CGS 2518 CHAPTER #8 EXAM
QUESTIONS AND ANSWERS
What type of what-if question can a simulation answer? - Answer-Use a simulation to
base a what-if analysis on realistic, but not actual, data. For example, you can run a
simulation to determine how probable it is to sell 1000 products at various prices.
Explain how you must vary the setup of a two-variable data table to run a simulation via
the table. - Answer-When setting up a two-variable data table, it must be structured so
that the two sets of input values are perpendicular to each other, and the table's output
formula is located at the intersection of the two sets of input variables. When using a
two-variable data table to run a simulation, one set of input values in the data table's
structure must be a sequence of numbers that represents the number of iterations of the
simulation. Only one spot remains in the table's structure for a defined set of input
values.
Compare break-even analysis and sensitivity analysis. - Answer-Break-even analysis is
a what-if analysis that focus on an activity at or around the point where revenue =
expenses. Sensitivity analysis is a type of what-if analysis that attempts to examine how
sensitive results of an analysis are to changes in assumption.
How does a data table help you perform what-if analysis. - Answer-They help you
organize and present the results of multiple what-if analyses.
What is the difference between a one-variable data table and a two-variable data table?
When would you use each type of data table? - Answer-One-variable data table has
one input cell but many result cell, whereas a two-variable data table has to input cells
but only one result cell.
What are the two major steps involved in creating a data table in Excel? - Answer-Click
What-If Analysis and choose the references and click okay
In a two-variable data table, what do the first column and first row contain? - Answer-
You must structure it with the two variables perpendicular to each other, and the table's
output formula is located at the intersection of the two sets of input variables. One set of
variables must be a number of iterations of the simulation.
When should you create a scenario instead of a data table? Give an example of a
business situation that could be be analyzed with scenarios. - Answer-Scenarios are
just inputting realistic data into a table to see the results, these are useful for find the
results of different business decisions
Why are defined names important when you create scenarios? - Answer-It makes
scenarios easier to make and easier to understand and use
QUESTIONS AND ANSWERS
What type of what-if question can a simulation answer? - Answer-Use a simulation to
base a what-if analysis on realistic, but not actual, data. For example, you can run a
simulation to determine how probable it is to sell 1000 products at various prices.
Explain how you must vary the setup of a two-variable data table to run a simulation via
the table. - Answer-When setting up a two-variable data table, it must be structured so
that the two sets of input values are perpendicular to each other, and the table's output
formula is located at the intersection of the two sets of input variables. When using a
two-variable data table to run a simulation, one set of input values in the data table's
structure must be a sequence of numbers that represents the number of iterations of the
simulation. Only one spot remains in the table's structure for a defined set of input
values.
Compare break-even analysis and sensitivity analysis. - Answer-Break-even analysis is
a what-if analysis that focus on an activity at or around the point where revenue =
expenses. Sensitivity analysis is a type of what-if analysis that attempts to examine how
sensitive results of an analysis are to changes in assumption.
How does a data table help you perform what-if analysis. - Answer-They help you
organize and present the results of multiple what-if analyses.
What is the difference between a one-variable data table and a two-variable data table?
When would you use each type of data table? - Answer-One-variable data table has
one input cell but many result cell, whereas a two-variable data table has to input cells
but only one result cell.
What are the two major steps involved in creating a data table in Excel? - Answer-Click
What-If Analysis and choose the references and click okay
In a two-variable data table, what do the first column and first row contain? - Answer-
You must structure it with the two variables perpendicular to each other, and the table's
output formula is located at the intersection of the two sets of input variables. One set of
variables must be a number of iterations of the simulation.
When should you create a scenario instead of a data table? Give an example of a
business situation that could be be analyzed with scenarios. - Answer-Scenarios are
just inputting realistic data into a table to see the results, these are useful for find the
results of different business decisions
Why are defined names important when you create scenarios? - Answer-It makes
scenarios easier to make and easier to understand and use
