After completing Lesson 2 you will be able to:
• Identify the three logical parts that make up a basic financial model
• Include error checks into your financial models in Microsoft Excel
• Diagnose five common errors with Microsoft Excel formulas
• Design a financial model so that it can accommodate expansion and growth
• Avoid embedded formulas within your financial model
• Identify specific criteria for crossing over from Microsoft Excel to Microsoft Access
• Identify four design principles advocated by Edward Tufte that apply to how information should be presented
This lesson will highlight concepts and practices associated with good model design. Many of these concepts are illustrated in the Lesson 2 Workbook. Please make sure you download and use this workbook to complete this lesson. Some of the specific lessons embedded in this workbook include:
Tab 1 – Basic Layout
Tab 2 – Layout where there are numerous parts
Tab 3 – Avoid embedding values into formulas