The use of a variable time axis is an important modelling requirement. Examples include where a project start date may need to be changed (or is uncertain), where receivables may be received at a future date that may need to be changed, or where a quantity needs to be allocated across time, such as for depreciation schedules or in insurance loss triangles. There are several ways to implement such models. [Read more…] about Creating Time Flexibility in Excel Models
Archives for September 2010
When running a Monte Carlo simulation in Excel® (e.g. using @RISK®, Risk Solver® etc), one frequent question is why the average of the results are different to those of the base case model. There are a number of reasons for this. [Read more…] about Why is My Simulated Mean Different to the Static Value?
One frequent question in project planning is whether the contingencies for sub-tasks can be added to give an overall project contingency. This is a mirror image of the question as to how to allocate a total project contingency to sub-projects. [Read more…] about Can I add up Contingencies?