Deck 10: Performing What-If Analyses

Question 1

Solver is an add-in,a program that adds customized commands and features to Microsoft Office programs such as Excel.

Answer 1

True

Question 2

Two-variable data tables are often used to explore the impact of changing two values on a single result.

Answer 2

True

Question 3

A limits report is best utilized when your problem contains integer constraints.

Answer 3

False

Question 4

In a two-variable data table,the values of two result cells are displayed.

Question 5

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

Question 6

If your input values are in a column,you will use the Row input cell option when you use the Data Table command.

Question 7

You cannot merge scenarios in situations involving multiple workbooks.

Question 8

The sensitivity report is most often used in science and engineering environments.

Question 9

If the dialog box in the accompanying figure is used to unlock the changing cells in the scenario,and the worksheet is protected,users can show the scenario but not edit it.

Question 10

The item marked 1 in the accompanying figure indicates the profit.

Question 11

With what-if analysis,you specify the result values you want,and Excel changes the input values to produce them.

Question 12

You should always clearly label the row or column containing the input and result values.

Question 13

That an order must meet store demand,or that it cannot exceed the available parts,are examples of constraints.

Question 14

Using Solver,you specify the target cell,variable cells,and constraints on a problem.

Question 15

At the break-even point,revenue equals expenses.

Question 16

Changing cells can be located anywhere in the worksheet.

Question 17

References,or limits,in Solver are important because they ensure a realistic solution to your problem.

Question 18

To open the Goal Seek dialog box,first click the What-If Analysis button in the Data Tools group.

Question 19

It is possible for Solver to be installed but not activated on your computer.

Question 20

As in traditional what-if analysis,Goal Seek starts with the end result and determines what value you should use to reach a desired answer.

Question 21

A business must pay insurance and rent;these are examples of ____ expenses.

A) fixed
B) variable
C) mixed
D) transitional

Question 22

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

Question 23

CVP analysis is sometimes called breakthrough analysis._________________________

Question 24

Which of the following expense types can be used in a CVP analysis? ____

A) mixed
B) variable
C) fixed
D) all of the above

Question 25

The output cell is the cell containing the values you want to examine._________________________

Question 26

When measuring elasticity,when e<1,the price elasticity of demand is perfectly inelastic._________________________

Question 27

In traditional what-if analysis,you change result values in worksheet cells._________________________

Question 28

Not binding constraints always show a slack of 0._________________________

Question 29

A(n)mixed expense is an expense that is part variable and part fixed._________________________

Question 30

You can view a scenario by clicking its name in the Scenarios box in the Scenario Manager dialog box._________________________

Question 31

The items marked 1 in the accompanying figure are the result cells._________________________

Question 32

A(n)optimal cell is a cell that Excel changes to produce the desired result in the target cell._________________________

Question 33

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._________________________

Question 34

Goal Seek is a program that searches for the optimal solution of a problem involving several variables._________________________

Question 35

If Solver is taking too long to find a solution,you can halt the program at any time by pressing the Ctrl key._________________________

Question 36

An array argument performs multiple calculations on one or more sets of values and then returns either a single value or multiple values._________________________

Question 37

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

A) CVP
B) MVP
C) EVP
D) AVP

Question 38

All three expense types can be classified as ____.

A) mixed,fixed,and CVP
B) variable,fixed,and mixed
C) asset-based,fixed,and mixed
D) variable,fixed,and cost-based

Question 39

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

A) MVP
B) ABC
C) CVP
D) CBP

Question 40

When measuring elasticity,if e=1,then the elasticity is referred to as unit elastic because any change in price is met by an equal and opposite change in demand._________________________

Question 41

The item marked 4 in the accompanying figure indicates the ____ expenses.

A) fixed
B) mixed
C) variable
D) absolute

Question 42

Before using Scenario Manager,you should assign ____ to all the input and result cells you intend to use in your scenarios.

A) cells
B) names
C) ranges
D) ranks

Question 43

In the dialog box in the accompanying figure,you select the ____ cell in the By changing cell box.

A) changing
B) result
C) input
D) advance

Question 44

The item marked 2 in the accompanying figure is the ____ point.

A) variable
B) fixed
C) break-even
D) absolute

Question 45

All of the following are array functions that can return multiple values to multiple cells EXCEPT ____.

A) ARRAY
B) TREND
C) MINVERSE
D) MMULT

Question 46

In the dialog box in the accompanying figure,you specify the ____ in the To value box.

A) changing
B) variable
C) input
D) goal

Question 47

Goal Seek uses a different approach from traditional ____ analysis.

A) trial-and-error
B) what-if
C) worksheet
D) hypothetical

Question 48

____ are a powerful feature of Excel.If used properly,they help you perform complex calculations within a single formula and extend a single formula over a range of cells.

A) Functions
B) Formatting
C) Array formulas
D) Property sheets

Question 49

To open the dialog box in the accompanying figure,click the What-If Analysis button in the ____ group.

A) Sorter
B) Analysis
C) Goal Seek
D) Data Tools

Question 50

If you orient a one-variable table so that the input values are in the first row,you would use the ____ input cell option.

A) Column
B) Row
C) Values
D) Table

Question 51

{=SUM(B1:B10*C1:C10)} is an example of a(n)____.

A) array formula
B) TABLE function
C) scenario
D) input value

Question 52

With Goal Seek,Excel changes the ____ values to produce the result values you are looking for.

A) input
B) output
C) index
D) link

Question 53

Press the ____ key to move the insertion point from one box to the next in the accompanying figure.

A) Tab
B) Ctrl
C) Alt
D) Shift

Question 54

With Goal Seek,you specify the ____ values you want.

A) result
B) constraint
C) exchange
D) index

Question 55

In two-variable tables,you must always place a reference to the result cell in the ____ corner of the table at the intersection of the row values and the column values.

A) upper-right
B) upper-left
C) lower-right
D) lower-left

Question 56

The item marked 3 in the accompanying figure indicates the ____ expenses.

A) fixed
B) mixed
C) variable
D) absolute

Question 57

To calculate multiple cells values,select the range and type the array formula,then press the ____ keys to enter the formula.

A) Alt+Enter
B) Ctrl+Shift+Enter
C) Alt+Shift+Enter
D) Ctrl+Enter

Question 58

The item in the accompanying figure is a(n)____ chart.

A) AVP
B) CVP
C) EVP
D) MVP

Question 59

To perform a what-if analysis with more than two input cells,you ____.

A) hide all references
B) use only exchange values
C) apply additional constraints
D) create scenarios

Question 60

Once you enter an array formula,Excel will enclose the formula in a set of ____.

A) parentheses
B) curly braces
C) brackets
D) none of the above

Question 61

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

A) Display
B) View
C) Show
D) Effect

Question 62

To select nonadjacent changing cells,press and hold the ____ key as you click each cell.

A) Alt
B) Shift
C) Esc
D) Ctrl

Question 63

When you use Solver,you must specify the ____ that apply to your problem.

A) adjustments
B) constraints
C) keys
D) indices

Question 64

In measuring elasticity,if e=0,then changes in price have no impact on demand,which is referred to as a ____ situation and occurs when the item being sold is rare or essential.

A) relatively elastic
B) perfectly inelastic
C) relatively inelastic
D) perfectly elastic

Question 65

To open the Solver Parameters dialog box,click the Solver button in the ____ group on the Data tab.

A) Connections
B) Analysis
C) Data Tools
D) External Data

Question 66

In measuring elasticity,if e=2.0,then increasing the price of an object by ____ decreases demand by 20%.

A) 1%
B) 10%
C) 50%
D) 100%

Question 67

To activate Solver,click Solver Add-In in the ____.

A) Add-Ins dialog box
B) Solver dialog box
C) Analysis group
D) Data Tools group

Question 68

In Solver,changing cells are sometimes referred to as ____ cells.

A) self-adjusting
B) variable
C) key
D) constraint

Question 69

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

A) result
B) changing
C) input
D) goal

Question 70

Aside from Solver,other Excel ____ provide the ability to perform statistical analyses,generate business reports,and retrieve financial data from the Internet.

A) parameters
B) add-ins
C) helper applications
D) constraint applications

Question 71

____ can be used to find the curve or line that best fits a set of data or to minimize production costs for a product or service.

A) Goal Seek
B) Trial and error
C) Scenario Manager
D) Solver

Question 72

____ is a program that searches for the optimal solution of a problem involving several variables.

A) Trial and error
B) Solver
C) Goal Seek
D) Scenario Manager

Question 73

A scenario ____ lists the value for changing cells and results cells under each scenario.

A) revenue report
B) summary report
C) index sample
D) profit report

Question 74

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

A) price elastic
B) perfectly inelastic
C) perfectly elastic
D) relatively inelastic

Question 75

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

A) Properties
B) Output
C) Parameters
D) Input

Question 76

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

A) 1%
B) 10%
C) 50%
D) 100%

Question 77

Elasticity measures how changing prices can affect the ____ a good or service.

A) production of
B) demand for
C) longevity of
D) value of

Question 78

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.

A) portrait
B) tabular
C) row-based
D) columnar

Question 79

In measuring elasticity,as the value of e increases,the result is that any change in price causes a huge change in demand,resulting in a ____ relationship between price and demand.

A) relatively elastic
B) perfectly inelastic
C) relatively inelastic
D) perfectly elastic

Question 80

The three items that you must specify when using Solver are ____.

A) target cell,input value,and results
B) target cell,variable cell,and parameters
C) variable cell,parameters,and constraints
D) variable cell,objective cell,and constraints