Exam 10: Performing What-If Analyses

Case-Based Critical Thinking Questions Case 10-1 You have been having some difficulty in your economics class this semester,so you have requested support from a tutor.One topic that is giving you trouble at the moment is the price elasticity of demand. -Increasing the price of an item by 10% decreases demand by only 1%.This is an example of what kind of elasticity,according to your tutor?

____________________ expenses change in proportion to the amount of business a company does.

In measuring elasticity,if e=0.1,then increasing the price of an item by 10% decreases demand by ____.

Fixed expenses change in proportion to the company's sales volume._________________________

The default convergence value is 0.001,which means that if the change in the target cell between one solution and the next is less than or equal to 0.001,Solver will consider that it has converged to the solution._________________________

The answer report is divided into ____ sections.

When change in price has no impact on demand,the situation is referred to as ____.

-The items marked 1 in the accompanying figure are ____ cells.

A scenario summary report's ____ layout makes it simpler to compare the results of each scenario,and the automatic formatting makes it useful for reports and meetings.

Case-Based Critical Thinking Questions Case 10-2 As you begin to work with Solver,you have questions so you turn to your roommate,Barat,who you know is an expert in its usage. -The default convergence value is 0.001,which means that if the change in the value of the objective cell between the new solution and the previous solution is ____0.001.

____ analysis expresses the relationship between a company's expenses,its volume of business,and the resulting profit.

The ____ report summarizes the results of a successful solution by displaying information about the target cell,changing cells,and constraints.

All three expense types can be classified as ____.

You can use the Load/Save button in the Solver ____ dialog box to save the Solver model to the current worksheet.

MATCHING Identify the letter of the choice that best matches the phrase or definition. -Changes one cell in order to force another to show a specific value

What are the steps to create a one-variable data table?

MATCHING Identify the letter of the choice that best matches the phrase or definition. -Places limits on a problem's solution,in Solver

When you create a one-variable data table,you select the range that contains the data table,making sure to include the column headings.

____ analysis is an important business decision-making tool because it predicts the effect of cutting overhead or raising prices on net income.

You can switch from one scenario to another by clicking the ____ button in the Scenario Manager dialog box.