Spreadsheet applications - CCEAWhy use spreadsheet models?
Spreadsheets can help you calculate values from data using various formulae. They can also be used for data modelling and the visual representation of data.
As well as financial modelling, spreadsheet software can be used for many other kinds of computer model:
modelling supermarket queues
modelling the stresses which will be borne by a new bridge
modelling traffic flow in a new road system
Computer models are cheaper to set up than alternative methods that could be used to predict what will happen in a system, e.g. building a prototype.
Other benefits include being able to:
make alterations and quickly see the outcomes
repeat tests several times over
learn from 'what if?' scenarios
model dangerous situations safely
Limitations of computer models
A model is only as good as the rules used to create it. A mistake could have been made by whoever wrote the model and not every situation might have been considered – either of these issues could cause the model to give incorrect results.
