Lecture Business driven technology (Technology plug-in): Chapter 4 - Paige Baltzan, Amy Phillips

Chapter 4 - Decision making using excel. After studying this chapter you will be able to understand: Describe the use of the IF function, compare the functions of goal seek and solver, list the advantages of using the scenario manager. | TECHNOLOGY PLUG-IN T4 Decision Making Using Excel LEARNING OUTCOMES Describe the use of the IF Function Compare the functions of Goal Seek and Solver List the advantages of using the Scenario Manager Introduction There are four topic areas in this plug-in: The IF function is used to conduct conditional tests on values and formulas The Goal Seek function is used to find an unknown value that produces a desired result The Solver function is used to calculate an optimum solution based on several variables and constraints The Scenario Manager function is used to create and evaluate a collection of “what-if” scenarios containing multiple input values CREATING FORMULAS USING THE IF FUNCTION The IF logical function will return one value if a condition is TRUE and another value if the condition is FALSE Use the IF function when you want to compare two items in your workbook The IF function looks like this: =IF(logical_test,value_if_true, value_if_false) CREATING FORMULAS USING THE IF | TECHNOLOGY PLUG-IN T4 Decision Making Using Excel LEARNING OUTCOMES Describe the use of the IF Function Compare the functions of Goal Seek and Solver List the advantages of using the Scenario Manager Introduction There are four topic areas in this plug-in: The IF function is used to conduct conditional tests on values and formulas The Goal Seek function is used to find an unknown value that produces a desired result The Solver function is used to calculate an optimum solution based on several variables and constraints The Scenario Manager function is used to create and evaluate a collection of “what-if” scenarios containing multiple input values CREATING FORMULAS USING THE IF FUNCTION The IF logical function will return one value if a condition is TRUE and another value if the condition is FALSE Use the IF function when you want to compare two items in your workbook The IF function looks like this: =IF(logical_test,value_if_true, value_if_false) CREATING FORMULAS USING THE IF FUNCTION Logical_test is any value or expression that can be evaluated to TRUE or FALSE Value_if_true is the value that is returned if the logical_test is TRUE Value_if_false is the value that is returned if the logical_test is FALSE CREATING FORMULAS USING THE IF FUNCTION To use the IF Function follow these steps: Select the cell in which you want to enter the function Click the Formula tab then the Insert Function button Click IF from the list of Logical functions and click OK Enter the Logical_test argument Enter the value_if_true argument Enter the value_if_false argument Click OK GOAL SEEK Goal Seek - an analytical function, which allows a value in a formula to be adjusted in order to reach a desired result or answer The Goal Seek feature can eliminate unnecessary calculations Goal Seek repeatedly tries new values in the variable cell to find a solution to the problem Using the Goal Seek Command To use the Goal Seek command: Click the Data tab In the Goal Seek dialog box, specify

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