BUSINESS ANALYTICS THE ART OF
MODELING WITH SPREADSHEETS
UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS COMPLETE STUDY
GUIDE FULL SOLUTION
●● 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)
●● Input Cells Ch. 1 pg. 5
MODELING WITH SPREADSHEETS
UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS COMPLETE STUDY
GUIDE FULL SOLUTION
●● 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)
●● Input Cells Ch. 1 pg. 5
