Deck 10: Performing What-If Analyses

Question 1

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.

Answer 1

  False

Question 2

_______ 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

Answer 2

  C

Question 3

You cannot merge scenarios in situations involving multiple workbooks.

Answer 3

  False

Question 4

A limits report allows you to quantify the reliability of a solution produced by Solver.

Question 5

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

Question 6

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

Question 7

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

Question 8

At the break-even point,revenue equals expenses.

Question 9

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

Question 10

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

Question 11

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

Question 12

Nonbinding constraints always show a slack of 0._________________________

Question 13

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

Question 14

The result cells are the cells containing the values you want to examine._________________________

Question 15

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

Question 16

_______ 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 17

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

Question 18

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

Question 19

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

Question 20

CVP analysis is sometimes called breakthrough analysis._________________________

Question 21

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 22

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

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

Question 23

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

A) Alt
B) Shift 
C) Esc
D) Ctrl

Question 24

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

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

Question 25

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

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

Question 26

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 27

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 28

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 29

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

Question 30

_______ 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 31

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 32

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 33

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 34

Goal Seek uses a different approach from traditional _______ analysis.

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

Question 35

To calculate multiple cell 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 36

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 37

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 38

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

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

Question 39

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

A) parentheses
B) curly braces 
C) brackets
D) quotation marks

Question 40

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

A) static
B) variable 
C) dynamic
D) declining

Question 41

The slack is the difference between the value in the cell and the value at the limit of the _______.

A) variable cell
B) result cell 
C) constraint
D) risk factor

Question 42

Case 10-1
You are planning to open a new restaurant and need to determine how many dinners need to be sold to stay above the break-even point.You will investigate Cost Volume Profit (CVP),also known as break-even analysis.
Another tool to help analyze several what-if analyses is data tables in Excel.Using a one-variable table,you can specify _______ input cell(s)and any number of result cells.

A) many
B) one 
C) two
D) three

Question 43

_______ are important because they ensure a realistic solution to your problem.

A) Constraints
B) Parameters 
C) Targets
D) Optimals

Question 44

A(n)_______ is a limit that is placed on a Solver problem's solution.

A) max
B) target 
C) constraint
D) adjustment

Question 45

The _______ report summarizes the results of a successful solution by displaying information about the target cell,changing cells,and constraints.

A) answer
B) constraint 
C) sensitivity
D) limits

Question 46

Solver can create the following three different reports: _______.

A) sensitivity, answer, analysis
B) constraint, sensitivity, analysis 
C) analysis, answer, limits
D) answer, limits, sensitivity

Question 47

Case 10-1
You are planning to open a new restaurant and need to determine how many dinners need to be sold to stay above the break-even point.You will investigate Cost Volume Profit (CVP),also known as break-even analysis.
First you must understand break-even analysis.The definition of break-even point is where the total revenue _______ total expenses.

A) is less than
B) is greater than 
C) equals
D) exceeds

Question 48

Case 10-1
You are planning to open a new restaurant and need to determine how many dinners need to be sold to stay above the break-even point.You will investigate Cost Volume Profit (CVP),also known as break-even analysis.
In building an Income statement worksheet,you will calculate variable and fixed expenses based on number of meals sold.To explore the impact of changing different values in the worksheet,you can use _______.

A) Solver manager
B) Income Statement Analysis 
C) What-If analysis
D) Cash Flow analysis

Question 49

Case 10-1
You are planning to open a new restaurant and need to determine how many dinners need to be sold to stay above the break-even point.You will investigate Cost Volume Profit (CVP),also known as break-even analysis.
The data table provides the results of several what-if analyses,but results are often clearer if you include a(n)_______ chart.

A) Excel
B) CVP 
C) Goal Seek
D) Income

Question 50

After trying out solutions for a short time,Solver displays the _______ dialog box,which displays the message that indicates Solver has found a solution that satisfies the constraints.

A) Solver Answer
B) Solver Solution 
C) Solver Results
D) Solution

Question 51

If a value in the worksheet violates one of the constraints,the Solver parameter cells will display the value _______.

A) FALSE
B) NO 
C) 1
D) 0

Question 52

A(n)_______ procedure means that Solver starts with an initial solution and uses that as a basis to calculate a series of solutions.

A) reciprocal
B) iterative 
C) secondary
D) convergent

Question 53

Cells that display the value _______ indicate that all of the values in the worksheet satisfy the Solver constraints.

A) TRUE
B) YES 
C) 1
D) 0

Question 54

You can include an analysis of the constraints and conditions by which Solver arrived at its solution by creating a(n)_______ report.

A) analysis
B) answer 
C) condition
D) constraint

Question 55

Case 10-2
As you begin to work with Solver,you have questions.So you turn to your co-worker,Aria,who you know is an expert in its usage.
Aria explains to you that if you want to use Solver to maximize a company's net income,you first need to understand that a(n)_______ is a cell that is maximized,minimized,or set to a specific value.

A) goal cell
B) objective cell 
C) changing cell
D) constraint

Question 56

Case 10-2
As you begin to work with Solver,you have questions.So you turn to your co-worker,Aria,who you know is an expert in its usage.
Aria explains that if you have a cell that is the sales price of a given product,the value of which will change to produce the desired Solver result in the target cell,this cell is what kind of cell? 

A) goal cell
B) constraint 
C) changing cell
D) absolute cell

Question 57

Binding constraints always show a slack of _______.

A) -0.01
B) 0 
C) 0.01
D) 1

Question 58

Case 10-2
As you begin to work with Solver,you have questions.So you turn to your co-worker,Aria,who you know is an expert in its usage.
In your company,there is a physical limit on the number of products that the factories can produce in a given year.What does Aria tell you this limit is called,in Solver's terms? 

A) changing cell
B) objective cell 
C) goal cell
D) constraint

Question 59

Case 10-1
You are planning to open a new restaurant and need to determine how many dinners need to be sold to stay above the break-even point.You will investigate Cost Volume Profit (CVP),also known as break-even analysis.
When creating a one-variable Data Table,which of the following should you NOT do? 

A) Enter a formula that references the input cell in the upper-left cell of the table. 
B) Enter input values in either the second row or the first column. 
C) Enter input values in either the first row or the first column. 
D) Select the table excluding any row or column headings.

Question 60

The answer report is divided into _______ sections.

A) two
B) three 
C) six
D) five

Question 61

How does Goal Seek differ from traditional what-if analysis?

Question 62

The default convergence value is 0.001,which means that if the change in the value of the objective cell between the new solution and the previous solution is _______ 0.001,Solver stops the interative process and reports the current solution.

A) equal to
B) less than or equal to 
C) greater than or equal to
D) greater than

Question 63

Case 10-2
As you begin to work with Solver,you have questions.So you turn to your co-worker,Aria,who you know is an expert in its usage.
Aria explains that there are six possible constraints supported by Solver.Which of the following is one of those constraints? 

A) !=
B) >= 
C) ≠
D) #

Question 64

Identify the letter of the choice that best matches the phrase or definition.
a.Solver
b.changing
c.constraint
d.add-in
e.answer report
f.nonbinding
g.Goal Seek
h.slack
i.limits report
j.result
Changes one cell in order to force another to show a specific value

Question 65

What are the steps to create a one-variable data table?
ANSWER: Creating a One-Variable Data Table
1.In the upper-left cell of the table,enter a formula that references the input cell.
2.In either the first row or the first column of the table,enter input values.
3.For input values in the first row,enter formulas referencing result cells in the table's first column; for input values in the first column,enter formulas referencing result cells in the table's first row.
4.Select the table (excluding any row or column headings).
5.On the Data tab,in the Data Tools group,click the What-If Analysis button,and then click Data Table.
6.If the input values are in the first row,enter the cell reference to the input cell in the Row input cell box; if the input values are in the first column,enter the cell reference to the input cell in the Column input cell box.
7.Click the OK button.

Question 66

Identify the letter of the choice that best matches the phrase or definition.
a.Solver
b.changing
c.constraint
d.add-in
e.answer report
f.nonbinding
g.Goal Seek
h.slack
i.limits report
j.result
The difference between the value in a cell and the value at the limit of the constraint

Question 67

Identify the letter of the choice that best matches the phrase or definition.
a.Solver
b.changing
c.constraint
d.add-in
e.answer report
f.nonbinding
g.Goal Seek
h.slack
i.limits report
j.result
Cells whose values you will change within each scenario

Question 68

Identify the letter of the choice that best matches the phrase or definition.
a.Solver
b.changing
c.constraint
d.add-in
e.answer report
f.nonbinding
g.Goal Seek
h.slack
i.limits report
j.result
Cells that contain the calculated values you want to examine

Question 69

Identify the letter of the choice that best matches the phrase or definition.
a.Solver
b.changing
c.constraint
d.add-in
e.answer report
f.nonbinding
g.Goal Seek
h.slack
i.limits report
j.result
Searches for the optimal solution of a problem involving several variables

Question 70

Identify the letter of the choice that best matches the phrase or definition.
a.Solver
b.changing
c.constraint
d.add-in
e.answer report
f.nonbinding
g.Goal Seek
h.slack
i.limits report
j.result
Means that a constraint was not a limiting factor in a Solver solution

Question 71

Identify the letter of the choice that best matches the phrase or definition.
a.Solver
b.changing
c.constraint
d.add-in
e.answer report
f.nonbinding
g.Goal Seek
h.slack
i.limits report
j.result
Summarizes the results of a successful Solver solution

Question 72

Identify the letter of the choice that best matches the phrase or definition.
a.Solver
b.changing
c.constraint
d.add-in
e.answer report
f.nonbinding
g.Goal Seek
h.slack
i.limits report
j.result
Cannot be used when a problem contains integer constraints

Question 73

Identify the letter of the choice that best matches the phrase or definition.
a.Solver
b.changing
c.constraint
d.add-in
e.answer report
f.nonbinding
g.Goal Seek
h.slack
i.limits report
j.result
Places limits on a problem's solution,in Solver

Question 74

Identify the letter of the choice that best matches the phrase or definition.
a.Solver
b.changing
c.constraint
d.add-in
e.answer report
f.nonbinding
g.Goal Seek
h.slack
i.limits report
j.result
Adds commands and features to Excel

Question 75

How many different types of reports can Solver create? What are the characteristics of these report types,and which is the most useful?