Spreadsheets and Concept Application: Lecture 14- Goal Seek, Solver and Regression

Goal Seek

A what-if analysis tool that finds the input needed in one cell to arrive at the desired result in another cell.

Solver

An Excel add-in that searches for the optimal solution to a problem involving several variables.

Regression Analysis

Determines which of those changing variables, or factors do have a direct impact.

False. Server is used to solve problems using multiple cells (storing and/or calculating values). It is also used to set up constraint criteria in cells.

Goal Seeker is used to solve problems using multiple cells (storing and/or calculating values). It is also used to set up constraint criteria in cells.

Residuals

Numbers used to show how far away your actual data points are from the predicted data points.

True

Solver can be also used to find the minimum or maximum value. It makes useful for Accounting uses, not just Mathematics. It is also used to find where two graphs cross.

True

The closer the R Square is to 1, the better the regression fits the data.

Coefficients

Used to calculate regression line. It is also useful in doing forecasting.

Significance Values

𝞪 = 0.05; 0.01; 0.001 p < 0.05 means we can be 95 % confident that the results are real rather than the result of random chance. P values represent the probability that the null hypothesis is true. refers to as the likelihood that the results were due to random chance. p < 0.01 means we can be 99% confident

Solver Parameters

- Objective Cell, Variable Cell, Constraints

R square figure

A measure, statistically, of how close your data is to the regression line. It is also called the coefficient of determination.

Regression

A statistical measure used mostly in Accounting and Finance that determines the relationship between one dependent variable and a series of other, changing independent variables that you suggest may have an impact on the dependent variable. (Usually denoted as "y").