Navya Thum navya.thum@mail.wvu.edu February 13, 2013 Day 7: MICROSOFT EXCEL Navya Thum navya.thum@mail.wvu.edu February 13, 2013

Attendance Go to https://cs101.wvu.edu/tools/record-attendance/ to record attendance. Enter your MyID username and password. 11/29/2018

Announcements Homework 2 due on February 2 Exam 1 Section 12- 02/27/2012 Section 14- 02/25/2012 11/29/2018

Today To Create a one-variable data table and a two-variable data table Identify an input value with Goal Seek Use Scenario Manager Optimize results with Solver The objectives of Chapter 6 are to: Create a one-variable data table. Create a two-variable data table. Identify an input value with Goal Seek. Use Scenario Manager. Generate scenario summary reports. Load the Solver Add-in. Optimize results with Solver. 11/29/2018

What-If Analysis Three important tools which enable to perform “what-if” analysis What-if analysis enables you to see how changes in variables affect calculated results A variable is a value that can be changed or to see how those changes impact other values An independent variable is one that can be controlled directly, such as the price of an item A dependent variable is one that may vary such as the number of items sold A substitution value is the one which replaces the original value of a variable in a data table 11/29/2018

Create a One-Variable Data Table List substitution values in the left column or first row Enter formulas in the first row or left column (whichever was not used above) Create the one-variable data table Format the results of the data table Create custom number formats to disguise the formulas as headings The steps on this slide outline how to design a data table to compare results for different values of one variable. Detailed instructions for creating the one-variable data table (Step 3) are listed on the next slide. 11/29/2018

Create a One-Variable Data Table To complete a one-variable data table: Select entire table starting in the blank cell in the top-left corner Click What-If Analysis in the Data Tools group on the Data tab and select Data Table Enter address of the cell to be changed in the Data Table dialog box Click OK This slide enhances the directions for Step 3 from the previous slide. 11/29/2018

Create a One-Variable Data Table Figure 6.3 displays a completed one-variable data table. 11/29/2018

Create a Two-Variable Data Table A two-variable data table ─ a data analysis tool that provides results based on changing two variables Creating a two-variable data table ─ similar to creating a one variable data table; however, you are limited to comparing one result. Recommendations include: Use the top row for one variable’s substitution values Use the first column for the other variable’s values Apply a custom number format to the formula cell in the top-left cell With a two-variable data table, you can compare results for two variables. For instance, you can compare how different interest rates and different down payments impact the monthly car payment. You can focus on only one result instead of multiple results as you could in a one-variable data table. You would have to choose how the variables effect either monthly payment, or total amount to repay the loan, or total interest paid. 11/29/2018

Create a Two-Variable Data Table Figure 6.6 displays a completed and formatted two-variable data table. 11/29/2018

Identify an Input Value with Goal Seek Goal Seek ─ a tool when you know the desired end result but not the value needed to meet the goal Enables you to work backwards to solve a problem Excel can enter the input value in the variable cell Goal Seek is a method for finding solutions to problems by working backwards from the end result to determine the input to produce that result. Goal Seek uses the original worksheet data to change an input instead of displaying various combinations in a data table. 11/29/2018

Identify an Input Value with Goal Seek To use Goal Seek: Click What-If Analysis in the Data Tools group on the Data tab Select Goal Seek to open the Goal Seek dialog box Enter the cell reference for the cell to be optimized in the Set cell box Enter the result you want to achieve (such as $300) in the To value box Enter the cell reference that contains the value of the variable to adjust (such as cost of car) in the By changing cell box Click OK When an answer appears, click OK to accept the change or Cancel to return to the original data Suppose you can only afford $300 as a monthly payment on a car loan. You can use Goal Seek to determine the maximum amount you can spend on a car to meet that monthly payment. 11/29/2018

Identify an Input Value with Goal Seek Figure 6.18 displays Goal Seek for the to goal to determine how much car you can afford to keep the monthly payment at $300. 11/29/2018

Use Scenario Manager Scenarios take detailed sets of input values and determine possible results Scenario Manager enables you to define and manage up to 32 scenarios Scenarios are maintained separately for each worksheet in a workbook You can perform more sophisticated what-if analysis with Scenario Manager than with data tables. 11/29/2018

Use Scenario Manager To create a scenario: Click What-If Analysis in the Data Tools group on the Data tab Select Scenario Manager to open the Scenario Manager dialog box Click Add to open the Add Scenario dialog box Enter a meaningful name in the Scenario name box Enter the input cells for the scenarios in the Changing cells box Click in the Comment box to display you name and the date the scenario is created Click OK to open the Scenarios Values dialog box Click Add to add another scenario and specify its values OR click OK to return to the Scenario Manager dialog box For each scenario, you specify a name, the changing cells, and the values for those changing cells. 11/29/2018

Use Scenario Manager 11/29/2018 Figure 6.13 displays the Scenario Manager dialog box where you can create, edit, and delete scenario names. 11/29/2018

Use Scenario Manager 11/29/2018 Figure 6.14 displays the Add Scenario dialog box. 11/29/2018

Use Scenario Manager 11/29/2018 Figure 6.15 displays the Scenario Values dialog box. 11/29/2018

Use Scenario Manager To view your scenarios: Click What-If analysis in the Data Tools group on the Data tab Select Scenario Manager Select the name of the Scenario you want to view in the Scenarios list Click Show Follow the steps on this slide to view a scenario. Excel places the defined values in the respective changing cells and displays the results. 11/29/2018

Generate Scenario Summary Reports Scenario summary report ─ a worksheet that compares the scenario results Do not automatically update The summary report appears in the form of a worksheet outline. If you makes changes to scenarios, you will have to generate a new scenario report. 11/29/2018

Generate Scenario Summary Reports To create a scenario summary report: Open the Scenario Manager dialog box Click Summary to open the Scenario Summary dialog box Click Scenario Summary or Scenario PivotTable report and enter the reference for the cell(s) whose values change in the scenarios in the Result cells box Click OK The scenario summary report appears on a separate worksheet. 11/29/2018

Generate Scenario Summary Reports Figure 6.17 displays a scenario summary. You can delete the blank row, blank column, and current values column. You can also replace the cell references with descriptive labels for the row headings. 11/29/2018

Generate Scenario Summary Reports Figure 6.16 displays the Scenario Summary dialog box. You can also choose to produce a scenario PivotTable report. 11/29/2018

Load the Solver Add-in Solver ─ a separate program that must be installed or added in to Excel Once loaded ─ appears in the Analysis group on the Data tab Solver ─ manipulates variables based on constraints to find the optimal solution to a problem Solver is one of the most sophisticated what-if analysis tools. Once loaded, Solver remains on the Data tab until you remove it. 11/29/2018

Load the Solver Add-in To load Solver: Click the File tab, and then select Options Click Add-Ins Click the Manage arrow, select Excel Add-ins, and then click Go to open the Add-Ins dialog box Click the Solver Add-in check box in the Add-Ins available list and click OK Follow Steps 1 & 2 on the slide and, if Solver is listed in the Inactive Application Add-ins list, continue with the rest of the steps. 11/29/2018

Load the Solver Add-in 11/29/2018 Figure 6.21 displays the Add-Ins dialog box. 11/29/2018

Optimize Results With Solver Solver requires three parameters: Objective cell contains a formula-based value that you want to optimize that relates directly or indirectly to the changing cells and constraints Changing cells are the cells whose values are adjusted until the constraints are satisfied Constraints specify the restrictions Solver searches for the best solution to a problem with several variables. It requires three parameters—objective cell, changing cells, and constraints. 11/29/2018

Optimize Results With Solver To specify the objective and changing cells: Click Solver in the Analysis group on the Data tab to open the Solver Parameters dialog box Enter the cell containing the formula for which you want to optimize its value in the Set Objective box Click an option in the To section to specify what type of value you need to find for the target cell (such as Max, Min, or Value Of with a specified value) Enter the cell references that contain variables in the By Changing Variable Cells box The steps on the slide allow you to specify two of the three required parameters. 11/29/2018

Optimize Results With Solver Figure 6.23 displays the Solver Parameters dialog box. 11/29/2018

Optimize Results With Solver To specify the constraints: Click Add to the right of the Subject to the Constraints list to open the Add Constraint dialog box Enter the cell reference, the operator to test the cell references, and the constraint the cell needs to match (such as the down payment must be less than or equal to $7,000) Click OK to add the constraint and return to the Solver Parameters dialog box, or click Add to add the constraint and create another constraint The steps on the slide allow you to specify the third required parameter. 11/29/2018

Optimize Results With Solver Figure 6.24 displays the Add Constraint dialog box. Using the car loan example, a constraint might be that the down payment must be less than or equal to $7,000. 11/29/2018

Answer Report Solver report information Objective cell section Variable cells section Constraints section 11/29/2018

Questions? 11/29/2018