Introduction
Microsoft Excel is the spreadsheet program most commonly used by
financial analysts, project managers, academics, and small
business owners around the world to track and analyze business
and personal data. Because of the increasing demands on their
time, business professionals need to learn efficient and
effective data forecasting methods that give them the answers
they need. This course will provide experienced Excel users with
a practical, hands-on understanding of advanced Excel data
forecasting and charting techniques. It examines the risks and
benefits of forecasting, teaches different forecasting and
trending methods, and explores ways to maximize profit
potential.
Audience
This course is designed for experienced Microsoft Excel users,
including project managers, financial analysts, accountants,
business owners, and other business professionals who have a
vested interest in forecasting trends at the industrial,
corporate, and project levels. This audience uses Excel on a
regular basis and has no difficulty creating formulas, charts,
and cell formats.
At Course Completion
After completing this course, students will be able to:
• Describe the role data forecasting plays in organizational
planning.
• Identify the positive and negative aspects of data
forecasting.
• Create formula-based data forecasts.
• Define best, middle, and worst case scenario data.
• Establish target values using Goal Seek.
• Calculate moving averages.
• Chart moving averages interactively.
• Calculate Net Present Value and Internal Rate of Return.
• Define and solve problems in Solver.
Prerequisites:
Before attending this course, students must have:
• Experience with analyzing business data to make decisions
about products, projects, and strategic direction.
• The ability to use Excel to create formulas, including
advanced formulas using the Insert Function dialog box.
• The ability to create line graphs and column charts from Excel
data.
• Familiarity with named ranges (for example, abbreviations that
replace cell addresses, such as C3:D15, with nicknames such as
AllSales).
Previous Software Versions: MS Office XP, 2002, 2000
Course Outline
Module 1: The Risks and Benefits of Forecasting Data
This module introduces the risks and benefits of data
forecasting both in general and in the context of your business
environment.
Topics and Activities
• What Is Data Forecasting?
• The Business Needs for Data Forecasting
• Summary of the Risks and Benefits of Data Forecasting
After completing this module, students will be able to:
• Describe the data forecasting process.
• Identify the business needs that data forecasting addresses.
• Summarize the risks and benefits of data forecasting.
Module 2: Creating Formula-Based Forecasts
This module introduces the FORECAST formula, a versatile Excel
function that you can use to create data forecasts; scenarios,
which enable you to define best-case, middle-case, and
worst-case data scenarios; and Goal Seek, an Excel tool that
enables you to find the inputs required to make a formula
generate a desired result.
Topics and Activities
• Three Formula-Based Forecasting Resources
• Walkthrough: Creating Forecasts from Existing Data
• Demonstration: Analyzing Data by Using Goal Seek
• Exercise: Establishing Targets by Using Goal Seek
• Tips and Tricks for Formula-Based Forecasts
After completing this module, students will be able to:
• Build a FORECAST formula.
• Create forecasts based on best-case, middle-case, and
worst-case scenarios.
• Establish target values by using Goal Seek.
• Implement tips and tricks for formula-based forecasts.
Module 3: Forecasting Using Moving Averages
This module introduces moving averages and shows how to
calculate and chart averages in Excel. The information in this
module also places moving averages in the context of a business
that is not affected by strong seasonal business cycles. One
example is a toy manufacturer, which might have trouble
forecasting sales that cross one or more gift-giving seasons.
Topics and Activities
• What Is a Moving Average?
• What Decisions Do Moving Averages Help Me Make?
• Walkthrough 1: Calculating and Charting a Moving Average
• Walkthrough 2: Creating an Interactive Chart
• Tips and Tricks - Refining Moving Average Analysis
After completing this module, students will be able to:
• Define moving averages.
• Describe the decisions that moving averages enable.
• Calculate and chart moving averages.
• Make a chart interactive.
• Implement tips and tricks for using moving averages.
Module 4: Maximizing Profit Potential
This module introduces Net Present Value and Internal Rate of
Return, two factors often used to project product viability. The
module then introduces Solver, a tool used to find the maximum
(or minimum) output for a given set of constraints. The final
exercise in this module shows you how to use Solver to find the
most profitable mix of products to manufacture.
Topics and Activities
• Net Present Value and Internal Rate of Return
• Walkthrough 1: Calculating Net Present Value
• Walkthrough 2: Calculating Internal Rate of Return
• Introduction to Solver
• Walkthrough 3: Determining Optimal Project Mixes
• Discussion: Best Practices for Defining Problems in Solver
• Summarizing Data Forecasting Benefits
• Next Steps
After completing this module, students will be able to:
• Calculate Net Present Value.
• Calculate Internal Rate of Return.
• Describe Solver and the problems it helps to resolve.
• Solve profit-maximization problems using Solver.