Advanced knowledge of Spreadsheets (T2.

3)

Unit II: Building, understanding and

exploiting data.
T2.3. Data analysis: solver and scenarios

Jose María Álvarez

Course 2018/2019

1
Advanced knowledge of Spreadsheets (T2.3)

Unit II

Unit I Unit II

A first contact. Building, understanding

and exploiting data.

Unit III
Representation of data and
information, task automation
and applications

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Advanced knowledge of Spreadsheets (T2.3)

T2.3: Data analysis: solver and scenarios

Structure and Basic
Operations

Working with cells and

Block I: First contact sheets, importing data
and references

Task automation*

Formulas and functions

Tables and Pivot Tables

Block II: Building,
Course Syllabus interpreting and
exploiting data Data analysis: solver
and scenarios

Task automation*.

Visualization and
dynamic charts

Block III:
Representation of data Forms and applications
and information

Task automation*.

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Advanced knowledge of Spreadsheets (T2.3)

Context

• So far we know MSExcel functions and formula to

mainly analyze past information:
• Census
• Experiments
• Etc.
• Can we use MSExcel to forecast data?
• What happened if data is incomplete?
• What happened if there are different possibilities to solve a
problema?
• Best y peor caso
• E.g.: scheduling, optimization, etc.
• Is it posible to use techniques such as linear regression?

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Advanced knowledge of Spreadsheets (T2.3)

Some capabilities MSExcel…

• Impact of the different values in some variable

Scenarios • E.g.: Which is my benefit if the tax fee changes?

• Get the value of some variable

Goal seek • E.g.: What grade do I have to get to meet the requirement of average grade?

• Type of problem: optimization, cost-Benefit analysis, etc.

• Subjected to some constraints
• Formal foundations: linear programming and integer linear programming
• Get the value of some variables
Solver • Generalization of the goal seeker problem

• E.g.: Which products do I have to manufacturer to get the maximum Benefit?

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Advanced knowledge of Spreadsheets (T2.3)

Scenarios: problem

Predict the impact change Multiple variables

of some variable • They can be combined
• E.g.: How a change in the tax fee
impacts my benefit?

Design scenarios
depending on the variables
to change
• Values are introduced and a
report is automatically
generated.

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Advanced knowledge of Spreadsheets (T2.3)

Scenarios: concept

Define Change the

those variable
Define a Get a
Define a variables values to
global summary
context that may check the
objective report
impact my impact
benefit (scenario)

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Advanced knowledge of Spreadsheets (T2.3)

Scenarios: application
Impact of the
tax fee in my
benefits

Tax fee

Benefit

Change from
18 to 21%

Generate a
summary
report

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Advanced knowledge of Spreadsheets (T2.3)

Scenarios: implementation
• MSExcel provides use capabilities to define Scenarios
• In general, the next steps will be done:
• Go to tab “Data”:
• Data→”What-if analysis”→Scenario Manager
• Operations:
1. Add scenario
• Name: descriptive name
• Changing cells
• Comment: documentation
2. Delete
3. Edit
4. Merge
5. Summary

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Advanced knowledge of Spreadsheets (T2.3)

Scenarios: tax fee example

Example 1:

• Given data from different franchises in terms of gross

income (I) and direct costs (C) and assuming that the
benefit of each franchise (Bfi) is calculated as follows:
• Bfi = (Ifi – Cfi)-(Ifi*IVA)
• A scenario must be defined to determine to what
extent a raise from 18 to 21% in the tax fee affects to
the benefits.

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Advanced knowledge of Spreadsheets (T2.3)

Scenarios: example tax fee

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Advanced knowledge of Spreadsheets (T2.3)

Scenarios: example tax fee

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Advanced knowledge of Spreadsheets (T2.3)

Scenarios: example tax fee

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Advanced knowledge of Spreadsheets (T2.3)

Scenarios: example tax fee

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Advanced knowledge of Spreadsheets (T2.3)

Scenarios: evaluation

Improve the documentation

It seems like something and data management.
“simple” that can be easily • Separation of data and variables.
handle with formula and • Definition of multiple scenarios.
functions. • Merge of scenarios.

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Advanced knowledge of Spreadsheets (T2.3)

Goal seek: problem

Predict the value of some

Multiple variables could
variable and its impact in
change.
a global function.

Possibility to combine
with “Scenarios”

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Advanced knowledge of Spreadsheets (T2.3)

Goal seek: concept

Review the
Define a
Define the Solve a impact in
Prepare global
variable to value for the global
data objective
be inferred the variable objective
function
function

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Advanced knowledge of Spreadsheets (T2.3)

Goal seek: implementation

• MSExcel provides us capabilities to seek for goals.
• In general, the next steps will be done:
• Go to tab “Data”:
• Data→What-if analysis→Goal Seek
• Operations:
1. Goal Seek

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Advanced knowledge of Spreadsheets (T2.3)

Goal seek: average grade

Example 2:
• To apply for an Erasmus grant it is necessary to have an
average grade of 8 out of 10.
• Currently, we have the following grades:
Course Grade
A 8
B 7
C 7
D ????
E 8
• What grade is necessary to meet the requirement of the
Erasmus grant in regards to the average grade?

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Advanced knowledge of Spreadsheets (T2.3)

Goal seek: example average grade

Prepare Define the Define a Seek the

data variable to global value of the Review the
• Grade table predict objective variable impact of
• Grade in function • Goal seek in the new
course D • Average MSExcel value
grade

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Advanced knowledge of Spreadsheets (T2.3)

Goal seek: example average grade

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Advanced knowledge of Spreadsheets (T2.3)

Goal seek: example average grade

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Advanced knowledge of Spreadsheets (T2.3)

Goal seek: evaluation

A solution for simple

It can be manually done! problems
(no so complex to not • Infer the value of one variable
make a manual calculation) • Test of all possible values (no
search optimization)

High implementation costs

• Depending on all possible values
• Complexity of the objective
function

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Advanced knowledge of Spreadsheets (T2.3)

Solver: problem
Objective function Decision variables
• Depends on decision variables • Subjected to constraints
• Goal: solve the values of those
decision variables

Type of problems Formal foundations (operations

• Maximize vs Minimize research)
• Optimization, cost-Benefit analysis, • Linear programming
scheduling, etc. etc. • Integer programming

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Advanced knowledge of Spreadsheets (T2.3)

Solver: concept

• Linear programming
• Scope:
• Research operations
• Given:
• n variables x1,... ,xn.
• m linear inequalities in those variables.
• 3x1 + 4x2 ≤ 6,
• 0 ≤ x1 ≤ 3, etc.
• An an objective function:
• E.g..: 2x1 + 3x2 + x3.
• Objective:
• Seek the values of xi ’s that satisfy the constraints and max/min the
objective function.

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Advanced knowledge of Spreadsheets (T2.3)

Solver: concept

• Linear programming (elements):

• Decision variables:
• All positive, >= 0
• Constraints (types):

• A = known value that must be strictly respected;

• B = known value that must be respected or exceeded;
• C = known value that must not exceeded;
• j = number of the equation, variable 1 to M (total number of constraints);
• a; b; and, c = known coefficients;
• X = unknown values, from 1 to N;
• i = number of the unknown value, variable from 1 to N.

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Advanced knowledge of Spreadsheets (T2.3)

Solver: concept

• Linear programming (elements):

• Objective function

Where
coefficients

https://www.math.ucla.edu/~tom/LP.pdf
https://www.cs.cmu.edu/~avrim/451f11/lectures/lect1101.pdf

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Advanced knowledge of Spreadsheets (T2.3)

Solver: concept

• Integer programming:
• Conceptually speaking, it represents a kind of subset of
linear programming problems.
• Values of decision variables are ALWAYS INTEGER (no real
values):
• Xi integer
• E.g.: people to assign tasks

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Advanced knowledge of Spreadsheets (T2.3)

Solver: concept

Define Define Define Select Solver

decision constraints objective technique
variables • Inequalities function • Algorithm:
Prepare data • Type: Real vs • Maximize simplex,
Integer genetic, etc.
• Minimize
• Characteristics:
all different,
binary, etc.

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Advanced knowledge of Spreadsheets (T2.3)

Solver: implementation
• MSExcel provides us capabilities to
solve linear and integer programming
problems: Solver
• In general, the next steps will be
done:
• Enable the add-in “Solver”
• File→Options→Add-ins→”Solver”
• Additionally, just to know, it is
possible to enable the
component “Data analysis”
(Analysis ToolPak)
• Statistical inference
• Random numbers
• Statistical tests
• …

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Advanced knowledge of Spreadsheets (T2.3)

Solver: implementation

• Access to the “Solver” add-in:

• Data→Solver

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Advanced knowledge of Spreadsheets (T2.3)

Solver: example diet

Example 3:
• We want to add new products to our breakfast, and we
have the following options:
• Tuna, marmalade (strawberry), bread and energy drink.
• However, it is necessary to meet the next requirements
in terms of nutrients:

Calories 500
Protein 10
Fat 20

Carbs 50

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Advanced knowledge of Spreadsheets (T2.3)

Solver: example diet

• Furthermore, we do not want to spend too much

money. We want to minimize the overall cost.

• Given this situation:

• Get a list of products (quantity) to be introduced in our
breakfast meeting the requirements about nutrients and
minimizing the cost.

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Advanced knowledge of Spreadsheets (T2.3)

Solver: example diet

Define Define Define Select

Prepare decision constraints objective Solver
data variables • Inequalities function technique
• Type: Real on nutrients • Minimize cost • Simplex LP

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Advanced knowledge of Spreadsheets (T2.3)

Solver: example diet

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Advanced knowledge of Spreadsheets (T2.3)

Solver: example diet

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Advanced knowledge of Spreadsheets (T2.3)

Solver: example diet

• Set objective:
• Cell that contains the
objective function (quantity
of product x cost)
• To:
• Minimize (cost)
• Decision variables:
• Values to be inferred by the
solver
• Constraints:
• Restrictions on nutrients
• Solving method:
• The basic one: Simplex LP

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Advanced knowledge of Spreadsheets (T2.3)

Solver: example diet

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Advanced knowledge of Spreadsheets (T2.3)

Solver: example diet

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Advanced knowledge of Spreadsheets (T2.3)

Solver: Game of Thrones (GOT)

Example 4:

• The final battle in Game of Thrones is approaching. Jon Snow

and Daenerys are planning the requirements in terms of military
strength to win the battle against the “White Walkers”.
• To do so, they have made an initial evaluation of their military
strength:
• Resources and strength of each ally.
• Resources and strength of the “White Walkers”
• Now, they need to request resources to each ally but:
• The allies do not want to give the 100% of their resources, they need to
have some resources to protect their lands.
• The objective will be then:
• Request the minimum number of resources to win the final battle
against the “White Walkers” but keeping the constraints of resources for
each of their allies.

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Advanced knowledge of Spreadsheets (T2.3)

Solver: example GOT

Define Define Define Select

decision constraints objective Solver
Prepare variables • Inequalities function technique
data • Type: Integer on military • Minimize • GRG Non-
(soldiers) resources for resources Linear
each ally (soldiers)

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Advanced knowledge of Spreadsheets (T2.3)

Solver: example GOT

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Advanced knowledge of Spreadsheets (T2.3)

Solver: example GOT

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Advanced knowledge of Spreadsheets (T2.3)

Solver: example GOT

• Set objective:
• Cells that contains the sum of
military strength
• To:
• Minimize the number of military
resources (soldiers or dragons)
• Decision variables:
• Request of military resources
• Constraints:
• Accomplish with the need of
reserved resources.
• Values MUST be INTEGER in all
decision variables.
• It is necessary to win the military
strength of the “White Walkers”
• Solving method:
• GRG Non-linear (just to test)
• It has implications on the
performance (time to solve the
problem)

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Advanced knowledge of Spreadsheets (T2.3)

Solver: example GOT

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Advanced knowledge of Spreadsheets (T2.3)

Solver: evaluation

Complex problems Formal foundations

• Also known as “NP-Hard”. • Operations research
• Manual solving is complicated. • Linear programming
• Integer programming

Type of problems Temporal cost (for solving)

• Scheduling, optimization, etc. • Number of decision variables.
• Many problems can be • Different types of techniques.
defined under this paradigm.
• Capability to obtain optimized
solutions.

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Advanced knowledge of Spreadsheets (T2.3)

Data Analysis

• Additional Data Analysis functionalities:

• Descriptive Statistics
• Random numbers
• Statistical testing
• …

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Advanced knowledge of Spreadsheets (T2.3)

Unit II: Building, understanding and

exploiting data.
T2.3. Data analysis: solver and scenarios

Jose María Álvarez

Course 2018/2019

48