…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.
Skill Level Intermediate
1. Defining Scenarios and Data Tables
2. Creating Goal Seek and Solver Models
3. Creating a Configurable Model
4. Performing Monte Carlo Simulation
- Mark as unwatched
- Mark all as unwatched
Are you sure you want to mark all the videos in this course as unwatched?
This will not affect your course history, your reports, or your certificates of completion for this course.Cancel
Take notes with your new membership!
Type in the entry box, then click Enter to save your note.
1:30Press on any video thumbnail to jump immediately to the timecode shown.
Notes are saved with you account but can also be exported as plain text, MS Word, PDF, Google Doc, or Evernote.