I think you will find the a very useful method of problem solving, so I have developed a presentation to take you through the steps using Excel Solver to calculate outcomes based on a series of factors and contingencies. As you are going through this, you may think to yourself, I could calculate tis faster by hand, but first, we are looking at a very small project and second, we can easily change contingencies and new outcomes are produced in a matter of seconds. I will demonstrate, then I would like you to solve this using the add-in Excel Solver. If you have not loaded Solver, this link will provide a guide:
Let’s face it, all these formulas and models we have reviewed this term are primarily calculated by computer, but it is crucial to know the theory behind the calculations. Why you say, without the theory, we lack the ability to make intelligent decisions.
