Spreadsheet Modeling
and Decision Analysis
with verified solutions
Computer Model Ch. 1 pg. 1 - answer A set of
mathematical relationships and logical
assumptions implemented in a computer as a
representation of some real-world object, decision
problem, or phenomenon.
Spreadsheet Model Ch. 1 pg. 1 - answer a
computer model implemented via a spreadsheet.
Business Analytics Ch. 1 pg. 1 - answer a field of
study that uses data, computers, statistics, and
mathematics to solve business problems. Involves
using the methods and tools of science to drive
business decision making. "It is the science of
making better decisions."
Mental Model Ch. 1 pg. 3 - answer picturing what
each model looks like in your mind's eye.
Sometimes all that is required to analyze a
problem and make a decision
,Visual Model Ch. 1 pg. 3 - answer for More complex
decisions, could be a set of drawings or blueprints
of a real world-structure. A road map is another
type of visual model because it assists a driver in
analyzing the various routes from one location to
another.
Physical or Scale Models Ch. 1 pg. 3 - answer helps
to study physical variables like aerodynamics,
maximizing efficiency design, etc.
Mathematical Model Ch. 1 pg. 3 - answer uses
mathematical relationships to describe or
represent an object or decision problem.
A Model Ch. 1 pg. 3 - answer Is a simplified
representation of reality.
Valid Model Ch. 1 pg. 4 - answer 1. accurately
represents the relevant characteristics of the
object or decision problem being studied.
2. it is often less expensive to analyse decision
problems using a model.
, 3. models often deliver needed information on a
timelier basis.
4. models are frequently helpful in examining
things that would be impossible to do in reality.
(crash dummies)
5. models allow us to gain insight and
understanding about the object or decision
problem under investigation. The ultimate purpose
of using models is to improve decision making.
Profit Equation Ch. 1 pg. 4 - answer Profit =
Revenue - Expenses
Functional Relationship
Profit = f(Revenue, Expenses)
Dependent Variable Ch. 1 pg. 5 - answer The
dependent variable (Y) depends on the
independent variables (X1, X2) to exist, like Profit
cannot be realized without the independent
variables revenue and expenses.
Independent Variables Ch. 1 pg. 5 - answer
Independent variables are (X) variables that exist
alone but support the dependent variable (Y)
and Decision Analysis
with verified solutions
Computer Model Ch. 1 pg. 1 - answer A set of
mathematical relationships and logical
assumptions implemented in a computer as a
representation of some real-world object, decision
problem, or phenomenon.
Spreadsheet Model Ch. 1 pg. 1 - answer a
computer model implemented via a spreadsheet.
Business Analytics Ch. 1 pg. 1 - answer a field of
study that uses data, computers, statistics, and
mathematics to solve business problems. Involves
using the methods and tools of science to drive
business decision making. "It is the science of
making better decisions."
Mental Model Ch. 1 pg. 3 - answer picturing what
each model looks like in your mind's eye.
Sometimes all that is required to analyze a
problem and make a decision
,Visual Model Ch. 1 pg. 3 - answer for More complex
decisions, could be a set of drawings or blueprints
of a real world-structure. A road map is another
type of visual model because it assists a driver in
analyzing the various routes from one location to
another.
Physical or Scale Models Ch. 1 pg. 3 - answer helps
to study physical variables like aerodynamics,
maximizing efficiency design, etc.
Mathematical Model Ch. 1 pg. 3 - answer uses
mathematical relationships to describe or
represent an object or decision problem.
A Model Ch. 1 pg. 3 - answer Is a simplified
representation of reality.
Valid Model Ch. 1 pg. 4 - answer 1. accurately
represents the relevant characteristics of the
object or decision problem being studied.
2. it is often less expensive to analyse decision
problems using a model.
, 3. models often deliver needed information on a
timelier basis.
4. models are frequently helpful in examining
things that would be impossible to do in reality.
(crash dummies)
5. models allow us to gain insight and
understanding about the object or decision
problem under investigation. The ultimate purpose
of using models is to improve decision making.
Profit Equation Ch. 1 pg. 4 - answer Profit =
Revenue - Expenses
Functional Relationship
Profit = f(Revenue, Expenses)
Dependent Variable Ch. 1 pg. 5 - answer The
dependent variable (Y) depends on the
independent variables (X1, X2) to exist, like Profit
cannot be realized without the independent
variables revenue and expenses.
Independent Variables Ch. 1 pg. 5 - answer
Independent variables are (X) variables that exist
alone but support the dependent variable (Y)
