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Spreadsheet Engineering
Building spreadsheets models is part art and part science TERM 2
Verification
DEFINITION 2 ________________ is the process of ensuring that a model is accurate and free from logical errors. TERM 3
Validity
DEFINITION 3 _____________ refers to how well a model represents reality TERM 4
Sources of data
DEFINITION 4
- Subjective Judgment2) Existing databases3) analysis of historical data4) surveys, experiments, or other methods of data collection........ are examples of _____________ TERM 5
Empirical Data
DEFINITION 5 Many predictive models in business analytics use ____________ in conjunction with logical model development
Assumptions, certainty
Predictive analytical models are based on ______________ about the future and incorporate variables that most like will not be known with ___________. TERM 7
"What-if"
DEFINITION 7 Spreadsheet models allow you to easily evaluate __________ questions by changing input values and recalculating model outputs. TERM 8
1) Data tables 2) Scenario Manager 3) Goal
Seek
DEFINITION 8 Systematic approaches to what-if analysis that are available in Excel make the process easier and more useful. What are they? (Hint: there are 3) TERM 9
Data tables
DEFINITION 9 _____________ summarize the impact of one or two inputs on a specified output. TERM 10
One-way data table
DEFINITION 10 A _______________ evaluates an output variable over a range of values for a single input variable
Optimization
__________________ is the process of selecting values of decision variables that minimize or maximize some quantity of interest. TERM 17
Decision Variables
DEFINITION 17 ________________ are the unknown values that the model seeks to determine TERM 18
Objective Function
DEFINITION 18 The ___________________ is the quantity we seek to minimize or maximize TERM 19
Constraints
DEFINITION 19 ________________ are the limitations, requirements, or other restrictions that are imposed on any solution TERM 20
Constraint Function
DEFINITION 20 _________________ is the left-hand side of a constraint."Total labor-hours used in fabrication cannot exceed the amount of labor hours available"
Linear Optimization Model
A _______________________________ has two basic properties.1) The objective function and all constraints are linear functionsof the decision variables.2) All variables are continous TERM 22
Feasible Solution
DEFINITION 22 A _____________________ to an optimization problem is any solution that satisfies all of the constraints. TERM 23
Optimal Solution
DEFINITION 23 An _________________ is the best of all the feasible solutions. TERM 24
Binding Contraint
DEFINITION 24 A ___________________ is one for which the Cell Value is equal to the right-hand side of the value of the constraint TERM 25
Slack
DEFINITION 25 ______________ refers to the difference between left- and right-hand sides of the constraints for the optimal solution
