Computers can be used for modelling real life situations using mathematical methods. This can be useful in many ways. Spreadsheets can be used to perform many different calculations and are therefore ideal for simple modelling. One everyday use would be to model the finances of your household. The first stage of modelling is to collect and input existing data. Next, you need to decide on how the data is going to be processed and come up with the mathematical expressions to carry out the processing. Finally, you can look at the results. It is then possible to change the input data and see what... Show more

Computers can be used for modelling real life situations using mathematical methods. This can be useful in many ways. Spreadsheets can be used to perform many different calculations and are therefore ideal for simple modelling. One everyday use would be to model the finances of your household. The first stage of modelling is to collect and input existing data. Next, you need to decide on how the data is going to be processed and come up with the mathematical expressions to carry out the processing. Finally, you can look at the results. It is then possible to change the input data and see what effect it will have on the results.

When using a spreadsheet, the work space is divided into rectangles called cells. They are arranged in rows and columns and each have a unique reference e.g. cell B3 or cell AB97. Only one cell is active at a time - the cell into which you are entering data. You can enter text, numbers or formulae into a cell but not a combination of them. A formula is a mathematical expression that will carry out a calculation. The calculation can use numbers from different cells.

Spreadsheets are frequently used for financial information because of their ability to re-calculate the entire sheet automatically after a change to a single cell is made. This is a simple way for businesses to see how small changes to prices or sales could affect their profits and losses.

Models work by taking a set of data and using rules to see how things change. The rules are represented using formulae, for example, profit is equal to the total sales minus the total cost of the wages, raw materials and other expenses. The data required to calculate the result of this formula will be contained in other cells. These can be read into the formula by making reference to the addresses of the other cells.

In our example above, if the total sales is in cell B1, the wages figure in cell F8 and the total of the raw materials and other expenses in cell G14, the formula would be =B1-(F8+G14). The parentheses tell the spreadsheet to add the wages and expenses before subtracting them from the total sales.

Many businesses use spreadsheets to record their income, expenses and profits. Spreadsheets can also be used to help them carry out what if investigations. A florist could see what effect an increase in prices of certain items would have on their profit or a bike repair shop could see how increasing the hourly rate would affect the daily takings. The spreadsheet can also be used to display the information as a graph or other chart which could be used when showing a bank manager how a loan might benefit their company.

Spreadsheets can be formatted in many ways. This can make them easier to use. Columns and rows can have a label entered in the first cell to describe what information it contains. The width of a column can be altered, so can the height of the columns. Cells can be given a coloured background, a border and even merged together to form a large block. Text can be justified left, right or centre, underlined, emboldened and different fonts can be used.

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