Advanced Excel Applications

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Advanced Excel Applications
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Examples

• Optimization (Solver)
• Decision Trees (Precision Tree)
• Statistics and Data Mining
• Simulation
• Formulas (_at_Risk)
• Processes (SimQuick)

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Idea of Simulation

• Goal Evaluate a strategy.
• Examples of strategies
• Investments
• Games
• Process improvement
• Technique Build a model in the computer and test
  the strategy on it.

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Example Personal Investment Strategy
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• A company that has implemented this idea on a big
  scale
• www.financialengines.com

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Example The game of craps
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Example Waiting at a bank

• Customers arrive every 2 minutes (on average
  exp. dist.).

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• Customers enter a single line.
• There is a single teller service takes 2.4
  minutes on average (normal dist. with a st. dev.
  of .5 minutes).

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SimQuick software
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SimQuick model for bank
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SimQuick output
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Process improvement ideas

• Add a second teller.
• Speed up the single teller with some automation.

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Other applications of simulation

• Queueing systems
• Call centers
• Logistics systems
• Computer networks
• Financial analysis
• Health care systems

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Simulation with animation

• An on-line example

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Plug

• If youre interested in these types of
  applications there is a course devoted to them
• Business Applications on Spreadsheets MGTI 473