Ways in which Scenario Manager and other Excel features can aid in the process of decision making.
The Scenario Manager used in the house-buying examples is a method that can facilitate a buyer's process of decision-making. Through the tabular form of expected expenses and expected value of the houses, a buyer can easily see the differences between each house, as well as whether the values match the buyer's financial capabilities.
The Excel features also serve as useful tools that facilitate computations. Such features become handy especially when certain values need to be changed. Through the Excel's capability of storing formulas, automatic computation is made possible. This feature eliminates the need for redundant computations should a value in the variable area of our examples' Scenario Manager is changed.
Aside from the ability to facilitate computations, the Scenario Manager and the Excel features eliminates the time-consuming process of waiting for the essential computational results before a decision can be made. As in our examples, the Scenario Manager and the Excel features can aid a buyer in his decision-making process through a presented organized view of the necessary factors, particularly the expected amount of expenses and liabilities when buying a house, before coming up with a decision.
Every process of decision-making entails the need for a detailed and clear presentation of information to allow a decision-maker see the advantages and disadvantages between available options. This necessity is the fundamental feature that our examples' Scenario Manager provides. Through the organized structure of a house's details and computations, a buyer can easily pre-decide in just a brief study of the information provided by the Scenario Manager.
Implications and Relative Advantages and Disadvantages of Buying Each House
Each house presented has relative advantages and disadvantages to a buyer. Following is a discussion of these factors based on each house and based on comparison of each with the other houses.
Buying house A, being the least expensive of the four houses in terms of purchase price, offers the most financial convenience to a buyer in terms of initial costs. Compared to the other three houses, house A requires…