Ch.12--"Scenarios with auditing and correlation"

Chapter 12 of Excel involves auditing, data validation, creating scenarios and correlation and regression of data. To use the auditing feature you open the auditing toolbar in the tools menu and select formula auditing. Then you click the trace precedents button to check the precedents of a certain cell. Along with auditing you can use data validation to prevent you from making a mistake later. Data validation will allow numbers to be included in your budget or whatever you are doing, but if a number does not fit the criteria that you enter then it does not let you put it in. With data validation you make an input message to remind you why you can’t put some values in the table. Creating scenarios is exactly how it sounds. You can make a scenario to see where your budget would be at or something like that. To add scenarios you go to the tools bar and find scenarios. Excel also does statistical processes such as correlation and regression. You go to the tools menu and choose data analysis and click whatever you wish to do.

The first project is simple. It asks you to take a financial statement and to create a scenario that could happen. I went to the tools bar and found scenarios. I keyed the range B10:B16 and changed B10 and B11 to create a new scenario. I updated it to the screen.

The second project is to create a correlation for the set of data it gives you. To do a correlation I went to the tools menu and chose data analysis and correlation. I highlighted the cells that I needed to correlate and put that into input range. Then I chose an output range to tell the computer where to place the correlation information. I found out that the correlation for this data was pretty bad so it was not necessary to do the regression.