Introduction to Spreadsheet Modeling

Spreadsheets have become as commonplace as calculators in data analysis and decision making. In this chapter, we explore the value and importance of building decision-making models with Excel. We also consider the characteristics that make spreadsheets useful, not only for ourselves, but for others with whom we collaborate. As with any tool, learning to use the tool effectively requires carefully conceived planning and practice; thus, we will terminate the chapter with an example of a poorly planned spreadsheet that is rehabilitated into a shining example of what a spreadsheet can be. Some texts provide you with very detailed and in-depth explanations of the intricacies of Excel; this text opts to concentrate on the types of analysis and model building you can perform with Excel. The principal goal of this book is to provide you with an Excel-centric approach to solving problems and to do so with relatively simple and abbreviated examples. In other words, this book is for the individual that shouts, “I’m not interested in a 900-page text, full of difficult-to-remember Ctl-Shift-F4-R key stroke shortcuts! What I need is a good and instructive example of analytics, so I can solve this problem before I leave the office tonight.”