Data modelling

Case Study: Should a fruit and veg shop reduce the price of melon at Christmas?

A spreadsheet can be used as a modelling tool. The is controlled by a set of rules using mathematical formulae. These rules can be changed easily to vary the model.

You can use a spreadsheet to model or predict what might happen, based on data you already have.

In a fruit and veg shop, a spreadsheet could provide information about running costs and profit margins for the greengrocer.

The greengrocer could use a spreadsheet to find out:

What would happen if they reduced the price of a product
What effect such a reduction would have on income from sales

When the value in the 'Price' column is lowered, the data in the 'SubTotal' column will be automatically recalculated

If the lower price resulted in higher sales then, by adjusting the data in the 'number of sales' column, the income from sales data will again be recalculated (upwards).

Being able to answer 'what if?' questions like this is vital as it allows the greengrocer to predict future trends in his income and outgoings.