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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