FULL SOLUTION MANUAL FOR
SPREADSHEET MODELING AND DECISION ANALYSIS: A PRACTICAL INTRODUCTION TO BUSINESS
ANALYTICS 9TH EDITION BY CLIFF RAGSDALE (2025) ||COMPLETE GUIDE ||GRADED A+
,chapter 1 - introduction to modeling & problem solving : s-1
chapter 1
introduction to modeling & problem solving
1. decision analysis - identifying and evaluating the different possible courses of action
that might be chosen to address a decision problem.
2. computer model - a set of mathematical relationships and logical assumptions
implemented in a computer as a representation of some real-world object or
phenomenon.
3. a spreadsheet model is a type (or special case) of a computer model where a
spreadsheet is used to implement the model.
4. business analytics - a field of study that uses computers, statistics and mathematics
to solve business problems.
5. many of the tools and techniques from the field of business analytics can be
implemented and used in spreadsheets.
6. spreadsheets are sometimes used to store lists of data; such as the grades of students
in a class, or names addresses and phone numbers of friends and family. these types of
"data base" applications of spreadsheets do not fall into the area of business analytics
unless they data is being “mined” with a specific objective in mind.
7. spreadsheets facilitate the decision-making process by making it easier to play
out various what-if scenarios.
8. a modeling approach to decision making is beneficial in that the decision maker can
analyze the probable impact of numerous alternative before selecting an alternative
for implementation.
9. dependent variable - a bottom-line performance measure of interest to the decision
maker that is influenced by other variables in the model; denoted by the symbol y in
the expression y= (x1, x2, ... x3).
10. independent variable - a variable that influences (or plays a role in determining) the
value of some bottom-line performance measure (dependent variable); denoted by
the symbols xi in the expression y= (x1, x2, ... x3).
11. yes, a model can have more than one dependent variable. in some decision problems a
manager might be interested in evaluating various alternatives on the basis of profit,
probable number of injuries, resulting amount of toxic waste produced, etc. each of
the variables represents a bottom-line performance measure that the manager might
be interested in that should be included in the model.
12. yes. see the answer to the previous question.
13. the solution to prescriptive models tell managers what actions to take while
descriptive models simply describe the operation of a system. in descriptive models,
the values to be assumed by one or more independent variables are uncertain and
not under the decision maker's control.
,14. the solution to prescriptive models tell managers what actions to take while predictive
models provide forecasts of what will happen in the future. in predictive models, the
functional form () describing the nature of the relationship between the dependent
and independent variable is ill-defined or not precisely known.
15. descriptive models have a well-defined functional form, but the values of one or more of the
independent
, chapter 1 - introduction to modeling & problem solving : s-2
————————————————————————————————————————————
variables are unknown or uncertain. in predictive models, the values of the independent variables
are
known or under the decision maker's control, but the functional form () describing the
nature of the relationship between the dependent and independent variables is ill-
defined or not precisely known.
16. description - to report on or summarize the features, characteristics or behavior
of some object or phenomenon.
prediction - an estimate or forecast of what will occur in
the future. prescription - directions, orders, or advise on
how to solve a problem.
17. consider the problem of determining how to travel from your home to school or work.
there are probably many different routes that could be taken that might influence the
total distance (or total length of time) required for the trip. most people would be
interested in determining the route that requires the least distance (or least amount of
time). in this sort of problem (also known as a shortest path problem) the different
routes that can be chosen represent independent variables and the dependent variable
would be the total distance (or total travel time).
18. the spreadsheet in figure 1.2 most closely resembles a prescriptive model because the
function form () relating the dependent and independent variables is well-defined
and the values of the independent variables are known, or are under the decision
maker's control.
19. “probortunity” is the combination of the words problem and opportunity and
denotes the fact that every problem can also be viewed as an opportunity.
20. the steps in the problem solving process are:
1) identify the problem
2) formulate and implement a model
3) analyze the model
4) test the result of the model
5) implement the solution
21. all of the steps are important but identifying the correct problem is probably the most
important. if we fail to identify the correct problem, all the effort expended in solving
the problem will be wasted.
22. no. a model must accurately represent only the relevant details of a decision problem.
23. the simplest model that provides accurate solutions is usually the best choice.
24. advertisers commonly manipulate decision making to increase consumer's
expectations regarding price. for instance, a national fast food chain recently undertook
an ad campaign describing a "$6.00 hamburger" that could be purchased in their
restaurants for "only" $2.95.
the most common anchor is the status quo. individuals and committees tend to rely on
the last or current values of costs or time-to-complete projects to decide on the
allocations of resources to those projects.
SPREADSHEET MODELING AND DECISION ANALYSIS: A PRACTICAL INTRODUCTION TO BUSINESS
ANALYTICS 9TH EDITION BY CLIFF RAGSDALE (2025) ||COMPLETE GUIDE ||GRADED A+
,chapter 1 - introduction to modeling & problem solving : s-1
chapter 1
introduction to modeling & problem solving
1. decision analysis - identifying and evaluating the different possible courses of action
that might be chosen to address a decision problem.
2. computer model - a set of mathematical relationships and logical assumptions
implemented in a computer as a representation of some real-world object or
phenomenon.
3. a spreadsheet model is a type (or special case) of a computer model where a
spreadsheet is used to implement the model.
4. business analytics - a field of study that uses computers, statistics and mathematics
to solve business problems.
5. many of the tools and techniques from the field of business analytics can be
implemented and used in spreadsheets.
6. spreadsheets are sometimes used to store lists of data; such as the grades of students
in a class, or names addresses and phone numbers of friends and family. these types of
"data base" applications of spreadsheets do not fall into the area of business analytics
unless they data is being “mined” with a specific objective in mind.
7. spreadsheets facilitate the decision-making process by making it easier to play
out various what-if scenarios.
8. a modeling approach to decision making is beneficial in that the decision maker can
analyze the probable impact of numerous alternative before selecting an alternative
for implementation.
9. dependent variable - a bottom-line performance measure of interest to the decision
maker that is influenced by other variables in the model; denoted by the symbol y in
the expression y= (x1, x2, ... x3).
10. independent variable - a variable that influences (or plays a role in determining) the
value of some bottom-line performance measure (dependent variable); denoted by
the symbols xi in the expression y= (x1, x2, ... x3).
11. yes, a model can have more than one dependent variable. in some decision problems a
manager might be interested in evaluating various alternatives on the basis of profit,
probable number of injuries, resulting amount of toxic waste produced, etc. each of
the variables represents a bottom-line performance measure that the manager might
be interested in that should be included in the model.
12. yes. see the answer to the previous question.
13. the solution to prescriptive models tell managers what actions to take while
descriptive models simply describe the operation of a system. in descriptive models,
the values to be assumed by one or more independent variables are uncertain and
not under the decision maker's control.
,14. the solution to prescriptive models tell managers what actions to take while predictive
models provide forecasts of what will happen in the future. in predictive models, the
functional form () describing the nature of the relationship between the dependent
and independent variable is ill-defined or not precisely known.
15. descriptive models have a well-defined functional form, but the values of one or more of the
independent
, chapter 1 - introduction to modeling & problem solving : s-2
————————————————————————————————————————————
variables are unknown or uncertain. in predictive models, the values of the independent variables
are
known or under the decision maker's control, but the functional form () describing the
nature of the relationship between the dependent and independent variables is ill-
defined or not precisely known.
16. description - to report on or summarize the features, characteristics or behavior
of some object or phenomenon.
prediction - an estimate or forecast of what will occur in
the future. prescription - directions, orders, or advise on
how to solve a problem.
17. consider the problem of determining how to travel from your home to school or work.
there are probably many different routes that could be taken that might influence the
total distance (or total length of time) required for the trip. most people would be
interested in determining the route that requires the least distance (or least amount of
time). in this sort of problem (also known as a shortest path problem) the different
routes that can be chosen represent independent variables and the dependent variable
would be the total distance (or total travel time).
18. the spreadsheet in figure 1.2 most closely resembles a prescriptive model because the
function form () relating the dependent and independent variables is well-defined
and the values of the independent variables are known, or are under the decision
maker's control.
19. “probortunity” is the combination of the words problem and opportunity and
denotes the fact that every problem can also be viewed as an opportunity.
20. the steps in the problem solving process are:
1) identify the problem
2) formulate and implement a model
3) analyze the model
4) test the result of the model
5) implement the solution
21. all of the steps are important but identifying the correct problem is probably the most
important. if we fail to identify the correct problem, all the effort expended in solving
the problem will be wasted.
22. no. a model must accurately represent only the relevant details of a decision problem.
23. the simplest model that provides accurate solutions is usually the best choice.
24. advertisers commonly manipulate decision making to increase consumer's
expectations regarding price. for instance, a national fast food chain recently undertook
an ad campaign describing a "$6.00 hamburger" that could be purchased in their
restaurants for "only" $2.95.
the most common anchor is the status quo. individuals and committees tend to rely on
the last or current values of costs or time-to-complete projects to decide on the
allocations of resources to those projects.
