Chapter 4 - Spreadsheets

Chapter 4 - Spreadsheets

1. Models

   • A model is a representation of an entity. Can be virtual using a computer
   • modeling software.
     • software used for the purpose of constructing a model.
     • Characteristics
       • view the object in 2D or 3D
       • move and resize objects within the model and see the effect of the change.
       • add and remove objects within the model and see the effects of that change.
       • applying external factors such as wind speed or weights to see the effect.
     • Financial
       • Variables: can be changed so that different outcomes can be experimented.
       • Rules: define how the model should behave. mathematical models will include formula and functions.
       • automatic recalculation: will show the effect of changing variables.

2. spreadsheets

   • characteristics that make it suitable for models.
     • ability to enter variables.
     • formulae and functions that perform calculations.
     • automatic recalculation so that results are seen instantly.
     • graphs to present data.
     • conditional formatting to highlight outcomes.
     • goal-seek, to find out what inout data will give a known output value.
     • what if analysis, to answer what if questions.

3. why use a model

   • allows you to see the outcome of something without having to spend a large amount of money to physically do it.
   • no risk of putting anyone in danger as a model is showing what would happen.
   • quick results