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10/13/13 Spreadsheet Modeling
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Welcome to the pre-assessment test for the Spreadsheet Modeling tutorial. This test will allow y ou to assessy our knowledge of some basic modeling skills.
To adv ance from one question to the next, select one of the answer choices and click the Submit button.After submitting y our answer, y ou will not be able to change it or return to the question, so make sure y ouare satisfied with y our selection before y ou submit each answer.
Some problems ask y ou for a formula. It is probably easiest to determine the correct formula in Excel andthen paste it into the Pretest answer area. This will av oid sy ntax errors. For example, if in Excel y ou ty pe inthe formula =SUMIF(B1 :B1 0,C8,D1 :D1 0) and think that is the correct answer, just selectSUMIF(B1 :B1 0,C8,D1 :D1 0) in Excel and copy it. Then paste it into the input answer area within thequestion.
Your results will be display ed immediately upon completion of the test. The results screen will display eachquestion with a graphic notation indicating y our score: X for incorrect and check mark for correct.
Click Pretest in the menu bar to the left to begin. You can also return to y our test results at any time (aftercompleting the exam) by clicking Pretest Introduction and then Pretest.
Most work done by business analy sts can be categorized as either reporting (prov iding required data) oranaly sis (building models to help y our organization make the right decisions). In today 's world, mostbusiness reporting and modeling is done using Microsoft Excel. Completing this online course shouldincrease y our ability to use Excel to create reports and/or dev elop powerful business models. Ev en if y ouhav e nev er used Excel before, we will teach y ou how to use Excel's powerful functions and chart capabilitiesto solv e a my riad of business problems.
If y ou are a student, then during y our undergraduate or MBA program y ou will hav e to build many modelsto analy ze cases or build spreadsheet models in courses such as finance, marketing, accounting, operationsand management science. We will giv e y ou the spreadsheet knowledge needed to tackle the manyanaly tical questions that arise during y our course work.
If y ou are a business analy st, this course will introduce y ou to many new concepts and tools that will helpy ou more quickly and accurately summarize business data. The course will also teach y ou how to dev elopspreadsheet models that will help y our organization make better decisions.
Le Napoleon is a bakery specializing in French pastries, now owned by a partnership that includes itstwo ex-pat French pastry chefs, Michel Toure, whose family mov ed to Strasbourg from Mali when he wasa small child, and Anne-Sophie Le Nguy en, who grew up in the Cognac region.
The two met each other not long after mov ing to the U.S. and found that not only did they hav e a shareddream of business ownership but that each had strengths to offset the other's weaknesses. Both hav eexceedingly refined tastes, but their success lies more in Michel's way with obscure ingredients andtechniques and Anne-Sophie's ambition and exceptional understanding of the customer.
Le Napoleon got its start in a business incubator, and at first, the bakery had just a small stand at theweekly farmer's market. Soon, though, satisfied customers began to place special orders. When Micheland Anne-Sophia had to turn down their third wedding cake request, they decided to sit down and workout a plan to mov e out of the business incubator and into their own, dedicated location. The business isnow thriv ing.
10/13/13 Spreadsheet Modeling
In this course, we will use operations at Le Napoleon to illustrate some of the problems that businessesboth large and small must faceand Excel to illustrate solutions to those problems.
Spreadsheet Modeling Overview
In the first three sections of this course we begin by familiarizing y ou with the Excel env ironment andshowing y ou how to mov e around in a spreadsheet. If y ou hav e used Excel extensiv ely y ou may choose toskip these chapters. In the Excel Formulas and Functions sections, we thoroughly explain how to enterand copy formulas in Excel. We also will teach y ou about Excel's many powerful functions including littleknown functions such as MATCH and INDEX. Just like the key to a great recipe is the proper use of thatspecial spice or ingredient, the key to building a spreadsheet that solv es a business problem is oftenmastery of Excel's many powerful functions.
In the section on Excel Functions we cov er Excel's many tools that can be used to create great looking andinformativ e reports (conditional formatting, piv ot tables, subtotals, SUMIFS and COUNTIFS functions,etc.). In the Charts section, we show y ou how to use Excel to create informativ e charts. In the nextsection, y ou will learn how to import word files and Internet data into the Excel env ironment.
The Art of Spreadsheet Modeling section contains an extensiv e explanation of how to build spreadsheetmodels to solv e a business problem. For example, should a bakery open a new outlet? How should we planto sav e for retirement? In this section, we cov er many exciting modeling tools such as Auditing, spinnercontrols, Goal Seek, Data Validation and Data Tables. The Using Excel Solv er section cov ers the ExcelSolv er tool which is used to find the optimal solution to a problem. The Three-Dimensional Formulassection explains how 3D formulas and Excel's Table feature can make y ou much more efficient when y oudev elop spreadsheet models. Finally , the Monte Carlo Simulation closes the course by introducing y ou toa really efficient model building tool. In that section, y ou will learn how Monte Carlo simulation can beused to model the effect of uncertainty on business decisions.
The spreadsheet is the canv as for the business analy st. This course giv es y ou the "artistic skills" needed todev elop state of the art spreadsheet models for solv ing business problems.
The Excel Environment
Ev en simple workbook tasks will become tedious and prone to errors if y ou do not know how to use Excelefficiently . In this chapter we will introduce the following aspects of the Excel env ironment and basicefficiency measures.
Opening workbooksThe Excel 2007 Ribbon and the Quick Access ToolbarWorking with worksheetsWorkbook- and worksheet-lev el nav igationPrinting worksheets and workbooksSav ing workbooks as Excel and other file ty pes
Throughout this course, we will continue to present way s to increase not only y our proficiency in but alsoy our efficiency with Excel.
Opening a workbook
To open a workbook, use any of the following techniques.
Double-click its icon in Windows Explorer. This will work as long as Windows knows that the filecan be opened in Excel.If Excel is running, hit Ctrl-O or the Office Button (the round button in the upper-left-hand cornerof the Excel window) and browse for the file. You can use the "Files of ty pe" drop-down box to v iew anumber of different file ty pes.
If Excel is running and the icon representing y our file is the generic Windows icon (examplebelow), but y ou know that Excel can read it, it might be easiest to drag the icon into the Excelwindow. You can use this method for any file ty pe that Excel can open.
Open the Excel Env ironment.xlsx file by any of the abov e methods. This file contains data from
10/13/13 Spreadsheet Modeling
questionnaires completed by customers of Le Napoleon. Leav e this file open, as we will continue to work with it.
Open the Excel Env ironment_non_Excel.asp file by dragging its icon into the already running Excel window. Note: If y our installation of Excel is not able to read this file, don't worry we will not be using this file for any thing else.
Close the Excel Env ironment_non_Excel.asp file by clicking the X for the workbook. This is the button that reads "Close Window" when the pointer hov ers ov er it.
The Excel 2007 Ribbon
The Ribbon in each of the Office programs organizes commonly used commands and features intocategories. Each category is represented by a tab, and each tab contains groups of subcategories.
For example, in Excel, the Rev iew tab contains three groupsProofing, Comments, and Changes. Eachcontains features commonly needed when rev iewing others' workbooks, or before sending y our ownworkbooks out for rev iew or use by others.
Take some time to explore the different tabs.
The Quick Access Toolbar
The Quick Access Toolbar is a customizable docking place for features and commands that y ou use mostfrequently . It is found just to the right of the Office Button and by default display s buttons for Sav e, Undo,and Redo. No matter which of the Ribbon's tabs is selected, the Quick Access Toolbar is alway s v isible.
Explore the customization options for the Quick Access Toolbar. In doing so, look at not only PopularCommands but also All Commands. Once y ou configure the Quick Access Toolbar to suit y our needs, y ouare only a click away from the features that y ou use the most.
Each workbook file contains one or more tabbed worksheets. You can easily set the number of worksheetsthat y ou want new workbooks to contain, rename sheets, and mov e and delete worksheets.
Note that spaces, dashes, and certain other special characters are legal in sheet names, while othercharacters, su