In this case, you will create a relational database for a start-up service company that takes city dogs for hikes
in the country. First, you will create three tables and populate them with data. Next, you will create a form
and subform for recording customers and their dogs. You will create five queries: a select query, a totals query,
a delete query, a parameter query, and a query used as the basis for a report. Finally, you will create the
report from the fifth query.
PREPARATION
•
•
Before attempting this case, you should have some experience using Microsoft Access.
Complete any part of Tutorial B that your instructor assigns, or refer to the tutorial as necessary.
BACKGROUND
Your friend, Shin-Mu, is an animal science major at your university. She knows you are a lifelong animal lover,
so Shin-Mu has approached you about a start-up business she has created. While growing up in Chicago, she
noticed that many apartment dwellers have dogs and often wondered if the dogs get enough exercise living in
confined quarters. As an experiment, she asked a few residents of her apartment building if they would let her
take their dogs to the country for a hike during the day while they were at work. Reaction was enthusiastic.
What began as an experiment is now a strong business model with a growing list of clients. Shin-Mu knows
you are taking a course that requires the use of databases, and she has enlisted your help to computerize her
system.
Here is how the business works: Customers register their dogs with Shin-Mu and sign up for weekly hikes.
Each dog is picked up for the hike in Shin-Mu’s station wagon. Shin-Mu’s friend, Matt, comes along to help
handle the dogs. Each dog is fitted with a GPS collar in case any stray from the hike in the country. Currently,
Shin-Mu uses a third party that takes care of credit card payments of $85 per hike. She wants you to concentrate on the booking side of the business. You suggest creating a Microsoft Access database to track and record
all customers, dogs, and hikes for her small business. You have experience using the program from your information systems coursework.
Your first tasks are to design the database, create the tables, and populate them with current data. You
have decided to begin in a simple fashion, so your database design includes only three tables, as shown in
Figures 1-1, 1-2, and 1-3:
•
•
•
Customers, which maintains records for each customer, including their name, address, telephone
number, and email address.
Dogs, which includes each dog’s name, breed, and owner ID.
Hikes, which includes the appointment date of each hike and the ID number of the dog taken on
the hike.
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Case 1
After the database tables are complete and populated with data, you want to computerize several common
tasks. First, you need a streamlined way to add information about customers and their dogs to the growing
business. You recognize that a form and subform would be ideal for recording information about them.
Shin-Mu lives on Oakmound Road and would like to identify customers who also live there so she can
walk to pick up their dogs. A query will easily answer that question.
Shin-Mu is curious about how many hikes each dog has taken. She is especially keen to find out which
dogs take the most hikes. You are confident that a totals query will allow Shin-Mu to identify those frequent
hikers.
If the weather is poor or a dog is sick, owners might need to cancel their appointment. You know you can
easily eliminate a record from the database with a delete query. Because you will need this capability soon,
you want to practice creating a delete query now.
Shin-Mu hires professional photographers to join her on the dog hikes because she finds that they can
capture the true feelings of city dogs in the country. The photographs are used for social media advertising.
Shin-Mu has found that certain breeds advertised on social media readily bring in new customers. So, she
might like to identify which dogs are Labradors or beagles, for example, and schedule photographers for those
hikes. You think that a parameter query would be a perfect tool for this task.
Finally, Shin-Mu would like a comprehensive summary report that lists each customer, what dogs they
own, and when they took hikes. You decide that the best solution is to use a query that feeds into the report.
ASSIGNMENT 1: CREATING TABLES
Use Microsoft Access to create tables that contain the fields shown in Figures 1-1 through 1-3; you learned
about these tables in the Background section. Populate the database tables as shown. Add your name to the
Customers table with a fictitious ID number; complete the entry by adding your name, address, telephone
number, and email address. Allocate yourself two different dogs and have them each take two hikes.
This database contains the following three tables:
FIGURE 1-1
The Customers table
FIGURE 1-2
The Dogs table
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Preliminary Case: Dog Hikes
FIGURE 1-3
The Hikes table
ASSIGNMENT 2: CREATING A FORM, QUERIES, AND A REPORT
Assignment 2A: Creating a Form
Create a form for easy recording of new customers and their dogs. The main form should be based on the
­Customers table, and the subform should include the fields from the Dogs table. Save the form as Customers
and Dogs. (Hint: If you form a relationship between the two tables, you can create their query in one step.)
View one record; if required by your instructor, print the record. Your output should resemble that shown in
Figure 1-4.
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56
Case 1
FIGURE 1-4
The Customers and Dogs form with subform
Assignment 2B: Creating a Select Query
Create a query to list all customers who live on Oakmound Road. Include columns that display the First
Name, Last Name, Street Address, and Telephone Number. Save the query as Customers on Oakmound Road.
(Hint: You may want to use a wildcard.) Your output should resemble that shown in Figure 1-5, but the data
may vary. Print the output if desired.
FIGURE 1-5
Customers on Oakmound Road query
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Preliminary Case: Dog Hikes
Assignment 2C: Creating a Totals Query
Create a totals query that lists the number of hikes each dog has taken. In the output, display columns for Dog
Name, Breed, and Number of Hikes. Sort the list of dogs from most hikes to least. Note that Number of Hikes
is a change in column heading from the default setting in the query generator. Save your query as Number of
Hikes. Your output should resemble that shown in Figure 1-6. Print the output if desired.
FIGURE 1-6
Number of Hikes query
Assignment 2D: Creating a Delete Query
Create a query that deletes a specified record from the Hikes table. Using a parameter, prompt for the
Appointment Date and the Dog ID. Test the query. When prompted to delete the record, answer “No.” Save
the query as Delete a Hike.
Assignment 2E: Creating a Parameter Query
Create a parameter query that prompts for a dog breed and then lists all the customers who have that breed
of dog. The query should include columns for Breed, Dog Name, and the customer’s First Name, Last Name,
and Email Address. Save the query as Dog Owners by Breed. Your output should resemble Figure 1-7 after you
enter “Labrador” at the prompt.
FIGURE 1-7
Dog Owners by Breed query
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Case 1
Assignment 2F: Generating a Report
Generate a report based on a query that summarizes the dogs’ hikes. The query should display columns for
customers’ First Name, Last Name, Dog Name, and Appointment Date. Save the query as Summary Report.
From that query, create a report that groups each customer’s name and then groups each dog that belongs to
the customer. Each appointment date should show under the dog’s name. Make any needed adjustments to
the output to avoid repeating names and to ensure that all fields and data are visible. Ensure that “Summary
Report” appears as the title at the top of the report, and save the report under the same name. Your report
output should resemble that shown in Figure 1-8, although only a portion of the report appears in the figure.
FIGURE 1-8
Summary report
DELIVERABLES
Assemble the following deliverables for your instructor, either electronically or in printed form:
1.
Three tables
2.
Form and subform: Customers and Dogs
3.
Query 1: Customers on Oakmound Road
4.
Query 2: Number of Hikes
5.
Query 3: Delete a Hike
6.
Query 4: Dog Owners by Breed
7.
Query 5: Summary Report
8.
Report: Summary Report
9.
Any other required printouts or electronic media
Staple all the pages together. Write your name and class number at the top of each page. Make sure that your
electronic media are labeled, if required.
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
CASE
2
THE PARKS AND RECREATION
DATABASE
Designing a Relational Database to Create Tables, Forms,
Queries, and Reports
PREVIEW
In this case, you will design a relational database for a Parks and Recreation program that offers classes for
children and young adults. After your design is complete and correct, you will create database tables and
populate them with data. You will then produce two forms, five queries, and two reports. The queries will
address the following questions or tasks: Which class members do not have a health certificate on file? How
many children have registered in each class? Who is the top participant in the program? What classes does a
particular instructor teach? How many members are 5 years old or younger? Your reports will summarize the
program’s list of parent contacts and class members and the master class list.
PREPARATION
•
•
•
Before attempting this case, you should have some experience in database design and in using
Microsoft Access.
Complete any part of Tutorial A that your instructor assigns.
Complete any part of Tutorial B that your instructor assigns or refer to the tutorial as necessary.
BACKGROUND
You are looking for a summer job and come across a notice on your hometown’s Facebook page for an
­internship to create a database for the town’s Parks and Recreation program. Because you have experience in
database design and database implementation with Microsoft Access, you apply and obtain the job. On your
first day, you meet the coordinator of the program, Steven Strickland. He quickly explains the program, which
offers classes for children and young adults. Steven also explains that the information for all families, children,
classes, instructors, and class sign-ups are recorded in a single Excel spreadsheet. The Parks and Rec program
has grown so much recently that it is impossible to find information quickly using the current system. Steven
says he wants to migrate over to a small database system to try to understand how it might work. Eventually,
the plan is to move to a larger database system that will interface with an online registration system. For now,
your job is to design the database tables and implement this prototype system using Microsoft Access.
Steven further explains that all money paid to the Parks and Rec department will be done in person at
the office. In other words, you do not have to worry about including any prices, costs, or payments in your
­prototype database.
After your conversation with Steven, you sit down with the Parks and Rec team to learn as much as you
can about the program. The team describes the sign-up process. First, parents must register with the Parks and
Rec department by filling in a form that includes their full names, addresses, telephone numbers, and email
addresses. The team says that Parks and Rec classes are very popular, and they anticipate that the number of
offerings and students will grow. A team member mentions that some parents might have the same name, so
you suggest that an identification number would be appropriate to uniquely identify each parent contact.
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Case 2
When parents sign up, they also need to register their children. Each child’s first name must be recorded;
you are told you can assume that a child has the same last name as the parent. In addition, Parks and Rec
needs to know each child’s birthdate, an emergency contact phone number, and whether the child has a
health certificate on file. Health certificates are important for certain physical activities in some of the Parks
and Rec classes. The team reminds you that many parents have multiple children; therefore, children can
have the same last name. Again, you suggest that a unique identification be created for each child.
The team goes through other details about the Parks and Rec system for you. Classes are offered on different days of the week and at different times. To avoid confusion, you suggest giving each class a unique identification. Each class has its own instructor, and an instructor might teach more than one class. Again, to avoid
any confusion, you will create an ID number for each instructor. Finally, there needs to be a way for each
child to sign up for classes.
Back in Steven’s office, you continue discussing how the preceding information fits within the new database system. First, there needs to be a way to input information for new parents and children (contacts and
members, respectively). In addition, there should be an efficient way to sign up children for classes. You suggest forms for each of these tasks, as they are an excellent method for inputting data by untrained clerks.
Steven is often searching for information in the spreadsheet that is hard to find. For example, he needs a list
of the children who do not have a health certificate on file. For scheduling purposes, he also needs to keep track
of how many children have signed up for each class. You are confident that both issues can be handled by queries.
The Parks and Rec department likes repeat students. The marketing person, Sheila, is always searching
for new methods to attract further participation. She would like to see a list of children who often participate
in the classes and perhaps use them as examples in her new marketing campaign. She also would like to see
how many young children (5 years old or less) participate in the program, in the hopes that more classes can
be added for preschoolers. You tell Sheila that you can develop queries to produce this information.
Another request from the team is a searchable query. For example, parents might drop by the office and
ask if a specific instructor is currently offering any classes, because their children enjoy being taught by that
instructor. You are confident that a parameter query will answer this question.
Finally, Steven requests two summary reports that will be useful for review purposes. One is a list of all
the contacts in the database and their family members. The second report is a master class list. You assure
Steven that these straightforward reports will be generated by the database.
ASSIGNMENT 1: CREATING THE DATABASE DESIGN
In this assignment, you design your database tables using a word-processing program. Pay close attention to
the logic and structure of the tables. Do not start developing your Access database in Assignment 2 before
getting feedback from your instructor on Assignment 1. Keep in mind that you need to examine the requirements in Assignment 2 to design your fields and tables properly. It is good programming practice to look at the
required outputs before beginning your design. When designing the database, observe the following guidelines:
•
•
•
•
•
First, determine the tables you will need by listing the name of each table and the fields it should contain. Avoid data redundancy. Do not create a field if it can be created by a calculated field in a query.
You will need a transaction table. Think about the business event that occurs with each child’s
registration. Keep in mind that some children sign up for multiple classes. Avoid duplicating data.
Document your tables using the table feature of your word processor. Your tables should resemble the format shown in Figure 2-1.
You must mark the appropriate key field(s) by entering an asterisk (*) next to the field name.
Keep in mind that some tables might need a compound primary key to uniquely identify a record
within a table.
Print the database design.
Table Name
Field Name
Data Type (text, numeric, currency, etc.)
…
…
…
…
FIGURE 2-1
Table design
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The Parks and Recreation Database
NOTE
Have your design approved before beginning Assignment 2; otherwise, you may need to redo Assignment 2.
ASSIGNMENT 2: CREATING THE DATABASE, QUERIES, AND REPORTS
In this assignment, you first create database tables in Access and populate them with data. Next, you create
two forms, five queries, and two reports.
Assignment 2A: Creating Tables in Access
In this part of the assignment, you create your tables in Access. Use the following guidelines:
•
•
•
•
•
Enter at least eight parent records that include names, addresses, email addresses, and telephone
numbers. Each parent should have at least two children. Record yourself as one child. Consider
using a fake name-and-address generator on the Web to eliminate typing.
For simplicity, create eight classes and at least four instructors.
Populate a table that lists the sign-ups for the classes. Have each child sign up for at least one
class and have a few sign up for three.
Appropriately limit the size of the text fields; for example, a telephone number does not need the
default length of 255 characters.
Print all tables if your instructor requires it.
Assignment 2B: Creating Forms, Queries, and Reports
You must generate two forms, five queries, and two reports, as outlined in the Background section of this case.
Form 1
Create a form based on your Contacts and Members tables (or whatever you named the tables). Save the form
as Add Contacts and Members. Your form should resemble the one in Figure 2-2.
FIGURE 2-2
Add Contacts and Members form
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Case 2
Form 2
Create a form based on your Classes and Sign Up tables (or whatever you named the tables). Save the form as
Add Class Sign Up. Your form should resemble the one in Figure 2-3.
FIGURE 2-3
Add Class Sign Up form
Query 1
Create a select query called Members without Health Certificate that lists all members who do not have a
health certificate on file. In the output, display columns for each member’s First Name, Last Name, Email
Address, and Telephone Number. Your output should resemble that in Figure 2-4, although your data will
be different.
FIGURE 2-4
Members without Health Certificate query
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The Parks and Recreation Database
Query 2
Create a query called Class Registration that lists the number of students in each class. Display columns for
Class Name and Number Signed Up. List the classes from most popular to least popular. Note the column
heading change from the default setting provided by the query generator. Your output should look like that in
Figure 2-5, although your data will be different.
FIGURE 2-5
Class Registration query
Query 3
Create a query called Top Participant. This query shows which students have signed up for classes and calculates how many classes they have signed up to attend. The query should include columns for First Name, Last
Name, and Number of Classes. Sort the output so that the student with the most classes is shown at the top of
the list. Note the column heading change from the default setting provided by the query generator. Your output
should resemble the format shown in Figure 2-6, but the data will be different (also, only a portion is showing).
FIGURE 2-6
Top Participant query
Query 4
Create a query called Instructor Search that prompts for an instructor’s first name and then displays his or
her first name and last name as well as the names, days, and times of the classes the instructor teaches. Your
output should resemble the format shown in Figure 2-7, but the data will be different.
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64
Case 2
FIGURE 2-7
Instructor Search query
Query 5
Create a query called Number of Members 5 or Younger that counts the number of children enrolled in the
program who are 5 years old or younger. Note the column heading change from the default setting provided
by the query generator. Your output should resemble the format shown in Figure 2-8, but the number may be
different.
FIGURE 2-8
Number of Members 5 or Younger query
Report 1
Create a report named Contact and Member List that summarizes the parents and children registered with
the Parks and Rec program. The report’s output should display headings for the parent’s last name and first
name, the child’s first name and birthdate, and an emergency contact phone number. You need to create
a query first to bring the fields from different tables together. Group the report on the contact’s last name.
Adjust your output so that a parent’s first and last names are on the same line and all fields are formatted and
visible. Depending on your data, the output should resemble that in Figure 2-9. Note that only a portion of the
report appears in the figure.
FIGURE 2-9
Contact and Member List report
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The Parks and Recreation Database
Report 2
Create a report named Master Class List that summarizes each class’s participants. The report’s output should
show headings for the class name, the instructor’s first name and last name, and each child’s first name and
last name. You need to create a query first to bring the fields from different tables together. Group the report
on the Class Name. Adjust your output so that an instructor’s first and last names are on the same line and all
fields are formatted and visible. Depending on your data, the output should resemble that in Figure 2-10. Note
that only a portion of the report appears in the figure.
FIGURE 2-10
Master Class List report
DELIVERABLES
Assemble the following deliverables for your instructor, either electronically or in printed form:
1.
Word-processed design of tables
2.
Tables created in Access
3.
Form 1: Add Contacts and Members
4.
Form 2: Add Class Sign Up
5.
Query 1: Members without Health Certificate
6.
Query 2: Class Registration
7.
Query 3: Top Participant
8.
Query 4: Instructor Search
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Case 2
9. Query 5: Number of Members 5 or Younger
10. Query for Report 1
11. Report 1: Contact and Member List
12. Query for Report 2
13. Report 2: Master Class List
14. Any other required printouts or electronic media
Staple all the pages together. Write your name and class number at the top of each page. Make sure that your
electronic media are labeled, if required.
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
CASE
3
THE SENIOR CONCIERGE DATABASE
Designing a Relational Database to Create Tables, Forms,
Queries, and Reports
PREVIEW
In this case, you will design a relational database for a senior concierge service. After your design is complete
and correct, you will create database tables and populate them with data. You will then produce one form with
a subform, eight queries, and one report. The queries will show a count of current customers, prompt for a
service and then display its price, calculate how many hours are worked for each customer, and display which
service is the most time consuming. Other queries will list the most profitable service, the best customers,
and the top workers. Still another query will update the price of a service. You will also produce a report that
summarizes all customers and the money charged for their services.
PREPARATION
•
•
•
Before attempting this case, you should have some experience in database design and in using
Microsoft Access.
Complete any part of Tutorial A that your instructor assigns.
Complete any part of Tutorial B that your instructor assigns, or refer to the tutorial as necessary.
BACKGROUND
Two of your good friends at the university, Beth and Alonzo, enjoy spending time with their grandmothers.
When Beth and Alonzo returned from winter break, they both expressed concern that their grandmothers
are slowing down and need help with various everyday tasks such as grocery shopping. Amid the concern for
their grandmothers, Beth and Alonzo also realized they had discovered a business opportunity. With very little
investment planned apart from a computer and a car, they decide to start a senior concierge service. Because
you are studying database design and Access, you know that their business model is a good fit for a small
­database system. Beth and Alonzo are excited that you are willing to work with them to create a system that
will help them keep track of customers and their services.
You agree to meet for lunch the next day to discuss the business. Beth tells you about the information she
would like to capture for each customer. Obviously, their names and addresses are essential pieces of information. Along with those, Beth would like their telephone numbers, mobile phone numbers, and email addresses.
Credit card information would also have to be stored to charge the seniors for services. Beth explains that some
senior couples will register separately, so two customers might have the same last name. You say that a unique
identification is important for each customer. Also, Beth and Alonzo are hiring workers to help them with the
jobs; you’ll need contact information to keep track of the workers and a way of uniquely identifying each worker.
Alonzo then discusses the services that he would like to perform for the senior customers. He’s noticed
that his grandmother would like to shop online because her mobility is limited, but she’s not sure how the
process works. In addition, she is sometimes confused about the bills she receives and can’t always recall
which have been paid or when they are due. Alonzo would like to begin the business by offering four different
services: online shopping, grocery shopping, miscellaneous shopping, and bill paying. Each service would have
a different hourly fee.
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Case 3
Beth says the database you design must include a way to log hours worked. So, for example, if one of the
workers does grocery shopping for a customer named Evan Brown, Beth and Alonzo want to record the name
of the worker, the date of the shopping trip, and the start and end times, because all services are charged
by the hour. Beth also wants to be able to calculate totals for all service hours. You suggest that a form is an
excellent way to log each service and the time it takes.
Beth and Alonzo go on to tell you what information they want from the database. First, they would like
to keep track of how many customers they have so far. They also explain that seniors call them to ask about
prices, so Beth and Alonzo would like to be able to type in the name of a service and quickly see its price. In
terms of popularity, they would like to monitor which customers have requested the most services and which
services are requiring the most time. You are confident that queries can handle these requests.
Because the goal of their senior concierge service is not only to help elderly customers but also to make
money, Beth and Alonzo would like to know what service brings in the most revenue and who the top customers are. Again, queries can easily handle these requests, you say. In addition, you suggest they might like to
know which workers have put in the most hours.
In looking at their initial numbers, Beth and Alonzo suspect that they might lose money on the miscellaneous shopping jobs. These trips can require a large amount of time and expense when it comes to transportation. Beth feels that the service price for miscellaneous shopping jobs should be higher. You suggest that an
update query will enable them to update the price of this service.
Finally, the pair would like a report that summarizes their customers, the services provided to them, and
the amount of money brought in for each service. This report will give them a “snapshot” of how the business
is operating.
ASSIGNMENT 1: CREATING THE DATABASE DESIGN
In this assignment, you design your database tables using a word-processing program. Pay close attention to
the logic and structure of the tables. Do not start developing your Access database in Assignment 2 before
getting feedback from your instructor on Assignment 1. Keep in mind that you need to examine the requirements in Assignment 2 to design your fields and tables properly. It is good programming practice to look at the
required outputs before beginning your design. When designing the database, observe the following guidelines:
•
•
•
•
•
First, determine the tables you will need by listing the name of each table and the fields it should contain. Avoid data redundancy. Do not create a field if it can be created by a calculated field in a query.
You will need a transaction table. Think about the business events that occur when customers
employ a service. Avoid duplicating data.
Document your tables using the table feature of your word processor. Your tables should resemble the format shown in Figure 3-1.
You must mark the appropriate key field(s) by entering an asterisk (*) next to the field name.
Keep in mind that some tables might need a compound primary key to uniquely identify a record
within a table, and that some fields might not need the number of spaces allocated by default in
the database table.
Print the database design, if required.
Table Name
Field Name
Data Type (text, numeric, currency, etc.)
…
…
…
…
FIGURE 3-1
Table design
NOTE
Have your design approved before beginning Assignment 2; otherwise, you may need to redo Assignment 2.
Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
The Senior Concierge Database
ASSIGNMENT 2: CREATING THE DATABASE, QUERIES, AND REPORTS
In this assignment, you first create database tables in Access and populate them with data. Next, you create
one form, eight queries, and a report.
Assignment 2A: Creating Tables in Access
In this part of the assignment, you create your tables in Access. Use the following guidelines:
•
•
•
•
•
Enter data for at least eight customers and six workers, as outlined in the Background section of
this case. Use your name as one of the workers. Enter home addresses, telephone numbers, and
email addresses.
Create four different jobs that can be performed: grocery shopping, miscellaneous shopping,
online shopping, and bill paying.
Create at least 20 transactions of a worker performing a job for a customer.
Appropriately limit the size of the text fields; for example, a phone number does not need the
default length of 255 characters.
Print all tables if your instructor requires it.
Assignment 2B: Creating Forms, Queries, and Reports
You will generate one form with a subform, eight queries, and a report, as outlined in the Background section
of this case.
Form 1
Create a form and subform based on your Customers table and the Hours Worked table (or whatever you
named the tables). Save the form as Customers and Services. Your form should resemble the one in Figure 3-2.
FIGURE 3-2
Customers and Services form and subform
Query 1
Create a select query called Count of Current Customers. The query should calculate and then display a
column that reports the number of customers served by the business. Note the column heading change from
the default setting provided by the query generator. Your output should resemble that shown in Figure 3-3,
although your data may be different.
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70
Case 3
FIGURE 3-3
Count of Current Customers query
Query 2
Create a parameter query called Service Price Prompt that shows the price per hour for a specified service.
The query prompts the user to enter a service and then displays headings for the Service and Price Per
Hour. For example, when you enter the service “Misc Shopping,” the output should resemble that shown in
Figure 3-4, although your data will be different.
FIGURE 3-4
Service Price Prompt query
Query 3
Create a query that calculates the number of hours worked for each customer. Display columns for each
­customer’s Last Name, First Name, Telephone, Email Address, and the Hours worked. Sort the output so that
customers who use the service the most appear at the top. Save the query as Hours Worked per Customer.
Your data will differ, but the output should look similar to that shown in Figure 3-5.
FIGURE 3-5
Hours Worked per Customer query
Query 4
Create a query called Most Time Spent on Service that lists the number of hours spent on providing each service. Display columns for the Service and Time Spent. Sort the output so that the most time-consuming service
is shown at the top. Make sure your output is formatted correctly, as shown in Figure 3-6, including any column
heading change. Your output should resemble the format shown in the figure, but the data will be different.
FIGURE 3-6
Most Time Spent on Service query
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The Senior Concierge Database
Query 5
Create a query called Most Profitable Services that displays a column for the Service and then calculates and
displays a second column named Money In. Sort the output so that the service that generates the most revenue is shown at the top. Ensure that your query output is properly formatted. Your output should r­ esemble
the format shown in Figure 3-7, but the data will be different.
FIGURE 3-7
Most Profitable Services query
Query 6
Create a query called Best Customer that displays columns for the customer’s Last Name, First Name, Email
Address, and Money In, which is a calculated field. Sort the output so that the best customer is shown at the
top. Ensure that your query output is properly formatted. Your output should resemble the format shown in
Figure 3-8, but the data will be different.
FIGURE 3-8
Best Customer query
Query 7
Create a query called Top Worker that calculates how many hours each employee has worked. The query
should display columns for each worker’s First Name, Last Name, Email, and Total Hours Worked. Sort the
output so that the most active worker appears on top. Ensure that your query output is properly formatted.
Your output should resemble the format shown in Figure 3-9, but the data will be different.
FIGURE 3-9
Top Worker query
Query 8
Create an update query called Update Price for Misc Shopping. The query should increase the hourly price of the
Misc Shopping service by 10 percent. Run the query to test it, view the results in the table, and save the query.
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Case 3
Report
Create a report called Summary Report that summarizes all work for customers. First create a query that displays each customer’s Last Name, First Name, Address, Email Address, Service, Start Time, and the calculated
amount of money charged for each service. Name the calculated field “Total Price.” Bring the query into the
report generator, and group the report on the customer name. Subtotal each customer’s Total Price. Make sure
all headings are visible and that the data is formatted correctly, as shown. Depending on your data, the output
should resemble that shown in Figure 3-10. Note that only a portion of the report is displayed.
FIGURE 3-10
Summary report
DELIVERABLES
Assemble the following deliverables for your instructor, either electronically or in printed form:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Word-processed design of tables
Tables created in Access
Form and subform: Customers and Services
Query 1: Count of Current Customers
Query 2: Service Price Prompt
Query 3: Hours Worked per Customer
Query 4: Most Time Spent on Service
Query 5: Most Profitable Services
Query 6: Best Customer
Query 7: Top Worker
Query 8: Update Price for Misc Shopping
Query for report
Report: Summary Report
Any other required printouts or electronic media
Staple all the pages together. Include your name and class number at the top of each page. Make sure that
your electronic media are labeled, if required.
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
CASE
4
THE FRESH FISH DISTRIBUTOR
DATABASE
Designing a Relational Database to Create Tables, Forms,
Queries, and Reports
PREVIEW
In this case, you will design a relational database for a business that distributes freshly caught fish to local
restaurants. After your design is complete and correct, you will create database tables and populate them with
data. You will then produce two forms with subforms, six queries, and two reports. Two queries will report
lists of customers in a specified city and shipments on a specified date. Two queries will update the inventory
of fish by adding any new shipments and subtracting any orders. Other queries will show the business owner
what type of fish is ordered the most in a particular month and how much money is spent on fish in a particular month. You will also produce two reports based on queries that summarize orders and shipments.
PREPARATION
•
•
•
Before attempting this case, you should have some experience in database design and in using
Microsoft Access.
Complete any part of Tutorial A that your instructor assigns.
Complete any part of Tutorial B that your instructor assigns, or refer to the tutorial as necessary.
BACKGROUND
Being a university business student, you have a keen interest in how companies work. You meet your Uncle
Dave at a Memorial Day barbecue and spend some time with him discussing his business. Uncle Dave has
lived in Maine all his life and has built a small business on being the middleman for fishermen and local restaurants that serve the local catch. Dave is friends with many of the fishermen. They bring him their harvest
and he distributes the fish to restaurants on the coast of Maine that boast fresh—not frozen—local seafood.
Uncle Dave’s business has always been run on pads of paper, but he suspects after talking with you that he can
become much more efficient if he uses a computer system. Because you have been studying databases, Uncle
Dave enlists your help over the summer to create a small database and then train him on the system. If he
embraces the computer system, he’ll move all of his paper-based records to electronic files.
On the first day of your summer job, you meet with Uncle Dave to learn how the business works. He
describes the information he keeps on paper. First, he has an address book of all the restaurants that order
from his distribution company. In that address book, he has the name of each customer, which is a restaurant
name, along with the restaurant’s address, phone number, and an email contact. Uncle Dave has a hard time
keeping track of some of the restaurants because they have similar names. You jot down that statement and
realize that each customer needs an identification number to keep everything straight. Uncle Dave also deals
with three friends who are his suppliers of fresh fish. He keeps the business cards of these friends taped to the
wall near his desk. The business cards list each fishing company’s name, address, and phone number.
Dave has laminated a large sheet that lists all the types of fish he deals in, including their prices per
pound. As you examine this list, you find it confusing because many fish have the same names but come
in different sizes or varieties. Again, you make a mental note to create a unique identification for each
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74
Case 4
type of fish. Next to each fish listed, Uncle Dave has written an amount with a marker. Because the sheet is
­laminated, he can wipe the numbers off the sheet and rewrite them to reflect any updates of shipments as
they arrive in the warehouse and as orders depart the warehouse. After seeing this system, you realize that
Uncle Dave needs a database to help him keep track of incoming shipments and outgoing orders without
­relying on his mental math and marker erasures.
Dave personally delivers the fish to his client restaurants on a daily basis. To keep driving to a minimum,
he likes to group his orders by city. You explain that a query will help him determine which restaurants placed
orders on a given day so he can ensure he doesn’t miss any deliveries in a particular city. Uncle Dave would
also like to know what shipments are coming in each day to ensure immediate and proper storage.
You explain to your uncle that his method of keeping track of inventory is outdated, inefficient, and perhaps inaccurate at times. You realize that a series of transaction tables to capture all shipments and orders
are important to this design. These tables will be used to create a daily update of the main table that holds
the inventory. Therefore, you know you must create two update queries that will allow the system to add new
shipments to inventory and subtract fish that has been ordered.
After you spend some time with Uncle Dave, he realizes that the proposed computer system can produce
good information, so he gives you his “wish list.” He would like to be able to see which fish is the most popular order in a given month. He would also like to track how much money he spends on fish in a month. You
proudly tell him that both of those requests are easily fulfilled with queries.
Finally, you suggest two reports that will give your uncle a good understanding of his customers and
­suppliers. The first report will summarize the orders of fish for each restaurant. The second report will summarize shipments from each fish supplier and calculate how much money is spent on those shipments.
ASSIGNMENT 1: CREATING THE DATABASE DESIGN
In this assignment, you design your database tables using a word-processing program. Pay close attention to
the logic and structure of the tables. Do not start developing your Access database in Assignment 2 before
getting feedback from your instructor on Assignment 1. Keep in mind that you need to examine the requirements in Assignment 2 to design your fields and tables properly. It is good programming practice to look at the
required outputs before beginning your design. When designing the database, observe the following guidelines:
•
•
•
•
•
First, determine the tables you will need by listing the name of each table and the fields it should contain. Avoid data redundancy. Do not create a field if it can be created by a calculated field in a query.
You will need transaction tables. Think about the business events that occur with each order and
each shipment. Avoid duplicating data.
Document your tables using the table feature of your word processor. Your tables should
­resemble the format shown in Figure 4-1.
You must mark the appropriate key field(s) by entering an asterisk (*) next to the field name.
Keep in mind that some tables might need a compound primary key to uniquely identify a record
within a table.
Print the database design, if required.
Table Name
Field Name
Data Type (text, numeric, currency, etc.)
…
…
…
…
FIGURE 4-1
Table design
NOTE
Have your design approved before beginning Assignment 2; otherwise, you may need to redo Assignment 2.
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The Fresh Fish Distributor Database
ASSIGNMENT 2: CREATING THE DATABASE, QUERIES, AND REPORTS
In this assignment, you first create database tables in Access and populate them with data. Next, you create
two forms, six queries, and two reports.
Assignment 2A: Creating Tables in Access
In this part of the assignment, you create your tables in Access. Use the following guidelines:
•
•
•
•
Enter data for at least 10 restaurants, 3 fishing companies, and 15 different types of fish. Consider searching the Internet for name-and-address generators, which will create the necessary
details for your data. These generators often create lists in Microsoft Excel. You can then import
the Excel spreadsheet into Microsoft Access and adjust for any changes to field types.
Create at least 10 orders and 10 incoming shipments with multiple types of fish in many of the
orders and shipments. Consider using Microsoft Excel and the Randbetween function to generate
a large amount of data.
Appropriately limit the size of the text fields; for example, a phone number does not need the
default length of 255 characters.
Print all tables if your instructor requires it.
Assignment 2B: Creating Forms, Queries, and Reports
You will generate two forms with subforms, six queries, and two reports, as outlined in the Background section
of this case.
Form 1
Create a form and subform based on your Orders table and Order Line Item table (or whatever you named the
tables). Save the form as Orders. Your form should resemble the one in Figure 4-2.
FIGURE 4-2
Orders form and subform
Form 2
Create a form and subform based on your Incoming Shipments table and Incoming Shipment Line Item table
(or whatever you named the tables). Save the form as Incoming Shipments. Your form should resemble the
one in Figure 4-3.
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76
Case 4
FIGURE 4-3
Incoming Shipments form and subform
Query 1
Create a select query called Customers in What City that uses a wildcard after the first letter of the city on
the criteria line and then displays columns for the Customer Name, Customer Address, Customer City, and
Customer Phone. If your query shows cities beginning with “W,” your output should resemble that shown in
Figure 4-4, although your data will be different.
FIGURE 4-4
Customers in What City query
Query 2
Create a query called Shipments on What Date. The query prompts for a date. When the date is entered,
the query displays columns for Date, Fish, Quantity, and Supplier. The output for October 1, 2019 should
­resemble that shown in Figure 4-5, although your data will be different.
FIGURE 4-5
Shipments on What Date query
Query 3
Create an update query that adds the quantity of fish shipped to the business into the fish inventory. Run the
query to test it and update the data. Check the updated table to ensure that the update is correct.
Query 4
Create an update query that subtracts the fish that has been ordered from inventory. Run the query to test it
and update the data. Check the updated table to ensure that the update is correct.
Query 5
Create a query called Most Popular Fish Ordered in October that displays the list of fish and the quantities
ordered in the month of October (or whatever month your data covers). Sort the output to show the most popular
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
The Fresh Fish Distributor Database
fish order first. Your output should resemble the format shown in Figure 4-6, but the data will be different. Also,
note that the column heading has been changed from the default setting provided by the query generator.
FIGURE 4-6
Most Popular Fish Ordered in October query
Query 6
Create a query called Money Spent on Fish in October that displays columns for Fish and Total Cost for the
month of October (or whatever month your data might cover). Display the type of fish for which the company
has spent the most money at the top of the list. Your output should resemble the format shown in Figure 4-7,
but the data will be different.
FIGURE 4-7
Money Spent on Fish in October query
Report 1
Create a report called Order Report that summarizes orders of fish. First, you need to create a query to amass the
required data. The report should include headings for Customer Name, Customer Address, Customer City, Fish,
and Quantity. Group the report by the customer’s name. Include subtotals that display the total quantity ordered
by each customer. Make sure all headings are visible and that the data is formatted correctly, as shown. Depending on your data, the output should resemble that in Figure 4-8, although only a portion of the output is shown.
FIGURE 4-8
Order report
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Case 4
Report 2
Create a report called Shipment Report that summarizes all shipments of fish to the business. First, you need
to create a query to gather the required data. The report should include headings for each Supplier Name,
Supplier City, Fish, Quantity, and Cost, which is a calculated field. Group the report by the supplier’s name.
Include subtotals that display the total cost of all shipments. Make sure all headings are visible and that the
data is formatted correctly, as shown. Depending on your data, the output should resemble that in Figure 4-9,
although only a portion of the output is shown.
FIGURE 4-9
Shipment report
DELIVERABLES
Assemble the following deliverables for your instructor, either electronically or in printed form:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Word-processed design of tables
Tables created in Access
Form 1 and subform: Orders
Form 2 and subform: Incoming Shipments
Query 1: Customers in What City
Query 2: Shipments on What Date
Query 3: Adding Incoming Shipments to Inventory
Query 4: Subtracting Orders from Inventory
Query 5: Most Popular Fish Ordered in October
Query 6: Money Spent on Fish in October
Report 1: Order
Report 2: Shipment
Data analysis memo
Presentation materials
Any other required printouts or electronic media
Staple all the pages together. Include your name and class number at the top of each page. Make sure that
your electronic media are labeled, if required.
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
CASE
5
THE VOLUNTEER FIRE COMPANY
DATABASE
Designing a Relational Database to Create Tables, Forms,
Queries, and Reports
PREVIEW
In this case, you will design a relational database for your local volunteer fire company. After your tables are
designed and created, you will populate the database and create a form with subforms, five queries, and a
report. The form and subforms will allow for easy logging of dispatches, response details, and member information. The queries will address the following questions: What types of fire calls are most frequent? Which
volunteers respond to the most fire calls? What is the total value of the properties at risk? How many volunteers respond to each call? A fifth query will calculate the amount of money saved by the township by using
volunteers. The report will summarize the call details.
PREPARATION
•
•
•
Before attempting this case, you should have some experience in database design and in using
Microsoft Access.
Complete any part of Tutorial A that your instructor assigns.
Complete any part of Tutorial B that your instructor assigns, or refer to the tutorial as necessary.
BACKGROUND
In 1736, Benjamin Franklin co-founded the Union Fire Company, also known as the “Bucket Brigade.” It was
the first formally organized, all-volunteer fire company in the American colonies, and it was shaped after
­Boston’s Mutual Fire Societies. The difference between the fire societies of Boston and Franklin’s Union Fire
Company was that the former protected its members only, while the latter protected the entire community.
A lot has changed since colonial times, but volunteer fire companies remain a cornerstone of emergency
­services in our country.
You met with the president of your local fire company, Hester Ordonez, and she explained the need to
create an information system to track dispatches and call details. The system is needed in order to better
manage the company and allow it to apply for various grants at the state and federal levels. For years, the fire
company has been logging calls and their details using paper forms. All volunteer fire companies rely heavily
on grants to fund their operations, so any grant application needs to demonstrate compliance with any new
requirements in the application process. Hester understands the need to modernize record keeping for data
gathering and analysis; however, the most pressing driver behind the need to modernize the information system is the state and federal reporting requirements for grant eligibility.
Since you’ve been taking your information systems class, you’ve realized that a lot of the work involved
in managing a fire company is keeping the information logically organized. You have experience in database
design, so you decided to volunteer your time to solve this problem. You have spent a week observing the
­day-to-day operations of the fire company to get acquainted with its inner workings and procedures, and you
have also reviewed their paper process to log each call. Hester has provided you with a blank copy of the call
log sheet, as shown in Figure 5-1.
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80
Case 5
FIGURE 5-1
Call log sheet
Armed with your observations and the call log sheet, you begin to draft the design for the database. You
also note the following details:
•
•
The company has five emergency response vehicles, each with a primary purpose.
o Engine: Water pumping operations
o Quint: Aerial operations
o Rescue: Vehicle accidents and rescue operations
o Utility: General support operations and traffic management
o Chief’s Vehicle: Command vehicle, generally first to respond
The top portion of the company members list in Figure 5-2 shows whether a member is qualified
to drive an official vehicle and/or is a qualified interior firefighter.
Name
Address
DOB
Telephone
Email
Interior
Qualified?
Driver
Qualified?
John Smith
123 Main St
8/21/1984
302.831.1000
John.Smith@email.com
YES
NO
Amal
Alamuddin
850 Hoover St
9/17/2000
302.555.5548
Amal.Alamuddin@email.com
YES
YES
FIGURE 5-2
Members list
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The Volunteer Fire Company Database
Once your database is designed and implemented, you know that a number of forms, queries, and reports
will be useful. Forms will help company members enter relevant data into the database. For example, you will
create a form that lists all of a call’s details and a response summary, and a subform that will list all members
and vehicles that respond to a call.
Next, you will create queries. For example, a list of which volunteers respond most frequently to calls will
be helpful because the top five volunteers will be formally recognized at the annual banquet. Another query
will report the distribution of call types throughout the year; this is an important detail needed for some grant
applications. The company also needs to be able to aggregate the “value at risk” for all calls for a requested
period of time. Value at risk is a measure of the total monetary value of assets that are at risk in a fire. Other
queries will show how many volunteers respond to each call and calculate the monetary savings to the township by using volunteers.
On an ad hoc basis, the fire company needs to produce a report to submit along with grant applications.
For a specified period, the report will list a summary of calls, including total value at risk, value lost, and call
type distribution.
ASSIGNMENT 1: CREATING THE DATABASE DESIGN
In this assignment, you design your database tables using a word-processing program. Pay close attention to
the logic and structure of the tables. Do not start developing your Access database in Assignment 2 before
getting feedback from your instructor on Assignment 1. Keep in mind that you need to examine the requirements in Assignment 2 to design your fields and tables properly. It is good programming practice to look at the
required outputs before beginning your design. When designing the database, observe the following guidelines:
•
•
•
•
•
First, determine the tables you will need by listing the name of each table and the fields it should
contain. Avoid data redundancy. Do not create a field if it can be created by a calculated field in
a query.
You will need a few transaction tables to record response summaries.
Document your tables using the table feature of your word processor. Your tables should resemble the format shown in Figure 5-3.
You must mark the appropriate key field(s) by entering an asterisk (*) next to the field name.
Keep in mind that some tables might need a compound primary key to uniquely identify a record
within a table.
Print the database design.
Table Name
Field Name
Data Type (text, numeric, currency, etc.)
…
…
…
…
FIGURE 5-3
Table design
NOTE
Have your design approved before beginning Assignment 2; otherwise, you may need to redo Assignment 2. Your design should
account for all the information included in this case, as well as assumptions you can make about the operations of the fire
company.
ASSIGNMENT 2: CREATING THE DATABASE, FORMS, QUERIES, AND REPORT
In this assignment, you first create database tables in Access and populate them with data. Next, you create a
form and subforms, five queries, and a report.
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
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82
Case 5
Assignment 2A: Creating Tables in Access
In this part of the assignment, you create your tables in Access. Use the following guidelines:
•
•
•
Create records for 20 fire company members with fictitious names, addresses, dates of birth,
telephone numbers, and email addresses. Also, note whether each member is qualified to drive
an official vehicle and/or is a qualified interior firefighter. Consider searching the Internet for a
list of random names and addresses to alleviate typing.
Create records for each of the five response vehicles.
Create records for at least 10 fire calls. Each call should have at least five responding members
and at least one emergency vehicle.
Assignment 2B: Creating Forms, Queries, and a Report
You will create a form and subforms, five queries, and one report, as outlined in the Background section of
this case.
Form
Create a form and subforms based on your Calls, Responding Members, and Responding Vehicles tables (or
whatever you called those tables). Save the form as Calls. Your form should look similar to the one in Figure 5-4.
FIGURE 5-4
Calls form
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
The Volunteer Fire Company Database
Query 1
Hester needs to know which five members respond to the most fire calls. Create a query that lists each
­member name and calculates his or her total number of responses. Save your query as Top 5. Your output
should look like that shown in Figure 5-5, although only the top portion of the report appears in the figure.
FIGURE 5-5
Top 5 query
Query 2
You need to determine how many calls of each type occur each month. Create a query called Monthly Call
Distribution by Type that calculates the total number of calls by incident type; display Incident Type, Month,
and Count as the column headings. Your data will differ, but the layout of the query should look like that
shown in Figure 5-6.
FIGURE 5-6
Monthly Call Distribution by Type query
Query 3
The company also needs to be able to aggregate the “value at risk” for all calls in a given year. Create a prompt
query that asks the user to enter the incident year and then calculates the total value at risk for that year.
Save the query as Value at Risk for the Year. The results should look like those in Figure 5-7.
FIGURE 5-7
Value at Risk for the Year query
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Case 5
Query 4
Hester needs to know the average number of responding members per call throughout the year. Create a
query that averages the total number of responding members per call for every month of a given year. You
may need to create a series of queries in order to have the right data to create the correct answer. Save the
query as Response Average. Your output might look like that shown in Figure 5-8.
FIGURE 5-8
Response Average query
Query 5
As part of fund-raising efforts, the company calculates the savings to the township by using volunteers rather
than hiring full-time firefighters. Using the national average hourly rate of $20 for firefighters, create a query
that tallies the amount saved each month, based on how many members responded to a call and for how long.
You may need to create a series of queries in order to have the right data to create the correct answer. Save
the query as Township Savings. Your output should look like that shown in Figure 5-9.
FIGURE 5-9
Township Savings query
Report
Create a report called Grant Report. First, create a query that will feed into this report. The query should also
be named and saved as Grant Report. Display columns for Incident Type, Dispatch Date, Value at Risk, and
Value Lost. Bring the query into the report generator and group the data by Incident Type, then by Dispatch
Date. Your output should resemble that shown in Figure 5-10, although only the top portion of the report
appears in the figure.
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The Volunteer Fire Company Database
FIGURE 5-10
Grant report
DELIVERABLES
Assemble the following deliverables for your instructor, either electronically or in printed form:
1.
Word-processed design of tables
2.
Tables created in Access
3.
Form: Calls
4.
Query 1: Top 5
5.
Query 2: Monthly Call Distribution by Type
6.
Query 3: Value at Risk for the Year
7.
Query 4: Response Average
8.
Query 5: Township Savings
9.
Report: Grant Report
Staple all the pages together. Write your name and class number at the top of each page. Make sure that your
electronic media are labeled, if required.
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85
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PART
2
DECISION SUPPORT
CASES USING MICROSOFT
EXCEL SCENARIO MANAGER
TUTORIAL C
Building a Decision Support System in Excel, 89
CASE 6
The Ski Resort Investment Decision, 113
CASE 7
The College Town Budget, 121
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TUTORIAL
C
BUILDING A DECISION SUPPORT
SYSTEM IN EXCEL
A decision support system (DSS) is a computer program that can represent a problem a user needs to solve.
Such a representation is in effect a model of a problem.
Here’s how a DSS program works: The program accepts input from the user or accesses data in the system’s files and then runs the input and any other necessary data through the model. The program’s output is
the information the user needs to solve a problem. Some DSS programs recommend a solution to a problem.
A DSS can be written in any programming language that lets a programmer represent a problem. For
example, a DSS can be built in a third-generation language such as Visual Basic or in a database package such
as Access. A DSS can also be written in a spreadsheet package such as Excel.
Excel has standard, built-in arithmetic functions as well as many statistical and financial functions. Thus,
many kinds of problems—such as those in accounting, operations, and finance—can be modeled in Excel.
This tutorial is organized into four sections as follows:
•
•
•
•
Spreadsheet and DSS Basics—In this section, you’ll learn how to create a DSS program in Excel.
Your program will be in the form of a cash flow model. This section will give you practice in
spreadsheet design and in building a DSS program.
Using Scenario Manager—In this section, you’ll learn how to use an Excel tool called Scenario
Manager. With any DSS package, one problem with playing “what if” is deciding where to physically record the results from running each set of data. A user could write the inputs and related
results on a sheet of paper. Then, the user might have to enter the data back into a spreadsheet
for further analysis. Scenario Manager solves this problem. It can be set up to capture inputs
and related results as “scenarios,” which are then summarized on a separate sheet in the Excel
workbook.
Practicing with Scenario Manager—You will work on a new case problem using Scenario Manager.
Reviewing Excel Basics—This section reviews additional information you may need to do the
spreadsheet cases that follow this tutorial.
SPREADSHEET AND DSS BASICS
Assume it is late in Year 1 of a three-year period, and you are trying to build a model of a company’s net
income (profit) and cash flow for Years 2 and 3. The problem is to forecast net income and cash flow in those
years. The company is likely to use the forecasts to make decisions, so the estimates should be as accurate as
you can make them. After researching the problem, you decide that the estimates should be based on three
factors: (1) Year 1 results, (2) estimates of the underlying economic variables, and (3) the cost of products the
company sells.
Your model will use an income statement and cash flow framework. The user can enter values for two possible states of the economy in Years 2 and 3: an O for an optimistic outlook or a P for a pessimistic outlook.
The state of the economy is expected to affect the number of units the company can sell as well as each unit’s
selling price. In a good (optimistic) economy, more units can be sold at a higher price. The user can also enter
values into your model to see two possible trends in the cost of goods sold: U for up or D for down. A U means
that the cost of an item sold will be higher than it was in Year 1; a D means that the cost will be less.
Presumably, the company will do better in a good economy and with lower input costs—but how much
better? The user can play “what if” with the input variables and note the effect on net income and y
­ ear-end
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Tutorial C
cash levels. For example, a user can ask these questions: What if the economy is good and costs go up? What
will net income and cash flow be in that case? What will happen if the economy is down and costs go down?
What will be the company’s net income and cash flow in that case? With an Excel software model, the answers
to such questions can be quantified.
Organization of the DSS Model
Your spreadsheets should have the following sections:
•
•
•
•
•
Constants
Inputs
Summary of Key Results
Calculations of values that will be used in the Income and Cash Flow statements
Income and Cash Flow statements
Here, as an extended illustration, a DSS model is built for the forecasting problem described. Next, you’ll look
at each spreadsheet section. Figures C-1 and C-2 show how to set up the spreadsheet. (You can also use the spreadsheet skeleton if you prefer; this will save you time. Select Tutorial C in your data files, and then select TutC.xlsx.)
FIGURE C-1 Tutorial skeleton 1
FIGURE C-2 Tutorial skeleton 2
Each spreadsheet section is discussed next.
Constants Section
This section of Figure C-1 records values that are used in spreadsheet calculations. In a sense, the constants
are input values used by the model, except that they do not change. In this tutorial, the constants are Tax
Rate and the Number of Business Days.
Inputs Section
The inputs shown in Figure C-1 are for the Economic Outlook and Purchase Price Outlook (the outlook for
manufacturing input costs). Inputs could conceivably be entered for each year the model is covered (here,
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Building a Decision Support System in Excel
Year 2 and Year 3), which would let you enter an O for Year 2’s economy in one cell and a P for Year 3’s economy in another cell. Alternatively, one input for the two-year period could be entered in one cell. For simplicity, the latter approach is used in this example.
Summary of Key Results Section
This section of the spreadsheet captures Year 2 and Year 3 Net Income After Taxes (profit) and End-of-Year
Cash On Hand, which you should assume are the two relevant outputs of this model. The summary merely
repeats results in one easy-to-see location; otherwise, these results could appear in various places in the
spreadsheet. Collecting key results in one place also makes for easier charting.
Calculations Section
This area is used to compute the following data:
•
•
•
•
The Number of units sold in a day, which is a function of the Year 1 value and the economic outlook input value
The Selling price per unit, which is similarly derived
The Cost of goods sold per unit, which is a function of the Year 1 value and the purchase-price
outlook value
The Number of units sold in a year, which equals the number of units sold in a day multiplied by
the number of business days in a year
The formulas could be embedded in the Income Statement and Cash Flow Statement section of the
spreadsheet, which will be described shortly. Doing that, however, would result in expressions that are complex and difficult to understand. Putting the intermediate calculations into a separate Calculations section
breaks up the work into modules. This is good form because it simplifies your programming.
Income Statement and Cash Flow Statement Section
This section is the “body” of the spreadsheet. It shows the following:
•
•
•
•
•
•
•
Beginning-of-year cash on hand, which equals cash at the end of the prior year.
Sales (Revenue), which equals the units sold during the year multiplied by the unit selling price.
Cost of goods sold, which is units sold during the year multiplied by the price paid to acquire or
make the unit sold.
Income before taxes, which equals sales minus cost of goods sold.
Income tax expense, which is zero when there are losses; otherwise, it is the income before taxes
multiplied by the tax rate.
Net income after taxes, which equals income before taxes minus income tax expense.
End-of-year cash on hand, which is beginning-of-year cash on hand plus net income.
In the real world, cash flow estimates must also account for changes in other accounts, such as receivables and payables. In this case, assume that sales are collected immediately—that is, there are no receivables
or bad debts. Also assume that suppliers are paid immediately—that is, there are no payables.
Constructing the Spreadsheet Model
Next, you will work through the following three steps to build your spreadsheet model:
•
•
•
Make a “skeleton” of the spreadsheet.
Fill in the “easy” cell formulas.
Enter the “hard” spreadsheet formulas.
Making a Skeleton
Your first step is to set up a skeleton worksheet. Alternatively, you can use the skeleton file,
as ­previously noted. The worksheet should have headings, text string labels, and constants—but no
formulas yet.
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Tutorial C
To set up the skeleton, you must first grasp the problem conceptually. The best way to do that is to work
backward from what the “body” of the spreadsheet will look like. Here, the body is the Income Statement and
Cash Flow Statement section. Set up the body in your mind or on paper, and then do the following:
•
•
•
•
•
Decide what amounts should be in the Calculations section. In the income statement of this tutorial’s model, Sales (Revenue) will be Number of units sold in a day multiplied by Selling price
per unit. You will calculate the intermediate amounts (Number of units sold in a year and Selling
price per unit) in the Calculations section.
Set up the Summary of Key Results section by deciding what outputs are needed to solve the
problem.
The Inputs section should be reserved for amounts that can change: the controlling variables,
which here are the Economic Outlook and the Purchase Price Outlook.
Use the Constants section for values you will need to use but that are not in doubt; that is,
you will not have to input them or calculate them. The Tax Rate is a good example of such
a value.
Type in the Excel skeleton shown in Figures C-1 and C-2.
NOTE
A designation of NA means that a cell will not be used in any formula in the worksheet. The Year 1 values are needed only for
certain calculations, so for the most part, the Year 1 column’s cells show NA. (Recall that the forecast is for Years 2 and 3.) Also
be aware that you can “break” a text string in a cell by pressing the Alt and Enter keys at the same time at the break point, which
makes the cell “taller.” To show centered data and create borders in cells, see “Formatting Cells” later in this tutorial.
Entering the “Easy” Formulas
You can enter formulas in any order you choose. We recommend entering the conceptually easier formulas
first and then moving on to more difficult ones. Thus, the next step is to enter the “easy” formulas, starting
with those in the Summary of Key Results section. To prepare, you should format the section’s cells as currency with zero decimals. (For details, see “Formatting Cells” later in this tutorial.) As previously mentioned,
the Summary of Key Results section (see Figure C-3) simply echoes results shown in other places. Consider
Figures C-1 and C-2, and note that cell C27 in Figure C-2 holds the Year 2 Net income after taxes. You need
to echo that amount to cell C12, so the formula in C12 is simply 5C27. The simple logic is: “Copy what is in
C27 into C12.”
NOTE
With the insertion point in C12, the cell’s contents—in this case, the formula 5C27—appear in the editing window above the lettered column indicators, as shown in Figure C-3.
FIGURE C-3 Echoing Year 2 Net Income After Taxes to Summary of Key Results section
At this point, cell C27 has a zero value, but that does not prevent you from copying the formula in the
cell. Copy cell C12’s formula to the right, to cell D12. Copying puts 5D27 into D12, which is what you want.
(Year 3’s Net income after taxes is in D27.)
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Building a Decision Support System in Excel
To perform the copy operation, you can use the following steps:
1.
2.
3.
4.
5.
Click in the cell or range of cells that you want to copy.
Hold down the Control key and press C (Ctrl1C).
Select the destination cell. If a range of cells is the destination, select the upper-left cell of the
destination range.
Hold down the Control key and press V (Ctrl1V).
Press the Escape key to deactivate the copied cell or range.
You can also take the following steps to copy cell contents:
1.
2.
3.
4.
5.
6.
Select the Home tab.
Click in the cell or range of cells that you want to copy.
In the Clipboard group, select Copy.
Select the destination cell. If a range of cells is the destination, select the upper-left cell of the
destination range.
In the Clipboard group, select Paste.
Press the Escape key to deactivate the copied cell or range.
As you can see in Figure C-4, End-of-Year Cash On Hand for Year 2 cash is echoed to cell C13. Echo the
cash results in cell C28 to cell C13. (Enter the formula 5C28 in cell C13, as shown in Figure C-4.)
Copy the formula from C13 to D13.
FIGURE C-4 Echoing Year 2 End-of-Year Cash On Hand to Summary of Key Results section
At this point, the Calculations section formulas will not be entered because they are not all “easy”
f­ormulas. We will move on to the easier formulas in the Income and Cash Flow Statements section, as if the
Calculations section formulas were already done. Again, the fact that the Calculations section cells are empty
does not stop you from referencing the cells in other formulas. You should format the cells in the Income
­Statement and Cash Flow Statement section for currency with zero decimals.
As you can see in Figure C-5, Beginning-of-year cash on hand is the cash on hand at the end of the prior
year. Cell B28 has the End-of-year cash on hand for Year 1. In cell C22 for Year 2, type 5B28, as shown in
­Figure C-5.
FIGURE C-5 Echo of Year 1 End-of-year cash on hand to Year 2 Beginning-of-year cash on hand
Your next step is to copy the formula in cell C22 to the right.
Sales (Revenue) is the Number of units sold in a year multiplied by Selling price per unit. In cell C23,
enter 5C17 * C19, as shown in Figure C-6.
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Tutorial C
FIGURE C-6 Entering the formula to compute Year 2 sales
The formula 5C17 * C19 multiplies the unit selling price by the units sold for the year. (Cells C17 and
C19 are empty now, which is why Sales shows a zero after the formula is entered.) Copy the formula to the
right, to cell D23.
The Cost of goods sold is handled similarly. In C24, enter 5C18 * C19, which equals Cost of goods sold
per unit multiplied by Number of units sold in a year. Copy the formula to the right.
In cell C25, the formula for Income before taxes is 5C23–C24. Enter the formula and copy it to the right.
Income taxes are paid only on positive income before taxes. In cell C26, the Income tax expense is zero
when the Income before taxes is zero or less; otherwise, Income tax expense equals the Tax Rate multiplied by
income before taxes. The Tax Rate is a constant (in cell C4). An IF statement is needed to express this logic:
IF(Income before taxes is <5 0,
then put zero tax in C26,
else, in C26, put a number equal to multiplying the Tax Rate by the income before taxes)
C25 stands for Income before taxes, and C4 stands for Tax Rate. In Excel, substitute those cell addresses:
5IF(C25 <5 0, 0, C4 * C25)
Copy the income tax expense formula to the right.
In cell C27, Net income after taxes is Income before taxes minus Income tax expense: 5C25−C26. Enter
the formula and then copy it to the right.
The End-of-year cash on hand is the Beginning-of-year cash on hand plus Net income after taxes. In cell
C28, enter 5C221C27. Copy the formula to the right. The Income Statement and Cash Flow Statement
­section at this point is shown in Figure C-7.
FIGURE C-7 Status of Income Statement and Cash Flow Statement
Entering the “Hard” Formulas
The next step is to finish the spreadsheet by filling in the “hard” formulas. In our example, formulas that use
Inputs section values are considered the “hard” ones.
In cell C8, enter an O for Optimistic, and in C9, enter a U for Up. There is nothing special about these
­values—they just give the worksheet formulas input values to process. Recall that the inputs will cover
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Building a Decision Support System in Excel
both Year 2 and Year 3. Enter NA in cells D8 and D9 to remind yourself that those cells will not be used for input
or be referenced by other worksheet formulas. Your Inputs section should look like the one shown in Figure C-8.
FIGURE C-8 Entering two input values
Recall that cell addresses in the Calculations section are already referred to in formulas in the Income
Statement and Cash Flow Statement section. The next step is to enter formulas for those calculations. Before
doing that, format the Number of units sold in a day and Number of units sold in a year for zero decimals, and
format the Selling price per unit and Cost of goods sold per unit for currency with two decimals.
The easiest formula in the Calculations section is the Number of units sold in a year, which is the Number
of Business Days (in C5) multiplied by the Number of units sold in a day, as shown in cell C16. In C19, enter
5C5 * C16, as shown in Figure C-9.
FIGURE C-9 Entering the formula to compute Year 2 Number of units sold in a year
Copy the formula to cell D19 for Year 3.
Assume that if the Economic Outlook is Optimistic, the Year 2 Number of units sold in a day will be 6 percent more than in Year 1; in Year 3, they will be 6 percent more than in Year 2. Also assume that if the Economic Outlook is Pessimistic, the Number of units sold in a day in Year 2 will be 1 percent less than those sold
in Year 1; in Year 3, they will be 1 percent less than those sold in Year 2. An IF statement is needed in cell C16
to express this logic:
IF(economy variable 5 Optimistic,
Then Number of units sold in a day will go UP 6 percent,
Else Number of units sold in a day will go DOWN 1 percent)
Substituting cell addresses:
5IF($C$8 5 “O”, B16 * 1.06, B16 * .99)
NOTE
In Excel, quotation marks denote text. The input is one letter of text, so quotation marks are needed around the O. Also note that
multiplying by 1.06 results in a 6 percent increase, whereas multiplying by 0.99 results in a 1 percent decrease.
Enter the entire IF formula into cell C16, as shown in Figure C-10. Absolute addressing is needed when
referring to the input value ($C$8), because the address is in a formula that gets copied and you do not want
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Tutorial C
the cell reference to change (to D8, which has the value NA) when you copy the formula to the right. Absolute
addressing maintains the $C$8 reference when the formula is copied.
FIGURE C-10
Entering the formula to compute Year 2 Number of units sold in a day
Copy the formula in C16 to D16 for Year 3.
The Selling price per unit is also a function of the Economic Outlook. Assume that the two-part rule is as
follows:
•
•
If the Economic Outlook is Optimistic, the Selling price per unit in Year 2 will be 1.07 times that
of Year 1; in Year 3, it will be 1.07 times that of Year 2.
On the other hand, if the Economic Outlook is Pessimistic, the Selling price per unit in Year 2
and Year 3 will equal the per-unit price in Year 1; that is, the price will not change.
Test your understanding of the selling price calculation by figuring out the formula for cell C17. Enter the
formula and copy it to the right. (Hint: You will need to use absolute addressing properly.)
The Cost of goods sold per unit is a function of the Purchase Price Outlook. Assume that the two-part rule
is as follows:
•
•
If the Purchase Price Outlook is Up (U), Cost of goods sold per unit in Year 2 will be 1.25 times
that of Year 1; in Year 3, it will be 1.25 times that of Year 2.
On the other hand, if the Purchase Price Outlook is Down (D), the multiplier in years 2 and 3
will be 1.01.
Again, to test your understanding, figure out the formula for cell C18. Enter and copy the formula to the
right. Again, you will need to use absolute addressing.
Your formulas for selling price and cost of goods sold, given Optimistic and Up input values, should yield
the calculated values shown in Figure C-11.
FIGURE C-11
Calculated values given Optimistic and Up input values
Assume that you change the input values to Pessimistic and Down. Your formulas should yield the calculated values shown in Figure C-12.
FIGURE C-12
Calculated values given Pessimistic and Down input values
That completes the body of your spreadsheet. The values in the Calculations section ripple through the
Income Statement and Cash Flow Statement section because the income statement formulas reference the
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Building a Decision Support System in Excel
calculations. Assuming inputs of Optimistic and Up, the income and cash flow numbers should look like those
in Figure C-13.
FIGURE C-13
Completed Income Statement and Cash Flow Statement section
USING SCENARIO MANAGER
You are now ready to use Excel’s Scenario Manager to capture inputs and results as you play “what if” with the
spreadsheet.
There are four possible combinations of input values: O-U (Optimistic-Up), O-D (Optimistic-Down), P-U
(Pessimistic-Up), and P-D (Pessimistic-Down). Financial results for each combination will be different. Each
combination of input values can be referred to as a scenario. Scenario Manager records the results of each
combination of input values as a separate scenario and then shows a summary of all scenarios in a separate
worksheet. Those summary worksheet values can be used as a raw table of numbers and then printed or copied into a Microsoft Word document. The table of data can then be the basis for an Excel chart, which can also
be printed or inserted into a document.
The four sets of input values produce different financial results. When you use Scenario Manager, you
define the four scenarios; then you have Excel (1) sequentially run the input values “behind the scenes” and
(2) put the results for each input scenario in a summary sheet.
When you define a scenario in Scenario Manager, you give it a name and identify the input cells and input
values. Then you identify the output cells so Excel can capture the output values in a summary sheet.
To start, select the Data tab. In the Forecast group, click the drop-down arrow on the What-If Analysis icon,
and then click the Scenario Manager option. Initially, no scenarios are defined, as you can see in Figure C-14.
FIGURE C-14
Initial Scenario Manager window
You can use this window to add, delete, or edit scenarios. Toward the end of the process, you create the
summary sheet.
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Tutorial C
NOTE
When working with this window and its successors, do not press the Enter key to navigate. Use mouse clicks to move from one
step to the next.
To start defining a scenario, click the Add button. In the resulting Add Scenario window, name the first
scenario Opt-Up. Then type the input cells in the Changing cells field—here, they are C8:C9. (Note that C8
and C9 are contiguous input cells. Noncontiguous input cell ranges are separated by a comma.) Excel may
add dollar signs to the cell address, but do not be concerned about that. The window should look like the one
shown in Figure C-15.
FIGURE C-15
Entering Opt-Up as a scenario
Now click OK, which moves you to the Scenario Values window. Here you indicate what the input values
will be for the scenario. The values in the current spreadsheet cells will be displayed. They might or might not
be correct for your scenario. For the Opt-Up scenario, you need to enter an O and a U, if not the current values. Enter those values if needed, as shown in Figure C-16.
FIGURE C-16
Entering Opt-Up scenario input values
Click OK, which takes you back to the Scenario Manager window. Enter the other three Opt-Down, PessUp, and Pess-Down scenarios, including the related input values. When you finish, you should see that the
names and changing cells for the four scenarios have been entered, as in Figure C-17.
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Building a Decision Support System in Excel
FIGURE C-17
Scenario Manager window with all scenarios entered
You can now create a summary sheet that shows the results of running the four scenarios. Click the Summary button to open the Scenario Summary window. You must provide Excel with the output cell addresses—
they will be the same for all four scenarios. (The output values in those output cells change as input values
are changed, but the addresses of the output cells do not change.)
Assume that you are interested primarily in the results that have accrued at the end of the two-year period.
These results are your two Year 3 Summary of Key Results section cells for Net Income After Taxes and End-ofYear Cash On Hand (D12 and D13). Type those addresses in the window’s input area, as shown in Figure C-18.
(Note that if the Result cells are noncontiguous, the address ranges can be entered and separated by a comma.)
FIGURE C-18
Entering Result cell addresses in Scenario Summary window
Then click OK. Excel runs each set of inputs “behind the scenes” and collects results as it goes. (You do
not see this happening on the screen.) Excel creates a new sheet called the Scenario Summary (denoted by
the sheet’s lower tab) and takes you there, as shown in Figure C-19.
FIGURE C-19
Scenario Summary sheet created by Scenario Manager
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One slightly annoying visual element is that the Current Values in the spreadsheet are given an output
column that duplicates one of the four defined scenarios. To delete the extra column, select it, select the
Home tab, select the Delete icon’s drop-down arrow within the Cells group, and select Delete Sheet Columns.
NOTE
To delete a sheet’s row, follow the steps in the preceding sentence, but select Delete Sheet Rows instead of Delete Sheet
Columns.
Another annoyance is that column A goes unused. You can click and delete it as you’ve been doing to
move everything to the left. That should make columns of data easier to see on the screen without scrolling.
Other ways to make the worksheet easier to read include:
•
•
•
Entering text in column A to describe the input and output cells
Centering cell values by using the Center icon in the Home tab’s Alignment group
Showing data in Currency format by using the Number Format drop-down menu within the
Home tab’s Number group
When you finish, your summary sheet could resemble the one shown in Figure C-20.
FIGURE C-20 Scenario Summary sheet after formatting
Note that column C shows the Optimistic-Up case. The Net Income After Taxes in that scenario is
$728,909, and End-of-Year Cash On Hand is $1,535,753. Columns D, E, and F show the other scenario results.
As an important postscript to this exercise, note that DSS spreadsheets are used to guide decision making,
which means that the spreadsheet’s results must be interpreted in some way. Here are two practice questions
based on the results in Figure C-20:
•
•
What combination of Year 3 Net Income After Taxes and End-of-Year Cash On Hand would be
best? Clearly, Optimistic-Down (O-D) is the best result, right? It yields the highest income and
highest cash.
What is the worst combination? Pessimistic-Up (P-U), right? It yields the lowest income and lowest cash.
Results are not always that easy to interpret, but the analytical method is the same. You have a situation
that you cannot understand very easily without software assistance. You build a model of the situation in the
spreadsheet, enter the inputs, collect the results, and then interpret the results to help with decision making.
Using Summary Sheets
When you complete Scenario Manager case studies, you’ll need to manipulate summary sheets and their data.
Next, you will look at some of those operations.
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Building a Decision Support System in Excel
Rerunning Scenario Manager
The Scenario Summary sheet does not update itself when the spreadsheet formulas or inputs change. To see
an updated Scenario Summary sheet, you must rerun Scenario Manager by clicking the Summary button in
the Scenario Manager dialog box and then clicking OK. Another summary sheet is created; it does not overwrite a prior one.
Deleting Unwanted Scenario Manager Summary Sheets
Suppose you want to delete a summary sheet. With the summary sheet on the screen, follow this procedure:
1.
2.
3.
Select the Home tab.
Within the Cells group, select the Delete icon’s drop-down arrow.
Select Delete Sheet. When asked if you really want to delete the sheet, click Delete.
You can also delete a sheet by right-clicking its tab at the bottom of the screen. In the resulting menu,
select Delete. Click Delete again when asked if you really want to delete the sheet.
Charting Summary Sheet Data
The summary sheet results can be conveniently charted using the Chart Wizard.
Copying Summary Sheet Data to the Clipboard
If you want to put the summary sheet data into the Clipboard to use in a Microsoft Word document, follow
these steps:
1.
2.
3.
4.
5.
Select the data range.
Copy the data range into the Clipboard by following the copying operation described earlier in
this tutorial.
Open your Microsoft Word document.
Click the cursor where you want the upper-left part of the data to be positioned.
Paste the data into the document by selecting Paste in the Home tab’s Clipboard group.
PRACTICING WITH SCENARIO MANAGER
Suppose you have an uncle who works for a large company. He has a good job and makes a decent salary (currently, $80,000 a year). At age 65, which will be in three more years, he must retire from his company and
start drawing his pension.
However, the company has an early-out plan in which employees are paid to quit early. The company
pays all employees in the plan a bonus in the year they retire and each year thereafter, before the official
retirement date. (After the official retirement date, employees start to receive their actual pension—in your
uncle’s case, after three more years of work.) If your uncle left the company early, he could find a part-time
hourly job to make ends meet in the years before taking his normal pension.
The opportunity to leave early is open for three years after the end of the current year, which is now ending. That means your uncle could leave the company any year in the next three years, getting the early-out
bonuses in the years he is retired early. Thus, if he works another year, he would lose the bonus for that year.
If he works two more years, he would lose two years of early-out bonuses, and so forth until he must retire.
Another factor in your uncle’s thinking is whether to continue his country club membership. He likes
the club, but it is a cash drain. The retirement decision can be revisited each year, but the decision about the
country club membership must be made now. If your uncle does not withdraw now, he says he will remain a
member (and incur costs) indefinitely.
Your uncle has called you in to make a spreadsheet model of his situation in Scenario Manager. Your
spreadsheet would let him play “what if” with the preretirement and country club possibilities and see his
various projected personal finances for each of the next three years. With each scenario, your uncle wants to
know what “cash on hand” will be available for each year in the period.
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Tutorial C
Complete the spreadsheet for your uncle. Your Summary of Key Results, Calculations, and Income
Statement and Cash Flow Statement section cells must show values by cell formula. In other words, do not
hard-code amounts in those sections. Also, do not use the address of a cell if its contents are NA in any of
your formulas. Set up your spreadsheet skeleton as shown in the figures that follow. Name your spreadsheet
UNCLE.xlsx. You can also use the spreadsheet skeleton named UNCLE.xlsx from your data files.
Constants Section
Your spreadsheet should have the constants shown in Figure C-21. An explanation of line items follows the
figure.
FIGURE C-21 Constants section values
•
•
•
•
•
Salary increase factor—Your uncle’s salary as of the current working year just ended (Year 0)
is $80,000. As you can see, raises are expected each year; for example, a 3 percent raise is
expected in the upcoming year (Year 1). If your uncle does not retire in a year, he will get his
­salary (including a raise) for the year.
Part-time wages expected—For the next three years, your uncle has estimated his part-time
wages in a year that he is retired from the company and working part-time (Years 1 to 3). For
example, he thinks he could earn $10,000 in part-time wages in Year 1 if he retired.
Buyout amount—The amounts for the company’s preretirement buyout plan are shown. For
example, if your uncle retires now (and does not work for the company in Years 1 through 3),
he gets $45,000, $30,000, and $10,000 in Year 1 through Year 3. If he works another year, then
leaves before Year 2 starts, he will give up the $45,000 payment for Year 1 but will get $30,000
and $10,000 in Year 2 and Year 3.
Cost of living (not retired)—Your uncle has estimated how much cash he needs to meet his living
expenses, assuming he continues to work for the company. His cost of living would be $41,000 in
Year 1, increasing each year thereafter.
Country club dues—Country club dues will be $12,000 for Year 1. Dues increase each year thereafter, as shown.
Inputs Section
Your spreadsheet should have the inputs shown in Figure C-22. An explanation of line items follows the figure.
FIGURE C-22
•
•
Inputs section
Retired or Working—Enter an R if your uncle would be retired in the year or a W if he would still
be working. If he is working the next three years, you should enter the pattern WWW. If he plans
to retire now (that is, not work Year 1), you would enter the pattern RRR. If he works for one
year and then retires, you should enter the pattern WRR.
Stay in club?—If your uncle stays in the club, you should enter a Y. If your uncle leaves the club
now, you should enter an N. The decision applies to all years.
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Building a Decision Support System in Excel
Summary of Key Results Section
Your spreadsheet should show the results in Figure C-23.
FIGURE C-23 Summary of Key Results section
Each year’s End-of-year cash on hand value is echoed from cells in the spreadsheet body.
Calculations Section
Your spreadsheet should calculate, by formula, the values shown in Figure C-24. Calculated amounts are used
later in the spreadsheet. An explanation of line items follows the figure.
FIGURE C-24
•
•
•
•
Calculations section
Tax rate—Your uncle’s tax rate depends on whether he is retired. Retired people have lower
­overall tax rates. If he is retired in a year, your uncle’s rate is expected to be 15 percent of
income before taxes. In a year in which he works full time, the rate will be 30 percent.
Cost of living—In any year that your uncle continues to work for the company, his cost of living
is the amount shown in the Cost of living (not retired) field of the Constants section in Figure
C-21. But, if he chooses to retire, his cost of living will be $15,000 less than the amount shown in
Figure C-21.
Yearly salary or part-time wages—If your uncle keeps working, his salary increases each year.
The yearly percentage increases are shown in the Constants section. Thus, salary earned in Year
1 would be 3 percent more than that earned in Year 0, salary earned in Year 2 would be 3 percent
more than that earned in Year 1, and salary earned in Year 3 would be 2 percent more than that
earned in Year 2. If your uncle retires in a certain year, he will make the part-time wages shown
in the Constants section.
Country club dues paid—If your uncle leaves the club, the dues are zero each year; otherwise,
the dues are as shown in the Constants section.
Income Statement and Cash Flow Statement Section
This section begins with the cash on hand at the beginning of the year, followed by the income statement, and
concluding with the calculation of cash on hand at the end of the year. The format is shown in Figure C-25.
An explanation of line items follows the figure.
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Tutorial C
FIGURE C-25 Income Statement and Cash Flow Statement section
•
•
•
•
•
•
•
•
•
•
•
Beginning-of-year cash on hand—This amount is the cash on hand at the end of the prior year.
Note that cash on hand at the end of the current year is $30,000.
Salary or wages—This amount is a yearly calculation, which can be echoed here.
Buyout income—This amount is the year’s buyout amount if your uncle is retired that year. Buyout amounts are shown in the Constants section.
Total cash inflow—This amount is the sum of salary or part-time wages and the buyout amount.
Country club dues paid—This amount is a calculation, which can be echoed here.
Cost of living—This amount is a calculation, which can be echoed here.
Total costs—This amount is the sum of the Cost of living and Country club dues paid.
Income before taxes—This amount is the Total cash inflow minus Total costs.
Income tax expense—This amount is zero when Income before taxes is zero or less; otherwise,
the calculated tax rate is applied to the Income before taxes.
Net income after taxes—This amount is Income before taxes minus Income tax expense.
End-of-year cash on hand—This amount is the Beginning-of-year cash on hand plus the year’s
Net income after taxes.
Scenario Manager Analysis
Set up Scenario Manager and create a Scenario Summary sheet. Your uncle wants to look at the following four
possibilities:
•
•
•
•
Retire now, staying in the club (“Loaf-In”).
Retire now, leaving the club (“Loaf-Out”).
Work three more years (that is, do not take any buyout bonuses), staying in the club
(“Delay-In”).
Work three more years, leaving the club (“Delay-Out”).
You should enter the noncontiguous input cell ranges as follows: C10:E10, C11. The only output cell
should be the Year 3 End-of-year cash on hand cell in the Summary of Key Results section.
Your uncle will choose the option that yields the highest Year 3 End-of-year cash on hand. You must look
at your Scenario Summary sheet to see which strategy yields the highest amount.
To check your work, you should attain the values shown in Figure C-26. You should format the S
­ ummary
sheet appropriately; for example, see Figure C-26.
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Building a Decision Support System in Excel
FIGURE C-26 Scenario Summary
REVIEWING EXCEL BASICS
In this section, you’ll begin by reviewing how to perform some basic operations. Then you’ll work through
more cash flow calculations. Working through this section will help you complete the spreadsheet cases in this
book.
Basic Operations
You’ll review the following topics: formatting cells, showing Excel cell formulas, understanding circular references, using the AND and OR functions in IF statements, and using nested IF statements.
Formatting Cells
You may have noticed that some data in this tutorial’s first spreadsheet was centered in the cells. Follow these
steps to center data in cells:
1.
2.
3.
4.
Highlight the cell range to format.
Select the Home tab.
In the Alignment group, select the Middle Align icon to change the vertical alignment.
In the Alignment group, select the Center icon to change the horizontal alignment.
You can also put a border around cells, which might be desirable for highlighting cells in the Inputs
­section. Follow these steps:
1.
2.
3.
4.
Highlight the cell that needs a border.
Select the Home tab.
In the Font group, select the drop-down arrow of the Borders icon.
Choose the desired border from the menu.
You can format numerical values for Currency by following these steps:
1.
2.
3.
Highlight the cell or range of cells that should be formatted.
Select the Home tab.
In the Number group, use the Number Format drop-down arrow to select Currency and the
­number of decimals, and then click OK.
You can format numerical values for decimal places using this procedure:
1.
2.
3.
Highlight the cell or range of cells that should be formatted.
Select the Home tab.
In the Number group, click the Increase Decimal icon once to add one decimal value. Click the
Decrease Decimal icon to eliminate a decimal value.
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Tutorial C
You can use the available automatic styles to change the appearance of the text:
1.
2.
3.
Highlight the cell or range of cells that you want to change.
Select the Home tab.
Within the Styles group, click the Cell Styles drop-down arrow, and then choose the style you
want to apply, such as Heading 1 or Title in the Titles and Headings group.
You can increase or decrease the indentation used for your row headings, which makes the text under
each section much easier to see:
1.
2.
3.
Highlight the cell or range of cells that you want to change.
Select the Home tab.
In the Alignment group, click the Increase Indent button (or Decrease Indent, as the case may be).
You can copy all the format properties of a certain cell to other cells using the Format Painter:
1.
2.
3.
Select the cell whose format you want to transfer elsewhere.
Click the Format Painter button (the paintbrush icon) in the Home tab’s Clipboard group. When
you click the button, the mouse pointer turns into a paintbrush.
Select the cells that you want to format.
This feature now turns itself off automatically.
Showing Excel Cell Formulas
If you want to see Excel cell formulas, follow these steps:
1.
2.
Press the Ctrl key and the back quote key (‘) at the same time. The back quote faces the opposite
direction from a normal quotation mark; on most keyboards, it shares the key with the tilde (~)
mark.
To restore, press the Ctrl and back quote keys again.
Understanding a Circular Reference
A formula has a circular reference when it refers to itself either directly or indirectly. In this book’s cases,
Excel cannot properly evaluate such a formula. The problem is best described by an example. Suppose the
formula in cell C18 is 5C18–C17. Excel is trying to compute a value for cell C18, so it must evaluate the formula, then put the result on the screen in C18. Excel tries to subtract the contents of C17 from the contents
of C18, but nothing is in C18. Can you see the circularity? To establish a value for C18, Excel must know
what is in C18. However, that value is what you are trying to compute in the first place. The process is circular—hence, the term “circular reference.” As another simple example, consider a formula in one cell that
refers to a formula in a second cell, and the formula in the second cell that refers to the formula in the first
cell. For example, cell C7 has the formula 5C6, and cell C6 is 5C7.
To be sure that Excel will point out circular references, you should do the following:
1.
2.
3.
4.
Click the File tab.
Click Options in the left column menu.
Click Formulas in the left column of the Excel Options window.
In the Calculation Options section, deselect the “Enable iterative calculation” check box, and
then click OK.
Now when you enter a formula that has a circular reference, you will receive a warning message. You can
close the message, but that will not fix the problem. You must fix the formula that has the circular reference if
you want the spreadsheet to give you accurate results.
Using the AND Function and the OR Function in IF Statements
An IF statement has the following syntax:
IF(test condition, result if test is True, result if test is False)
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Building a Decision Support System in Excel
The test conditions in this tutorial’s IF statements tested only one cell’s value, but a test condition can
test more than one value of a cell.
Here is an example from this tutorial’s first spreadsheet, in which selling price was a function of the
economy. Assume for the sake of illustration that Year 2’s selling price per unit depends on the economy and
on the purchase-price outlook. There are two possibilities: (1) If the economic outlook is optimistic and the
­company’s purchase-price outlook is down, the selling price will be 110 percent times the prior year’s price.
(2) In all other cases, the selling price will be 103 percent times the prior year’s price. The first possibility’s
test requires two things to be true at the same time: C8 5 “O” AND C9 5 “D.” To implement the test, the
AND() function is needed. The code in cell C17 would be as follows:
5IF(AND($C$8 5 “O”, $C$9 5 “D”), B17 * 1.10, B17 * 1.03)
When the test that uses the AND() function evaluates to True, the result is B17 * 1.10. When the test
evaluates to False, the result is the second possibility’s outcome: B17 * 1.03.
Now suppose the first possibility is as follows: If the economic outlook is optimistic or the purchase-price
outlook is down, the selling price will be 110 percent times the prior year’s price. Assume in all other cases
that the selling price will be 103 percent times the prior year’s price. Now the test requires only one of two
things to be true: C8 5 “O” OR C9 5 “D.” To implement that test, the OR() function is needed. The code in
cell C17 would be:
5IF(OR($C$8 5 “O”, $C$9 5 “D”), B17 * 1.10, B17 * 1.03)
Using IF Statements Inside IF Statements (“Nesting IFs”)
Recall from the previous section that an IF statement has this syntax:
IF(test condition, result if test is True, result if test is False)
In the examples shown thus far, only two courses of action were possible, so only one test was needed
in the IF statement. However, there can be more than two courses of action; if so, the “result if test is False”
clause needs to show further testing. Look at the following example.
Assume again that the Year 2 selling price per unit depends on the economy and the purchase-price outlook. Here is the logic: (1) If the economic outlook is optimistic and the purchase-price outlook is down, the
selling price will be 110 percent times the prior year’s price. (2) If the economic outlook is optimistic and the
purchase-price outlook is up, the selling price will be 107 percent times the prior year’s price. (3) In all other
cases, the selling price will be 103 percent times the prior year’s price. The code in cell C17 would be as follows:
5IF(AND($C$8 5 “O”, $C$9 5 “D”), B17 * 1.10,
IF(AND($C$8 5 “O”, $C$9 5 “U”), B17 * 1.07, B17 * 1.03))
The first IF statement tests to see if the economic outlook is optimistic and the purchase-price outlook is
down. If not, further testing is needed to see whether the economic outlook is optimistic and the purchaseprice outlook is up, or whether some other situation prevails.
NOTE
The line is broken in the previous example because the page is not wide enough, but in Excel, the formula would appear on one
line. The embedded “IF” is not preceded by an equal sign.
Cash Flow Calculations: Borrowing and Repayments
The Scenario Manager cases in this book may require you to account for money that the company borrows
or repays. Possible borrowing and repayment calculations are discussed next. At times, you will be asked to
think about a question and fill in the answer. Correct responses are found at the end of this section.
Assume two things about a company’s borrowing and repayment of debt. First, assume that the company
wants to have a certain minimum cash level at the end of a year, and thus at the start of the next year. Second, assume that a bank will provide a loan to make up the shortfall if year-end cash falls short of the desired
minimum cash level.
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Tutorial C
Here are some examples to test your understanding. Assume that NCP stands for “net cash position” and
that NCP equals beginning-of-year cash plus net income after taxes for the year. In other words, the NCP is
the cash available at year’s end before any borrowing or repayment. For the three examples in Figure C-27,
compute the amounts the company needs to borrow to reach its minimum year-end cash level.
Example
NCP
Minimum Cash Required
Amount to Borrow
1
$50,000
$10,000
?
2
$8,000
$10,000
?
3
−$20,000
$10,000
?
FIGURE C-27 Examples of borrowing
One additional assumption you can make is that the company will use its excess cash at year’s end to pay
off as much debt as possible without going below the minimum-cash threshold. Excess cash is the NCP minus
the minimum cash required on hand—amounts over the minimum are available to repay any debt.
In the examples shown in Figure C-28, compute excess cash and then compute the amount to repay. To
aid your understanding, you may also want to compute ending cash after repayments.
Example
NCP
Minimum Cash Required
Beginning-of-year Debt
Repay?
Ending Cash
1
$12,000
$10,000
$4,000
?
?
2
$12,000
$10,000
$10,000
?
?
3
$20,000
$10,000
$10,000
?
?
4
$20,000
$10,000
$0
?
?
5
$60,000
$10,000
$40,000
?
?
6
−$20,000
$10,000
$10,000
?
?
FIGURE C-28 Examples of repayment
In the Scenario Manager cases, your spreadsheet will need two bank financing sections beneath the
Income and Cash Flow Statements section. The first section will calculate any needed borrowing or repayment at year’s end to compute year-end cash. The second section will calculate the amount of debt owed at
the end of the year, after borrowing or repayment of debt.
The first new section, in effect, extends the end-of-year cash calculation, which was shown in Figure
C-13. Previously, the amount equaled cash at the beginning of the year plus the year’s net income. Now the
calculation will include cash obtained by borrowing and cash repaid. Figure C-29 shows the structure of the
calculation.
FIGURE C-29 Calculation of end-of-year cash on hand
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Building a Decision Support System in Excel
The heading in cell A28 was previously End-of-year cash on hand (see Figure C-13). However, borrowing increases cash and repayment of debt decreases cash. So, End-of-year cash on hand is now computed two
rows down (in C32 for Year 2, in the example). The value in row 29 must be a subtotal for the Beginning-ofyear cash on hand plus the year’s Net income after taxes. That subtotal is the NCP. Note that the formula in
cell C22 for Beginning-of-year cash on hand would now be 5B32.
The second new section computes end-of-year debt and is called Debt Owed, as shown in Figure C-30.
FIGURE C-30 Debt Owed section
As you can see in Figure C-30, $15,000 was owed at the end of Year 1. The End-of-year debt owed equals
the Beginning-of-year debt owed plus any new Borrowing from bank (which increases debt owed), minus any
Repayment to bank (which reduces it). So, in the example, the formula in cell C38 would be:
5C351C362C37
Assume that the amounts for Borrowing from bank and Repayment to bank are calculated in the first new
section. Thus, the formula in cell C36 would be 5C30. The formula in cell C37 would be 5C31. Beginningof-year debt owed is equal to the debt owed at the end of the prior year, of course. The formula in cell C35 for
Beginning-of-year debt owed would be an echoed formula. Can you see what it would be?
Now that you have seen how the borrowing and repayment data are shown, we can discuss the logic of the
borrowing and repayment formulas.
Calculation of Borrowing from Bank
The logic of this calculation in English is:
If (cash on hand before financing transactions is greater than the minimum cash required,
then borrowing is not needed;
else, borrow enough to get to the minimum cash).
Or (a little more precisely):
If (NCP is greater than the minimum cash required,
then Borrowing from bank 5 0;
else, borrow enough to get to the minimum cash).
Suppose the desired minimum cash at year’s end is $10,000, which is a constant in your spreadsheet’s
cell C6. Assume that the NCP is shown in your spreadsheet’s cell C29. The logic of the borrowing formula
(assumed to be in cell C30) would be as follows:
IF(NCP > Minimum Cash, 0; otherwise, borrow enough to get to the minimum).
You have cell addresses that stand for NCP (cell C29) and Minimum Cash (C6). To develop the formula for
cell C30, substitute the cell addresses for NCP and Minimum Cash. The harder logic is for the “else” clause.
At this point, you could look ahead to the Borrowing answers in Figure C-31. In Example 2, $2,000 was borrowed. Which cell was subtracted from which other cell to calculate that amount? Substitute cell addresses in
the Excel formula for Year 2’s borrowing formula in cell C31:
5IF( >5 , 0, - )
The answer is at the end of this section in Figure C-33.
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Tutorial C
Calculation of Repayment to Bank
The logic of this calculation in English is:
IF(beginning of year debt 5 0, repay 0 because nothing is owed, but
IF(NCP is less than the minimum, repay zero, because you must borrow, but
IF(extra cash available equals or exceeds the debt, repay the whole debt,
ELSE(to stay above the minimum cash, repay only the extra cash available))))
Look at the following formula skeleton. Assume that the repayment will be in cell C31. Assume also that
debt owed at the beginning of the year is in cell C35 and minimum cash is in cell C6. “Extra cash” is the
excess of NCP over the minimum cash needed. Substitute cell addresses for concepts to complete the formula
for Year 2 repayment. (Clauses appear on different lines because of page width limitations.)
5IF( 5 0, 0,
IF( <5 , 0,
IF( ( – ) >5 , ____,
(– ) )))
The answer is shown at the end of this section in Figure C-34.
Answers to Questions about Borrowing and Repayment Calculations
Figures C-31 and C-32 answer the questions about borrowing and repayment calculations.
Example
NCP
Minimum Cash Required
Amount to Borrow
Comments
1
$50,000
$10,000
$0
NCP > Minimum, no need to borrow
2
$8,000
$10,000
$2,000
Need $2K to get to Minimum ($10K–$8K)
3
−$20,000
$10,000
$30,000
Need $30K to get to Minimum ($10K – (–$20K))
FIGURE C-31 Answers to examples of borrowing
Example
NCP
Minimum Cash Required
Beginning-of-year Debt
Repay?
Ending Cash
1
$12,000
$10,000
$4,000
$2,000
$10,000
2
$12,000
$10,000
$10,000
$2,000
$10,000
3
$20,000
$10,000
$10,000
$10,000
$10,000
4
$20,000
$10,000
$0
$0
$20,000
5
$60,000
$10,000
$40,000
$40,000
$20,000
6
−$20,000
$10,000
$10,000
$0
NA
FIGURE C-32 Answers to examples of repayment
Note the following points about the repayment calculations shown in Figure C-32.
•
•
•
In Examples 1 and 2, only $2,000 “extra” cash is available for debt repayment (12,000 – 10,000)
to avoid going below the minimum cash.
In Example 3, extra cash available for repayment is $10,000 (20,000 – 10,000), so all beginning
debt can be repaid, leaving the minimum cash.
In Example 4, no debt is owed, so no debt need be repaid.
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Building a Decision Support System in Excel
•
•
In Example 5, cash available for repayment is $50,000 (60,000 – 10,000), so all of the $40,000
beginning debt can be repaid, leaving more than the minimum cash.
In Example 6, no cash is available for repayment. The company must borrow.
Figures C-33 and C-34 show the formulas to calculate borrowing and repayment of debt.
5IF(C29 >5 C6, 0, C6 – C29)
FIGURE C-33 Calculation of borrowing
5IF(C35 5 0, 0, IF(C29 <5 C6, 0, IF ((C29 – C6) >5 C35, C35, C29 – C6)))
FIGURE C-34 Calculation of repayment
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CASE
6
THE SKI RESORT INVESTMENT
DECISION
Decision Support Using Microsoft Excel
PREVIEW
In this case, you will use Microsoft Excel to help a ski resort establish a budget for the next three years and
decide whether to expand activities into the summer months.
PREPARATION
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•
Review spreadsheet concepts discussed in class and in your textbook.
Complete any exercises that your instructor assigns.
Complete any part of Tutorial C that your instructor assigns. You may need to review the use of If
statements and the section called “Cash Flow Calculations: Borrowing and Repayments.”
Review file-saving procedures for Windows programs.
Refer to Tutorial E as necessary.
BACKGROUND
Ski areas across the United States have seen external pressures on their profit margins recently. Profit margin,
a key performance indicator, has been negative in the past few years due to high operating costs and diminishing revenue. A medium-sized ski area in Vermont is concerned about its profit margins and has hired you, a
proficient Excel user, to help generate a spreadsheet budget and create a “what-if” analysis.
The aging of baby boomers, who in the past have been active skiers, has caused the total number of skiers to drop in many areas across the country. Baby boomers represent an estimated 20 percent of all skiers.
Younger people are skiing, but not as often as their parents and grandparents did. Younger people tend to have
other interests; also, they work longer hours and have more debt, which means they have less cash to spend
on an expensive sport.
Another huge factor affecting the ski industry is climate change. The east coast of the United States has
seen higher temperatures and fluctuations in the amount of snowfall recently. For example, Vermont has had
less snowfall, especially over the last five years.
Finally, the economy affects the ski industry. When potential skiers are out of work or underemployed,
they do not have the disposable income to spend on lift tickets, rentals, food, transportation, and lodging.
Snow Top Ski Area is located in the Green Mountains of Vermont. The resort currently has capacity for
about 5,000 skiers per day, and it averages about 3,000 daily skiers. Snow Top also sells about 500 season
tickets per year to local enthusiasts. The season tickets are sold at a significant discount compared with the
daily tickets, but the management at Snow Top realizes that season-ticket holders also spend money at the
resort on food and other incidentals.
Snow Top generates income not only from ticket sales but from concessions and ski rentals. Most daily
skiers rent equipment, either because they do not own it themselves or they want to avoid the hassle of bringing equipment on flights or train rides to Vermont. There is also an “other” revenue source generated from the
ski store, where skiers buy items they left at home: goggles, balaclavas (ski masks), gloves, and so on.
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Case 6
The owners of Snow Top are concerned about their negative profit margins, and are wondering if they
should expand their offerings and keep the ski area open all year. The summer months could bring in revenue
from hiking, mountain biking, and gondola riding. The owners could also install a zip line for added adventure
to attract more visitors.
The owners would like you to finish setting up their budget in an Excel spreadsheet and run different
scenarios. These scenarios would indicate the effects of changes in the number of skiers, different economic
outlooks, and climate change. Then, the owners would like you to add projected revenues from the summer
activities to see how they might affect some of the numbers.
ASSIGNMENT 1: CREATING A SPREADSHEET FOR DECISION SUPPORT
In this assignment, you will produce a spreadsheet that models Snow Top’s financial situation. Then, in
Assignment 2, you will run Scenario Manager twice to explore various financial scenarios and write a memorandum that documents your analysis and findings.
First, you will create the spreadsheet model of the decision. The model covers the three years from 2020
to 2022. This section helps you set up each of the following spreadsheet components before entering cell
formulas:
•
•
•
•
•
•
Constants
Inputs
Summary of Key Results
Calculations
Income and Cash Flow statements
Debt Owed
A discussion of each section follows. The spreadsheet skeleton for this case is available for you to use;
it will save you time. To access the spreadsheet skeleton, go to your data files, select Case 6, and then select
Ski Resort.xlsx.
Constants Section
Your spreadsheet should include the constants shown in Figure 6-1. An explanation of the line items follows
the figure.
FIGURE 6-1
Constants section
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The Ski Resort Investment Decision
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•
•
•
•
•
•
•
•
•
•
•
•
•
•
Tax Rate—The rate at which Snow Top’s net income is taxed is shown for each year.
Cash Needed to Start Next Year—The local Vermont bank wants Snow Top to have at least $4
million cash at the beginning of each year. Assume that the ski resort could borrow from the
bank at the end of a year in order to begin the new year with the needed amount.
Interest Rate on Debt—This is the interest rate that the bank charges Snow Top on any outstanding
debt. The interest is calculated for the year based on the debt owed at the beginning of the year.
Daily Lift Ticket Price—This is the amount that Snow Top charges a customer to ski for an entire
day at the resort.
Annual Lift Ticket Price—This is the yearly amount (a one-time fee) that a skier will pay for an
annual pass to the ski area. Skiers can then ski as many times as they choose.
Average Daily Money Spent on Food—This is the average amount of money that skiers will spend
on food and drink in the concession stands and restaurants at Snow Top.
Average Ski School Daily Price—If skiers choose to take a lesson, this is the average price they
will pay for the lesson.
Average Daily Rental Price—If skiers rent equipment, such as boots, poles, skis, and helmets, this
is the average price they will pay for one day’s rental.
Number of Ski Days per Year—This is the average number of days in Vermont’s ski season. Snow
Top is open for business for this number of days per year.
Other Daily Revenue—Skiers often forget or lose gloves, goggles, hats, or other equipment
required to make skiing pleasurable. The resort has a shop that supplies these items along with
souvenirs. This amount of other revenue is what Snow Top expects each day.
Summer Potential Revenue—If Snow Top decides to open for the summer and develop activities
to attract visitors, it can expect this amount of revenue from the activities.
Operating Costs – Snow Making—Snow making is required most of the season due to the recent
lack of natural snow. Snow making is a huge expense for the ski industry. Luckily, snow-making
equipment continues to become more efficient, so the costs are not expected to increase.
Operating Costs – Summer—These are the expected costs that Snow Top will incur if it operates
over the summer.
Daily Other Winter Operating Costs—This is the additional daily cost of operating Snow Top,
beyond the costs already noted.
Fixed Costs—This is the amount of fixed costs per year; this number is not a function of how
many days Snow Top is open each year.
Inputs Section
Your spreadsheet should include the following inputs for the years 2020 to 2022, as shown in Figure 6-2.
FIGURE 6-2
•
•
•
•
Inputs section
Rate of Change in Skiers—This percentage could be positive or negative, depending on how the
resort thinks the number of future skiers will change.
Economic Outlook—If the economy is going well and is expected to continue to hum along, enter
“Good” in the cell. If the economy is faltering and is expected to be lackluster, enter “Poor.”
Climate Change Factor—This percentage factor, expressed as a negative number, indicates the
severity of climate change and its effect on the number of skiers.
Summer Operations—If Snow Top decides to operate in the summer, enter “Y” in this cell. If not,
the input is “N.”
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Case 6
Summary of Key Results Section
Your spreadsheet should include the results shown in Figure 6-3.
FIGURE 6-3
Summary of Key Results section
For each year, your spreadsheet should compute net income after taxes, cash on hand at the end of the
year, debt owed at the end of the year, and profit margin. These values are computed elsewhere in the spreadsheet and should be echoed here for all years.
Calculations Section
You should calculate intermediate results that will be used in the income and cash flow statement that follows. The Calculations section is shown in Figure 6-4. When called for, use absolute referencing properly. Values must be computed by cell formula. Cell formulas should not reference a cell with a value of “NA,” which
stands for “not applicable.”
An explanation of each item in this section follows the figure.
FIGURE 6-4
•
•
•
•
Calculations section
Percentage Change in Daily Skiers—This number is a function of the rate of change in skiers, the
economic outlook, and the climate change factor. If the economic outlook is poor, then the rate
of change in skiers will decrease by 2 percent. The climate change factor will also be applied to
the rate of change in skiers. For example, if the economic outlook is poor and the climate change
factor is minus 3 percent, then the total rate of change in skiers will be the rate of change minus
2 percent minus 3 percent.
Number of Daily Skiers—This number is a function of the percentage change in daily skiers and
the previous year’s number of daily skiers.
Number of Season Skiers—This number is a function of the rate of change in skiers. The rate of
change in skiers is applied to the prior year.
Yearly Total Skier Revenue—This number is a function of the number of daily skiers, the average
lift ticket price, and the number of ski days per year, plus a function of the number of annualpass skiers and the annual lift ticket price.
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The Ski Resort Investment Decision
•
•
•
•
•
•
Daily Ski School Attendees—This number is a function of the number of daily skiers. Assume
that 10 percent of the daily skiers will take ski school lessons.
Yearly Ski School Revenue—This number is a function of the daily ski school attendees, the average ski school daily price, and the number of ski days per year.
Daily Equipment Rental Users—This number is 75 percent of the daily number of skiers.
Yearly Rental Revenue—This number is a function of the daily equipment rental users, the average daily rental price, and the number of ski days per year.
Yearly Food Concession Revenue—This number is a function of the total number of skiers per
year and the average daily money spent on food. Assume that 90 percent of skiers buy food.
Other Yearly Revenue—This number is a function of the other daily revenue and the number of
ski days per year.
Income and Cash Flow Statements
The forecast for net income and cash flow starts with the cash on hand at the beginning of the year. This value
is followed by the income statement and the calculation of cash on hand at year’s end. For readability, format
cells in this section as currency with zero decimals. Values must be computed by cell formula; hard-code
numbers in formulas only if you are told to do so. Cell formulas should not reference a cell with a value of
“NA.” Your spreadsheets should look like those in Figures 6-5 and 6-6. A discussion of each item in the section
follows each figure.
FIGURE 6-5
•
•
•
•
•
•
Income and cash flow statements section
Beginning-of-the-Year Cash on Hand—This value is the cash on hand at the end of the prior year.
Revenue – Skiers—This value was computed elsewhere in the spreadsheet and can be echoed
here.
Revenue – Ski School—This value was computed elsewhere in the spreadsheet and can be
echoed here.
Revenue – Equipment Rental—This value was computed elsewhere in the spreadsheet and can
be echoed here.
Revenue – Food Concession—This value was computed elsewhere in the spreadsheet and can be
echoed here.
Revenue – Other—This value was computed elsewhere in the spreadsheet and can be echoed
here.
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Case 6
•
•
•
•
•
•
•
•
•
•
•
•
Revenue – Potential Summer—If Snow Top decides to include summer activities and therefore
operate in the summer, then the value for the revenue is echoed here from the Constants s­ ection.
If Snow Top chooses not to include summer activities, then the value here is zero.
Total Revenue—This amount is the sum of the revenue from the skiers, the ski school, the equipment
rental, the food concession, other revenue, and perhaps the summer revenue, if chosen.
Operating Costs – Snow Making—This value is recorded in the Constants section and echoed
here.
Summer Operating Costs—If Snow Top chooses to operate in the summer, then the value for the
operating costs can be found in the Constants section and echoed here. If Snow Top chooses not
to operate in the summer, then this value is zero.
Yearly Winter Operating Costs—This value is a function of the daily other winter operating costs
and the number of ski days per year.
Fixed Costs—This value is recorded in the Constants section and echoed here.
Total Costs—This is the sum of the operating costs of snow making, the summer operating costs,
if chosen, the yearly winter operating costs, and the fixed costs.
Income Before Interest and Taxes—This value is the difference between the total revenue and
the total costs.
Interest Expense—This value can be calculated from the interest rate, which is a value in the
Constants section, and the debt owed at the beginning of the year.
Income Before Taxes—This value is the difference between Income Before Interest and Taxes
and the Interest Expense.
Income Tax Expense—This value is based on the tax rate, which is a value in the Constants
­section, and the Income Before Taxes. This value should be calculated only for income that is a
positive number. In other words, no tax is applied if the income before taxes is less than zero.
Net Income After Taxes—This number is the difference between the Income Before Taxes and
the Income Tax Expense.
The following values must be computed by cell formula; hard-code numbers in formulas only when you
are told to do so. Cell formulas should not reference a cell with a value of “NA.” An explanation of each item
follows the figure.
FIGURE 6-6
•
•
•
•
End-of-year cash on hand section
Net Cash Position (NCP) Before Borrowing and Repayment of Debt—This amount equals cash at
the beginning of the year plus net income after taxes.
Add: Borrowing from Bank—Assume that Snow Top can borrow from bankers at the end of the
year to reach the minimum cash needed to start the next year; this minimum is a value in the
Constants section. If the NCP is less than this minimum, the company would borrow enough to
start the next year with the minimum. Borrowing increases cash on hand, of course.
Less: Repayment to Bank—The resort will use its excess cash at year’s end to pay off as much
debt as possible without going below the minimum cash threshold. Excess cash is the NCP minus
the minimum cash required on hand. Amounts over the minimum are available to repay any
debt. The resort must repay as much as it can if it has any money available.
Equals: End-of-Year Cash on Hand—This amount is the NCP plus any bank borrowing minus any
repayments.
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The Ski Resort Investment Decision
Debt Owed Section
This section shows a calculation of debt owed at the end of a year (see Figure 6-7). Year 2019 values are NA
except for End-of-year debt owed, which is $2 million.
Values must be computed by cell formula. Cell formulas should not reference a cell with a value of “NA.”
An explanation of each item follows the figure.
FIGURE 6-7
•
•
•
•
Debt Owed section
Beginning-of-Year Debt Owed—Debt owed at the beginning of a year equals the debt owed at the
end of the prior year.
Add: Borrowing from Bank—This amount has been calculated elsewhere and can be echoed to
this section. Borrowing increases the amount of debt owed.
Less: Repayment to Bank—This amount has been calculated elsewhere and can be echoed to this
section. Repayments reduce the amount of debt owed.
Equals: End-of-the-Year Debt Owed—This is the amount owed at the beginning of a year, plus
borrowing during the year, minus repayments during the year.
ASSIGNMENT 2: USING THE SPREADSHEET FOR DECISION SUPPORT
Complete the case by (1) using the spreadsheet to gather data about possible financial scenarios and
(2) ­documenting your findings in a memo.
Snow Top managers would like you to explore two sets of three scenarios. They request that the first set
not include any summer expansion. The input values for these scenarios are as follows:
1.
2.
3.
Optimistic—The number of skiers will increase each year by 1 percent, and the economic outlook is good. The climate change factor will be zero in 2020 and 2021, and will be -3 percent in
2022.
Neutral—The number of skiers will remain the same (no percentage increase or decrease), and
the economic outlook is good. The climate change factor will be -2 percent in 2020 and 2021,
and will be -6 percent in 2022.
Pessimistic—The number of skiers will decrease each year by 3 percent, and the economic outlook is poor. The climate change factor will be -8 percent in 2020, 2021, and 2022.
The management would also like to see the same scenarios with summer expansion in 2022. (It will take a few
years to gear up for summer activities.)
Assignment 2A: Using the Spreadsheet to Gather Data
You have built the spreadsheet to model the company’s financial situation. You will run “what-if” scenarios
with the various sets of input values using Scenario Manager. Set up the three scenarios and run them twice—
one without the summer expansion and one with the summer expansion. Label one scenario summary sheet
“Without Summer Expansion” and the other summary sheet “With Summer Expansion.”
The relevant output cells are 2022 net income, 2022 cash on hand, 2022 debt owed, and 2022 profit
margin. Run Scenario Manager to gather the data into a scenario summary report. When you finish, print the
spreadsheet with the inputs for any one of the scenarios, print the Scenario Manager summary report sheets,
and then save the spreadsheet file one final time.
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Case 6
Assignment 2B: Documenting Your Results in a Memo
Write a brief memo that documents your analysis and results. You can address the memo to the management
at Snow Top. Observe the following requirements:
•
•
•
•
•
Set up your memo as described in Tutorial E.
In the first paragraph, briefly state the financial situation and the purpose of your analysis.
Next, describe the scenarios tested and the related results.
State your conclusions: What is the best action for Snow Top? Feel free to do additional research
about climate change to predict what might happen to the resort in the future.
Support your statements graphically, as your instructor requires. Your instructor may ask you
to return to Excel and copy the Scenario Manager summary sheet results into the memo. You
may be asked to include a summary table built in Microsoft Word based on the Scenario Manager
summary sheet results. (Making a Word table is described in Tutorial E.)
DELIVERABLES
Your completed case should include the following deliverables for your instructor:
•
•
•
A printed copy of your memo
Printouts of your spreadsheet and the Scenario Manager summary report sheet
Electronic media, which should include your memo, the Scenario Manager main spreadsheet,
and its summary sheet results
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CASE
7
THE COLLEGE TOWN BUDGET
Decision Support Using Microsoft Excel
PREVIEW
In this case, you will use Microsoft Excel to help a college town’s city council establish a budget for the next
three years.
PREPARATION
•
•
•
•
•
Review spreadsheet concepts discussed in class and in your textbook.
Complete any exercises that your instructor assigns.
Complete any part of Tutorial C that your instructor assigns. You may need to review the use of If
statements and the section called “Cash Flow Calculations: Borrowing and Repayments.”
Review file-saving procedures for Windows programs.
Refer to Tutorial E as necessary.
BACKGROUND
The main campus of your state’s public university is in your hometown. The university has thousands of
­students, many of whom are housed in university-run dormitories.
University dormitories are expensive to operate, and university officials would like to start phasing out of
the dormitory business. They would like to start shutting dorms down, which would require students to live in
apartments in town.
The only problem with the plan is that the town does not have excess apartment units. There are, however, open spaces in town where real estate developers could build new apartment buildings. In fact, many
streets in the older part of town (where the university campus is located) have become vacant or somewhat
run down. Old buildings in this area could be taken down and apartment buildings constructed. Local developers have been petitioning the city council for construction permits to do just that, but the council has been
slow to act. Now, given the university’s proposed policy on dormitories, the council will need to do something.
In recent years, the city council has worked hard to put the city’s finances on a better footing. The city’s
major revenues and expenses are discussed next.
City Revenues
•
•
•
Water revenue—The city buys water from a state-run water authority, then resells it to citizens.
The university runs its own water system. Students living in new apartment units would be new
water customers for the city. Surveys have shown that students use about as much water as the
average family living in an apartment or house.
Electricity revenue—The city buys electricity from a state-run cooperative, then resells it to citizens. The university has its own electricity supplier, so students living in new apartment units
would be new electricity customers for the city. Electricity revenue is by far the city’s major
revenue source. Surveys have shown that students use about as much electricity as the average
family living in an apartment or house.
Property tax revenue—Property taxes are levied by housing unit. Each house and apartment is
considered a unit for this purpose. Taxes are levied per unit, not based on a unit’s square footage.
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Case 7
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Parking revenue—The city runs parking lots and has meters on the main streets. City planners
do not think that parking revenue would be affected by students moving from the dorms to
apartments.
Real estate transfer fees—Every time a piece of real estate is bought and sold in the city limits, a
fee is levied. City planners do not think that transfer fee revenue would be affected by students
moving from the dorms to apartments.
Apartment permits—A developer must pay a fee to the city for the right to put up an apartment. This is a one-time building permit—in other words, the fee is paid once per apartment
constructed.
City Expenses
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Cost of water, cost of electricity—The outside agencies that supply water and electricity have
historically raised the per-unit cost by 2 percent each year. The city has little leverage, so a
2 ­percent increase is built into the budget each year.
Cost of employees—Citizens complain when the city adds staff, so the city has maintained the
rolls at 250 employees for a few years now. Holding the costs of wages, salaries, and (especially)
employee benefits in line is a challenge. City planners expect a 1 percent increase in average
employee costs each year.
Contractual and other costs—The city contracts out many operations—for example, garbage collection, cleaning city buildings, and maintaining the city’s vehicles. This cost is expected to creep
up each year. Adding apartments will add to this cost.
Interest on debt owed—The city has good relationships with local banks. If the city runs short
of cash, the city borrows the shortfall from the banks. The banks want 10 percent of the balance
owed at the beginning of a year to be repaid during the year. For this flexibility, the city pays a
somewhat high interest rate of 8 percent. City financial management thinks it is prudent to have
a certain minimum level of cash on hand at the start of each year, and the bankers want the city
to have this safety net as well.
City council members know that the city’s infrastructure needs to be upgraded, particularly its roads,
water piping, and electric grid. An ambitious capital program is planned. The amounts budgeted assume city
expansion of some sort, so this outlay is not expected to be affected by new apartment building construction.
In recent years, city financial management has been difficult. The city’s fiscal managers persuaded council members to push through frequent increases in property taxes, water rates, and electric rates. Finally, the
city is taking in more revenue than it pays out in expenses.
However, this progress has come at a political cost. Council budget hearings are open public meetings.
Citizens show up to vent long and loud about tax and utility rate increases; senior citizens living on fixed
incomes are particularly vocal. Council members do not want to be voted out of office, so some unwritten
financial planning rules now prevail. Tax and utility rate increases need to be low, if at all possible, even if
expected cost increases will be high. If property taxes are raised in a year, they cannot be raised in the next
two years. If property taxes are raised in a year, water and electric rates cannot be raised in that year.
More apartments would mean more tax revenue and more utility revenue. So, at first blush, you would
think the university’s plan to have students lease apartments in the city would be welcomed by the council.
But, most of the apartments would be built in the older parts of town, where the senior citizens who complain
about finances live. By and large, they like their town the way it has been all these years. Also, who wants the
city’s streets clogged up by a lot of construction? Thus, some council members are not happy about the university’s plan.
The university operates as its own political entity, and council members know they cannot stop the movement of students into the city. City planners think as many as 500 new apartments could be built in a year,
and that is the number university officials have suggested. However, some council members would want developers to build only half that many apartments each year, and they think the university could live with that
rate.
Council members want to see budget alternatives and plans for both 500 and 250 new apartments per
year, assuming modest increases in some cost and revenue items, and assuming that the ambitious capital
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The College Town Budget
expenditure plan is approved. The city’s financial planners want revenues to continue to exceed expenses,
and they would not want the amount of debt owed to local bankers to exceed $10 million under any
circumstances.
ASSIGNMENT 1: CREATING A SPREADSHEET FOR DECISION SUPPORT
In this assignment, you will produce a spreadsheet that models the college town’s financial situation. Then, in
Assignment 2, you will use the spreadsheet to gather decision support data about possible financial scenarios
and write a memorandum that documents your analysis and findings.
First, you will create the spreadsheet model of the decision. The model covers the three years from 2020
to 2022. This section helps you set up each of the following spreadsheet components before entering cell
formulas:
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Constants
Inputs
Summary of Key Results
Calculations
Income and Cash Flow Statements
Debt Owed
A discussion of each section follows. The spreadsheet skeleton for this case is available for you to use;
it will save you time. To access the spreadsheet skeleton, go to your data files, select Case 7, and then select
CollegeTownBudget.xlsx.
Constants Section
Your spreadsheet should include the constants shown in Figure 7-1. An explanation of the line items follows
the figure.
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FIGURE 7-1
Minimum Cash Needed to Start Year—The city council wants to have at least $3 million cash at
the beginning of each year. Assume that the town could borrow from a friendly banker at the end
of a year in order to begin the new year with that amount.
Number of Employees—The city’s baseline number of employees is expected to be 250, but that
number would increase, depending on added apartments.
Avg Gallons of Water Used per Household—A household (actual house or apartment) is expected
to use an average of 100 gallons a year.
Constants section
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Case 7
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Avg Kilowatt Hours Used per Household—A household (actual house or apartment) is expected
to use an average of 42.5 kilowatt hours a year.
Parking Fees—The city earns money from parking lots and on-street meters. This amount is
expected to be $3 million a year.
Realty Transfer Fees—The city earns a fee when real estate changes hands. This amount is
expected to be $1.5 million a year.
Expected Increase in Employee Cost—The expected average cost of salary, wages, and benefits is
expected to rise 1 percent each year.
Expected Increase in Water Cost—The city buys water, which it then resells to citizens in town.
The cost of the water purchased by the city is expected to increase 2 percent each year.
Expected Increase in Kilowatt Cost—The city buys electricity, which it then resells to citizens
in town. The cost of the electricity purchased by the city is expected to increase 2 percent each
year.
Apartment Permit Fee—A real estate developer must pay the city $100 for each apartment put
in place in 2020. The fee will increase in 2021 and 2022. This is a one-time payment for each
apartment.
Expected Capital Expenditures—The council expects to spend money each year on city infrastructure, as shown.
Expected Interest Rate on Debt—The notes are expected to carry an 8 percent interest rate.
Inputs Section
Your spreadsheet should include the following inputs for the years 2020 to 2022, as shown in Figure 7-2.
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FIGURE 7-2
Increase in Water Selling Price—The city would like to increase the selling price per gallon. If the
expected price per gallon increase in a year is 1 percent, enter .01 in this cell; or, if you format
these cells for percentage, you can enter a 1.
Increase in Kilowatt Selling Price—The city would like to increase the selling price per kilowatt.
If the expected price per kilowatt increase in a year is 1 percent, enter .01 in this cell; or, if you
format these cells for percentage, you can enter a 1.
Property Tax Increase—The city would like to raise property taxes. If the tax increase in a year is
1 percent, enter .01 in this cell; or, if you format these cells for percentage, you can enter a 1.
Accelerated Apartment Construction (Y/N)—Enter a Y if the city will opt for 500 new apartments
a year; otherwise, enter an N.
Inputs section
You must observe certain rules of thumb that the city council has learned in bruising budget battles of
yore:
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Water and electricity rates can be raised in the same year.
Water and electricity rates cannot be raised in a year in which property taxes are raised.
The property tax rate, once raised, cannot be raised in either of the next two years.
These rules need not be encoded in your formulas, but you must keep them in mind when making manual
entries.
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The College Town Budget
Summary of Key Results Section
Your spreadsheet should include the results shown in Figure 7-3.
FIGURE 7-3
Summary of Key Results section
For each year, your spreadsheet should compute net income, cash on hand at the end of the year, and
debt owed at the end of the year. These values are computed elsewhere in the spreadsheet and should be
­echoed here.
Calculations Section
You should calculate intermediate results (see Figure 7-4) that will be used in the income and cash flow
statements that follow. When called for, use absolute referencing properly. Values must be computed by cell
­formula. Cell formulas should not reference a cell with a value of “NA,” which stands for “not applicable.”
An explanation of each item in this section follows the figure.
FIGURE 7-4
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Calculations section
Number of Employees—If apartments are built on an accelerated basis, two employees will have to
be added to the baseline number of employees, which is a value from the Constants section. Otherwise, the city council thinks they can get by with just the baseline number of employees in the year.
Average Property Tax per Unit—The average property tax per unit (house or apartment) in a
year will be a function of the prior year’s tax per unit and the tax rate increase expected. The
expected tax increase in a year is a value from the Inputs section. For example, if a 1 percent
increase was expected for 2020, the tax per unit would be 1.01 times the 2019 tax.
Average Employment Cost per Employee—The average employment cost in a year will be a function of the prior year’s cost and the increase expected in the year. The expected increase is a
value from the Constants section. For example, if a 1 percent increase was expected for 2020, the
average cost would be 1.01 times the 2019 cost.
Number of Apartments Built in Year—If accelerated construction is expected, 500 units will be
added per year; otherwise, 250 will be added per year.
Number of Housing Units—The number of housing units in town is a function of the number of
units in town in a prior year and the number of apartments added in the year. For example, if
500 apartment units are added in 2020, the number of housing units in 2020 will be the existing
number in 2019 plus 500.
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Case 7
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Cost of a Gallon of Water—The cost of a gallon of water to the city in a year will be a function of
the prior year’s cost and the increase expected in the year. The expected increase is a value from
the Constants section.
Cost of a Kilowatt Hour—The cost of a kilowatt hour to the city in a year will be a function of the
prior year’s cost and the increase expected in the year. The expected increase is a value from the
Constants section.
Selling Price of a Gallon of Water—The selling price of a gallon of water in a year will be a function of the prior year’s selling price and the increase expected in the year. The expected selling
price increase is a value from the Inputs section.
Selling Price of a Kilowatt Hour—The selling price of a kilowatt hour in a year will be a function
of the prior year’s selling price and the increase expected in the year. The expected selling price
increase is a value from the Inputs section.
Number of Gallons of Water Sold—The number of gallons sold is a function of the number of
housing units in a year (a value from elsewhere in the Calculations section) and the average gallons of water used by a household in the year (a value from the Constants section).
Number of Kilowatts Sold—The number of kilowatts of electricity sold is a function of the number of housing units in a year (a value from elsewhere in the Calculations section) and the average kilowatts used by a household in the year (a value from the Constants section).
Contractual and Other Costs—If construction occurs on an accelerated basis, contractual and
other costs are expected to increase 3 percent over the prior year’s cost. Otherwise, contractual
and other costs are expected to increase 1 percent over the prior year’s cost.
Income and Cash Flow Statements
The forecast for net income and cash flow starts with the cash on hand at the beginning of the year. This value
is followed by the income statement and the calculation of cash on hand at year’s end. For readability, format
cells in this section as currency with zero decimals. Values must be computed by cell formula; hard-code
numbers in formulas only if you are told to do so. Cell formulas should not reference a cell with a value of
“NA.” Your spreadsheets should look like those shown in Figures 7-5 and 7-6. A discussion of each item in the
section follows each figure.
FIGURE 7-5
Income and Cash Flow statements section
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The College Town Budget
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Beginning-of-the-Year Cash on Hand—This value is the cash on hand at the end of the prior year.
Water Revenue—Water revenue is a function of the gallons sold and the selling price per gallon,
both of which are values from the Calculations section.
Electric Revenue—Electricity revenue is a function of the number of kilowatts sold and the selling price per kilowatt, both of which are values from the Calculations section.
Property Tax Revenue—Property tax revenue is a function of the number of housing units and
the property tax per housing unit, both of which are values from the Calculations section.
Parking Revenue—This value is recorded in the Constants section and can be echoed here.
Realty Transfer Fees—This value is recorded in the Constants section and can be echoed here.
Apartment Permits—This value is a function of the number of apartment units added in the year
(a value from the Calculations section) and the per-unit permit fee (from the Constants section).
Total Revenue—This amount is the sum of water, electricity, property tax, parking, transfer fee,
and permit revenues.
Cost of Water—This cost is a function of the number of gallons sold and the cost per gallon, both
of which are values from the Calculations section.
Cost of Electricity—This cost is a function of the number of kilowatts sold and the cost per kilowatt, both of which are values from the Calculations section.
Employment Cost—This cost is a function of the number of employees in the year and the average employee cost in the year, both of which are values from the Calculations section.
Contractual and Other Costs—This value is recorded in the Calculations section and can be echoed here.
Interest on Debt Owed—This amount is the product of debt owed at the beginning of the year
and the interest rate, which is a value from the Constants section.
Total Expenses—This amount is the sum of the costs of water, electricity, employment, contractual and other, and interest on debt owed.
Net Income—This amount is the difference between total revenue and total expenses. (Note that
no taxes are paid by this governmental unit.)
Line items for the year-end cash calculation are shown in Figure 7-6. In the figure, column B represents
2019, column C is for 2020, and so on. Year 2019 values are NA except for end-of-year cash on hand, which is
$3 million.
Values must be computed by cell formula; hard-code numbers in formulas only when you are told to do
so. Cell formulas should not reference a cell with a value of “NA.” An explanation of each item follows the
figure.
FIGURE 7-6
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End-of-year cash on hand section
Expected Capital Expenditures—These outlays are shown in the Constants section. They reduce
cash on hand.
Repayment to Note Holders—$5 million in notes is owed to the banks at the end of 2019.
The agreement is that 10 percent of the notes outstanding at the end of the prior year will be
repaid in the current year. You can hard-code the value “10” as a denominator in your formula.
­Repayment of debt reduces cash on hand.
Net Cash Position (NCP) Before Borrowing—This amount equals cash at the beginning of the
year plus the year’s net income, minus scheduled capital expenditures and minus repayments to
note holders.
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Case 7
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Add: Borrowing from Bank—Assume that the city can borrow from their friendly bankers at
the end of the year to reach the minimum cash needed to start the next year; this minimum is
a value from the Constants section. If the NCP is less than this minimum amount, the city will
borrow enough to start the next year with the minimum. Borrowing increases cash on hand, of
course.
Equals: End-of-the-Year Cash on Hand—This amount is the NCP plus any bank borrowing.
Debt Owed Section
This section shows a calculation of debt owed at the end of a year, as shown in Figure 7-7. Year 2019 values
are NA except for end-of-year debt owed, which is $5 million.
Values must be computed by cell formula. Cell formulas should not reference a cell with a value of “NA.”
An explanation of each item follows the figure.
FIGURE 7-7
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Debt Owed section
Beginning-of-the-Year Debt Owed—Debt owed at the beginning of a year equals the debt owed at
the end of the prior year.
Add: Borrowing from Bank—This amount has been calculated elsewhere and can be echoed to
this section. Borrowing increases the amount of debt owed.
Less: Repayment to Note Holders—This amount has been calculated elsewhere and can be echoed to this section. Repayments reduce the amount of debt owed.
Equals: End-of-the-Year Debt Owed—This is the amount owed at the beginning of a year plus
borrowing during the year, minus repayments to noteholders during the year.
ASSIGNMENT 2: USING THE SPREADSHEET FOR DECISION SUPPORT
Complete the case by (1) using the spreadsheet to gather data about possible financial scenarios and (2) documenting your findings in a memo.
The city council would very much like to get through the next three years without incurring significant
bank debt. The key variable is whether to allow accelerated apartment building or not.
The council asks you to consider four scenarios for the period, which are labeled Optimistic1,
­Optimistic2, Increase1, and Increase2. The input values for these scenarios are as follows:
1.
Optimistic1—Apartments are not built on an accelerated basis. There is no property tax
increase. There are no increases in the prices charged to citizens for water or electricity.
2.
Optimistic2—Apartments are built on an accelerated basis. There is no property tax increase.
There are no increases in the prices charged to citizens for water or electricity.
3.
Increase1—Apartments are not built on an accelerated basis. Property taxes are increased 1
percent in 2020 (there are no property tax increases in 2021 and 2022). There is no increase in
water or electricity prices in 2020. Water prices will increase by 1 percent in 2021 and in 2022.
Electricity prices will increase by 1 percent in 2021 and in 2022.
Increase2—Apartments are built on an accelerated basis. Property taxes are increased 1 percent
in 2020 (there are no property tax increases in 2021 and 2022). There is no increase in water or
electricity prices in 2020. Water prices will increase by 1 percent in 2021 and in 2022. Electricity
prices will increase by 1 percent in 2021 and in 2022.
4.
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The College Town Budget
The city council would like to see a positive net income in each year, but especially in 2022. The council
expects an increase in debt owed, but would not want debt to more than double by 2022. So, the question
would be: In which scenario or scenarios is it possible to have positive net income and less than $10 million of
debt in 2022? If that is not possible, the council will have to consider further cost reduction programs and/or
stiffer increases in property taxes, water charges, and electricity charges.
Assignment 2A: Using the Spreadsheet to Gather Data
You have built the spreadsheet to model the city’s financial situation. You will run “what-if” scenarios with the
four sets of input values using Scenario Manager. Set up the four scenarios. (Note that in Scenario Manager
you can enter noncontiguous cell ranges, such as C19, D20:F20.)
The relevant output cells are 2022 net income, 2022 cash on hand, and 2022 debt owed. Run Scenario
Manager to gather the data into a scenario summary report. When you finish, print the spreadsheet with the
inputs for any one of the scenarios, print the Scenario Manager summary report sheet, and then save the
spreadsheet file one final time.
Assignment 2B: Documenting Your Results in a Memo
Write a brief memo documenting your analysis and results. You can address the memo to the city council.
Observe the following requirements:
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Set up your memo as described in Tutorial E.
In the first paragraph, briefly state the financial situation and the purpose of your analysis.
Next, describe the scenarios tested and the related results.
State your conclusions: Are there scenarios that would be acceptable to the council? Or, will
they have to consider stronger measures?
Support your statements graphically, as your instructor requires. Your instructor may ask you
to return to Excel and copy the Scenario Manager summary sheet results into the memo. You
may be asked to include a summary table built in Microsoft Word based on the Scenario Manager
summary sheet results. (The process of creating a table in Word is described in Tutorial E.)
Your table should be in the format shown in Figure 7-8.
Scenario
2022 Net Income
2022 Cash
2022 Debt
Optimistic1
Optimistic2
Increase1
Increase2
FIGURE 7-8
Format of table to insert in memo
DELIVERABLES
Your completed case should include the following deliverables for your instructor:
1.
2.
3.
A printed copy of your memo
Printouts of your spreadsheet and scenario summary report sheet
Electronic media, which should include your memo and Excel Scenario Manager program
Staple all the pages together. Write your name and class number at the top of each page. Make sure that
your electronic media are labeled, if required.
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129
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PART
3
DECISION SUPPORT
CASES USING MICROSOFT
E X C E L S O LV E R
TUTORIAL D
Building a Decision Support System Using Microsoft
Excel Solver, 133
CASE 8
Rose Tree Regional Airline, 151
CASE 9
The Auto Maker Product Mix Problem, 163
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TUTORIAL
D
BUILDING A DECISION SUPPORT
SYSTEM USING MICROSOFT EXCEL
SOLVER
Decision support systems (DSS) help people make decisions, as you learned in Tutorial C. Tutorial D teaches
you how to use Solver, one of Excel’s built-in decision support tools.
For some business problems, decision makers want to know the best, or optimal, solution. Usually that
means maximizing a variable or minimizing another variable. For example, you might want to maximize net
income or minimize total costs. This optimization is subject to constraints, which are rules that must be
observed when solving a problem. Solver computes answers to such optimization problems.
This tutorial has four sections:
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Using Excel Solver: In this section, you’ll learn how to use Solver in decision making. As an
example, you’ll use Solver to create a production schedule for a sporting goods company. This
schedule is called the base case.
Extending the Example: In this section, you’ll test what you’ve learned about Solver as you
­modify the production schedule of the sporting goods company. This is called the extension case.
Using Solver on a New Problem: In this section, you’ll use Solver on a new problem.
Troubleshooting Solver: In this section, you’ll learn how to overcome problems you might
encounter when using Solver, including what to do if it does not show up in the Excel Ribbon.
NOTE
Tutorial C offers some guidance on basic Excel concepts, including formatting cells and using functions such as IF().
USING EXCEL SOLVER
Suppose a company must set a production schedule for its various products, each of which has a different
profit margin. At first, you might assume that the company will maximize production of all profitable products to maximize net income. However, a company typically cannot make and sell an unlimited number of its
products because of constraints.
One constraint that affects production is the shared resource problem. For example, several products in
a manufacturer’s line might require the same raw materials, which are in limited supply. Similarly, the manufacturer might require the same machines to make several of its products. In addition, a limited pool of skilled
workers might be available to make the products.
In addition to production constraints, management’s policies sometimes impose constraints. For example,
management might decide that the company must have a broader product line. As a consequence, a certain
production quota must be met for several products, regardless of profit margins.
Thus, management must find a production schedule that will maximize profit given the constraints.
Optimization programs like Solver look at each combination of products, one after the other, ranking each
combination by profitability. Then the program reports the most profitable combination.
To use Solver, set up a model of the problem, including the factors that can vary, the constraints on how
much they can vary, and the goal—that is, the value you are trying to maximize or minimize. Usually you
want to maximize net income or minimize total costs. Solver then computes the best solution.
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134
Tutorial D
Setting Up a Spreadsheet Skeleton
Suppose your company makes two products—basketballs and footballs. Assume that you will sell all of the
balls you produce. To maximize net income, you want to know how many of each kind of ball to make in the
coming year.
Making each kind of ball requires a certain number of hours, and each ball has a different cost of raw
materials. Because you have only a limited number of workers and machines, you can devote a maximum of
40,000 hours to production, which is a shared resource. You do not want that resource to be idle, however.
You should not have more than 1,000 hours of downtime in a year, so machines should be used for at least
39,000 hours.
Marketing executives say that you cannot make more than 60,000 basketballs or fewer than 30,000.
­Furthermore, they say that you must make at least 20,000 footballs but not more than 40,000. Marketing also
says you should produce at least as many basketballs as footballs.
What would be the best production plan? You can set up this problem in Solver. The spreadsheet sections
are discussed in the pages that follow.
AT THE KEYBOARD
Start by saving a blank spreadsheet as Sportsl.xlsx. Then enter the skeleton and formulas as they are discussed. You can also use the skeleton file to save time. Select Tutorial D in your data files, and then select
Sportsl.xlsx.
Changing Cells Section
The Changing Cells section contains the variables Solver is allowed to change while it looks for the solution
to the problem. Figure D-1 shows the skeleton of this spreadsheet section and the values you should enter. An
analysis of the line items follows the figure.
FIGURE D-1 Changing Cells section
The changing cells are for the number of basketballs and footballs to be made and sold. The changing cells
are like input cells, except that Solver plays “what if” with the values, trying to maximize or minimize some
value. In this case, you want Solver to maximize net income.
You should enter a number in the changing cells each time you set up a problem before running Solver. It is
customary to enter 1s in the changing cells, as shown. Solver will change these values when the program is run.
Constants Section
Your spreadsheet should also have a section for values that will not change. Figure D-2 shows the Constants
section values that you should enter. A discussion of the line items follows the figure.
NOTE
You should format cells in the Constants section for currency or for two decimal place numbers.
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FIGURE D-2 Constants section
•
•
•
•
•
SELLING PRICE—The selling price for a single basketball and a single football.
TAX RATE—The rate applied to income before taxes to compute income tax expense.
NUMBER OF HOURS—The time needed to make a basketball and a football. Note, for example,
that a ball-making machine can produce two basketballs in an hour.
COST OF LABOR—A worker makes a ball using a ball-making machine. A worker is paid $10 for
each hour of work at the machine.
COST OF MATERIALS—The costs of raw materials for a basketball and a football.
Profit margin is equal to selling price minus the costs of labor and materials. Notice that the profit
margins for the two products are not the same. They have different selling prices and different inputs (raw
materials and hours to make), and the inputs have different costs per unit. Also note that you cannot tell from
the data how many machine hours of the shared resource will be devoted to basketballs and how many will be
devoted to footballs, because you don’t know in advance how many basketballs and footballs will be made.
Calculations Section
In the Calculations section, you will calculate intermediate results that will be used in the spreadsheet body
and as constraints. Before entering formulas, format the cells in the Calculations section for two decimal places.
­Figure D-3 shows the skeleton and formulas you should enter. A discussion of the cell formulas follows the figure.
NOTE
Cell widths are changed here merely to show the formulas—you need not change the widths in your skeleton file.
FIGURE D-3
•
•
•
Cell formulas in the Calculations section
TOTAL BASKETBALL HOURS USED—The number of machine hours needed to make all
basketballs (B3 * B10) is computed in cell B17. Cell B10 contains the constant for the hours
needed to make one basketball. Cell B3, a changing cell, contains the number of basketballs
made. Currently, this cell shows one ball, but that number will change when Solver works on the
problem.
TOTAL FOOTBALL HOURS USED—The number of machine hours needed to make all footballs
is calculated similarly.
TOTAL MACHINE HOURS USED (BB + FB)—The number of hours needed to make both kinds
of balls (cell B19) will be used in the constraints; this value is the sum of the hours calculated for
making footballs and basketballs.
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Notice that constants in the Excel cell formulas in Figure D-3 are referred to by their cell addresses. Use
the cell address of a constant rather than hard-coding a number in the Excel expression. If the number must
be changed later, you will have to change it only in the Constants section cell, not in every cell formula in
which you used the value.
Notice that you do not calculate the amounts shown in the changing cells—here, the number of basketballs and footballs to produce. Solver will compute those numbers. Also, notice that you can use the changing cell addresses in your formulas. When you do, you assume Solver has inserted the optimal values in each
changing cell; your expression makes use of those numbers.
Figure D-4 shows the calculated values after Excel evaluates the cell formulas (with 1s in the changing cells).
FIGURE D-4
Cell values in the Calculations section
Income Statement Section
The target value is calculated in the Income Statement section of the spreadsheet. This is the value that
Solver is expected to maximize or minimize. Figure D-5 shows the skeleton and formulas that you should
enter. A discussion of the line-item cell formulas follows the figure.
NOTE
Income statement cells should be formatted for Currency and two decimal places.
FIGURE D-5 Cell formulas in the Income Statement section
•
•
•
•
•
REVENUE—The values in cells B22 and B23 equal the number of balls made and sold multiplied
by the respective unit selling price. The number of balls is shown in the Changing Cells section,
and the selling prices are constants.
TOTAL REVENUE—The sum of basketball and football revenue.
MATERIALS COST—The values in cells B25 and B26 equal the number of units made multiplied
by unit cost.
COST OF MACHINE LABOR—The calculated number of machine hours multiplied by the hourly
labor rate for machine workers.
TOTAL COST OF GOODS SOLD—The sum of the cost of materials and the cost of labor.
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•
•
•
INCOME BEFORE TAXES—The difference between total revenue and total cost of goods sold.
INCOME TAX EXPENSE—This is the logic of the Income Tax Expense calculation: If Income
Before Taxes is less than or equal to zero, the tax is zero; otherwise, the Income Tax Expense
equals the tax rate multiplied by Income Before Taxes. An IF() statement is needed in cell B30.
NET INCOME AFTER TAXES—The difference between income before taxes and income tax
expense.
Excel evaluates the formulas. Figure D-6 shows the results, assuming that 1s are in the changing cells.
FIGURE D-6 Cell values in the Income Statement section
Constraints
Constraints are rules that Solver must observe when computing the optimal answer to a problem. Constraints
need to refer to calculated values or to values in the spreadsheet body. You must build the calculations into
the spreadsheet design so they are available to your constraint expressions.
There is no section in the spreadsheet for constraints. You’ll use a separate window to enter constraints.
Figure D-7 shows the Excel expressions for the constraints of the basketball and football production problem.
A discussion of the constraints follows the figure.
Description of Expression
Excel Expression
TOTAL MACHINE HOURS .5 39000
B19 .5 39000
TOTAL MACHINE HOURS ,5 40000
B19 ,5 40000
MIN BASKETBALLS 5 30000
B3 .5 30000
MAX BASKETBALLS 5 60000
B3 ,5 60000
MIN FOOTBALLS 5 20000
B4 .5 20000
MAX FOOTBALLS 5 40000
B4 ,5 40000
AT LEAST AS MANY BASKETBALLS AS FOOTBALLS
B3 .5 B4
NET INCOME MUST BE POSITIVE
B31 .5 0
FIGURE D-7 Solver constraint expressions
Notice in the figure that a cell address in a constraint expression can be a cell address in the Changing
Cells section, in the Constants section, in the Calculations section, or in the spreadsheet body.
When using Solver, you might need to set minimum and maximum boundaries for variables. For example,
the number of basketballs (MIN and MAX) varies between 30,000 and 60,000.
Often a boundary value is zero because you want Solver to find a non-negative result. In this example,
you want only answers that yield a positive net income. You tell Solver that the amount in the net income cell
must equal or exceed zero so Solver will not find an answer that produces a loss.
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Machine hours must be shared between the two kinds of balls. The constraints for the shared resource are
B19 .5 39000 and B19 ,5 40000, where cell B19 shows the total hours used to make both basketballs and
footballs. The shared resource constraint seems to be the most difficult kind of constraint for students to master when learning Solver.
Marketing wants the company to make at least as many basketballs as footballs. The constraint B3 .5 B4
expresses this logic.
One other constraint arises out of common sense: Solver should not decide to make a partial ball. Solver
will let you specify integer values for balls produced.
Running Solver: Mechanics
To set up Solver, you must tell it:
•
•
•
The cell address of the “target” objective variable that you are trying to maximize or minimize
The changing cell addresses
The expressions for the constraints
Solver will record its answers in the changing cells and in a separate worksheet.
Beginning to Set Up Solver
AT THE KEYBOARD
To start setting up Solver, first select the Data tab. In the Analyze group, select Solver. The Solver Parameters
window appears, as shown in Figure D-8. Use the Solver Parameters window to specify the objective cell, the
changing cells, and the constraints.
FIGURE D-8 Upper portion of the Solver Parameters window
Setting the Objective Cell
To set an objective cell, use the following procedure:
1.
2.
3.
Click the Set Objective box and enter B31, which is the cell for net income.
Accept the default Max setting, which stands for “maximize.”
Leave the Value Of: button unchecked. Do not press Enter when you finish. You’ll navigate within
this window by clicking in the next input box.
When you enter the cell address, Solver may insert dollar signs, as if for absolute addressing. Ignore
them—do not try to delete them.
Setting the Changing Variable Cells
The changing cells are the cells for the basketballs and footballs, which are in the range B3:B4. Click the By
Changing Variable Cells box and enter B3:B4, as shown in Figure D-9. Do not press Enter.
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Building a Decision Support System Using Microsoft Excel Solver
FIGURE D-9 Entering data in the By Changing Variable Cells box
Entering Constraints
You are now ready to enter the constraint formulas one by one. To start, click the Add button in the Solver
Parameters window. As shown in Figure D-10, you then see the Add Constraint window. In this example, you
enter the constraint for minimum basketball production.
FIGURE D-10
Entering data in the Add Constraint window
You should do the following when entering constraint expressions:
•
•
•
•
Type the variable’s cell address in the Cell Reference input box.
Select the operator (,5,5,.5, or Int) in the smaller middle box.
Enter either a raw number or the cell address of a value in the Constraint box.
Click Add to finish entering the constraint.
If you change your mind about the expression and do not want to enter it, click Cancel.
Enter the minimum basketball constraint now. Later, Solver may insert an equal sign in front of the
30000 and dollar signs in the cell reference.
After entering a constraint formula, click the Add button to add the constraint to the Solver model. The
Add Constraint window stays open and allows you to enter other constraints. You should enter the rest of the
constraints now. See Figure D-7 for the logic. Note that you should use the Int operator in the Add Constraint
window to specify that B3 and B4 must be integer values.
When you’re done entering constraints, click the Cancel button to return to the Solver Parameters
window.
In the Solver Parameters window, you will see that the constraints have been entered into the program. In
some cases, not all constraints will appear due to the number of constraints and the size of the box, although
that is not a problem here. The base case constraints are shown in Figure D-11.
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Tutorial D
FIGURE D-11
Constraints entered in the Solver Parameters window
Selecting a Solving Method
Figure D-11 shows the Select a Solving Method field. You should select the GRG Nonlinear method, because
the If statement in the tax expense calculation makes this a nonlinear problem. The Make Unconstrained
Variables Non-Negative box should be checked, as shown in Figure D-11.
Computing Solver’s Answer
To have Solver calculate answers, click Solve in the lower-right corner of the Solver Parameters window.
Solver does its work in the background—you do not see the internal calculations. Next you see a Solver
Results window, as shown in Figure D-12.
FIGURE D-12
Solver Results window
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In the Solver Results window, Solver reports that it has found a solution and that the optimality conditions were met. This is a very important message—you should always check for it. It means that an answer
was found and the constraints were satisfied.
By contrast, your constraints might not allow Solver to find an answer. For example, suppose you had a
constraint that said, in effect, “Net income must be at least a billion dollars.” That amount cannot be reached,
given so few basketballs and footballs and the prices. Solver would report that no answer is feasible. Solver
might also report that it found an answer, but only by ignoring some constraints. In either case, something
would be wrong with your model, and you would need to rework it.
There are two ways to see your answers. One way is to click OK in the Solver Results window, which lets
you see the new changing cell values. A more formal and complete way is to click Answer in the Reports box
and then click OK, which inserts detailed results into a new sheet in your Excel book. The new sheet is called
an Answer Report. All Answer Reports are numbered sequentially as you run Solver.
To see the Answer Report, click its tab, as shown in Figure D-13. In this case, the tab is named Answer
Report 1.
FIGURE D-13
Answer Report sheet tab
The top portion of the report is shown in Figure D-14.
FIGURE D-14
Top portion of the Answer Report
Figure D-15 shows the remainder of the Answer Report.
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Tutorial D
FIGURE D-15
Remainder of the Answer Report
At the beginning of this example, the changing cells had a value of 1, and the income was $9.90 (Original
Value). The optimal solution values (Final Value) also are shown: $476,640 for net income (the target) and
56,000 basketballs and 40,000 footballs for the changing cells.
The report also shows details for the constraints: the constraint expression and the value of the variable
in the optimal solution. Binding means the final answer caused Solver to bump up against the constraint.
For example, the maximum number of machine hours was 40,000, which is the value Solver used to find the
answer.
Not binding means the reverse. A better word for binding might be constraining. For example, the
­maximum limit of 60,000 basketballs did not constrain Solver.
The procedures you use to change or delete a constraint are discussed later in this tutorial.
Use the File tab to print the worksheets (Answer Report and Sheetl). Save the Excel file using the Save
option in the File tab. Then use the Save As option in the File tab to create a new file called Sports2.xlsx,
which you will use in the next section of this tutorial.
EXTENDING THE EXAMPLE
Next, you’ll modify the sporting goods spreadsheet because management wants to know what net income
would be if certain constraints were changed. In other words, management wants to play “what if” with
certain constraints in the base case. The resulting second case is called the extension case. Here are the
changes to the original base case conditions:
•
•
•
•
Assume maximum production constraints will be removed.
Similarly, the basketball-to-football production comparison (B3 .5 B4) will be removed.
There still will be minimum production constraints. Assume that at least 30,000 basketballs and
30,000 footballs will be produced.
A different and possibly more ambitious profit goal is desired. The ratio of net income after taxes
to total revenue should be greater than or equal to .33. This new constraint will replace the constraint that calls for profits greater than zero.
The machine-hours shared resource imposes the same limits as in the base case.
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Building a Decision Support System Using Microsoft Excel Solver
AT THE KEYBOARD
Begin by putting 1s in the changing cells. You need to compute the ratio of net income after taxes to total
revenue. Enter the formula in cell B20; the formula should include the cell address for net income after taxes
in the numerator and the total revenue cell address in the denominator. In the extension case, the value of
this ratio for Solver’s optimal answer must be at least .33. Click the Add button and enter the new constraint.
Then, in the Solver Parameters window, click to highlight constraints that are no longer needed: the net
income .5 0 constraint, the maximum football and basketball constraints, and the basketball-to-football
comparison constraint. Delete the constraints by clicking the Delete button.
The minimum football constraint must be modified, not deleted. Select that constraint and then click
Change to open the Add Constraint window. Edit the constraint so 30,000 is the lower boundary.
When you are finished with the constraints, your Solver Parameters window should look like the one
shown in Figure D-16.
FIGURE D-16
Solver Parameters window for the extension case
The constraints now apply only to the minimum production levels, the ratio of net income after taxes to
total revenue, the machine-hours shared resource, and whole-number output.
Set the Solver method to GRG Nonlinear in the Solver Parameters window. When Solver is run, the values
in the Answer Report should look like those in Figure D-17.
FIGURE D-17
Answer Report for the extension case
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The answer for the extension case differs from the base case answer. Which production schedule should
management use: the one that has maximum production limits or the one that has no such limits? This
­question is posed to get you to think about the purpose of using a DSS program. Solver’s very different
answers to the base case and the extension case are shown in Figure D-18.
Base Case
Extension Case
Basketballs
56,000
30,000
Footballs
40,000
83,333
FIGURE D-18
Solver’s answers for the two cases
Can you use this output alone to decide how many of each kind of ball to produce? No, you cannot. You
must also refer to the case objective, which is to maximize net income. Figure D-19 shows the answers with
net income data added.
Base Case
Extension Case
Basketballs
56,000
30,000
Footballs
40,000
83,333
Net Income
$476,640
$556,198
FIGURE D-19
Solver’s answers for the two cases—with objective data
When viewed this way, the extension case’s production schedule looks better because it gives a higher
­target net income.
At this point, you should save the Sports2.xlsx file and then close it. Select Close from the File tab.
USING SOLVER ON A NEW PROBLEM
This section includes a short problem that lets you practice what you have learned about Excel Solver.
Setting Up the Spreadsheet
Assume that you run a shirt-manufacturing company. You have two products: polo-style T-shirts and dress
shirts with button-down collars. You must decide how many T-shirts and button-down shirts to make. Assume
that you’ll sell every shirt you make.
AT THE KEYBOARD
Start a new file called Shirts.xlsx and set up a Solver spreadsheet to handle the problem. You can also use the
skeleton file to save time. Select Tutorial D in your data files, and then select Shirts.xlsx.
Changing Cells Section
Your changing cells should look like those in Figure D-20.
FIGURE D-20 Shirt manufacturing changing cells
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Building a Decision Support System Using Microsoft Excel Solver
Constants Section
Your spreadsheet should contain the constants shown in Figure D-21. A discussion of the constant cells and
some of your company’s operations follows the figure.
FIGURE D-21 Shirt manufacturing constants
•
•
•
•
•
•
•
TAX RATE—The rate is .28 on income before taxes. Note that no taxes are paid on losses.
SELLING PRICE—You sell polo-style T-shirts for $8 and button-down shirts for $36.
VARIABLE COST TO MAKE—It costs $2.50 to make a T-shirt and $14 to make a button-down
shirt. These variable costs are for machine operator labor, cloth, buttons, and so on.
COTTON USAGE—Each polo T-shirt uses 1.5 pounds of cotton fabric. Each button-down shirt
uses 2.5 pounds of cotton fabric.
TOTAL COTTON AVAILABLE—You have 13 million pounds of cotton on hand to make all of the
T-shirts and button-down shirts.
BUTTONS—Each polo T-shirt has three buttons. By contrast, each button-down shirt has one
button on each collar tip, eight buttons down the front, and one button on each cuff, for a total of
12 buttons.
TOTAL BUTTONS AVAILABLE—You have 110 million buttons on hand to be used in making the
shirts.
Calculations Section
Calculations and related business constraints are discussed next. Your spreadsheet should contain the
calculations shown in Figure D-22.
FIGURE D-22 Shirt manufacturing calculations
•
RATIO OF NET INCOME TO TOTAL REVENUE—The minimum return on sales is 0.20. This
ratio is net income after taxes divided by total revenue.
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•
•
COTTON USED/BUTTONS USED—You have a limited amount of cotton and buttons. The usage
of each resource must be calculated and then used in constraints.
RATIO OF BUTTON-DOWNS TO T-SHIRTS—You think you must make at least 2 million T-shirts
and at least 2 million button-down shirts. You want to be known as a balanced shirt maker, so
you think the ratio of button-downs to T-shirts should be no greater than 4:1. Thus, if you produced 9 million button-down shirts and 2 million T-shirts, the ratio would be too high.
Income Statement Section
Your spreadsheet should have the Income Statement section shown in Figure D-23.
FIGURE D-23 Line items in the shirt manufacturing income statement
The meaning of the line items should be clear from the sports example shown earlier in this tutorial.
­Solver’s objective is to maximize net income after taxes.
You could use the table shown in Figure D-24 to hand-write the constraints before entering them into Solver.
Expression
Fill in the Excel Expression
Net income to revenue
______.5______
Ratio of button-downs to T-shirts
______,5______
Minimum T-shirts
______.5______
Minimum button-downs
______.5______
Usage of buttons
______,5______
Usage of cotton
______,5______
FIGURE D-24 Logic of shirt manufacturing constraints
Before running Solver, set the method to GRG Nonlinear in the Solver Parameters window.
When you are finished with the program, print the sheets. Select Save from the File tab to save the file,
and then select Close from the File tab to close the file.
TROUBLESHOOTING SOLVER
Use this section to overcome problems with Solver and to review some Windows file-handling procedures.
Adding Solver to the Excel Ribbon
Before you can use Solver, it must be installed in Excel. To see if it is, start Excel. Click the Data tab in the
Ribbon. If you see a group on the right side named Analysis that contains Solver, Solver has been installed.
If Solver is not shown, do the following:
1.
2.
Click the File tab.
Click Options. The Excel Options window should appear.
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Building a Decision Support System Using Microsoft Excel Solver
3.
4.
5.
In the menu on the left, click Add-Ins to display utilities you can add to Excel.
At the bottom of the screen, click the Go button.
The Add-ins window appears. Click the box for Solver Add-In. Then click the OK button to close
the window and return to the Ribbon.
If you click the Data tab again, you should see that the Analyze group contains Solver.
Rerunning a Solver Model
If you have changed your spreadsheet in some way, you might want to rerun Solver to get a new set of
answers. For example, you may have changed a constraint or a formula in your spreadsheet. Before you click
Solve to rerun Solver, you should enter a “1” in each of the changing cells.
Creating Overconstrained Models
It is possible to set up a model that has no logical solution. For example, in the second version of the sporting
goods problem, suppose you had specified that at least 1 million basketballs were needed. When you clicked
Solve, Solver would have tried to compute an answer but then would have admitted defeat by telling you that
no feasible solution was possible, as shown in Figure D-25.
FIGURE D-25 Solver Results message: no feasible solution
The Reports window would show that no report is available. Such a mistaken model is sometimes referred
to as overconstrained.
Setting a Constraint to a Single Amount
You may want an amount to be a specific number, as opposed to a number in a range. For example, if the
number of basketballs needed to be exactly 30,000 in the previous scenario, you would select the “equals”
operator, as shown in Figure D-26.
FIGURE D-26 Constraining a value to equal a specific amount
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Integer Changing Cells
The Int operator in the Add Constraint window is used to force cell values to be integers, as described in a
prior section.
Forcing Solver to find only integer solutions slows it down. In some cases, the change in speed can be
noticeable to the user. It can also prevent Solver from seeing a feasible solution when one could be found
using noninteger answers. For these reasons, it’s usually best not to impose the integer constraint unless the
logic of the problem demands it.
Deleting Extra Answer Sheets
Suppose you’ve run different scenarios, each time asking for an Answer Report. As a result, you have a number of Answer Report sheets in your Excel file, but you don’t want to keep them all. To get rid of an Answer
Report sheet, first select the Home tab. In the Cells group, click the Delete drop-down arrow and select Delete
Sheet. You will not be asked to confirm the deletion, so make sure you want to delete the sheet before you act.
You can also delete an Answer Report sheet by right-clicking the sheet’s lower tab and then selecting
Delete. When prompted to confirm the deletion, click the Delete button.
Restarting Solver with All New Constraints
Suppose you want to start over with a new set of constraints. In the Solver Parameters window, click Reset
All. You will be asked to confirm, as shown in Figure D-27.
FIGURE D-27 Reset options warning
To reset all options, select OK. You now have a clean slate, with all entries deleted. From this point, you
can specify a new model.
NOTE
If you only want to add, delete, or edit a constraint, do not use Reset All. Use the Add, Delete, or Change buttons as appropriate.
Using the Solver Options Window
Solver has a number of internal settings that govern its search for an optimal answer. If you click the Options
button in the Solver Parameters window, you will see these default settings, as shown in Figure D-28.
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Building a Decision Support System Using Microsoft Excel Solver
FIGURE D-28 Solver Options window with default settings for Solver parameters
The settings in the Solver Options window govern how long Solver works on a problem and how precise it
must be in satisfying constraints.
You should not have to change these default settings for the cases in this book. If you think that your
work in Solver is correct but Solver cannot find a feasible solution, you should check to see that the settings
in the Solver Options window are entered as shown in Figure D-28.
Printing Cell Formulas in Excel
To widen cell formulas on the screen so they can be read more easily, press Ctrl and the left quotation (‘) keys
at the same time: Ctrl+‘. The left quotation mark is usually shown on the same key as the tilde (~). You can
manually change cell widths by clicking and dragging the column indicator boundaries (A, B, C, etc.).
To print the formulas, open the File tab and select Print. Print the sheet as you would normally. To restore
the screen to its typical appearance and show values instead of formulas, press Ctrl1‘ again. The command
acts like a toggle switch. If you did not change any column widths while in the cell formula view, the widths
will remain as they were.
Reviewing the Printing, Saving, and Exiting Procedures
Print the Solver spreadsheets in the normal way. Activate the sheet, then open the File tab and select Print.
You can print an Answer Report sheet the same way.
To save a file, open the File tab and select Save or Save As. Make sure you select the proper drive (for
example, drive F:) if you want your file to be saved to a flash drive or other disk.
When exiting Excel, always start with the File tab. Then select Close.
Sometimes Solver will come up with strange results. For instance, your results might differ from the target
answers that your instructor provides for a case. Thinking that you’ve done something wrong, you might ask
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Tutorial D
to compare your cell formulas and constraint expressions with those your instructor created. Lo and behold,
you see no differences! Surprisingly, and for no apparent reason, Solver occasionally produces slightly different outputs from inputs that are seemingly the same. This may occur because the order of the constraints
matters for your application, or even the order in which they are entered matters. In any case, if you are close
to the target answers but cannot see any errors, it’s best to ask your instructor for guidance rather than spin
your wheels.
As another example, you might ask for changing cell outputs as integers. Solver may tell you that the correct output is 8.0000001 or 7.9999999. In such situations, Solver is apparently not sure about its own rounding. In this case, you should humor Solver and take the result as the integer 8, which is what Solver was trying
to report in the first place.
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CASE
8
ROSE TREE REGIONAL AIRLINE
Decision Support Using Microsoft Excel Solver
PREVIEW
Rose Tree Regional Airline provides passenger transportation services and small-parcel logistics to major metropolitan areas in the Mountain region. The company operates in a hub-and-spoke fashion with the headquarters in Salt Lake City at its center, serving the following cities: Las Vegas, Albuquerque, Denver, Cheyenne,
Boise, Reno, and Phoenix. Considering the tremendous competition that the airline industry has seen in
recent years, management has determined that the current manual scheduling system can no longer produce
the most cost-effective plane allocation to the various routes. Furthermore, the company is interested in the
possibility of selling any unused cargo space to companies like Amazon.
You have been hired as a new MIS consultant to develop a DSS model for Rose Tree Regional Airline. Your
completed model will be used to assign the plane fleet to its seven destinations while minimizing costs. Also,
you will be asked to modify the model to calculate how taking on additional cargo will affect the company’s
profitability and operating costs.
PREPARATION
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Review spreadsheet concepts discussed in class and in your textbook.
Complete any exercises that your instructor assigns.
Complete any part of Tutorial D that your instructor assigns, or refer to it as necessary.
Review the file-saving procedures for Windows programs in Tutorial C.
BACKGROUND
You will use your Excel skills to build a decision support model and determine how to best allocate the company’s fleet to various destinations. The model requires the following data, which the management team has
compiled for you:
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Data for the four different types of planes in the fleet:
o Passenger capacity
o Cargo space
o Operating cost per mile (includes fuel, labor, and overhead)
o Number of available planes
Ticket pricing to each destination
Cargo pricing to each destination
Distance from Salt Lake City to each destination
In addition, the operations department has given you information about the passenger and cargo demand
for each city:
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Expected daily passenger load
Expected daily cargo load
To satisfy passenger requirements and cargo demand, your Solver model will assign planes by number and
type to each destination city. The model will also calculate daily revenues from both passenger service and
cargo, as well as the total daily operating cost. The results of these calculations will be used to create a daily
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Case 8
gross profit statement. You will run Solver first to minimize the total operating cost. Next, you will modify the
model to examine taking on additional cargo and its effect on the total operating cost and profitability. Finally,
you will run the modified model to maximize daily gross profits.
Rose Tree Regional Airline Fleet
The company’s fleet consists of 50 planes divided into four different types. From an operating cost perspective
(highest to lowest), this is the current fleet:
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Boeing 717
Bombardier CRJ700
Embraer E170
Airbus A220
ASSIGNMENT 1: CREATING SPREADSHEET MODELS FOR DECISION SUPPORT
In this assignment, you will create spreadsheets that model the business decision Rose Tree Regional Airline
is seeking. In Assignment 1A, you will create a spreadsheet and attempt to assign the planes manually to minimize the total operating cost. In Assignment 1B, you will copy the spreadsheet to a new worksheet, and then
set up and run Solver to minimize the total operating cost. In Assignment 1C, you will copy the Solver solution to a new worksheet and modify it to add calculations for taking on additional cargo. You will then rerun
Solver to determine how the extra cargo affects the company’s total operating cost. In Assignment 1D, you will
copy the modified Solver spreadsheet and rerun Solver to maximize daily gross profit.
This section helps you set up each of the following spreadsheet components before entering the cell
formulas:
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Constants
Calculations and Results
Income Statement
The Calculations and Results section is the heart of the decision model. You will set up columns for travel
distance, daily demand, plane assignment by type, plane use, and operating costs. The spreadsheet rows will
represent destination cities. The Plane Assignment section will be the range of changing cells for Solver to
manipulate. The total operating cost will serve as your optimization cell for Assignments 1B and 1C, and the
daily gross profit will be your optimization cell for Assignment 1D. You will add formulas to the additional
cargo cells in the Calculations and Results section for Assignments 1C and 1D.
Assignment 1A: Creating the Spreadsheet for the Base Case
A discussion of each spreadsheet section follows. This information helps you set up each section of the model
and learn the logic of the formulas in the spreadsheet. If you choose to enter the data directly, follow the cell
structure shown in the figures. You can also download the spreadsheet skeleton if you prefer. To access the
base spreadsheet skeleton, select Case 8 from your data files and then select RoseTreeRegionalAirline.xlsx.
Constants Section
First, build the skeleton of your spreadsheet. Set up the spreadsheet title and Constants section as shown in
Figure 8-1. An explanation of the column items follows the figure.
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Rose Tree Regional Airline
FIGURE 8-1
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Spreadsheet title and Constants section
Spreadsheet title—Enter the spreadsheet title in cell B1 and then merge and center the title
across cells B1 through Fl.
Constants section, Plane Data table—Enter the column headings shown in cells B5 through G5.
Plane Type—Enter each of the four planes listed in cells B6 through B9.
Passenger Capacity—Enter each of the four passenger capacities listed in cells C6 through C9.
Cargo Capacity (ft3)—Enter each of the four cargo capacities listed in cells D6 through D9.
Operating Cost per Passenger-Mile—Enter each of the four operating costs per mile listed in cells
E6 through E9.
Operating Cost per Cargo-Mile—Enter each of the four operating costs per mile listed in cells F6
through F9.
Available Fleet—This value is the number of planes of each type that Rose Tree Regional Airline
keeps in service. Enter these numbers in cells G6 through G9.
Constants section, Fee Schedule table—Enter the column headings shown in cells B11 through
D11.
Destination—Enter the seven destination cities in cells B12 through B18.
Average Ticket Price—Enter the passenger ticket prices for the seven destinations in cells C12
through C18.
Cargo Price/ft3—Enter the cargo price per cubic foot for the seven destinations in cells D12
through D18.
Fill Legend—This section is actually adjacent to the Constants section. Enter “Fill Legend” in
cell J5, fill cell J6 in yellow, fill cell J7 in blue, enter “Changing Cells” in cell K6, and enter “Optimization Cell” in cell K7.
Calculations and Results Section
The Calculations and Results section (see Figure 8-2) will contain distances, daily passenger bookings, and
daily cargo shipment data obtained from the operations department. Although these values are constants,
keeping them in the Calculations and Results section facilitates writing and copying formulas in the Plane Utilization, Costs, and Extra columns. This section also includes the Plane Assignment table, which contains the
changing cells and calculations for plane usage, costs, and additional cargo. An explanation of the sections and
columns follows the figure.
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Case 8
FIGURE 8-2
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Calculations and Results section
Table headings—If you did not use the spreadsheet skeleton, enter the column headings shown
in cells B20 through O21 in Figure 8-2.
Destination—Cells B22 through B28 hold the seven cities serviced daily by Rose Tree Regional Airline.
Distance from Salt Lake City Hub—Cells C22 through C28 hold the route distances in miles to
each of the seven destinations.
Daily Passenger Bookings—Cells D22 through D28 hold the average number of passenger tickets
booked each day.
Daily Cargo Shipments (ft3)—Cells E22 through E28 hold the average number of cubic feet of
cargo shipped daily.
Plane Assignment section—Cells F22 through I28 are the heart of the Solver model—the changing cells. The cells hold the amounts of each of the four aircraft types that Solver will assign to
the seven destinations. Enter “1” in each of these cells for now. You should fill the cells with a
background color to indicate that they are the changing cells for Solver. To fill the cells, select
them and then click the Fill Color button in the Font group on the Home tab. In the spreadsheet
skeleton, the cells are yellow.
Plane Utilization section, Total Passenger Capacity—Cells J22 through J28 hold the total passenger capacity for each destination. The capacity is calculated by multiplying the number of each
assigned plane type by its passenger capacity, which is taken from cells C6 through C9 of the
Constants section. Next, take the sum of the total capacities for the four types of planes assigned.
Be sure to use absolute cell references for the passenger capacity values from the Constants section so that you have to write the formula only for the first cell (J22); then you can copy the formula to cells J23 through J28.
% of Passenger Capacity Utilized—Cells K22 through K28 hold the percentage of passenger capacity used for each destination. The value is calculated by dividing Daily Passenger Bookings by
Total Passenger Capacity.
Total Cargo Capacity—Cells L22 through L28 hold the total cargo capacity for each destination.
The capacity is calculated by multiplying the number of each assigned plane type by its cargo
capacity, which is taken from cells D6 through D9 of the Constants section. Next, you take the
sum of the total capacities for the four types of planes assigned. Again, you must use absolute
cell references for the freight capacity values from the Constants section so that you only have to
write the formula for the first cell (L22); then you can copy the formula to the other six cells.
% of Cargo Capacity Utilized—Cells M22 through M28 hold the percentage of cargo capacity used.
The percentage is calculated by dividing the Daily Cargo Shipments by the Total Cargo Capacity.
Operating Cost—Cells N22 through N28 hold the operating cost for each plane type to each destination. The cost is calculated by the following formula:
Number of planes assigned × Operating Cost per passenger mile × Mileage to destination
+ ­Number of planes assigned × Operating Cost per cargo mile × Mileage to destination
•
The costs for each of the four planes are then added to get the operating cost.
Add’l Cargo ft3 to be Added—Leave cells O22 through O28 blank for now. You will place formulas
in these cells in Assignment 1C.
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Rose Tree Regional Airline
•
Total/Avg—Total the cell entries for every column except column K (% of Passenger Capacity
­Utilized) and column M (% of Cargo Capacity Utilized). Place the totals in cells D29 to J29, L29,
and N29. For cell K29, divide the total Daily Passenger Bookings in cell D29 by the Total Passenger Capacity in cell J29 and format the result as a percentage. For cell M29, divide the total Daily
Cargo Shipments in cell E29 by the Total Cargo Capacity in cell L29 and format the result as a
percentage. These two averages are the overall utilization rates of your fleet. For now, leave cell
O29 blank (the total for Add’l Cargo ft3 to be Added).
If you wrote your formulas correctly, the Calculations and Results section should look like Figure 8-3.
FIGURE 8-3
Completed Calculations and Results section
Income Statement Section
The Income Statement section (see Figure 8-4) is actually a projection of daily gross profits and is based on
the number of planes that will be assigned either manually or by Solver. An explanation of the line items
­follows the figure.
FIGURE 8-4
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Income Statement section
Passenger Revenues—This value is calculated by multiplying the passenger tickets booked for
each destination (cells D22 through D28) by their respective average ticket prices (cells C12
through C18), and then totaling the ticket revenues for the seven destinations.
Cargo Revenues—This value is calculated by multiplying the daily cargo shipments for each
­destination (cells E22 through E28) by their respective air freight prices (cells D12 through D18),
and then totaling the cargo revenues for the seven destinations.
Additional Cargo—This value is the additional revenue from cell O29, which will be used later in
the assignment.
Total Revenues—This value is the total of Passenger Revenues, Cargo Revenues, and Additional
Cargo revenues.
Less Operating Costs—This value is the Total Cost from cell N29.
Daily Gross Profit—This value is the Total Revenues minus the Operating Costs. This cell will be
used as the optimization cell for Assignment 1D.
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Case 8
If your formulas are correct, the initial Income Statement section will appear as shown in Figure 8-5.
FIGURE 8-5
Initial income statement
The initial income statement correctly reflects the revenues expected from the passenger and cargo bookings, but the operating costs are not correct because the planes required to transport the passengers and cargo
have not been completely assigned yet.
Attempting a Manual Solution
Attempt to assign your plane fleet manually in the spreadsheet. You have several good reasons for doing this.
First, you can make sure your model is working correctly before you set up Solver to run. Second, assigning the plane fleet manually will demonstrate which constraints you must meet in solving the problem. For
instance, if a passenger or cargo utilization rate is over 100%, you have not assigned enough planes to carry
all the passengers and cargo to a particular destination. Therefore, one constraint is that the total passenger
capacity for the planes assigned to a destination must be greater than or equal to the passenger bookings.
Another constraint is that the total cargo capacity for the planes assigned must be greater than the cargo
shipments booked. Given the fleet size, you can probably assign the fleet manually and meet all of your constraints. However, will your total operating cost be the least expensive solution? Running the problem manually will provide an initial operating cost to which you can compare your Solver solution later. The Solver
optimization tool should give you a better solution than assigning the fleet manually.
When attempting to assign the planes manually in the Plane Assignment section (the changing cells), you
must satisfy both the passenger and cargo demands for each destination—in other words, the Total Passenger
Capacity values in cells J22 through J28 and the Total Cargo Capacity values in cells L22 through L28 must be
equal to or greater than the Daily Demand values in cells D22 through D28 and E22 through E28. If you have
satisfied the passenger and air freight demands correctly, none of the utilization rates in cells K22 through
K28 and M22 through M28 will exceed 100%. In addition, the total planes assigned for each type (cells F29
through I29) cannot exceed the available number of each plane type (cells G6 to G9).
Once you reach a solution that satisfies the preceding constraints, save your workbook. Name the worksheet Rose Tree Guess and then right-click the worksheet name tab, click Move or Copy, copy the worksheet,
and rename the new copy Rose Tree Solver 1. You will use the new worksheet to complete the next part of
the assignment.
Assignment 1B: Setting up and Running Solver
Before using the Solver Parameters window, you should jot down the parameters you must define and their
cell addresses. Here is a suggested list:
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The cell you want to minimize (Total Cost, cell N29)
The cells you want Solver to manipulate to obtain the optimal solution (Plane Assignment, cells
F22 through I28)
The constraints you must define:
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All the plane assignment cells must be non-negative integers.
The total number of each type of plane assigned (cells F29 through I29) cannot exceed the
number of available planes of each type (cells G6 through G9).
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Rose Tree Regional Airline
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The total passenger capacity to each destination (cells J22 through J28) must be equal to or
greater than the total passenger bookings for each destination (cells D22 through D28).
The total cargo capacity to each destination (cells L22 through L28) must be equal to or
greater than the total cargo shipment for each destination (cells E22 through E28).
Next, set up your problem. In the Analyze group on the Data tab, click Solver; the Solver Parameters
­ indow appears, as shown in Figure 8-6. Enter “Total Cost” in the Set Objective text box, click the Min
w
­button, designate your Changing Cells (cells F22 through I28), and add the constraints from the preceding list.
Use the default Simplex LP solving method. If you need help defining your constraints, refer to Tutorial D.
FIGURE 8-6
The Solver Parameters window
Next, you should click the Options button and check the Options window that appears (see Figure 8-7).
The default Integer Optimality is 5%; change it to 1% to get a better answer. Make sure the Constraint Precision is set to the default value of .000001 and that the Use Automatic Scaling option is checked. When you
finish setting the options, click OK to return to the Solver Parameters window.
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Case 8
FIGURE 8-7
The Solver Options window
Run Solver and click Answer Report when Solver finds a solution that satisfies the constraints. When you
finish, print the entire workbook, including the Solver Answer Report Sheet. To save the workbook, click the
File tab and then click Save. For the rest of the case, you either can use the Save As command to create new
Excel workbooks or continue copying and renaming the worksheets. Both options offer distinct advantages,
but having all of your worksheets and Solver Answer Reports in one Excel workbook allows you to compare
different solutions easily, as well as prepare summary reports. Before continuing, examine the plane assignments that Solver chose for minimizing the total cost. If you set up Solver correctly, you should see a significant reduction in total cost from your manual assignment.
Assignment 1C: Additional Cargo Revenues
Using the model you created in Assignment 1A, Rose Tree Regional Airline can also determine the revenue
benefit of accepting additional cargo from other companies. Taking on additional cargo might be a good option
for Rose Tree Regional Airline if its cargo service has excess capacity. After contacting other parcel delivery
companies in the area that service the same seven destinations from Salt Lake City, you determine that the
rate for additional cargo will be discounted $15 per ft3 in order to be more competitive. You must modify the
worksheet to accommodate selling the excess capacity and then rerun Solver.
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Rose Tree Regional Airline
Copy your Rose Tree Solver 1 worksheet and rename it Rose Tree Add’l Cargo. Perform the following tasks:
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You must insert a calculation for the cells in the Add’l Cargo ft3 to be Added column (cells O22
through O28).
You must recalculate the operating cost (cells N22 through N28) by incorporating the extra
cargo.
You must calculate the additional cargo revenue (cell C34 in the Income Statement section) by
using the cargo cost per route and available excess cargo to be sold. Keep in mind that the excess
cargo will be sold at a discount.
By selling additional cargo space to companies like Amazon, the company still receives passenger revenues, and at the same time it collects additional revenues from exploiting excess capacity. You must use
conditional statements to write the formulas for cells O22 through O28. Use the following logic for the formula
you place in cell O22:
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If the Total Cargo Capacity to Las Vegas (cell L22) is greater than the Daily Cargo Shipments (cell E22), the company can sell the difference between the two (its excess capacity) to
competitors.
If the Total Cargo Capacity to Las Vegas (cell L22) is less than or equal to the Daily Cargo Shipments (cell E22), the company has no excess capacity to sell to competitors.
Click the Insert Function button (fx) next to the formula bar below the Ribbon to help you write the If
statement (see Figure 8-8). After you enter the formula in cell O22, you can copy and paste the formula into
cells O23 through O28. Cell O29 is the total of cells O22 through O28.
FIGURE 8-8
The If function window
Although you are now taking extra cargo and increasing your revenues, is the current plane assignment
still the most cost efficient? Run Solver with the additional cargo calculation to see if there’s a more efficient
plane assignment.
The Solver Results window appears (see Figure 8-9) and warns that the linearity conditions required
by the Simplex LP solving method are not satisfied. The default Simplex calculation method will not work
because the model now includes the excess cargo equations, which are If functions and therefore nonlinear.
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Case 8
FIGURE 8-9
Error message when Simplex LP method is used on nonlinear models
Fortunately, Solver has methods for working with nonlinear problems as well. Open the Solver Parameters
window again and click the Select a Solving Method list arrow. Click GRG Nonlinear (see Figure 8-10), and
then click Options. Under Options, click the All Methods tab to check that the Integer Optimality is set to 1%
(see Figure 8-11), and then click OK to return to the Solver Parameters window. Run Solver again; the solution will probably take longer than in the earlier problem. If the solution takes too long to calculate, you can
cap the Max Time in seconds in the Options window (see Figure 8-11). Click Answer Report and then click
OK to create a second Answer Report. Examine it and the worksheet to see if it provides a better plane assignment solution when compared with the first Solver solution.
FIGURE 8-10
Selecting a new solving method
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Rose Tree Regional Airline
FIGURE 8-11
Solver Options window with Integer Optimality set to 1%
Print the Rose Tree Add’l Cargo worksheet and Answer Report 2 and then save your workbook.
What if, instead of minimizing costs, you were interested in maximizing revenues? In other words, is
gross profit greater than that in the earlier solutions? Because you added the ability to sell excess cargo in the
assignment model, you should probably maximize gross profit to account for any possible efficiencies.
Assignment 1D: Rerunning Solver to Maximize Gross Profit
Copy the worksheet that contains the solution for excess capacity, and rename the new worksheet Rose Tree
Solver 3. Click Solver to open the Solver Parameters window, and then change the value in the Set Objective
text box to $C$37 (the cell that contains Daily Gross Profit). Click the Max button to maximize the Set Objective value, as shown in Figure 8-6 earlier, and then run Solver. The solution will probably take longer than in
the earlier problem. If the solution takes too long to calculate, you can cap the Max Time in seconds in the
Options window (see Figure 8-11). Click Answer Report and then click OK to create a third Answer Report.
Examine it and the worksheet to see if maximizing daily gross revenues provides a better plane assignment
solution when compared with the solutions that minimized total costs.
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Case 8
ASSIGNMENT 2: USING THE WORKBOOK FOR DECISION SUPPORT
You have built a series of worksheets to determine the best plane assignments with and without selling excess
cargo space and maximizing profit versus minimizing costs. You will now complete the case by using your
solutions and Answer Reports to make recommendations in a memorandum. Use Microsoft Word to write a
memo to the management team at Rose Tree Regional Airline. State the results of your analysis, whether you
think the current plane assignment method is still profitable, and whether you think plane assignments should
be based on lowest cost or maximum profit.
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Set up your memo as described in Tutorial E.
In the first paragraph, briefly describe the situation and state the purpose of your analysis.
Next, summarize the results of your analysis and give your recommendations.
Support your recommendation with appropriate screen shots or Excel objects from the Excel
workbook. (Tutorial C describes how to copy and paste Excel objects.)
In a future case, you might suggest revisiting the Solver analysis to determine the profitability of
making changes to the plane fleet.
ASSIGNMENT 3: GIVING AN ORAL PRESENTATION
Your instructor may request that you summarize your analysis and recommendations in an oral presentation.
If so, prepare a presentation for the CEO and other managers that lasts 10 minutes or less. When preparing
your presentation, use PowerPoint slides or handouts that you think are appropriate.
DELIVERABLES
Prepare the following deliverables for your instructor:
•
•
•
A printout of the memo
Printouts of your worksheets and Answer Reports
Electronic media, which should include your Word document, Excel workbook, and PowerPoint
presentation
Staple the printouts together with the memo on top. If you have more than one Excel workbook file for
your case, write your instructor a note that describes the different files.
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CASE
9
THE AUTO MAKER PRODUCT
MIX PROBLEM
Decision Support Using Microsoft Excel Solver
PREVIEW
An automobile company must improve its vehicles’ miles per gallon in order to comply with new government
regulations. The company makes and sells different kinds of automobiles and trucks, and they have different
miles per gallon ratings. In this case, you will use Microsoft Excel Solver to determine the company’s product
mix needed to comply with the new regulations in a profitable way.
PREPARATION
•
•
•
•
•
Review spreadsheet concepts discussed in class and in your textbook.
Complete any exercises that your instructor assigns.
Complete any part of Tutorial D that your instructor assigns, or refer to it as necessary.
Review file-saving procedures for Windows programs.
Refer to Tutorial E as necessary.
BACKGROUND
Vehicles with an internal combustion engine burn gasoline for propulsion. In this process, carbon-laden fumes
are released out of the tailpipe into the air. This release contributes to air pollution. The government requires
automobile companies to produce vehicles that are fuel efficient in order to reduce air pollution.
A vehicle’s fuel efficiency is denoted by its miles per gallon (MPG)—the number of miles that can be covered by burning a gallon of gasoline in the vehicle’s engine. For example, if an automobile needs to burn five
gallons of gasoline in order to cover 100 miles, the vehicle’s MPG would be 100/5 = 20. A vehicle that needed
10 gallons to cover 100 miles would have an MPG of 10, and would be releasing twice as much carbon.
The government’s regulations specify that vehicles operate at a certain MPG. The regulation applies to
an automobile company’s entire “fleet”—in other words, all the types of vehicles it makes and sells. If you
assume that a company makes and sells 100,000 sedans that have an MPG of 25, and 50,000 trucks that have
an MPG of 20, the fleet’s average MPG would be a weighted average equal to the following:
((100,000 * 25) + (50,000 * 20)) / (100,000 + 50,000) = 23.33
In the example, if the government’s requirement was a fleet average MPG of 23, then the company would
be in compliance. But, if the requirement were 24, then the company would have to do something to come
into compliance. The company could work to increase the MPG of its vehicles, or it could decide to make and
sell more of its higher-rated MPG vehicles and less of its lower-rated MPG models. Or, the company could try
some combination of these options.
Periodically, the government increases the required MPG, and recently it mandated that a car company’s
fleet average MPG must improve to 45 five years from now. Achieving this fleet average in five years will be a
challenge.
The company’s trucks, SUVs, sedans, and compact cars all have internal combustion engines that burn
gasoline. The company also makes electric vehicles that are battery powered, and the battery emits no carbon
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164
Case 9
into the atmosphere. When the battery’s charge runs very low, a small gasoline-powered engine kicks in
briefly to boost the charge, and some carbon is emitted into the air.
The company’s engineers have estimated how much it will cost to make and sell each type of vehicle five
years from now, and the company has provided selling prices. These values are shown in Figure 9-1.
Type of Vehicle
Selling Price
Cost of Manufacture
Truck
$60,000
$30,000
SUV
$55,000
$28,000
Sedan
$40,000
$33,000
Compact
$30,000
$27,000
Electric
$35,000
$37,000
FIGURE 9-1
Expected selling prices and cost of manufacture in five years
The company’s financial people call the difference between the selling price and the cost of manufacture
the “gross margin.” You can see that the gross margins of trucks and SUVs are higher than the gross margins
of the other types of vehicles.
Note also that the gross margin of the electric cars is negative. Why would the company make and sell
cars at a loss? The company thinks that in the long run, it will sell more electric cars, which means the average cost of manufacture will decline and the company will make money on them. The government gives the
buyer of an electric car an income tax credit, which helps the company’s marketing. The company expects
this credit to persist indefinitely.
The company’s marketing people have estimated how many of each type of vehicle they might sell five
years from now. The company’s engineers will set up the production lines to accommodate this estimate. The
maximum production capacities in five years for each type of vehicle are shown in Figure 9-2.
Type of Vehicle
Max Production Capacity
Truck
30,000
SUV
90,000
Sedan
50,000
Compact
20,000
Electric
10,000
FIGURE 9-2
Expected maximum production capacities in five years
These estimates do not mean the company will sell 30,000 trucks, 90,000 SUVs, and so on. The estimates
are upper limits—they are set up so that the company could make and sell this amount of each type of vehicle.
The company’s engineers know how to improve MPG; for example, they can make the engines run more
efficiently, use lighter materials in the vehicle’s body, and streamline the body for less air resistance. MPG
improvements are anticipated; the expected MPGs five years from now are shown in Figure 9-3.
Type of Vehicle
Expected MPG
Truck
28
SUV
33
Sedan
40
Compact
55
Electric
100
FIGURE 9-3
Expected MPGs in five years
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The Auto Maker Product Mix Problem
Some small emissions from electric cars are anticipated, depending on how the driver manages the battery’s charge. This behavior is difficult to anticipate, so the government has allowed the car companies to use
100 MPG for electric cars in the fleet average calculation. This number recognizes that the vehicles emit little
or no pollution.
The base case question for the company’s marketing managers is: How many of each kind of vehicle
should the company try to make and sell in five years? The company must meet the new MPG standard, but
the company must be profitable as well—in fact, management wants the gross margin to be at least 30 percent
of gross revenue in the coming years.
A significant minority of the company’s marketing executives think that the market will change greatly in
the coming years. Here is a summary of how their thinking is different from the company’s as a whole:
•
•
•
Younger people are much more environmentally conscious than drivers in previous generations.
Younger people do not love driving as much as their parents and grandparents do. They might
prefer to hire an Uber or Lyft driver. Electric cars lack acceleration? Who notices when looking
at one’s phone?
Younger people might even prefer a driverless car. Such cars could be electric rather than gasoline powered.
All of these factors argue for many more sales of electric cars and smaller cars than the majority of marketing managers think is warranted. The minority would like to see an analysis that reflects their point of
view. This analysis, they think, could suggest great changes in the company.
ASSIGNMENT 1: CREATING A SPREADSHEET FOR DECISION SUPPORT
In this assignment, you will produce a spreadsheet that models the business decision. In Assignment 1A, you
will make a Solver spreadsheet to model the base case. In Assignment 1B, you will make a Solver spreadsheet
to model the extension case. In Assignment 2, you will use the spreadsheet models to develop information
needed to help marketing managers think about the company’s future. You will then document your recommendation in a memorandum to the company’s management.
Your spreadsheets should include the cells explained in the following sections. You will set up the spreadsheets before entering cell formulas. Your spreadsheets will also include decision constraints, which you will
enter using Solver. Your spreadsheets should have the following sections:
•
•
•
•
Changing Cells
Constants
Calculations
Income Statement
Assignment 1A: Creating the Spreadsheet for the Base Case
A discussion of each spreadsheet section follows. The discussion explains how to set up each section and
explains the logic of the formulas in the section’s cells. You can enter the data yourself or use the base case
spreadsheet skeleton to save time. To access the spreadsheet skeleton, select Case 9 in your data files, and
then select AutoMakerProductMix.xlsx.
Changing Cells Section
Your spreadsheet should have the changing cells shown in Figure 9-4.
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Case 9
FIGURE 9-4
Changing Cells section
You will ask the Solver model to compute how many of each type of vehicle to make and sell five years
from now, in order to meet the MPG standard and to maximize gross profit. Start with a value of “1” in each
cell. Solver will change each value as it computes the answers. You do not want Solver to compute the fractional part of a vehicle. You can force Solver to recommend integer values when specifying the constraints.
Constants Section
Your spreadsheet should have the constants shown in Figure 9-5. An explanation of the line items follows the
figure.
FIGURE 9-5
•
•
•
•
Constants section
Average Selling Prices—The selling prices expected in five years are shown in Figure 9-1.
Average Cost of Manufacture—The costs of manufacture expected in five years are shown in
­Figure 9-1.
Average MPG—The expected MPGs for each type of vehicle are shown in Figure 9-3.
Max Production Capacity—Upper limits on production are shown in Figure 9-2.
Calculations Section
Your spreadsheet should calculate the amounts shown in Figure 9-6. An explanation of the line items follows
the figure.
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The Auto Maker Product Mix Problem
FIGURE 9-6
•
•
•
•
Calculations section
Revenue—Revenues are a function of the number of vehicles made and sold and the expected
selling price.
Cost of Manufacture—Costs are a function of the number of vehicles made and sold and the
expected cost of manufacture.
Total number of autos made—This value is the sum of all the vehicles made and sold.
Fleet MPG—This value is the weighted average MPG of all the vehicles made and sold.
Income Statement Section
Your spreadsheet should calculate the gross margin, as shown in Figure 9-7. An explanation of the line items
follows the figure.
FIGURE 9-7
•
•
•
•
Income Statement section
Total Revenue—This is the sum of the revenues for all vehicles. These revenues are values from
the Calculations section.
Total Cost of Manufacture—This is the sum of the costs for all vehicles. These costs of manufacture are values from the Calculations section.
Gross Margin—This is the difference between total revenue and total cost of manufacture.
Gross Margin Percentage—This is total revenue divided by total cost of manufacture. The company wants a gross margin of at least 30 percent.
Constraints and Running Solver
Next you must determine the constraints. You can assume that the marketing managers think at least 20,000
trucks, 20,000 SUVs, 20,000 sedans, 20,000 compacts, and 8,000 electric vehicles will be made and sold five
years from now.
Use Solver to enter the base case constraints. You want to maximize total gross margin. Set Solver for
GRG Nonlinear mode. Run Solver and ask for the Answer Report when Solver finds a solution that satisfies
the constraints.
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Case 9
When you finish, print the entire spreadsheet and the Answer Report sheet. Save the file one more time
using the Save command in the File tab, keeping the AutoMakerProductMix.xlsx filename. Then, to prepare for the extension case, use the Save As command in the File tab to create a new spreadsheet named
­AutoMakerProductMixExtension.xlsx.
Assignment 1B: Creating the Spreadsheet for the Extension Case
Next, you prepare the extension case. A minority of the company’s marketing executives think that compacts
and electric cars will be more in demand in five years, and that production capacity should be set at 80,000
electric vehicles and 30,000 for compact cars. There are only so many production lines, so this change means
that fewer of the other kinds of vehicles would be made. The revised maximum capacities would be 20,000 for
trucks, 50,000 for SUVs, and 20,000 for sedans.
The reduction in production capacities for trucks, SUVs, and sedans means that semi-fixed costs would
be spread over fewer cars made. This would increase the expected unit cost of manufacture for these types of
vehicles. The expected unit costs of manufacture would be $35,000 for trucks, $32,000 for SUVs, and $37,000
for sedans. The effect would be the opposite for compacts and electric cars. The expected unit cost of manufacture for electric vehicles would be $29,000, and the unit cost for compacts would be $26,000.
With these changes, the Constants section should look like Figure 9-8.
FIGURE 9-8
Constants section for extension case
Minimum expected sales would be 10,000 trucks, 10,000 SUVs, 10,000 sedans, 20,000 compacts, and
50,000 electric vehicles. Expected selling prices and MPGs would remain the same. The gross margin percentage goal would remain the same.
Modify the extension case spreadsheet to change constraints as needed. Run Solver, then ask for the
Answer Report when Solver finds a solution that satisfies the constraints. When you finish, print the entire
spreadsheet and the Answer Report sheet. Save the file one more time, close it, and exit Excel.
ASSIGNMENT 2: USING THE SPREADSHEET FOR DECISION SUPPORT
You have built models for the base case and the extension case. You will now complete the case by (1) using
the worksheets and Answer Reports to gather data and (2) documenting your findings in a memo.
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The Auto Maker Product Mix Problem
Assignment 2A: Using the Spreadsheets to Gather Data
You have printed the spreadsheets and the Answer Report for the base case and the extension case. For each
case, management wants to know the number of each type of vehicle to make and sell, the total gross profit, and
the gross profit percentage. Management’s goals are to meet the MPG requirement and to maximize gross profit.
You should summarize the key data in a table that will be included in your memo. The form of the table is
shown in Figure 9-9.
Base Case
Extension Case
Type of Vehicle:
Trucks
SUVs
Sedans
Compacts
Electric
Company Data:
Gross margin
Gross margin percentage
Fleet MPG
FIGURE 9-9
Format of table to insert into memo
Your memo should contrast the base case and extension case results, which might be very different.
Assume that the Marketing minority is correct about the direction of the automobile market. How different
would the company have to be to respond to these changes? Is it worthwhile to plan for such changes—in
other words, would the company be that much more profitable, and would it be that much more friendly to
the environment?
Assignment 2B: Documenting Your Recommendation in a Memo
Write a brief memo to the marketing managers that explains your results. Observe the following requirements:
•
•
•
•
Set up your memo as described in Tutorial E.
In the first paragraph, briefly state the problem and the decision to be made, but do not provide a
great deal of background—you can assume that readers are generally aware of the situation.
Tell management your findings.
Support your discussion graphically by including a table in the memo, as shown in Figure 9-9.
Make the table by following the procedure described in Tutorial E. Your instructor may require
you to include an Excel chart as well.
DELIVERABLES
Your completed case should include the following deliverables for your instructor:
•
•
•
A printed copy of your memo
Printouts of the spreadsheets and Solver Answer Reports
Electronic media, which should include your memo and Excel files
Staple the printouts together with the memo on top. If you have more than one Excel workbook file for
your case, write your instructor a note that describes the different files.
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169
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PART
4
INTEGRATION CASES USING
MICROSOFT ACCESS AND EXCEL
CASE 10
The Donation Letter Analysis, 173
CASE 11
San Francisco Fire Incidents, 183
CASE 12
San Francisco Fire Incidents: Advanced Analysis, 191
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CASE
10
THE DONATION LETTER ANALYSIS
Decision Support with Microsoft Access and Excel
PREVIEW
A local charity has an annual appeal. This year, the format of the annual appeal letter was changed. In this
case, you will use Microsoft Access and Excel to see if the change led to increased donations.
PREPARATION
•
•
•
•
Review database and spreadsheet concepts discussed in class and in your textbook.
Complete any exercises that your instructor assigns.
Complete any parts of Tutorials B, C, and D that your instructor assigns, or refer to them as
necessary.
Refer to Tutorial E as necessary.
BACKGROUND
A local charity has had an “annual appeal” for many years. In the appeal, a letter is sent to potential
donors, asking for a donation. For many years the letter has been a detailed discussion of the charity’s
­accomplishments in the past year.
This year, a new development director was hired. In her opinion, wordy letters are a turnoff to potential
donors. What is needed, she thinks, is a letter that quickly grabs and holds the reader’s attention, leading up
to the final request for money. “We want to give the donors a better idea of how their money has been used,”
she said. Accordingly, this year’s letter was redesigned to reduce verbiage and to include color pictures taken
at the charity’s activities.
Everyone at the charity agrees that this year’s letter is more visually appealing and more fun to read than
previous letters. But, did the changes work? That is, did the new format generate more donations?
Anticipating that question, the new development director devised a means of allowing a direct comparison
with previous years. First, she had the letters sent to the same people who were solicited in prior years. Also,
half of these people received a letter with the prior format (“year 1”), and the other half received a letter with
the new format (“year 2”).
The charity’s development data is kept in an Access database. The new development director is aware of
your skills with Access and Excel, and she has called you in to analyze the impact of the letter’s new format.
The director wants information about consistently generous donors, and she wants information about
people who have stopped donating. To help her evaluate the impact of the new format, she has these specific
questions:
•
•
•
•
•
•
•
Did men increase their giving in year 2?
Did women increase their giving in year 2?
Did people who received the old letter increase their giving in year 2?
Did people who received the new letter increase their giving in year 2?
Did men who received the old letter increase their giving in year 2?
Did women who received the old letter increase their giving in year 2?
Did men who received the new letter increase their giving in year 2?
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174
Case 10
•
•
•
Did women who received the new letter increase their giving in year 2?
Did people who gave less in year 2 than in year 1 do so in response to the new format or to the
old one?
Are changes in giving in year 2 associated with donors’ ages?
The database is available for you to use; go to your data files, select Case 10, and then select
­DonationLetter.accdb.
The database’s tables are discussed next. Figure 10-1 shows the design of the Donors table.
FIGURE 10-1
Donors table design
The table has 874 records, one for each potential donor solicited this year and last year. Each record is
denoted by a unique number in the Donor Num field, which is the primary key field. The donor’s name is
recorded in the Last Name and First Name fields. The donor’s gender and zip code are shown in appropriately
named fields, and the donor’s year of birth is shown in the YOB field.
NOTE
If a modern database contains a gender field, it must account for the fact that some people do not identify as male or female.
Therefore, a gender field should contain at least three possible entries: (m)ale, (f)emale, and (o)ther.
Figure 10-2 shows a few of the table’s records.
FIGURE 10-2
Some Donors table data records
For example, donor number 1 is named Mateo Acquino, a man born in 1948. He lives in zip code 19600.
The prior year’s donations are recorded in the Year 1 Donations table. These donations were made in
response to the letter with the old format. Figure 10-3 shows the design of the table.
FIGURE 10-3
Year 1 Donations table design
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The Donation Letter Analysis
Figure 10-4 shows a few of the table’s records.
FIGURE 10-4
Some Year 1 Donations data records
For example, Mateo Acquino, donor number 1, received a letter with the old format in the prior year, and
he donated $25 in response.
The database has a similar table called Year 2 Donations for this year’s donations.
Still another table, the Year 2 Letter table, indicates what kind of letter each donor received. Recall that
in this year’s appeal, half the prospective donors received a letter with the old format, and half received a
­letter with the new format. Figure 10-5 shows the design of the Year 2 Letter table.
FIGURE 10-5
Year 2 Letter table design
Figure 10-6 shows a few of the table’s records.
FIGURE 10-6
Some Year 2 Letter data records
For example, donor number 1, Mateo Acquino, received a letter with the new format, but donor number 6
received a letter with the old format.
ASSIGNMENT 1: USING ACCESS AND EXCEL FOR DECISION SUPPORT
The development director has a number of questions you will attempt to answer using the output of Access
queries that you will design. Then, you will attempt to answer other questions by bringing Access data into
Excel for further analysis.
Access Database Queries
You will develop a number of queries in Access.
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175
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Case 10
Query 1
The development director wants to know which donors gave $500 or more in each of the past two years.
A ­letter of appreciation will be sent to these generous people. Create a query named Generous Donors that
lists the donors and the amounts they gave in both years. The first few records of your output should look like
those in Figure 10-7. Notice that the output is sorted in descending order on the year 2 donation.
FIGURE 10-7
Query of generous donors
Query 2
The development director also wants to know which potential donors gave nothing in each of the past two
years. These people will be deleted from the list of potential donors. Create a query named Zero Both Years
that lists people who gave no money in the past two years. The first few records of your output should look
like those in Figure 10-8.
FIGURE 10-8
Query of people who made no donations
Query 3
You need to make a summary query that gathers up all the data that is available for the rest of this case. This
query output will be imported into Excel for further analysis. The first few records of the summary query
­output should look like those in Figure 10-9.
FIGURE 10-9
Summary Query output records
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The Donation Letter Analysis
Other Queries
Your instructor might require you to develop other queries.
When you finish creating queries, close the database file and exit Access.
Importing Summary Data into Excel
You have used Access to gather information about generous donors and people who have stopped giving. Now
you will use Excel to gather information that will help answer the remaining questions posed by the new
development director. Start by opening a new file in Excel and saving it as DonationLetter.xlsx.
You need to import the Summary Query output into Excel. Click the Data tab, and then select Get
Data from the Get & Transform Data group. From the resulting menu, select From Database and then From
­Microsoft Access Database. The Import Data window opens. Navigate to your DonationLetter.accdb database,
and then click the Import button. Excel reacts by establishing a connection to your database. In the Navigator
window, select Summary Query, and then click the Load button. The data will come across as an Excel table,
which is the format that you want. As this happens, Excel opens a Queries and Connections window on the
right side of your worksheet. You should close this window.
To create a totals row for the table you are making, open the Table Style Options group of the Design tab
and click the Total Row box. The first few rows of your worksheet should look like those in Figure 10-10.
FIGURE 10-10 Initial rows in the Excel worksheet
The Total row should look like the one in Figure 10-11.
FIGURE 10-11
Total row in the worksheet
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Case 10
Using the Table to Gather Data
The development director wants to know if there are differences in giving based on donors’ gender or the type
of letter they received. You can use the table to develop a range of data to see such differences. Tables are
­discussed in Tutorial E, but some brief directions are provided here.
The labels in the table headings have drop-down arrows that you can click to assign a filter for a selected
label. For example, if you want to apply a filter to see average giving by gender, select the drop-down arrow in
the Gender column. Deselect the F and O boxes, leaving the M box selected. Only the records for male giving
are displayed. In the totals row, you can use the Count and Average operators to count the number of male
donations and the average giving by men in year 1 and year 2 (see Figure 10-12).
FIGURE 10-12
Male giving in year 1 and year 2
As you can see, 488 men gave an average of $168 in year 1 and $187 in year 2.
You can also see average giving by women; just select the F box and deselect the M and O boxes. Your
totals row would look like the one in Figure 10-13.
FIGURE 10-13
Female giving in year 1 and year 2
You should then select the O box to see Other average giving in year 1 and year 2.
As you can see, the Total row changes with each operation, so you need a place to gather data as it is
developed. You could use a separate worksheet, or you could set up a range of values beneath or to the right
of the full dataset. In this case, select another worksheet and name it Results. You can copy or manually transcribe data as you go. So far, you should have the data shown in Figure 10-14.
FIGURE 10-14
Gender-based giving data gathered in Results worksheet
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The Donation Letter Analysis
In the same way, you should gather counts and average giving based on responses to the new donation
­letter and the old one (Yes or No). Record the results in your Results worksheet.
You can use more than one filter at the same time. For example, say you want to see average giving for
men who received the new letter in year 2. You would click the Gender drop-down filter and select M, then
click the Letter drop-down filter and select Yes. You would then be able to see average giving in years 1 and
2 for men who got the new letter in year 2. In this way, you should capture giving data for men and women
who got the new letter, and for men and women who got the old letter. When you are finished, your Results
­worksheet data should be formatted like that in Figure 10-15. (Note that some of the values shown are for
illustrative purposes only.)
FIGURE 10-15
Results worksheet data
The development director wants data about people whose donations decreased in year 2. You
should insert a column into the table that computes the difference between year 2 and year 1 donations.
(The ­Yr2 – Yr1 column automatically becomes part of the table.) The top few rows of your worksheet would
look like the ones in Figure 10-16.
FIGURE 10-16
Year 2 donation data minus year 1 data
Again, the development director wants to know how many people decreased their donations in year 2. Of
those people, how many got the old letter? How many got the new letter?
You can create a filter based on relational operators such as “less than,” “greater than,” or “equal to.” For
example, to identify donors who gave less in year 2 than in year 1, click the Yr2 – Yr1 column’s drop-down
arrow. In the resulting menu, the Number Filters option expands into a submenu. Select the Less Than option.
In the window that appears, enter a zero opposite the “is less than” box, and then click OK. Excel shows the
records for people whose giving decreased in year 2. For those records, filter by New Letter Yes and No to see
how many people received the new letter and how many received the old-format letter. Record your data in
the Results worksheet. You should be able to tell if people who received the letter with the new format were
more or less likely to decrease their giving.
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Case 10
Using Pivot Tables to Gather Data
You will develop a pivot table from the summary worksheet.
Pivot tables are discussed in Tutorial E, but a review of how to create them is in order here. To make a
pivot table, first select any cell in the data table range. Select the Insert tab and then select Pivot Table in the
Tables group. The Create Pivot Table window appears. In the window, the proper data range should already be
shown. “New worksheet” is the default destination, which is what you should choose here. Click OK.
The right side of the screen shows the Pivot Table Fields window. The fields are shown in the top part
of the window. There are four smaller areas in the bottom part of the window: Values, Rows, Columns, and
Filters.
The use of the Pivot Table Fields window is best explained by an example. Say you had data about average
yearly earnings for left- and right-handed people. In addition, the earnings data is available by gender and by
two age groups, very broadly described as “young” and “old.” Say you wanted to see the average earnings for
left- and right-handed people, grouped by gender. You would drag the Average Earnings field into the ­Values
area, drag the Handedness field into the Columns area, and drag the Gender field into the Rows area. The
pivot table would then show average earnings for right-handed women, for left-handed women, and so forth.
However, what if you also wanted to know the average earnings for right-handed old women, left-handed
old women, and so forth? (Again, age groups are very broadly defined here for labeling purposes.) In other
words, you want to further filter the data by age group. You would drag the Age Group field into the Filter
area to create a drop-down filter above the pivot table. Selecting Young or Old from this filter would cause the
­relevant data for the group to appear in the pivot table.
In this case, the development director does want to stratify by donor age, so the ages need to be
­aggregated. The youngest donor was born in 1994 and the oldest donor was born in 1930. Donors born
between 1985 and 1994 should be labeled “YOUNG.” People born between 1975 and 1984 should be labeled
“­SEASONED,” people born between 1965 and 1974 should be labeled “MATURE,” and those born between
1955 and 1964 should be labeled “SENIOR.” Everyone else should be labeled “OLD.”
You should add a new column to the data table to record these labels. You need a nested If statement that
uses the AND function to generate the labels. (Nested If statements and the AND function are discussed in
Tutorial C.) You would enter your formula in the new column’s top data cell. The formula would reference the
YOB value in cell F2. The start of the formula is shown in Figure 10-17.
=IF(AND(F2>=1985,F2<=1994),”YOUNG”,IF(AND(F2>=1975,F2<=1984),”SEASONED”, …
FIGURE 10-17
Setting up the age label formula
The formula automatically copies itself down the table column. Formulas take up much more memory
than label values. You should copy the contents in the column’s cells, and then paste the copied values into
place. Select Paste, Special, and then Values to do this. When done, the top part of your worksheet should
look like the one in Figure 10-18.
FIGURE 10-18
Top labels in new ERA column
Click in the upper-left cell of the table. Select Insert and then select Pivot Table. Choose to put the pivot
table in a new worksheet. Drag the Yr2 – Yr1 field into the Values area, drag the New Letter field into the
Columns area, and drag the Gender field into the Rows area. In the Values area, choose the Average operator
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The Donation Letter Analysis
instead of the default Sum operator. You can change the pivot table values to Currency format. At this point,
your pivot table should look like the one in Figure 10-19.
FIGURE 10-19
Pivot table results
From this pivot table you can see, for example, that the average donation by women who received the old
letter increased by $6. However, the development director would like to take the analysis one level deeper:
She wants the data to be stratified by age category. You should drag the ERA field into the Filter area. With
YOUNG selected in the filter, the resulting pivot table should look like the one in Figure 10-20.
FIGURE 10-20
Pivot table results with ERA filter
If you click in the pivot table with the Insert tab active, the Charts group has a Recommended Charts
­ utton. If you click the button, Excel suggests different charts for the current data. The clustered column
b
chart for the YOUNG data is shown in Figure 10-21.
FIGURE 10-21
Clustered column chart of the YOUNG data
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Case 10
If you click in the chart area, a plus-sign button appears next to the chart. This button lets you modify the
chart. The chart’s title (“Average Increase by Gender”) was added this way.
Conceivably, some age groups might be more responsive to the old format. Are there differences in ­giving
when age is taken into account? You should use the pivot table’s ERA filter to gather the data needed to
answer that question. Enter important data in your Results worksheet.
Your instructor may ask you to create other charts from your pivot table data. Also, your instructor may
ask you to analyze giving by zip code.
ASSIGNMENT 2: DOCUMENTING THE FINDINGS IN A MEMO
You have analyzed the data using Access queries, an Excel table, and an Excel pivot table. In this assignment,
you must write a memo in Microsoft Word that documents your findings. In your memo, you should address
the fundamental questions raised by the new development director: Did the new letter format improve
­charitable giving in the current year? Did the new letter format hurt giving in any way? Did continuing the old
letter hurt giving in any way?
In your memo, observe the following requirements:
•
•
•
•
Set up the memo as discussed in Tutorial E.
Briefly outline the situation. However, you need not provide much background—you can assume
that readers are generally familiar with your task.
In the body of the memo, you should answer the questions posed by the development director.
Refer to your query, data table, and pivot table output values to support your answers.
Include any graphical support that your instructor requires, such as tables, copies of query
­output, pivot tables, or charts.
DELIVERABLES
Assemble the following deliverables for your instructor:
1.
2.
3.
4.
Printed copy of your memo
Spreadsheet printouts, if required by your instructor
Query printouts, if required by your instructor
Electronic media, which should include your Word file, Access file, and Excel file
Staple the printouts together with the memo on top. If you have more than one .xlsx file or .accdb file on
your electronic media, write your instructor a note that identifies the files for this assignment.
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CASE
11
SAN FRANCISCO FIRE INCIDENTS
Data Analysis and Research with Microsoft Access and Excel
PREVIEW
California recently experienced one of the worst and deadliest fire seasons in the state’s history.
In November 2018, the town of Paradise endured a blaze that claimed the lives of 86 residents and
destroyed 14,000 homes. While the exact cause of this fire has not been determined, a nearby damaged
power line has emerged as the likely culprit. Utility companies are generally responsible for maintaining
the integrity and safety of their power lines, and constant trimming of vegetation around them is a useful
tactic to minimize damage to wires and towers. The utility company PG&E is facing possible bankruptcy,
increasing regulatory pressure, and ­possible criminal charges due to its continued inability to stop fires
from starting.
The city of San Francisco has tasked you with analyzing over 16 years of fire incident data to determine if there are any trends or seasonality factors that can be useful in the city’s fight against fires. You
have been provided with a dataset that contains close to 500,000 incident summaries spanning from 2003
to 2019. The data includes a summary of each fire incident to which the San Francisco Fire Department
responded. Each incident record includes the call number, incident number, address, number and type of
each unit responding, call type (as determined by dispatch), primary situation (field observation), actions
taken, and property loss. You can find the original dataset at data.sfgov.org/Public-Safety/Fire-Incidents/
wr8u-xric.
PREPARATION
•
•
•
•
Review database and spreadsheet concepts discussed in class and in your textbook.
Complete any exercises that your instructor assigns.
Complete any parts of Tutorials B and C that your instructor assigns, or refer to them as
necessary.
Review the file-saving procedures for Windows programs in Tutorial C.
BACKGROUND
You will use your Access and Excel skills to analyze fire incident data gathered over the years and then to
identify incident patterns and draw additional conclusions based on your findings. The Access database
file is available in the files that come with your casebook. Locate Case 11 in your data files and then select
­FireIncidents.accdb.
Using the Database
The database contains four tables with incident reports from 2003 through 2019. Figure 11-1 shows the tables
in the database file.
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Case 11
FIGURE 11-1
Tables in the database
Additionally, you have been given a data dictionary with the database. This information will prove
­ eneficial because some of the field names in the database might be cryptic at first. Figure 11-2 shows the top
b
section of the data dictionary; to see the complete dictionary, locate Case 11 in your data files and then select
DataDictionaryFireIncidents.xlsx.
FIGURE 11-2
Database data dictionary
The first step needed to complete any data analysis project is to inspect your data, which generally
involves opening tables, looking through table designs, and running a few quick queries. The purpose of the
inspections is to identify the overall health or cleanliness of the data. Are the records complete? What about
data types? Are date fields formatted as dates? Is there a unique record identifier? These questions will help
you get started.
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San Francisco Fire Incidents
ASSIGNMENT 1: USING ACCESS FOR DATA INSPECTION
In this assignment, you will inspect the data in the database and answer a few questions along the way.
Task 1
How many records are in each of the four tables of the database? Which table has the highest record count?
While there are a few ways to answer such questions, you should use queries to create repeatable tasks that
can be used to generate reports later. Create a query to count the number of records in each of the four tables.
Save the queries as Query 1 through Query 4. Figure 11-3 shows the results of Query 1.
FIGURE 11-3
Query 1 results
Task 2
Open each table in the database, examine them, and determine if any fields in the tables have blank or null
values. Figure 11-4 shows that the Area of Fire column has different values for a null: either a dash or a blank.
How will this affect a query? Look in the data dictionary; what does the Area of Fire field represent?
FIGURE 11-4
2003-2005 table showing blank values in the Area of Fire column
Task 3
Determine whether the Incident Date field is formatted for dates in all four tables. You can do this by opening
each table in Design view. Proper field formatting makes subsequent date manipulation much easier.
ASSIGNMENT 2: USING ACCESS FOR DATA ANALYSIS
Now that you have inspected the data, you are ready to begin your analysis. In this assignment, you will
cleanse and organize the data to facilitate your research, and then you will complete a series of queries to further your understanding of the data and shape your research. While the queries are an effective way to summarize large amounts of data and provide results, you will need to leverage Excel to visually represent data
and transform it into meaningful information.
During your inspection, you should have noticed that the tables are partitioned into time “chunks,” which
will prevent you from doing a true longitudinal analysis from 2003 to 2019. Given the data’s current format,
you would need to create separate queries for each time period and find an easy way to merge all the data in
a manner that makes sense. Fortunately, you can “stack” the tables into a single table and then use it to run
your queries. For the stacking to work, the fields in the different tables must be in the same order and have
the same names.
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Case 11
Task 4
Although there are many ways to stack all the data tables into one, the most prudent approach is to do it in
a series of steps because it facilitates any necessary troubleshooting. You should start this process by creating a copy of one of the tables—it is always a good idea to create a backup copy of your data prior to making
irreversible changes. After making the copy, you should now have five tables in the database, two of which are
identical except for the name (see Figure 11-5).
FIGURE 11-5
Tables in the database, including a copy
Next, you will create an append query to stack the records of the 2006–2010 table into the 2003–2005
table, as shown in Figure 11-6. Save the results as Query 5.
FIGURE 11-6
Query 5 configuration
When you execute the query, you should see a confirmation box that reports how many records are being
appended into the table. Does the number match your count during the data inspection tasks? Figure 11-7
shows the confirmation box.
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San Francisco Fire Incidents
FIGURE 11-7
Append confirmation box for Query 5
Next, you should append the other two tables to the 2003–2005 table using queries. Save these queries
as Query 6 and Query 7. Check to make sure that the total number of records in the revised 2003–2005 table
equals the sum of records in all the other tables. In addition, you should rename the table to more accurately
describe its contents—for example, you can name the table Master_Fire_Incidents.
Task 5
Next, you will run a series of queries using the Master_Fire_Incidents table to create quick views in Access
that answer the following questions:
•
•
•
•
What five zip codes reported the most incidents?
What five cities reported the most incidents?
In which five years were the most incidents reported?
What five battalions responded to the most incidents?
For each question, you should write a query to determine the results; save them as Query 8 through
Query 11. As you complete the queries, you might encounter blank, null, or “unknown” values, which are
generally the result of incomplete incident reports. These blank and unknown values should be included in
the query answers only if they are part of the question. For the questions in this task, do not include blank
and unknown values. Figure 11-8 shows the result of Query 8.
FIGURE 11-8
Results for Query 8
Task 6
Create a report in Access that displays the results of all four questions. The formatting is up to you, but the
results should be neatly displayed and easy for readers to understand. Save the report as Top 5.
ASSIGNMENT 3: IMPORTING DATA INTO EXCEL FOR FURTHER ANALYSIS
You will complete your analysis in Excel by using charts that allow you to easily spot trends. First, import the
Master_Fire_Incidents table into an Excel worksheet. Open a new file in Excel and save it as ­Fire_­Incidents_
Analysis.xlsx. Next, select cell A1. Then click the Data tab, select Get Data, select From ­Database, and
select From Microsoft Access Database. Specify the Access file name, and then specify the table to import:
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Case 11
Master_Fire_Incidents. You will import the data into a new sheet and label it as Fire_Incidents, as shown in
Figure 11-9.
FIGURE 11-9
Imported data in Excel
While Access is very effective at manipulating large amounts of data, Excel shines at visually ­representing
results using a wide array of charting tools. Now that you have imported the data into Excel, you need to
answer an additional set of questions using pivot tables and charts.
Task 7
Create a series of pivot tables and charts that allow you to determine whether there are any trends or patterns
in the data. Create a pivot table to address each of the following points, and name each new tab accordingly.
Excel can easily group dates into ranges (such as years and months), but depending on the capabilities of your
computer, it may be necessary to add two columns to the end of the worksheet instead of asking Excel to do
the grouping by year and month. Use date functions to add Year and Month columns as two new fields.
•
•
•
Plot the number of incidents by year and create a meaningful chart to display the results.
Exclude 2019 because it is not a complete year. See Figures 11-10 and 11-11 for an example.
Plot the number of incidents by month and create a meaningful chart to display the results.
Exclude 2019 because it is not a complete year.
Plot the total property losses by year and create a meaningful chart to display the results. Format
the results appropriately.
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San Francisco Fire Incidents
•
Select the two years with a similar property loss total and plot each year by month. Are there any
other similarities from year to year? Could it be said that there is a seasonality effect? Format
the results appropriately.
FIGURE 11-10
Pivot table results for incidents reported by year
FIGURE 11-11
Column chart that displays incidents reported by year
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Case 11
The tables and charts you created display the results in terms of whole numbers; for example, 43,411
incidents were reported in January (all years). Sometimes, however, it is more impactful to display results
as a percentage of the overall dataset you are examining. For instance, a statement that 43,411 incidents
were reported in January since 2003 is different from saying that 8.95 percent of all incidents reported since
2003 happened in January. Therefore, add a percentage column to the first two pivot tables you created. See
Figure 11-12 for an example. The charts will need to be updated to reflect the new metric and plotted on the
­secondary axis for improved readability.
FIGURE 11-12
Pivot table and chart results for incidents reported by year and their percentage of the overall incident count
ASSIGNMENT 4: DOCUMENTING YOUR FINDINGS IN A MEMO
You have created queries, reports, pivot tables, and charts to perform your analysis. You will now complete
the case by using your findings to write a summary memo in Microsoft Word that explains your conclusions.
Support your analysis with appropriate screenshots or Excel objects from the Excel workbook. (Tutorial C
describes how to copy and paste Excel objects.)
DELIVERABLES
Prepare the following deliverables for your instructor:
•
•
•
A printout of the memo
Printouts of your worksheets and query designs
Electronic media, which should include your Word document, Excel workbook, and Access file
Staple the printouts together with the memo on top. If you have more than one Excel workbook file for
your case, write your instructor a note that describes the different files.
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CASE
12
SAN FRANCISCO FIRE INCIDENTS:
ADVANCED ANALYSIS
Data Analysis and Research with Microsoft Access and Excel
PREVIEW
Data collected by people and systems can become quite large and require massive storage facilities. Large
amounts of data can pose many problems for a data analyst who needs to transform it into meaningful information for effective reporting. While a simple pivot table can be a lifesaver when you are working with relatively small amounts of data, it can easily become a burden on the system as the stored data increases in size
and requires more processing power to manipulate. The issue becomes particularly important for organizations that rely on the same data to carry out daily operations. For this reason, we distinguish between operational data and analytical data. The split between these two types of data is intended to increase processing
efficiency, among other things. Organizations generally separate the two in order to run their businesses and
perform analytics without negatively affecting their operations. The analytical data is often set up in a mirror
image to the operational data environment and updated as often as required by the organization. These two
separate environments allow analysts to complete any type of analysis without creating undue risks to data on
the operational side. The trade-off is that the data might not be completely current; generally, the process of
updating analytical data takes place outside business hours, typically overnight. There are two distinct advantages to the preceding approach when creating an analytical data environment:
•
•
The organization mitigates the risk of performance degradation to the operational data. This is
extremely important for banks and other organizations that leverage large amounts of data for
daily operations.
The organization can create summarized datasets to expedite analysis and reporting. For
­example, analysts can be provided a list of total sales by department in addition to the complete
list of sales. If datasets are large, analysts might need many hours to summarize data of total sales
by department on their own. Summarized tables are easy to visualize using charts in Excel.
The following sections explain how to make full use of the advantages of an analytical environment.
PREPARATION
•
•
•
•
Review database and spreadsheet concepts discussed in class and in your textbook.
Complete any exercises that your instructor assigns.
Complete any parts of Tutorials B and C that your instructor assigns, or refer to them as
necessary.
Review the file-saving procedures for Windows programs in Tutorial C.
BACKGROUND
The San Francisco Emergency Management Agency has tasked you with creating an analytical data repository
that is based on their operational data. (The original dataset is at https://data.sfgov.org/Public-Safety/Fire-­
Incidents/wr8u-xric.) The agency needs to be able to create reports and share data with other agencies without sacrificing operational performance. You will use your Access skills to create an analytical environment
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Case 12
based on fire incident data gathered over the years by the San Francisco Fire Department. The result will be a
new database that contains the original data as well as aggregated data and some calculated values.
NOTE
According to the database design rules set forth in this casebook, a database should not store calculated values. This remains
true for most operational databases; however, when dealing with analytical data, some database design rules can be bent. There
is no harm in storing a calculated value as a new field if it will not change in the future. For example, the number of hours worked
by an employee is generally calculated during the payroll process, and it is unlikely to change after it is calculated, making it a
good candidate for permanent storage.
Once the analytical database is constructed, you will use your Excel skills to create a dashboard view of meaningful metrics to visualize your findings. The operational Access database file is available in the files that come
with your casebook. Locate Case 12 in your data files and then select FireOperations.accdb.
Using the Database
The database contains four tables. Figure 12-1 shows the tables in the database file.
FIGURE 12-1 Tables in the database
Additionally, you have been given a data dictionary with the database. This information will prove b
­ eneficial
because some of the field names in the database might be cryptic at first. Figure 12-2 shows the table
definitions for one table; to see the complete dictionary, locate Case 12 in your data files and then select
­DataDictionaryFireOperations.xlsx.
The first step needed to complete any data analysis project is to inspect your data, which generally
involves opening tables, looking through table designs, and running a few quick queries. The purpose of the
inspections is to identify the overall health or cleanliness of the data. Are the records complete? What about
data types? Are date fields formatted as dates? Is there a unique record identifier? These questions will help
you get started.
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San Francisco Fire Incidents: Advanced Analysis
FIGURE 12-2 Database data dictionary
ASSIGNMENT 1: USING ACCESS FOR DATA INSPECTION
In this assignment, you will inspect the data in the database and answer a few questions along the way.
Task 1
How many records are in each of the four tables of the database? Which table has the highest record count?
While there are a few ways to answer such questions, you should use queries to create repeatable tasks that
can be used to generate reports later. Create a query to count the number of records in each of the four tables.
Save the queries as Query 1 through Query 4. Figure 12-3 shows the results of Query 1.
FIGURE 12-3 Query 1 results
Task 2
Open each table in the database, examine them, and determine if any fields in the tables have blank or null
values. Figure 12-4 shows that the Zipcode and Neighborhood District columns have blank values for some
records. How will this affect a query? Look in the data dictionary; what do these two fields represent?
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FIGURE 12-4 IncidentLocation table showing blank values in the Zipcode and Neighborhood District columns
Task 3
Determine whether the Incident Date field is formatted for dates and whether the Incident Number field is
formatted the same across all four tables. You can do this by opening each table in Design view. Proper field
formatting makes subsequent date manipulation much easier, especially when using the grouping feature in
Excel, and it makes joining tables less cumbersome.
ASSIGNMENT 2: USING ACCESS TO CREATE THE ANALYTICAL DATABASE
Now that you have inspected the data, you are ready to begin the process of creating the analytical database.
In this assignment, you will organize the data to facilitate your research and then you will complete a series of
queries to aggregate the data, calculate new values, and shape your research. While the queries are an effective way to summarize large amounts of data and provide results, you will need to leverage Excel to visually
represent data and transform it into meaningful information.
The database is designed to facilitate operations with data partitioned into different segments dedicated
to various important aspects of fire incident reporting. In the data’s current format, you would need to create
join queries to pull data from various tables. These queries can be burdensome to the system, especially if
multiple users are using the data simultaneously. Creating the analytical dataset should mitigate some of these
performance concerns and provide data that is already summarized and ready for use without further need to
tax the system.
Task 4
Although there are many ways to create the analytical database, the most prudent approach is to create a new
file and copy the data over to reduce any risk to operational performance. Create a new Access file, save it as
FireAnalytics.accdb, and copy over each table to the new file. After moving the tables, you should have four
tables in the new database; the analytical and operation databases should be identical except for their names
(see Figure 12-5).
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San Francisco Fire Incidents: Advanced Analysis
FIGURE 12-5 Tables in the analytical database
Next, you will create the analytical dataset using two queries: one to join the tables together and a s­ econd
to add new fields from various calculations. This process can be accomplished in one step; however, it
is easier to troubleshoot any problems that develop if the process is broken up into manageable chunks.
­Create a query to join the four tables into a single table, as shown in Figure 12-6, and save the new table as
­FireAnalyticsCombined. Avoid saving duplicate fields when possible. Save the query results as Query 5.
FIGURE 12-6 Query 5 configuration
When you execute the query, you should see a confirmation box that reports how many records are being
added into the new table. Does the number match your count during the data inspection tasks? Figure 12-7
shows the confirmation box.
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Case 12
FIGURE 12-7 Confirmation box for Query 5
Task 5
Next, you will add a series of calculated values to each record using a query to create a new table. Using the
FireAnalyticsCombined table, create a new table that includes the following new fields:
•
•
•
•
•
•
Incident Year
Incident Quarter
Incident Month
Incident Day of Week
Response Time in Minutes – Difference between the Alarm DtTm (date and time) and Arrival
DtTm
Response Duration in Minutes – Difference between the Arrival DtTm and Close DtTm
Name the new table FireAnalyticsCombEnhanced. Figure 12-8 shows the table objects you should have in
the database at this point. Save the results as Query 6.
FIGURE 12-8 Table objects through Task 5
ASSIGNMENT 3: IMPORTING DATA INTO EXCEL FOR FURTHER ANALYSIS
You will complete your analysis in Excel by using charts that allow you to easily visualize data. First, import
the FireAnalyticsCombEnhanced table into an Excel worksheet. Open a new file in Excel and save it as
­FireDashboard.xlsx. Next, select cell A1. Click the Data tab, select Get Data, select From Database, and select
From Microsoft Access Database. Specify the Access file name, and then specify the table to import: FireAnalyticsCombEnhanced. You will import the data into a new sheet and label it as FireRawData, as shown at the
bottom of Figure 12-9.
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San Francisco Fire Incidents: Advanced Analysis
FIGURE 12-9 Imported data in Excel
Task 6
Create a time series of charts using pivot tables to leverage each of the new fields you calculated in Access
based on incident date. What you include in the charts is up to you, but make sure it’s meaningful information
because each chart will be moved to a new worksheet to create a dashboard. Format each chart appropriately
so all data is displayed neatly. Save each worksheet according to the field name you are using. Figure 12-10
shows a line chart that illustrates the number of fire incidents per year.
FIGURE 12-10
Incidents by Year line chart
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Case 12
FIGURE 12-11 Dashboard worksheet
Create a new worksheet and name it Dashboard. Move each of the pivot charts you just created into the dashboard and arrange them neatly. Figure 12-11 shows one possible set of charts.
Task 7
In Task 6, you created a simple dashboard view. Now it is time to dig deeper by creating a new dashboard with
a narrow focus. Create a new dashboard that focuses on response time by year, quarter, month, and day of
week using the information in Task 6. Name each new pivot table worksheet appropriately. Once all charts are
complete, move them to a new worksheet and save it as ResponseDashboard (see Figure 12-12).
ASSIGNMENT 4: DOCUMENTING YOUR FINDINGS IN A MEMO
You have created queries, pivot tables, and charts to perform your analysis. You will now complete the case by
using your findings to write a summary memo in Microsoft Word that explains your conclusions. Support your
analysis with appropriate screenshots or Excel objects from the Excel workbook. Think of the following questions as you complete your analysis:
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San Francisco Fire Incidents: Advanced Analysis
FIGURE 12-12 Response dashboard
•
•
•
•
•
•
•
What conclusions can you draw from the dashboards?
Are there any seasonal patterns that emerge from the charts?
Does the day of week affect the response time? How about time of day?
Does the time of day play a role in fatalities or injuries?
Do certain battalions have better response times than others? If so, why do you think this is
true?
Are there specific areas that are more prone to fires? How does the response time compare in
areas with fewer fires?
Is there a correlation between estimated financial loss and incident duration?
DELIVERABLES
Prepare the following deliverables for your instructor:
•
•
•
A printout of the memo
Printouts of your worksheets and query designs
Electronic media, which should include your Word document, Excel workbook, and Access files
Staple the printouts together with the memo on top. If you have more than one Excel workbook file for
your case, write your instructor a note that describes the different files.
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PART
5
ADVANCED SKILLS
USING MICROSOFT EXCEL
TUTORIAL E
Guidance for Excel Cases, 203
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TUTORIAL
E
GUIDANCE FOR EXCEL CASES
The Microsoft Excel cases in this book require the student to write a memorandum that includes a table.
Guidelines for preparing a memo in Microsoft Word and instructions for entering a table in a Word document
are provided to begin this tutorial. Also, some of the cases in this book require the use of advanced Excel techniques. Those techniques are explained in this tutorial rather than in the cases themselves:
•
•
•
Using data tables
Using pivot tables
Using built-in functions
You can refer to Sheet 1 of Tutorial E_data.xlsx when reading about data tables. Refer to Sheet 2 when
reading about pivot tables.
PREPARING A MEMORANDUM IN WORD
A business memo should include proper headings, such as TO, FROM, DATE, and SUBJECT. If you want to
use a Word memo template, follow these steps:
1.
2.
3.
4.
In Word, click File.
Click New.
Enter “memos” in the Search for online templates box, and then click the Start searching button.
Click a memo template, such as Memo (elegant) or another memo design of your choice, and
then click the Create button to start a new memo document.
The first time you do this, you may need to click Download to install the template. You might also have to
search for the memo templates.
ENTERING A TABLE INTO A WORD DOCUMENT
Enter a table into a Word document using the following procedure:
1.
2.
3.
4.
5.
Click the cursor where you want the table to appear in the Word document.
In the Tables group on the Insert tab, click the Table drop-down menu.
Click Insert Table.
Choose the number of rows and columns.
Click OK.
DATA TABLES
An Excel data table is a contiguous range of data that has been designated as a table. Once you make this
designation, the table gains certain properties that are useful for data analysis. (Note that in some previous
versions of Excel, data tables were called data lists.) Suppose you have a list of runners who have completed a
race, as shown in Figure E-1.
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Tutorial E
FIGURE E-1
Data table example
To turn the information into a data table, highlight the data range, including headings, and click the Insert
tab. Then click Table in the Tables group. The Create Table window appears, as shown in Figure E-2.
FIGURE E-2
Create Table window
When you click OK, the data range appears as a table. In the Table Style Options group on the Design
tab, click the Total Row check box to add a totals row to the data table. You can also select a light style in the
Table Styles list to get rid of the contrasting color in the table’s rows. Figure E-3 shows the results.
FIGURE E-3
Data table example
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Guidance for Excel Cases
The headings have acquired drop-down menu tabs, as you can see in Figure E-3.
You can sort the data table records by any field. Perhaps you want to sort by times. If so, click the dropdown menu in the TIME (MIN) heading, and then click Sort Smallest to Largest. You get the results shown in
Figure E-4.
FIGURE E-4
Sorting list by drop-down menu
You can see that Peebles had the best time and Doltz had the worst time. You can also sort from Largest to
Smallest.
In addition, you can sort by more than one criterion. Assume that you want to sort first by gender and
then by time (within gender). You first sort by gender from A to Z. Then you again click the Gender dropdown tab, point to Sort by Color, and then click Custom Sort. In the Sort window that appears, click Add
Level and choose Time as the next criterion. See Figure E-5.
FIGURE E-5
Sorting on multiple criteria
NOTE
If a modern database contains a gender field, it must account for the fact that some people do not identify as male or female.
Therefore, a gender field should have at least three possible entries: (M)ale, (F)emale, and (O)ther.
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Tutorial E
Click OK to get the results shown in Figure E-6.
FIGURE E-6
Sorting by gender and time (within gender)
You can see that Harris had the best female time and that Peebles had the best male time.
Perhaps you want to see the top n listings for some attribute; for example, you may want to see the top
five runners’ times. Select the Time column’s drop-down menu, and select Number Filters. From the menu
that appears, click Top 10. The Top 10 AutoFilter window appears, as shown in Figure E-7.
FIGURE E-7
Top 10 AutoFilter window
This window lets you specify the number of values you want. You might see 10 values as a default setting
when the window appears. Figure E-7 shows that the user specified five values. Click OK to get the results
shown in Figure E-8.
FIGURE E-8
Top 5 times
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Guidance for Excel Cases
The output contains more than five data records because there are ties at 100 minutes. If you want to see
all of the records again, click the Time drop-down menu and click Clear Filter From “TIME (MIN).” The full
table of data reappears, as shown in Figure E-9.
FIGURE E-9
Restoring all data to window
Each of the cells in the Total row has a drop-down menu. The menu choices are statistical operations that
you can perform on the totals—for example, you can take a sum, take an average, take a minimum or maximum, count the number of records, and so on. Assume that the Time drop-down menu was selected, as shown
in Figure E-10. Note that the Sum operator is highlighted by default.
FIGURE E-10 Selecting Time drop-down menu in Total row
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Tutorial E
By changing from Sum to Average, you find that the average time for all runners was 95.5 minutes, as
shown in Figure E-11.
Average time
FIGURE E-11
Average running time shown in Total row
PIVOT TABLES
Suppose you have data for a company’s sales transactions by month, by salesperson, and by amount for each
product type. You would like to display each salesperson’s total sales by type of product sold and by month.
You can use a pivot table in Excel to tabulate that summary data. A pivot table is built around one or more
dimensions and thus can summarize large amounts of data. Figure E-12 shows total sales cross-tabulated by
salesperson and by month.
FIGURE E-12
Excel spreadsheet data
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Guidance for Excel Cases
You can create pivot tables and many other kinds of tables with the Excel PivotTable tool. To create a
pivot table from the data in Figure E-12, follow these steps:
1.
FIGURE E-13
2.
FIGURE E-14
Starting in the spreadsheet in Figure E-12, click a cell in the data range, and then click the Insert
tab. In the Tables group, choose PivotTable. You see the window shown in Figure E-13.
Creating a pivot table
Make sure New Worksheet is checked under “Choose where you want the PivotTable report to be
placed.” Click OK. The window shown in Figure E-14 appears.
PivotTable design window
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Tutorial E
3.
The data range’s column headings are shown in the PivotTable Field list on the right side of the
window. From there, you can click and drag column headings into the Rows, Columns, and Values panes that appear in the lower-right part of the spreadsheet.
If you want to see the January sales by product for each salesperson, drag the Name field to the
Columns pane, the Product field to the Rows pane, and the January field to the Values pane. By
default, the Sum operation will be shown in the Values pane, which is what you want. You should
see the result shown in Figure E-15. Your pivot table should look like the one in Figure E-16.
FIGURE E-15
Pivot table fields
FIGURE E-16
Pivot table
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Guidance for Excel Cases
By default, Excel adds all of the sales for each salesperson by month for each product. At the bottom of
the pivot table, Excel also shows the total sales for each month for all products.
Note the four small panes in the lower-right corner. The Values pane lets you easily change from the
default Sum operator to another one (Min, Max, Average, Count, and so on). Click the drop-down arrow, select
Value Field Settings, and then select the desired operator.
Displaying Pivot Table Results as Percentages
It is often helpful to display pivot table results as percentages of a total. For example, Figure E-16 displays
total January sales for each salesperson, but seeing these numbers as percentages would provide a better
perspective of the sales numbers. To display the values as percentages, right-click any value in your pivot
table and select the Show Values As option from the menu, as shown in Figure E-17. From the submenu that
appears, select percent of Row Total.
FIGURE E-17
Pivot table menu
Selecting this option allows easier evaluation of January sales, as shown in Figure E-18.
FIGURE E-18
Displaying pivot table results as percentages
BUILT-IN FUNCTIONS
You might need to use some of the following functions when solving the Excel cases elsewhere in this text:
•
MIN, MAX, AVERAGE, COUNTIF, COUNTIFS, ROUND, ROUNDUP, RANDBETWEEN, TREND,
PMT, NPV, ABS, and INT
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Tutorial E
The syntax of these functions is discussed in this section. The following examples are based on the runner
data shown in Figure E-19.
FIGURE E-19
Runner data used to illustrate built-in functions
The data is the same as that shown in Figure E-1, except that Figure E-19 includes a column for the runners’ height in inches.
MIN and MAX Functions
The MIN function determines the smallest value in a range of data. The MAX function returns the largest.
Say that we want to know the fastest time for all runners, which would be the minimum time in column G.
The MIN function computes the smallest value in a set of values. The set of values could be a data range, or it
could be a series of cell addresses separated by commas. The syntax of the MIN function is as follows:
•
MIN(set of data)
To show the minimum time in cell C16 (see Figure E-20), you would enter the formula 5MIN(G2:G14)
into the formula bar.
FIGURE E-20
MIN function in cell C16
(Assume that you typed the label “MINIMUM TIME:” into cell A16.) You can see that the fastest time is 63
minutes.
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Guidance for Excel Cases
To see the slowest time in cell G16, use the MAX function, whose syntax parallels that of the MIN function, except that the largest value in the set is determined. See Figure E-21.
FIGURE E-21
MAX function in cell G16
AVERAGE, ROUND, and ROUNDUP Functions
The AVERAGE function computes the average of a set of values. Figure E-22 shows the use of the AVERAGE
function in cell C17:
FIGURE E-22
AVERAGE function in cell C17
Notice that the value shown is a real number with many digits. What if you wanted to have the value
rounded to a certain number of digits? Of course, you could format the output cell, but doing that changes
only what is shown in the window. You want the cell’s contents actually to be the rounded number. Therefore,
you need to use the ROUND function. Its syntax is:
•
ROUND(number, number of digits)
Figure E-23 shows the rounded average time (with two decimal places) in cell G17.
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Tutorial E
FIGURE E-23
ROUND function used in cell G17
To achieve this output, cell C17 was used as the value to be rounded. Recall from Figure E-22 that cell
C17 had the formula 5AVERAGE(G2:G14). The following ROUND formula would produce the same output in
cell G17: 5ROUND(AVERAGE(G2:G14),2). In this case, Excel evaluates the formula “inside out.” First, the
AVERAGE function is evaluated, yielding the average with many digits. That value is then input to the ROUND
function and rounded to two decimal places.
The ROUNDUP function works much like the ROUND function. ROUNDUP’s output is always rounded
up to the next value. For example, the value 4 would appear in a cell that contained the following formula:
5ROUNDUP(3.12,0). In Figure E-23, if the formula in cell G17 had been 5ROUNDUP(AVERAGE(G2:G14),0),
the value 96 would have been the result. In other words, 95.54 rounded up with no decimal places becomes 96.
COUNTIF and COUNTIFS Functions
The COUNTIF function counts the number of values in a range that meet a specified condition. The syntax is:
•
COUNTIF(range of data, condition)
The condition is a logical expression such as “51”, “>6”, or “5F”. The condition is shown with quotation
marks, even if a number is involved.
Assume that you want to see the number of female runners in cell C18. Figure E-24 shows the formula used.
FIGURE E-24
COUNTIF function used in cell C18
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Guidance for Excel Cases
The logic of the formula is: Count the number of times that “F” appears in the data range E2:E14.
A variation of this function is COUNTIFS. This function applies criteria to cells across multiple ranges and
counts the number of times all criteria are met. The syntax is:
•
COUNTIFS (range of data 1, condition, range of data 2, condition,…)
Assume that column H shows the rounded ratio of each runner’s time in minutes to the runner’s height in
inches (see Figure E-25).
FIGURE E-25
Ratio of height to time in column H
Assume that all runners whose ratio is less than 1.5 will get an award. How many female runners qualify
for the award? If the gender is “F” and the ratio is less than 1.5, an award is warranted. The COUNTIFS function in cell G18 computes the count of female runners with ratios of less than 1.5, as shown in Figure E-26.
FIGURE E-26
COUNTIFS function used in cell G18
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Tutorial E
RANDBETWEEN Function
If you wanted a cell to contain a randomly generated integer in the range from 1 to 9, you would use the formula 5RANDBETWEEN(1,9). Any value between 1 and 9 inclusive would be output by the formula. An example is shown in Figure E-27.
FIGURE E-27
RANDBETWEEN function used in cell A2
Assume that you copied and pasted the formula to generate a column of 100 numbers between 1 and 9.
Every time a value was changed in the spreadsheet, Excel would recalculate the 100 RANDBETWEEN formulas to change the 100 random values. Therefore, you might want to settle on the random values once they are
generated. To do this, copy the 100 values, click Paste Special, and then click Values to put the values in the
same range. The contents of the cells will change from formulas to literal values.
TREND Function
The TREND function can be used to estimate a variable’s value based on the values of other variables. For
example, you might know the heights, genders, and weights for 20 people. Correlations exist among these
three characteristics. You also have height and gender data for 10 other people, and you want to estimate their
weights based on the data you have. The data is shown in Figure E-28.
FIGURE E-28
Data for people’s heights, genders, and weights
The TREND function requires numerical values. In the data, the code for a male is 1, the code for a female
is 2, and the code for others is 3. Height values are measured in inches and weight values are in pounds. For
example, person 101 is a male who is 5 feet, 10 inches tall and weighs 190 pounds.
You can use the TREND function to examine a set of data and “learn” the relationship between two or
more variables. In this example, the TREND function learns how the heights and genders of 20 people correlate to their weights. Then, given 10 other people’s heights and genders, the TREND function applies what it
knows to estimate their weights.
The syntax for the TREND function is:
•
5TREND(known Ys, known Xs, new Xs)
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Guidance for Excel Cases
In the example, the known Ys are the known weights for 20 people, the known Xs are the related heights
and genders, and the new Xs are heights and genders of 10 people for whom you want estimated weights.
The formula is shown in Figure E-29.
•
5TREND($D$2:$D$21, $B$2:$C$21, G2:H2)
Cells D2 to D21 hold the known weights for 20 people (see Figure E-28 again). Cells B2 to C21 hold the
values of the two predictor variables (height and gender) for those 20 people. Cells G2 and H2 are the predictor variables for person 130, for whom you want a predicted weight. The predicted weight formula is in cell I2.
FIGURE E-29
Calculation of predicted weight for person 130
When you copy the formula down the cells in column I for the 10 people, you calculate weight predictions
for all of them. By using absolute addressing, the only address changes are the predictor height and gender
values for the 10 people.
PMT Function
The PMT function calculates a loan payment. The syntax is:
•
5PMT(interest rate, number of periods, initial loan principal)
As an example, assume that you have a 6 percent, 30-year loan for $100,000. The calculation of the
monthly payment is shown in Figure E-30.
FIGURE E-30
Calculation of monthly loan payment
The formula is in cell B5. The monthly interest rate is the annual rate in cell B1 divided by 12. The number of months covered by the loan is the number of years (see cell B2) multiplied by 12. The loan principal is
in cell B3. The PMT function returns a negative number, so the expression is multiplied by 21.
Loan payments for the year are computed by multiplying the monthly payment by 12.
NPV Function
The NPV function calculates the net present value of an investment by using a discount rate and a series of
future payments (negative values) and income (positive values). The syntax is:
•
NPV(rate, value1, [value2],…)
The function’s arguments are as follows:
•
Rate—This required argument is the rate of discount for one period.
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217
218
Tutorial E
•
value1, value2,…—value1 is required and subsequent values are optional. You can enter up to
254 arguments that represent the payments and income. The value1, value2,… sequence must
be equally spaced in time and occur at the end of each period.
The NPV function uses the order of value1, value2,… to interpret the order of cash flows. Be sure to enter
your payment and income values in the correct sequence.
For example, suppose you want to calculate the net present value of a $100,000 investment at a discount
rate of 10 percent after four years. You anticipate returns from each year and use the NPV function to calculate the result, as shown in cell A8 in Figure E-31.
FIGURE E-31
NPV function used in cell A8
ABS Function
The ABS function returns the absolute value of a number. The absolute value of a number is the number without the sign. The syntax is:
•
ABS(number)
Figure E-32 shows the results of using the ABS function on different numbers.
FIGURE E-32
Using the ABS function
INT Function
The INT function returns a number rounded down to the nearest integer. The syntax is:
•
INT(number)
In Figure E-33, the value in cell A3 divided by the value in cell B3 would be the real number 6.4285. The
figure shows that using the INT function on the quotient returns the integer 6.
FIGURE E-33
Using the INT function
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INDEX
Note: Page numbers in boldface indicate key terms
Special Characters
( ) (parentheses), 20, 29
= (equal sign), 107
[ ] (square brackets), 18, 20, 31
A
ABS function, 218
Access, 13–85. See also database(s); database design; form(s);
queries; reports; tables
case example, 53–58, 59–66, 67–72, 73–78, 79–85
creating analytical database, 194–196
creating queries, 17–33
creating reports, 37–42
creating tables, 13–17
data analysis, 185–187
data inspection, 185, 193–194
decision support. See decision support, Microsoft Access
and Excel
forming relationships, 48–49
importing data, 42–45
integrating with Excel. See decision support, Microsoft
Access and Excel
making forms, 45–47
troubleshooting common problems, 49–51
AND function, IF statements with, 106–107
Answer Report window
for extension case, 143
remainder of, 142
sheet tab, 141
top portion of, 141
append queries, 4
attributes, 4
as database design concept, 5
AVERAGE function, 213–214
Average operation, 22
B
bank
borrowing, 107–111
repayment, 110–111
borders, cells, 105
borrowing, cash flow calculations, 107–111
built-in functions, 211–218
C
calculated fields, 10, 17
avoiding errors, 19–20
queries using, 17–19
troubleshooting, 49–50
calculations
cash flow, 107–111
time, in queries, 28–29
troubleshooting, 49–50
Calculations section, spreadsheets
case example, 116–117, 125–126, 153–155,
166–167
decision support using basic Excel, 116–117,
125–126
practice exercise, 91
Scenario Manager, 103
cardinality, 5
cell(s)
borders, 105
Calculations section, 93
changing, 98
copy, 93
formatting, 105–106
objective, 138
showing formulas, 106
cell formulas
in Calculations section, 135
in Income Statement section, 136
printing in Excel, 149
cell values
in Calculations section, 136
in Income Statement section, 137
Changing Cells section
case examples, 165–166
decision support using basic Excel Solver, 134, 144
Changing Variable Cells, 138–139
circular references, 106
Clipboard, copying summary sheet data to, 101
column(s), 3. See also fields
compound primary key, 3
Constants section, spreadsheets
case example, 114–115, 123–124, 152–153, 166
decision support using basic Excel, 114–115, 123–124
decision support using basic Excel Solver, 134–135,
135–136, 145–146
practice exercise, 90
Scenario Manager, 102
constraints
case examples, 167–168
expressions, 137
restarting Solver with all new constraints, 148
running Excel Solver, 139–140
settings to single amount, 147
spreadsheet skeleton using Excel Solver, 137–138
copy cell contents, 93
copying summary sheet data to Clipboard, 101
copy operation, 93
COUNTIF function, 214–215
COUNTIFS function, 214–215
Count operation, 22
Currency data type, 3
D
data
copying to Clipboard, 101
importing into Access, 42–45
importing into Excel, 187–190, 196–198
lists, 203
redundancy, 10
tables, 203–208
types, 3
data analysis and research, Microsoft Access and Excel,
183–190, 191–199
creating analytical database, 194–196
data analysis, 185–187
data inspection, 185, 193–194
documenting findings, 190
importing data into Excel, 187–190
using database, 183–184, 192–193
database(s), 3. See also Access
Access queries, 175–177
saving, 49
troubleshooting common problems, 49–51
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220
Index
database design, 3–12
case example, 53, 60, 68, 74, 81
concepts, 4–5
practice problem, 11–12
rules, 5–11
terminology, 3–4
data entry errors, tables, 50
data gathering
spreadsheets, 119, 129
using pivot tables, 180–182
Date() function, 27–28
Date/Time data type, 3
Debt Owed section, 109, 119, 128
decimals, 50
decision support, Microsoft Access and Excel, 173–182
case example, 175–182
database queries, 175–177
documenting findings in memo, 190, 198–199
decision support systems (DSSs), 89
decision support systems (DSSs), Excel Scenario Manager,
89–129
case example, 113–120, 121–129
spreadsheet model construction, 91–97
spreadsheet organization, 90–91
summary sheets, 100–101
decision support systems (DSSs), Excel Solver,
133–169
case example, 151–162, 163–169
running Excel Solver, 138–142
setting up spreadsheet skeleton, 134–138, 144–146
Delete queries, 4, 29–32
practice creating, 57
Delete Sheet Rows, 100
deleting Scenario Manager summary sheets, 101
documenting findings/recommendations
case example, 119–120, 129
decision support, Excel Solver, 169
memos, 169, 182, 190, 198–199
Double data type, 3
DSSs. See decision support systems (DSSs);
Scenario Manager
E
Edit Scenario dialog box, 97
Employee table, 14, 16
entities, 4
as database design concept, 4
relationships. See relationships
equal sign (=), 107
errors
calculated fields, 19–20
data entry, 50
spelling, 49
Excel
ABS function, 218
AVERAGE function, 213–214
basics, 105–111
built-in functions, 211–218
cash flow calculations, 107–111
cell borders, 105
cell formatting, 105–106
cell formulas, 106
COUNTIF function, 214–215
COUNTIFS function, 214–215
data tables, 203–208
decision support. See decision support, Microsoft Access
and Excel; decision support systems (DSSs), Excel Scenario Manager; decision support systems (DSSs), Excel
Solver
Format Painter, 106
formatting cells, 105–106
IF statements, 106–107
importing data into, 187–190, 196–198
importing data into Access, 42–45
importing summary data, 177
integrating with Access. See decision support, Microsoft
Access and Excel
INT function, 218
MAX function, 212–213
MIN function, 212–213
NPV function, 217–218
pivot tables. See pivot tables
PMT function, 217
RANDBETWEEN function, 216
ROUND function, 213–214
ROUNDUP function, 213–214
Scenario Manager. See decision support systems (DSSs);
Scenario Manager
showing formulas in cells, 106
TREND function, 216–217
Excel Scenario Manager. See Scenario Manager
exiting, troubleshooting Excel Solver, 149–150
F
fields, 3
attributes, 5–10
calculated. See calculated fields
duplicate values, 49
grouping, printing, 51
linking between tables, 49
moving in Layout view, 41–42
names, 15, 20
redundant, avoiding, 10
widening, 22
foreign keys, 3
form(s), 3
case example, 55–56, 61–62, 69, 75–76, 82
making, 45–47
subforms, 45–47
formatting cells, 105–106
formulas
circular references, 106
showing in cells, 106
spreadsheets, filling in, 92–97
functions
ABS, 218
AND, IF statements with, 106–107
AVERAGE, 213–214
built-in, 211–218
COUNTIF, 214–215
COUNTIFS, 214–215
Date(), 27–28
INT, 218
MAX, 212–213
MIN, 212–213
NPV, 217–218
OR, IF statements with, 106–107
PMT, 217
RANDBETWEEN, 216
ROUND, 213–214
ROUNDUP, 213–214
TREND, 216–217
G
gathering data
for case example, 119, 129, 169, 178–182
using data tables, 178–179
using pivot tables, 180–182
using spreadsheets, 119, 129, 169
grouped reports, creating, 37–41
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Index
H
Hours Worked table, 14–15
N
names, fields, 15, 20
nesting IF statements, 107
NPV function, 217–218
I
IF statements
AND function with, 106–107
nesting, 107
OR function with, 106–107
importing
data into Access, 42–45
data into Excel, 187–190, 196–198
Income and Cash Flow Statements section, spreadsheets
case example, 117–118, 126
practice exercise, 91
Scenario Manager, 103–104
Income Statement section, spreadsheets
case example, 155–156, 167
decision support using basic Excel Solver,
136–137, 146
Inputs section, spreadsheets
case example, 115, 124
practice exercise, 90–91
Scenario Manager, 102
Integer data type, 3
integrating Access with Excel. See decision support,
­Microsoft Access and Excel
INT function, 218
Int operator, 148
J
joins, 3
K
Key Results section, spreadsheets
case example, 116, 125
Scenario Manager, 103
L
Layout view, moving fields, 41–42
linking fields between tables, 49
loan payments, 107
M
many-to-many relationships, 5
MAX function, 212–213
memo(s)
case example, 120, 129
documenting findings/recommendation, 169, 182, 190,
198–199
preparing in Word, 203
Microsoft Access. See Access; database(s); database design;
decision support, Microsoft Access and Excel; form(s);
­queries; reports; tables
Microsoft Excel. See decision support, Microsoft Access and
Excel; decision support systems (DSSs), Excel Scenario Manager; decision support systems (DSSs), Excel
Solver; Excel; Scenario Manager
Microsoft Word. See Word
MIN function, 212–213
Min operation, 22
moving fields in Layout view, 41–42
O
object(s), 3, 4. See also form(s); queries; reports; tables
objective cells, 138
one-to-many relationships, 5
one-to-one relationships, 5
oral presentation, case example, 162
OR function, IF statements with, 106–107
P
Parameter queries, 32, 32–33
practice creating, 57
parentheses (), 20, 29
pivot tables
creating, 208–211
displaying as percentages, 211
gathering data, 180–182
PMT function, 217
primary key, 3
compound, 3
defining, 44, 45
troubleshooting, 49
printing
cell formulas in Excel, 149
fitting output to page, 50
grouping fields, 51
troubleshooting Excel Solver, 149–150
pseudo-headings, 24
Q
QBE (query by example)
join operations, 20
Parameter queries, 33
practice queries, 33–37
Totals queries, 22, 22–27
Update queries, 31
queries, 3
append, 4
calculated fields, 17–20
case example, 56–57, 62–64, 69–71, 76–77, 83–84
creating, 17–33
database, 175–177
Date() function, 27–28
Delete, 4, 29–32, 57
excess number of tables, 49
Parameter, 32, 32–33, 57
practice creating, 33–37
Select, 4, 29
time arithmetic, 28–29
Totals, 22, 22–27, 57
Update, 4, 29–32
query by example. See QBE (query by example)
R
RANDBETWEEN function, 216
records, 3
adding to tables, 15–17
duplicate, 49
excess number, 49
insufficient, 49
Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
221
222
Index
redundancy, avoiding data, 10
relationships, 4
cardinality, 5
as database design concept, 5
repayments, cash flow calculations, 107–111
reports, 4
case example, 58, 64–65, 72, 77–78, 84–85
creating, 37–42
grouped, creating, 37–41
moving fields in Layout view, 41–42
rerunning Scenario Manager, 101
rerunning Solver model, 147
ROUND function, 213–214
ROUNDUP function, 213–214
row(s), 3. See also records
running Excel Solver, 138–142
case examples, 156–158, 161, 168
case extension of, 142–144
computing Solver’s answer, 140–142
entering constraints, 139–140
selecting solving method, 140
setting Changing Variable Cells, 138–139
setting objective cell, 138
Income and Cash Flow Statements, 91, 103–104,
117–118, 126
Inputs, 90–91, 102, 115, 124
Summary of Key Results, 91, 103, 116, 125
spreadsheet skeleton construction, 91–92
spreadsheet skeleton using Excel Solver
Calculations section, 135–136, 145–146
Changing Cells section, 134, 144
Constants section, 134–135, 145
constraints, 137–138
Income Statement section, 136–137, 146
setting up, 134–138, 144–146
square brackets ([]), 18, 20, 31
StDev operation, 22
subforms, 45–47
Summary of Key Results section, spreadsheets
case example, 116, 125
practice exercise, 91
Scenario Manager, 103
summary sheets, Scenario Manager, 100–101
charting results, 101
copying data to Clipboard, 101
deleting, 101
Sum operation, 22
S
saving
files, databases, 49
troubleshooting Excel Solver, 149–150
Scenario Manager, 97–101. See also decision support systems
(DSSs)
analysis, 104–105
deleting summary sheets, 101
practice with, 101–105
rerunning, 101
summary sheets, 100–101
using, 97–101
Scenario Manager window, 97, 99
Scenario Summary window, 99
Scenario Values window, 98
Select queries, 4, 29
case example, 56
Solver Parameters window, 138, 140
Solver Results window, 140, 141
for extension case, 143
spelling errors, field names, 49
spreadsheet(s)
basics, 89–97
case example, 114–119, 123–128
cells. See cell(s)
creating for decision support, 114–119, 123–128
entering “easy” formulas, 92–94
entering “hard” formulas, 94–97
gathering data using, 119, 129, 169
importing into Access, 42–45
Income and Cash Flow Statements section, 91
Inputs section, 90–91
model construction, 91–97
organization, 90–91
sections. See spreadsheet sections (by name)
skeleton or shell, 91–92
Summary of Key Results section, 91
using decision support, 119–120, 128–129
spreadsheet sections (by name)
Calculations, 91, 103, 116–117, 125–126
case example, 114–119, 123–128
Constants, 90, 102, 114–115, 123–124
T
tables, 3. See also pivot tables
adding records, 15–17
case example, 54–55, 61, 69, 75, 82
creating, 13–17
data entry errors, 50
defining, 13–15
entering into Word documents, 203
excess number, 49
failure to link, 49
join operations, 3, 20–22
tables (by name)
Employee table, 14, 16
Hours Worked table, 14–15
Wage Data table, 14, 16
Text data type, 3
time calculations in queries, 28–29
Totals queries, 22, 22–27
practice creating, 57
statistical operation, 23
troubleshooting, 51
TREND function, 216–217
troubleshooting Access, 49–51
troubleshooting Excel Solver
adding Solver to Excel Ribbon, 146–147
creating overconstrained models, 147
deleting extra Answer Sheets, 148
integer changing cells, 148
printing cell formulas in Excel, 149
rerunning Solver model, 147
restarting Solver with all new constraints, 148
reviewing printing, saving, and exiting procedures,
149–150
setting constraint to single amount, 147
using Solver Options window, 148–149
U
Update queries, 4, 29–32
troubleshooting, 51
Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
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Index
V
Var operation, 22
Word
entering tables into Word documents, 203
preparing memos, 203
workbook for decision support, 162
W
Wage Data table, 14, 16
Where operation, 22
widening fields, 22
Y
Yes/No data type, 3
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223
Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Copyright 2020 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.