Chapter Four

Chapter Four

1. Characteristics of Modelling Software

   • Used to model objects
     • virtual representation
     • use of layers
     • questions can be asked
   • Used for financial modelling
     • variables and constants can be used
     • 'what-if' questions can be asked
     • based on functions and formulae

2. Variables, Formulae, Rules and Functions

   • In a spreadsheet:
     • a variable is an identifier associated with a particular cell and within the cell there will be a value
     • a formula is a calculation which uses numbers, addresses of cells and mathematical operators
     • rules are a set of procedures that must be followed and can also be the sequence of events required for the calculation to work
     • a function represents a complex formula that uses reserved words

3. Worksheets, Workbooks, Rows Columns, Cells and Ranges

   • Worksheets consist of all of the cells on a sheet
   • A workbook is a collection of worksheets
   • A row is a range of cells, denoted by numbers that go across a spreadsheet
   • A column is a range of cells, denoted by letters, that go down a spreadsheet
   • A range is a group of cells denoted by either a name or cell references

4. Absolute and Relative Referencing

   • Relative referencing
     • the cell referenced in a formula changes when the formula is copied to other cells
   • Absolute referencing
     • the cell referenced in a formula remains exactly the same when the formula is copied to other cells