Join Curt Frye for an in-depth discussion in this video Running and evaluating your simulation, part of Learning Excel What-If Analysis.
…After you've set everything up, you can…add some re-formulas and run your simulation.…In fact, because you're using random values…to power your analysis, you should run it…multiple times and evaluate the results to…guard against having unlikely outcomes influence your decisions.…To illustrate these final steps in creating a…Monte Carlo simulation in Excel we use the…RunModel sample file, which you can find in…the Chapter 04 folder of your Exercise Files archive.…So let's recap what we've done.…We created a worksheet that contains formulas that use…inputs such as the number of items produced, demand,…unit cost, unit price, and unit disposal cost to…calculate revenue, total production cost, total disposal cost, and profit.…
And we use that data in a two item data…table to calculate a profit or loss based on production…levels of 2,500, 6,000, 10,000, or 15,000 units.…The final thing we need to do is to find the…average profit or loss for each of the four production levels.…And again, those are in cells B16 Through E16.…
- Explain how to create a scenario in Excel.
- Identify the two input values that should be used to create a two variable data table.
- Recall what the Excel feature Goal Seek is used for.
- Recognize the three things that must be separated from one another to make reading a worksheet with multiple units easier.
- Describe the tools that Excel provides to manipulate data.
- Break down the steps required to recalculate a worksheet's formulas.