Free Essay On Consolidating Data & What-If-Analysis

Question 1

Goal seek, Solver and Scenario Manager are all problem solving tools. In this regard, they are similar in some respect, but also different in some (such as functionality).
Goal seek as a tool for forecasting is used when the result wanted from a single formula is known, but the input value that the formula requires is not. Goal seeking process, in this respect, involves varying the values in a particular worksheet cell until the formula dependent on that cell brings the result needed.
Solver is a much more powerful and flexible version of approach. It involves influencing the minimum or maximum value of a particular cell by changing the value of others.
Scenario Manager refers to a set of values that can be substituted (with excel) on command in a particular worksheet model. Scenario manager is, therefore, what drives Solver and Goal Seek.

Question 2

In forecasting, it is not what one sees but also what does not see that matter. A powerful application feature might get lost among many others, so that it does not receive the recognition it deserves. Watch Window keeps track of cells not visible on the screen. This helps to see the changes in these cells as a result of other changes made to the input cells. In other words, Watch Windows displays results, thereby ensuring accurate forecasting.

Question 3

One of the main sources of errors is formulas, which can cause error in values as well as returning unintended results. Although some of these errors of formula can be checked for accuracy and finding the source of errors, this can be hard to do. Using excel, one can check the formulas by using Trace Precedents and Trace Dependents commands that can graphically display and even trace the relationships between formulas and cells.