Excel 2007 Unit K

Microsoft Excel 2007 -Microsoft Excel 2007 -Illustrated Illustrated

Using What –if AnalysisUsing What –if Analysis

2Microsoft Office Excel 2007 - Illustrated

• Define a what-if analysisDefine a what-if analysis

• Track a what-if analysis with Track a what-if analysis with Scenario ManagerScenario Manager

• Generate a scenario summaryGenerate a scenario summary

• Project figures using a data tableProject figures using a data table

ObjectivesObjectives


• Use Goal SeekUse Goal Seek

• Set up a complex what-if analysis Set up a complex what-if analysis with Solverwith Solver

• Run Solver and summarize resultsRun Solver and summarize results

• Analyze data using the Analysis Analyze data using the Analysis ToolPakToolPak

ObjectivesObjectives


Defining a What-If AnalysisDefining a What-If Analysis

• When you use a worksheet to When you use a worksheet to answer the question “what if?” you answer the question “what if?” you are performing a are performing a what-if analysiswhat-if analysis• Often called a Often called a modelmodel because it acts as because it acts as

the basis for multiple outcomesthe basis for multiple outcomes• To perform a what-if analysis, you To perform a what-if analysis, you

change the value in one or more change the value in one or more input input cellscells (contain data, not formulas), then (contain data, not formulas), then watch the outcomewatch the outcome


Defining a What-If Analysis Defining a What-If Analysis (cont.)(cont.)

• A A dependent celldependent cell usually contains a usually contains a formula whose value changes formula whose value changes depending on the values in the input depending on the values in the input cellscells

• A dependent cell can be located either A dependent cell can be located either in the same worksheet as the in the same worksheet as the changing input value or in another changing input value or in another worksheetworksheet



• Guidelines to perform a what-if analysis:Guidelines to perform a what-if analysis:• Understand and state the purpose of the Understand and state the purpose of the

worksheet modelworksheet model• Determine the data input value(s) that, if Determine the data input value(s) that, if

changed affect the dependent cell resultschanged affect the dependent cell results• Identify the dependent cell(s), usually Identify the dependent cell(s), usually

containing formulascontaining formulas• Will contain adjusted results as different data Will contain adjusted results as different data

values are enteredvalues are entered

• Formulate questions you want the what-if Formulate questions you want the what-if analysis to answeranalysis to answer

• Perform the what-if analysisPerform the what-if analysis



Data input values

Dependent cell formulas


Tracking a What-If Analysis Tracking a What-If Analysis with Scenario Managerwith Scenario Manager

• A A scenarioscenario is a set of values you use is a set of values you use to forecast worksheet resultsto forecast worksheet results• The Scenario Manager simplifies the The Scenario Manager simplifies the

process of what-if analysis by allowing process of what-if analysis by allowing you to name and save different you to name and save different scenarios with the worksheetscenarios with the worksheet

• Useful when you are working with Useful when you are working with uncertain or changing variablesuncertain or changing variables

• The cells that will vary in the different The cells that will vary in the different scenarios are called scenarios are called changing cellschanging cells


Tracking a What-If Analysis Tracking a What-If Analysis with Scenario Manager (cont.)with Scenario Manager (cont.)

Cell range to be changed

Changing cell boxes

Current cell values



Three scenarios



• Merging scenariosMerging scenarios• To bring scenarios from another To bring scenarios from another

workbook into the current workbook, workbook into the current workbook, click the Merge button in the Scenario click the Merge button in the Scenario Manager dialog boxManager dialog box


Generating a Scenario Generating a Scenario SummarySummary

• A A scenario summaryscenario summary is an Excel is an Excel table that compiles data from the table that compiles data from the changing cells and corresponding changing cells and corresponding result cellsresult cells• Use to illustrate the best, worst, and Use to illustrate the best, worst, and

most likely scenarios for a particular set most likely scenarios for a particular set of circumstancesof circumstances


Generating a Scenario Generating a Scenario Summary (cont.)Summary (cont.)

Outline format


Projecting Figures Using Projecting Figures Using a Data Tablea Data Table

• Another way to answer what-if Another way to answer what-if questions in a worksheet is by using questions in a worksheet is by using a data tablea data table• A A data table (or one-input data table)data table (or one-input data table), is , is

a range of cells that shows the resulting a range of cells that shows the resulting values when one input value is varied in values when one input value is varied in a formulaa formula


Projecting Figures Using Projecting Figures Using a Data Table (cont.)a Data Table (cont.)

Varying sales totals are table input values


Projecting Figures Using Projecting Figures Using a Data Table (cont.)a Data Table (cont.)

Percentages

Completed data table


Creating a Two-Input Data Creating a Two-Input Data TableTable

• A A two-input data tabletwo-input data table shows the shows the resulting values when two different resulting values when two different input values are varied in a formulainput values are varied in a formula• In a two-input data table, different In a two-input data table, different

values of one input cell appear across values of one input cell appear across the top row of the table, while different the top row of the table, while different values of the second input cell are values of the second input cell are listed down the left column of the tablelisted down the left column of the table


Using Goal SeekUsing Goal Seek

• Goal seeking is a what-if analysis in Goal seeking is a what-if analysis in reversereverse• To To goal seekgoal seek, you specify a solution, , you specify a solution,

then find the input value that produces then find the input value that produces the answer you wantthe answer you want

• ““Backing into” or Backing into” or backsolvingbacksolving a solution a solution in this way can save a significant in this way can save a significant amount of timeamount of time


Using Goal Seek (cont.)Using Goal Seek (cont.)

Percentage

Goal for Percentage

U.S. Jan Sales


Setting up a Complex What-If Setting up a Complex What-If Analysis with SolverAnalysis with Solver

• The Excel Solver finds the most The Excel Solver finds the most appropriate value for a formula by appropriate value for a formula by changing the input values in the changing the input values in the worksheetworksheet• The cell containing the formula is called The cell containing the formula is called

the the target celltarget cell• Solver is useful when the what-if Solver is useful when the what-if

analysis involves multiple input values analysis involves multiple input values or when the input values must conform or when the input values must conform to specific constraintsto specific constraints


Setting up a Complex What-If Setting up a Complex What-If Analysis with Solver (cont.)Analysis with Solver (cont.)

Constraints will affect this cell

Cell value is 750,000


Setting up a Complex What-If Setting up a Complex What-If Analysis with Solver (cont.)Analysis with Solver (cont.)

Target cell

Changing cells

Constraints on worksheet values

Target value


Running Solver and Running Solver and Summarizing ResultsSummarizing Results

• After entering all the parameters in After entering all the parameters in the Solver Parameters dialog box, the Solver Parameters dialog box, run the Solver to find a solutionrun the Solver to find a solution• Solver may not be able to find a Solver may not be able to find a

solution that meets all of your solution that meets all of your constraintsconstraints

• In that case, enter new constraintsIn that case, enter new constraints

• If Solver finds a solution, you can If Solver finds a solution, you can choose to create a special report or a choose to create a special report or a summary displaying the solutionsummary displaying the solution


Running Solver and Running Solver and Summarizing Results (cont.)Summarizing Results (cont.)

Click to create a summary of

Solver’s answer


Running Solver and Running Solver and Summarizing Results (cont.)Summarizing Results (cont.)

Summary


Analyzing Data Using the Analyzing Data Using the Analysis ToolPakAnalysis ToolPak

• The Analysis ToolPak is an Excel The Analysis ToolPak is an Excel add-in that contains many statistical add-in that contains many statistical analysis tools. analysis tools.

• The Descriptive Analysis tool in the The Descriptive Analysis tool in the Data Analysis dialog box generates a Data Analysis dialog box generates a statistical report including mean, statistical report including mean, median, mode, minimum, maximum, median, mode, minimum, maximum, and sum for an input range you and sum for an input range you specify on your worksheet.specify on your worksheet.


Analyzing Data Using the Analyzing Data Using the Analysis ToolPak (cont.)Analysis ToolPak (cont.)

Statistical Report


SummarySummary

• Track a what-if analysis with Track a what-if analysis with Scenario ManagerScenario Manager

• Show multiple scenarios using a Show multiple scenarios using a scenario summaryscenario summary

• Use data tables to project figuresUse data tables to project figures

• Use Goal seek to “backsolve”Use Goal seek to “backsolve”

• Use Solver to perform complex what-Use Solver to perform complex what-if analysis involving multiple inputsif analysis involving multiple inputs

Technology

Excel 2007 Unit K