TLA/GELA Data Analytics Meeting 1 May 16, 2017 Professor Laura Kornish University of Colorado Leeds School of Business

What You Need These three handouts: Habits and Attitudes of Expertise Excel Checklist  Big check for things you know well.  Small check for things you know a little. Blank for things you don’t know. Exercises (Financial Projection for a Candy Company) Files (including this deck) are all posted at http://tinyurl.com/kornish17

Do These Things Download the data file for Module 1. Get into assigned groups. Watch my demo showing how to write a formula that you can drag. You will have a chance to try what I demonstrate, and there is also a screencast of a similar demonstration linked on the webpage. For now, just watch.

Work Session 1 Build the model on the Operating Costs tab. Answer Question 1. (Note that the answers are on the last page.) Build the model on the Units tab. Answer Questions 2-4. On the Overall Financial Model tab, Insert formulas referencing other tabs for Total Units, Wholesale Price, and Operating Costs. Write formulas referencing cells on this tab for Revenue and Operating Income. The final row to complete on the Overall Financial Model tab is Cost of Goods. In your group, discuss the calculation for cost of production for a given number of units. (See details on Price and Cost tab.) On the webpage, find the link to the Cost of Goods Sold quiz. Try the quiz a few times until you get it all right.

Discussion: Calculating Cost of Goods Explain the calculation. How to implement this calculation in Excel? Hints: =IF() =MIN() and/or =MAX() The whole calculation does not have to be done in a single cell (but it can be).

Work Session 2 In your groups, come up with AT LEAST THREE different ways in Excel to calculate the cost of goods given a number of units to produce. Implement all of the ways you can think of on your Price and Cost tab. On the Overall Financial Model tab, Use one of the ways you developed to calculate the Cost of Goods row. Check your model against the screenshot on p. 2 of the exercises. Answer Question 7. If you finish before the other groups, start discussing approaches to Question 8 (sensitivity to assumptions).

Watch My Demos Goal Seek Data Table (screencast of a different demonstration of Data Table linked on the webpage) Graphing

Work Session 3 Sensitivity to Assumptions questions. Try Goal Seek. Try a Data Table, and if time, a graph. Can you think of other ways to answer these questions? If you finish before the other groups, start discussing approaches to Question 9 (extrapolation).

Reinforcement Try the Overall Model quiz a few times (linked on webpage). Review your Excel checklist: which things did we cover today? Review the Habits and Attitudes: which ones did you exercise today?