What If analysis

Hi,

This assignment is designed with the objective to understand the difference between :

1. typing =12+8 in cell A1

2. typing 12 in cell B1
typing 8 in cell B2
typing =B1+B2 in cell B3

In both cases, you will get your result 20
BUT there is a MAJOR difference ...

In the first case, you have not using XL ... you have used a word processor ...
everything is static and dead ..

In the second case, you are using XL ... you have typed your first formula ...
everything is dynamic and alive ...
You can change 12 and 8 as much as you want, you will always have the correct total of these numbers in cell B3 ... (i.e. make your what if ...analysis)

Welcome to XL ...

Carim

Hi Carim,

Thanks for explaining that to me,and sorry for my late reply.

I understand what you're saying,but I'm still not sure how to write the formula(ie)if a percentage is changed it will effect the values of advertising and Distribution,but I'll look into it some more on my own.


Thanks for your help
best rgds
brian

Hi Brian,

To give you a concrete example ...

In cell G8, you must type :

=C8*(1+($H$3/100))

why ...

because the rule to be applied for Advertising is
Advertising increased by 23% ...
$H$3 must be typed as an absolute reference, in order for you to be able to copy your formula down ...

Hope This Clarifies

Carim

Hi Carim,

Thanks again for the formula sample,that was very helpful

Could you possibly let me know if I'm on the right track with this excel sheet

http://img374.imageshack.us/img374/5...nalysisrr3.jpg

Using you formula if I change 23% to 24% the advertising values change,or if I change 16% the distribution changes.


Also what does the +1 mean in your formula.

Thanks again for all your help.
rgds
brian

Brian,

1. Congratulations ... the whole spreadsheet is perfect ... !!!

2. Now the frightening part ... not related at all to Excel ...

Do you know how to calculate an increase of, say, 23% ???

Take all the time you need to fully understand the formula ... you will find out ...

Cheers
Carim

Thanks Carim,

My understanding of calculating percentages is that you divide the percentage number by 100 ,in this case 23/100 which gives 0.23..then you multiply the 0.23 by the cost value (for example 654-advertising)and this gives 150.42 ..then you add the 150.42 to 654 which totals to 804.42

so I think i pretty much answered my own question... +1 means add the resulting number from multiplying 0.23 by 654..in this case 150.42

Hi Brian,

I am extremely happy to see that you've made the effort, all by yourself,
to find the right answer to your own question ...

Congratulations ... AND ... carry on ...
With this attitude, you are on the right track ...!!!

Best Wishes,

Carim

Thanks again Carim

Apparently this works also

=C8*(1+H4) but I was told the 1+ means 100%,so I was wrong with my orginal thought.