Question 1

To compare scenarios, you can create a summary report that lists the scenarios side by side or in a PivotScenario.

Accepted Answer

There is no feature called "PivotScenario" in Excel. Scenarios can be compared using a summary report, but not through a feature named "PivotScenario".

Question 2

You can use Custom number formats to display a label in a worksheet even when the cell contains a value or a formula.

Accepted Answer

This is true. Custom number formats allow you to display text or labels alongside numerical values in a cell.

Question 3

To set up a scenario, you create or use a worksheet that contains sets of input cells and no output cells.

Accepted Answer

In order to set up a scenario, you need to have at least one output cell that will display the results of changing the input cells. A worksheet with only input cells and no output cells would not be suitable for setting up a scenario.

Question 4

In a one-variable data table, you enter possible values for the single input variable in the last row or column of the data table.

Accepted Answer

In a one-variable data table, you enter possible values for the single input variable in either the first column (for column-oriented tables) or the first row (for row-oriented tables), not in the last row or column.

Question 5

In a two-variable data table, you use two sets of values for two input variables, and display only the value of a single result cell.

Accepted Answer

In a two-variable data table, you use two sets of values for two input variables and display multiple results based on the combination of those values. The purpose of a data table is to show how changing the values in the input cells affect the value in the result cell.

Question 6

What-if analysis allows you to see what output results if the values of various input assumptions change.

Accepted Answer

What-if analysis involves changing input values to see how they affect the output. Therefore, the statement is true.

Question 7

A one-variable data table allows only one input assumption to vary.

Accepted Answer

A one-variable data table is used to test the impact of only one input assumption on a formula or calculation. Therefore, only one input assumption can be varied at a time.

Question 8

When you have many input assumptions that will vary in each scenario, it is sometimes easier to identify the cells in the input section that will not change in the scenarios, thereby determining the scenarios' changing cells through a process of elimination.

Accepted Answer

This statement is true, as a process of elimination can be an effective way of identifying the cells that will change in different scenarios when working with many input assumptions. By first identifying the cells that will remain constant across all scenarios, it becomes easier to identify the cells that will vary and need to be accounted for in each scenario.

Question 9

Cells that contain formulas should be specified as changing cells in scenarios.

Accepted Answer

Scenarios in Excel are designed to swap sets of values in specific cells easily without altering formulas. Changing cells in scenarios typically contain values that can be varied, not the formulas themselves.

Question 10

There is no right answer to the question of whether the effect of income taxes should be considered when performing what-if analysis.

Accepted Answer

The decision of whether to consider the effect of income taxes when performing what-if analysis depends on the specific scenario and purpose of the analysis. In some cases, it may be appropriate to include tax implications when evaluating different scenarios, while in others it may not be relevant or necessary. Therefore, there is no definitive right or wrong answer to this question.

Question 11

A data table depends on values and formulas used in a worksheet, and must appear on the same worksheet that contains this data.

Accepted Answer

A data table is a tool in Excel that allows you to quickly analyze and compare data. It is created on the same worksheet as the data it is based on, so that it can reference the relevant values and formulas.

Question 12

Technically, the number of scenarios you can create is limited only by your computer's memory, but scenario reports can include data from only the first 15 scenarios.

Accepted Answer

The answer of Technically, the number of scenarios you can...

Question 13

Because a PivotTable is interactive, you can change the view of the data to see more or fewer details.

Accepted Answer

PivotTables are designed to be interactive, allowing users to change the view of the data by adding, removing, or rearranging fields, as well as filtering or sorting the data. This flexibility allows users to see more or fewer details as needed.

Question 14

You can add a title and borders to make the worksheet more visually appealing and easy to understand.

Accepted Answer

Adding a title and borders can enhance the visual appeal of the worksheet and make it easier to understand.

Question 15

Because what-if analysis usually involves many estimates and other projections, range analysis helps managers learn how tolerant the projected results are of changes in those estimates and assumptions.

Accepted Answer

The answer of Because what-if analysis usually involves many estimates...

Question 16

You can omit taxes from your estimates, or use your marginal tax rate.

Accepted Answer

It is possible to omit taxes from your estimates, or use your marginal tax rate when calculating your financial projections. However, whether or not to include taxes in your estimates will depend on the specific situation and what you are trying to achieve with your projections.

Question 17

To create a two-variable data table, you must first set up a data source file.

Accepted Answer

To create a two-variable data table in Excel, you do not need to set up a separate data source file. You only need to arrange your base formula and the two sets of input values within your current worksheet.

Question 18

Data tables allow you to organize and present the results of only one what-if analysis.

Accepted Answer

Data tables allow you to organize and present the results of multiple what-if analyses by varying two or more input cells at the same time.

Question 19

A scenario can span worksheets.

Accepted Answer

The answer of A scenario can span worksheets....

Question 20

Although data tables and scenarios are ideal for showing the results of the interaction of a number of variables, analyzing which results are more likely than others depends on your knowledge of your business and markets.

Accepted Answer

The statement is true. While data tables and scenarios can show various outcomes based on different variables, it ultimately requires a deeper understanding of the business and market to determine which outcomes are more probable.

Quiz 8: Using Data Tables and Excel Scenarios for What-If Analysis