Microsoft Office Tutorials and References
In Depth Information
Exhibit 7.10 Entry fee and less than fair odds to achieve $125,000
analysis, it is clear that an increase in Bets , regardless of Entry Fee , will result in an
increase of $10,000 in Profits for each $10 increment. We can see this by subtracting
any two adjacent values in the column. For example, the difference between 125,000
in cell Q20 and 135,000 in cell Q21, for an Entry Fee of $30 and Bets of $50 and $60,
is $10,000. Similarly, a $10 increment for Entry Fee results in a $25,000 increase
in Profits , regardless of the level of the Bet . For example, 125,000 in cell Q20 and
150,000 in cell R20, for a Bet of $50 and Entry Fee of $30 and $40, is $25,000. This
simple sensitivity analysis suggests that increasing Entry Fee is a more effective
source of Profit than increasing Bet , for similar increments of change ($10).
Now, let us see how we create a single-variable and two-variable Data Table.
The Data Table tool is a convenient method to construct a table for a particular cell
formula calculation and record the formula’s variation as one, or two, variables in
the formula change. The process of creating a table begins by first selecting the
formula that is to be used as table values. In our case the formula is Profit calcu-
lation. In Exhibit 7.12 we see the Profit formula reference, cell K23, placed in the
cell N2. The Bet Values that will be used in the formula are entered in cells M3
through M12. This is a one variable table that will record the changes in Profit as
Bet Value is varied from 10 to 100 in increments of 10. A one variable Table can take
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