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Spreadsheet Modeling and Simulations

This document outlines Module 4 of a course on spreadsheets and models. The module covers implementing Monte Carlo simulations and linear programs in spreadsheets. It discusses using Monte Carlo simulations to model uncertainty, random number generation, and assessing outcomes. For linear programs, it addresses using Solver in Excel to identify optimal allocations under constraints. The document provides learning objectives for lectures on these topics and Monte Carlo simulations, linear programming, and differences between Excel and Sheets.

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Kosuru ratnasai
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250 views12 pages

Spreadsheet Modeling and Simulations

This document outlines Module 4 of a course on spreadsheets and models. The module covers implementing Monte Carlo simulations and linear programs in spreadsheets. It discusses using Monte Carlo simulations to model uncertainty, random number generation, and assessing outcomes. For linear programs, it addresses using Solver in Excel to identify optimal allocations under constraints. The document provides learning objectives for lectures on these topics and Monte Carlo simulations, linear programming, and differences between Excel and Sheets.

Uploaded by

Kosuru ratnasai
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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INTRODUCTION TO

SPREADSHEETS & MODELS


Don Huesman
Module 4: Using spreadsheets to implement Monte Carlo simulations
and linear programs for optimization

WHARTON ONLINE
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Module topics
•  Purpose of Monte Carlo simulations
•  Implementing Monte Carlo simulations in spreadsheets
•  Types of problems addressed by linear programs
•  Implementing linear programs in spreadsheets
•  Summarizing course modules

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Resources

•  Software used in this Specialization


–  Excel
–  Google sheets
–  Data analysis toolpak for Excel
–  XLMiner Analysis Toolpak for Sheets

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INTRODUCTION TO
SPREADSHEETS & MODELS
Don Huesman
Module 4: Using spreadsheets to implement Monte Carlo simulations
and linear programs for optimization
Lecture 1 Monte Carlo simulations

WHARTON ONLINE
Module 2 Lecture 1 Learning objectives

•  Purpose of Monte Carlo simulations


•  Implementing Monte Carlo simulations in spreadsheets

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Module 2 Lecture 1 Learning objectives

•  Problems addressed by Monte Carlo simulations


–  Uncertainty in assumptions about environment
–  Complex interactions among variables
–  High levels of accuracy important in assessing risk
•  Implementing Monte Carlo simulations in spreadsheets
–  Identify type of probability distribution for key variables
–  Apply distribution to random number generation
–  Run simulation model a large number of times
–  Assess probable outcomes & compare to risk
•  Available add-ins to simplify and add-value (no endorsements!)

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INTRODUCTION TO
SPREADSHEETS & MODELS
Don Huesman
Module 4: Using spreadsheets to implement Monte Carlo simulations
and linear programs for optimization
Lecture 2 Linear programming

WHARTON ONLINE
Module 2 Lecture 2 Learning objectives

•  Types of problems addressed by linear programs


•  Implementing linear programs in spreadsheets
•  Incorporating constraints
•  Using the Solver plug in to achieve an optimal solution

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INTRODUCTION TO
SPREADSHEETS & MODELS
Don Huesman
Module 4: Using spreadsheets to implement Monte Carlo simulations
and linear programs for optimization
Lecture 3 Next steps, Differences between Excel and Sheets

WHARTON ONLINE
Module 3 Learning objectives

•  Other courses in the Business and Financial Modeling


Specialization
•  Reviewing differences between Excel and Sheets

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Module 4 Summary

•  Using simulations to model uncertainty and risk in


spreadsheets
•  As an example of linear programs, using Excel’s solver to
identify optimal allocations of resources to reach a desired
outcome
•  Identifying similarities and differences between Excel and
Sheets
•  Other courses in the Business and Financial Modeling
Specialization

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