1 Analyzing Data Using Goal Seek & Solver Applications of Spreadsheets

2 What-If Analysis in Reverse ► Microsoft Office Excel 2003 provides several powerful utilities for performing what-if analysis. ► Now we want to look at the what-if process from the opposite perspective  finding the value of one or more input cells that produces a desired result in a formula cell.  Goal Seeking  Solver

3 What-If Analysis in Reverse ► Microsoft Office Excel 2003 provides several powerful utilities for performing what-if analysis in reverse:  Goal Seeking  Solver

4 Performing What-If Analysis with Goal Seeking ► Determines the value that you need to enter in a single input cell to produce a result that you want in a dependent (formula) cell.  Select Tools  Goal Seek  Excel displays the Goal Seek dialog box.  Enter the information into the dialog box by typing the cell references or by pointing with the mouse.  Click OK to begin the goal-seeking process.

5 Performing What-If Analysis with Goal Seeking  Excel displays the Goal Seek Status box which shows the target value and the value that Excel calculated.  Click OK to replace the original value with the found value, or click cancel to restore your worksheet to its original form (before opening Goal Seek).  When Excel can’t find a value that produces your desired result, the Goal Seek Status box informs you of that fact.

6 Using Goal Seeking EX0910

7 Entering Arguments in the Goal Seek Dialog Box The cell containing the outcome The target value for the outcome cell The input cell containing the value that Excel 2003 may change to achieve the outcome or target value

8 Goal Seek Status Dialog Box

9 Finding Answers Using Goal Seek Enter the cell containing outcome formula Enter the target value for the outcome cell Enter the input cell that Excel may change to achieve the target value

10 Performing What-If Analysis with Goal Seeking ► When Excel can’t find a solution, your options include:  Changing the current value of the By Changing Cell box in the Goal Seek dialog box to a value that is closer to the solution, and reissue the command.  Adjust the Maximum iterations setting in the Options dialog box (Tools  Options  Calculations tab). This will make Excel try more possible solutions.  Double-check your logic and make sure the formula does depend on the specified changing cell.

11 Finding an Answer using Graphical Goal Seeking Outcome or target value Input value required to achieve the outcome or target value

12 Displaying the GoalSeek Chart

13 Preparing to Size a Data Column in an Embedded Chart Markers appear when you correctly select a single column Position the mouse pointed over the column marker The Range Finder selects the cell ranges referenced by the embedded chart

14 Performing What-If Analysis with Solver ► Determines the values that you need to enter in multiple input cells to produce a result that you want.  Can specify certain constraints to the problem  Significantly better problem-solving ability gains.

15 Performing What-If Analysis with Solver ► Determines the values that you need to enter in multiple input cells to produce a result that you want.  Can specify multiple adjustable cells.  Can specify constraints on the values that the adjustable cells can have.  Can generate a solution that maximizes or minimizes a particular worksheet cell.  Can generate multiple solutions to problems.

16 Performing What-If Analysis with Solver ► Compared to Goal Seek;  significantly better problem-solving ability  significantly more complicated  Might be the most difficult (frustrating) features in Excel.

17 Add-Ins Dialog Box with the Solver Add- in Selected

18 Solver Parameter Dialog Box

19 Add Constraints Dialog Box Select a direct or indirect reference to one of the input cells Select a comparison operator (>=, =, <=), int (integer), or bin (binary) Enter a constant value or a cell reference containing the constraint

20 Adding Constraints to Solver

21 Solver Parameters Dialog Box Constraints are added using absolute cell references

22 Solver Results Dialog Box

23 Enforcing Results as Integer Values

24 Viewing an Answer Report Created by Solver

25 Successful Goal Seek Operation