Decision Analysis Tools

in Excel

Learning Outcomes
1. Describe the use of a PivotTable
2. Summarize the tools used when building a
PivotTable
3. Compare the functions of Goal Seek and
Solver
4. List the advantages of using the Scenario
Manager

Introduction
1.

The PivotTable function is an organization and

analysis tool that displays fields and records

2.

The Goal Seek function is used to find an unknown

value that produces a desired result

3.

The Solver function is used to calculate an optimum

solution based on several variables and constraints

4.

The Scenario Manager function is used to create and

evaluate a collection of what-if scenarios containing
multiple input values
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PivotTables
A PivotTable analyzes, summarizes, and
manipulates data in large lists, databases,
worksheets, or other collections
PivotTables offer flexible and intuitive analysis of
data
The data in the data area of the PivotTable
cannot be directly entered or changed

PivotTable Terminology
Row field - a row orientation in a PivotTable report and
are displayed as row labels
Column field - a column orientation in a PivotTable
report and are displayed as column labels
Data field - list or table contain summary data in a
PivotTable, such as numeric data

Page field - filter out the data for other items and display
one page at a time in a PivotTable report
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Build a PivotTable with the Data, PivotTable, and PivotChart

Report option, which displays a series of PivotTable Wizard
dialog boxes
The wizard steps through the process of creating a
PivotTable

Using the PivotTable Feature

Select the PivotTable Data worksheet from the
Analysis Data.xls workbook
Click any cell in the list
Excel knows to use the data in the Excel list to create a
PivotTable

Choose Data, PivotTable and PivotChart

Report
The PivotTable and PivotChart Wizard Step 1
of 3 dialog box opens
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In the Where Is the Data That You Want to Analyze? area,

choose Microsoft Excel List or Database
In the What Kind of Report Do You Want to Create? area,
choose PivotTable
Click the Next button

The PivotTable and PivotChart Wizard Step 2 of 3

dialog box opens
In the Range box, the range should be
$A$1:$E$49
Click the Next button

The PivotTable and PivotChart Wizard Step 3 of 3 dialog

box opens. This is used to tell Excel whether to place the
PivotTable on an existing or new worksheet
Select New Worksheet
Click the Layout button

Excel opens the PivotTable and PivotChart Wizard

Layout dialog box. The fields appear on buttons to the
right in the dialog box.
The four areas you can define to create your PivotTable are
ROW, COLUMN, DATA, and PAGE.

Drag the field buttons to the areas to define the layout of the PivotTable
Drag the Region button to the COLUMN area
Drag the Magazine button to the ROW area
Drag the Month button to the PAGE area
Drag the Sale button to the DATA area
Click OK to return to the PivotTable and PivotChart Wizard Step 3 of
3 dialog box
Click the Finish button

After a PivotTable is built, modifications can be done at any time

Drag the buttons off the diagram, and arrange the fields like this:
Magazine in the PAGE area
Month in the COLUMN area
Sale in the DATA area
Sales Rep in the ROW area

PivotTable Tools
PivotTable - A menu that contains commands for
working with a PivotTable
Format Report - Enables the user to format the
PivotTable report
Chart Wizard - Enables the user to create a chart using
the data in the PivotTable
Hide Detail - Hides the detail information in a PivotTable
and shows only the totals
Show Detail - Shows the detail information in a
PivotTable
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PivotTable Tools
Refresh External Data refresh the data in the PivotTable
after changes to data are made in the data source
Include Hidden Items in Totals

Always Display Items - Always shows the field item

buttons with drop-down arrows in the PivotTable
Field Settings - Displays the PivotTable Field dialog box
so that the user can change computations and their
number format
Hide Field List - Hides and shows the PivotTable Field
List window
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Building PivotChart
PivotChart - a column chart (by default) that is based on
the data in a PivotTable
Click the Chart Wizard on the PivotTable toolbar
Excel will automatically create a new worksheet, labeled
Chart 1, and display the current PivotTable information in
chart form

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Goal Seek
Goal Seek - an analytical function, which allows
a value in a formula to be adjusted in order to
reach a desired result or answer

The Goal Seek feature can eliminate

unnecessary calculations
Goal Seek repeatedly tries new values in the
variable cell to find a solution to the problem
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Using the Goal Seek Command

Choose Tools, Goal Seek
Specify the cell that contains the desired value in the Set cell
text box
Enter the desired value or answer in the To value text box
Enter the cell whose value will be changed in the By changing
cell text box
Choose OK
If a solution is found, the Goal Seek Status dialog box
appears
Select OK
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Solver
Solver - part of a suite of functions sometimes called
what-if analysis tools
Solver is used when forecasting a problem contains
more than one variable
Solver uses multiple changing variables and constraints
to find the optimal solution to solve a problem
If Solver has not already been installed, do the following:
Open Excel and go to Tools, Add-Ins
After clicking Add-Ins, scroll down to Solver Add-in
and click the box
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Build a worksheet, set up the table similar to Figure T3.10:

To reach the specified amount of total revenue (G4) by determining

regular coffee cups needed to sell (D5)

premium latte cups needed to sell (D9)
premium mocha cups needed to sell (D13)
subjected to three constraints (G11, G12, G13)

=D5

=D4*D5

=D9+D13
=G6+G7

=D8*D9
=D12*D13

Setting Up the Problem

Choose Tools, Solver
Select $G$4 into the Set Target Cell: text box
In the By Changing Cells: text box, select each of the
variable cells by holding down the Ctrl key and clicking
D5, D9, and D13

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Setting Up the Problem

Add three constraints to the Subject to the Constraints:
text box in the Solver Parameters dialog
Click Solve to calculate the result

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Setting Up the Problem

Solver displays a dialog box describing the results of the
optimization analysis

To display the new solution in the worksheet, click the

Keep Solver Solution option button, and then click OK

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Editing A Solver Forecast

Choose Tools, Solver
Click the Value Of option button and type 800 in the text
box to the right
The Value Of option button sets the target cell to a
particular goal to determine the variable mix needed
to reach the milestone

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Editing A Solver Forecast

Click Solve and then OK butoon to find a solution to the
problem

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Scenario Manager
Scenario - a set of input values and
corresponding results from calculations that
Excel can save and report as needed

A worksheet can be used to conduct a what-if

analysis on a particular set of data
Excels Scenario Manager allows 32 different
scenarios or groups of values to be defined
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Setting Up Scenarios
Each group of input values or scenario must be named
and stored before it can be used
Open the worksheet Scenario Data.xls
Select the cells containing the first set of values to store
in a scenario
On the toolbar, select Tools, Scenarios
Click Add to display the Add Scenario dialog box
Enter Original for the Scenario name
In the Changing Cells text box, use the Collapse Dialog
button to manually select the cells that hold the Number
of Technicians, Regular Hours, and Over Time Hours
values (D9:D11)
Choose OK
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Setting Up Scenarios
The Scenario Values dialog box will display the values
for cells D9, D10, and D11 as 1, 300, and 0

Click OK

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Setting Up Scenarios
Click Add
In the Add Scenario dialog box, type Single Contractor
Overtime
Click OK
In the Scenario Values dialog box for cell D10, type 300,
for cell D11 enter 40, and the value in D9 remains at 1
Click OK
Ensure that the Single Contractor Overtime scenario is
selected, and click Show

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Single Contractor Overtime

Setting Up Scenarios
Click Add
In the Add Scenario dialog box, type Two Contractors
No Overtime
Click OK
In the Scenario Values dialog box
Enter 2 in the text box for cell D9 and 0 in the text box
for cell D11
In cell D10s text box, type =300/2
Click OK, a message box says that Excel converted the
formula into a value
Click OK to dismiss the message
Click Show
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Modifying A Scenario
Once scenarios have been defined, the data
values can be modified
To modify a Scenario:
1. Choose Tools, Scenarios
2. Select the desired Scenario name
3. Choose Edit
4. Modify the Scenario information, as desired
5. Close the Scenario Manager dialog box

Compare the Scenarios

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Creating a Scenario Summary Report

Choose Tools, Scenarios
Choose Summary
Choose Scenario summary in the Report type group
box
In the Result cells text box, type in D7, D12, D15, D16,
D17
Result cells are the cells affected by the specified
scenario
Choose OK

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