BUSINESS ANALYTICS THE ART OF
MODELING WITH SPREADSHEETS ACTUAL
TEST QUESTIONS AND SOLUTIONS
COMPREHENSIVE REVIEW PACKAGE
●● Decision Models
Answer: Analytical tools or frameworks used to assist in making
informed, data-driven decisions in complex situations.
●● Deterministic Model
Answer: A model in which all parameters are known with certainty.
●● Stochastic Model
Answer: A model that incorporates some randomness, where some
inputs have uncertainties.
●● Input Variables
Answer: The parameters that drive the calculations within the model.
●● Processes
Answer: The intermediate variables or calculations that link the inputs
with outputs.
,●● Target Outputs
Answer: The outcome values of a decision that we wish to know.
●● Influence Diagram
Answer: A visual tool to illustrate the various components of a decision
and their relationships.
●● Nodes in Influence Diagram
Answer: Represent the decision variables.
●● Arrows in Influence Diagram
Answer: Represent the influence that variables have on other variables.
●● What-if Analysis
Answer: Tools used to help decision makers predict how target outputs
of a spreadsheet model would change if one or more inputs are changed.
●● Data Table (What-if Analysis)
Answer: A type of what-if analysis in Excel that allows for analysis of
multiple input variables.
●● Goal Seek (What-if Analysis)
, Answer: Determines the exact value of the input variable needed to
achieve a desired outcome.
●● Scenario Manager (What-if Analysis)
Answer: Allows one to create and compare up to 32 possible scenarios
based on multiple input variables.
●● Sensitivity Analysis
Answer: Assesses how sensitive the model is to changes.
●● Forecasting & Predictions
Answer: Utilizes historical data to make future projections.
●● Visualizations
Answer: Presents data in a graphical format to enhance understanding.
●● Objectives and Criteria
Answer: Factors that decision models assess alternative decisions
against.
●● Uncertainty and Risk
Answer: Elements incorporated into decision models to account for
variability in outcomes.
MODELING WITH SPREADSHEETS ACTUAL
TEST QUESTIONS AND SOLUTIONS
COMPREHENSIVE REVIEW PACKAGE
●● Decision Models
Answer: Analytical tools or frameworks used to assist in making
informed, data-driven decisions in complex situations.
●● Deterministic Model
Answer: A model in which all parameters are known with certainty.
●● Stochastic Model
Answer: A model that incorporates some randomness, where some
inputs have uncertainties.
●● Input Variables
Answer: The parameters that drive the calculations within the model.
●● Processes
Answer: The intermediate variables or calculations that link the inputs
with outputs.
,●● Target Outputs
Answer: The outcome values of a decision that we wish to know.
●● Influence Diagram
Answer: A visual tool to illustrate the various components of a decision
and their relationships.
●● Nodes in Influence Diagram
Answer: Represent the decision variables.
●● Arrows in Influence Diagram
Answer: Represent the influence that variables have on other variables.
●● What-if Analysis
Answer: Tools used to help decision makers predict how target outputs
of a spreadsheet model would change if one or more inputs are changed.
●● Data Table (What-if Analysis)
Answer: A type of what-if analysis in Excel that allows for analysis of
multiple input variables.
●● Goal Seek (What-if Analysis)
, Answer: Determines the exact value of the input variable needed to
achieve a desired outcome.
●● Scenario Manager (What-if Analysis)
Answer: Allows one to create and compare up to 32 possible scenarios
based on multiple input variables.
●● Sensitivity Analysis
Answer: Assesses how sensitive the model is to changes.
●● Forecasting & Predictions
Answer: Utilizes historical data to make future projections.
●● Visualizations
Answer: Presents data in a graphical format to enhance understanding.
●● Objectives and Criteria
Answer: Factors that decision models assess alternative decisions
against.
●● Uncertainty and Risk
Answer: Elements incorporated into decision models to account for
variability in outcomes.
