Reference no: EM132131217

DECISION MAKING TECHNIQUES

TEXT BOOK: SPREADSHEET MODELING FOR BUSINESS DECISIONS

Part 1  : CHAPTER 1

> Explain the six steps for an effective decision making process.

> Using Excel solve problem 4, chapter 1 from Text Book Edition #2, #3 or #4.

Part 2 : CHAPTER 2

Using the following data go through chapter 2 and develop the requested tasks using a spreadsheet modeling:

Race Performance Company

Month Qty Costs(000) Sales(000)
Jan 15000 1250 2340
Feb 16400 1620 1952
Mar 13625 1467 1675
Apr 13020 1585 2102
May 17025 1652 2054
Jun 11250 1340 1875
Jul 12345 1236 1457
Aug 18024 1784 1640
Sep 14695 1565 1987
Oct 16874 1675 2014
Nov 19785 1895 2650
Dec 20102 1874 2540

With the above information, you should be able to develop the following functions:

1. Format Costs and Sales columns in $ with two decimal points.

2. Format Qty with regular numbers with no decimal points.

3. Centralize all the Titles

4. Divide the Costs by the Qty to develop a column of Cost per Unit, Use $ and two decimal points.

5. Develop a fifth column for "Profit" by subtracting sales minus costs. Use $ and two decimal points.

6. Leaving two cells down and use the function Sum to obtain the total per column.

7. Two cells below column Month, use the function Count to know the number of months.

8. By using the Max and Min, determine the months with higher profits and the lowest cost per unit.

9. By using the Average function determine the mean for the all the numerical columns.

10. Using Chart wizard develop the following charts;

a. Column chart for the month and cost, a bar chart for Month vs. Sales, a line chart for the month vs cost/unit vs total profit. Use a scatter chart between the cost/unit and profits.

11. Develop another column for Profit/unit

12. Below the Average, develop the median and standard deviation (STDEV)functions for each numerical columns.

13. Divide the STDEV by the Average to determine with of the columns of has the best control. (Use an Statistical Book and look for Variation Coefficient)

14. Develop another column where by using an IF function determine which of the months are under the average in cost/unit. For those under the average post "RED" and for those over the average post "GREEN".

Remember: You can do it using any excel version or in a manual form. 

Part 3 :

Solve Problems 8 and 11 from Chapter 3.

Determine how these problems will support your decision making process?