Question

To find out the value of the assumptions that are needed to hit a certain budget target, you would use ______; to optimize an output, you would use ______.

1. Solver, goal seek
2. Consolidate, pivot table
3. Pivot table, consolidate
4. Goal seek, solver

Answer 1

Answer:

I think the answer is 1.Solver, goal seek.

Answer 2

Answer:

To find out the value of the assumptions that are needed to hit a certain budget target, you would use Goal seek; to optimize an output, you would use Solver.

Explanation:

Goal seek:

• The values that are determined by entering a single input cell which produces the result in the dependent (formula) cell.
• Goal seek is a tool which is very useful in financial modelling.
• To run the goal seek a formula and a hard coded input cell that drives the formula is very important.
• The goal seek will calculate the result correctly by the direct link between the input cell and the formula.
• The value of the assumptions that are needed to hit a certain budget target, you would use goal seek.

Solver:

• The values that are determined by entering the values in multiple cells that produce the result.
• Microsoft Excel add-in program is the solver.
• The formula for one cell (called objective cell) can be found by Solver.
• Solver can also work with group of cells called simply variables or decision variables.
• It is also an Optimization tool in which by changing the assumptions the desired outcome achieved can be determined.
• To optimize an output, you would use Solver.

Goal seek and Solver tools comes with the standard excel package. But the solver goal has to be installed.

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