Questions CH1
Questions CH1
2. The Excel file Science and Engineering Jobs shows the number of jobs in thousands in
the year 2000 and projections made for 2010 from a government study. Use the Excel file
to compute the projected increase from the 2000 baseline and the percentage increase for
each occupational category.
3. A new graduate has taken a job with an annual salary of $60,000. She expects her salary
to go up by 2.5% each year for the first five years. Her starting salary is stored in cell A4
of an Excel worksheet, and the salary increase rate is stored in cell B4. Construct a table
with years 1 through 5 in cells A6:A10 and her salary in cells B6:B10. Write the formula
for her salary in year 2 (in cell B7) that can be copied and pasted correctly in cells B8
through B10.
4. Example 1.2 in the chapter described a scenario for new product sales that can be
characterized by a formula called a Gompertz curve:
S=aebect
• Develop a spreadsheet for calculating sales using this formula for t=0 to 160 in increments
of 10 when a=15,000, b=-8, and c=−0.05.
7. A company forecasts its net revenue for the next three years as $172,800, $213,580, and
$293,985. Find the net present value of these cash flows, assuming a discount rate of 4.2%
8. A pharmaceutical manufacturer has projected net profits for a new drug that is being
released to the market over the next five years:
• A fixed cost of $80,000,000 has been incurred for research and development (in year 0).
Use a spreadsheet to find the net present value of these cash flows for a discount rate of
3%.
The worksheet Base Data in the Excel file Credit Risk Data provides information about 425 bank
customers who had applied for loans. The data include the purpose of the loan, checking and
savings account balances, number of months as a customer of the bank, months employ, gender,
marital status, age, housing status and number of years at current residence, job type, and credit-
risk classification by the bank.1 Use the COUNTIF function to determine (1) how many customers
applied for new-car, used-car, business, education, small-appliance, and furniture loans and (2)
the number of customers with checking account balances less than $500.
9. The Excel file Store and Regional Sales Database provides sales data for computers and
peripherals showing the store identification number, sales region, item number, item
description, unit price, units sold, and month when the sales were made during the fourth
quarter of last year.2 Modify the spreadsheet to calculate the total sales revenue for each
of the eight stores as well as each of the three sales regions.