Chapter 2: Preparing for the project work
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project you must choose your own spreadsheet problems from the world
around you – from your college or business or something associated with
some hobby or pastime. Economic data, exchange rates, share prices,
demographic data or even the weather report may provide appropriate
data. Suitable problems are those that require you to summarise or model
numerical data (say up to 80 raw data points), to show a result or a trend,
to permit some ‘what-if?’ questions to be asked and to produce a printed
report and a graphic chart. Our experience as Examiners suggests that
projects based on basic accounting reports, balance sheets, flow of funds,
etc. are not good topics for this project. They are usually so set in their
format, and so reliant on simple addition and subtraction, that you have
little opportunity to demonstrate your own analysis and design skills.
Example 1
A spreadsheet is to be used by a motor racing team to calculate the appropriate
volume of fuel to have in the race car at the start of the race. A driver can have
more fuel, but the car will be heavier and will travel more slowly. On the other
hand, if the car is light on fuel, it will have to refuel more often
–
and that takes
time. Other relevant issues are the length of the race, the running conditions
(fast or slow, wet or dry), the air temperature and an estimate of what the
competition is going to do. A spreadsheet is needed to let the team manager
and the driver evaluate alternative approaches. During the race, the model can
be updated with the actual fuel usage and refuelling times.
This example is probably of no interest to most readers, but to a car racing
fanatic it is a fascinating and a welcome challenge. Your task is to find
something as interesting to you to serve as the basis of your spreadsheet.
Example 2
A spreadsheet is used to analyse the tax position of an employed person in your
country. This will need you to do some research into the exact details of the
tax rules of your country and will include issues of income tax as well as health
and other social insurances, pension contributions, etc. The circumstances of an
individual
–
for example, married or with children
–
will also generally affect
the amount of income taken in tax, as may other characteristics, such as age or
student loans.
The spreadsheet can be used to generate a table and chart showing the
marginal tax rate that applies at various levels of income – that is the
percentage of income taken in tax and other deductions as income rises. The
model may also answer the reverse question, ‘How much do I need to earn
gross to take home a given net amount?’ This is an example of goal seeking.
You might also use such a model to inform a politician about the marginal tax
rate that various individuals face and as a way to model new and perhaps fairer
policies.
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