business modeling

Excel’s Solver tool lets you solve optimization-modeling problems, also commonly known as linear programming programs. With an optimization-modeling problem, you want to optimize an objective function but at the same time recognize that there are constraints, or limits. While this abstract … [Read more...] about Optimization Modeling with Solver in Excel

You can use the Goal Seek command to determine which input value for a formula pro- duces a specified formula result. Goal Seek, then, lets you quantify what needs to happen in order to achieve some specified result. Rather than supplying a set of formula inputs and letting Excel calculate the … [Read more...] about Simple Modeling with Goal Seek in Excel

Data tables, as discussed in the earlier sections of this chapter, let you perform what-if analysis when you change one variable and explore the effect on a small handful of formulas or when you change two variables and explore the effect on a single formula. But this approach doesn’t work except in … [Read more...] about What-If Analysis with Scenario Manager in Excel

Excel lets you easily create simple data tables that show how changing a formula input affects the formula result. You can, for example, build simple one-variable data tables that show how changing a single input value affects one or more formulas. And you can also create more com- plicated … [Read more...] about What-If Analysis with Data Tables in Excel