Exam 2: Introduction to Spreadsheet Modeling

Trace Dependents and Trace Precedents are Formula Auditing commands.

To evaluate which of a set of curves fits the data best,we can use:

In general,any cash flow occurring at the beginning of the first time period must be placed outside the NPV function.

The Excel tool for solving one equation with one unknown is:

In Excel terminology,the unknown value used in Goal Seek is called the input cell.

Exhibit 2-2 A small sporting goods company is considering investing $2000 in a project that will produce volleyballs over the next five years.The company plans to produce and sell 200 volleyballs in the first year,and expects that volume to grow by 10% each year thereafter.The unit selling price forecast the company has developed is $20 in year 1,$22 in year 2,$25 in year 3,$28 in year 4,and $31.50 in year 5.Variable costs are forecast to be $15 per unit produced,and there will be a fixed overhead cost in each year of $500. -Refer to Exhibit 2-2.Suppose instead that the company thinks it can reduce its variable cost rate.What rate would produce an NPV of $10,000?

An important property of the exponential function is that:

Which of the following is not one of the features that can improve the readability of a spreadsheet model?

Which of the following is a useful tool for understanding and troubleshooting a spreadsheet model?

Much of the power of spreadsheet models derives from their flexibility.

The NPV function takes two arguments; the discount rate and the number of time periods in the model.

Exhibit 2-1 A t-shirt company is planning a production run for an event where the attendance (and thus demand for t-shirts)is uncertain.The event planners have indicated that they think the attendance will be 500,750 or 1000,with probabilities of 30%,50% and 20% respectively.The company must pre-order the blank t-shirts (cost=$5 per shirt)and it can sell finished shirts for $12 apiece.Any finished shirts that cannot be sold at the event can be sold for $2 apiece to a used clothing vendor. -Refer to Exhibit 2-1.What are the two possible cases for the amount of t-shirts that will be sold to the used clothing vendor? How would you calculate this amount in a spreadsheet model?

Which of the following is not one of the components of a mathematical model?

The HLOOKUP function works exactly the same as the VLOOKUP function,except the lookup table is arranged in columns instead of rows.

Which of the following is not one of the types of curve fitting models available in Excel's Trendline tool?

Many models are built for the purpose of permitting experimentation with various scenarios.

Which of the following is a useful tool for investigating what-if questions?

Goal Seek is a means for answering a large number of what-if questions quickly and easily.

Which of the following is not one of the required arguments for a VLOOKUP function?

Exhibit 2-1 A t-shirt company is planning a production run for an event where the attendance (and thus demand for t-shirts)is uncertain.The event planners have indicated that they think the attendance will be 500,750 or 1000,with probabilities of 30%,50% and 20% respectively.The company must pre-order the blank t-shirts (cost=$5 per shirt)and it can sell finished shirts for $12 apiece.Any finished shirts that cannot be sold at the event can be sold for $2 apiece to a used clothing vendor. -Refer to Exhibit 2-1.What Excel function is useful for calculating the expected value of demand for t-shirts? What is the expected demand?