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Article #204Re: @RISK and FORECALC
From: Bob Larson
Date: Fri, 16 Oct 1992 05:51
Date: Fri, 16 Oct 1992 05:51
56 lines
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3145 bytes
In <1992Oct12.163650.5776@gw.wmich.edu> scott@gw.wmich.edu writes: >Does anyone have any info about two Lotus 1-2-3 add on programs >named @RISK and FORECALC. Both are for business forecasting. >How do the products compare, and is one better than the other? >Julie Scott >Western Michigan University >scott@gw.wmich.edu I've never used ForeCalc, but I've used @Risk for 5 years (on and off) to do environmental modeling, Here is what it does, in a nutshell: Say you have a spreadsheet that makes financial projections over a ten year period, and in your opinion, one of the critical factors is what the interest rates will be over the ten years. Instead of a what-if analysis, @Risk allows you to express the uncertainty in interest rates as a probabilty distribution e.g., a normal distribution with a mean of 9 and a standard deviation of 2. With @Risk, this is done with one of about 40 add-in @functions it provides. Instead of a cell for the interest rate having a fixed value, you replace it with a function such as @normal(9,2). Everytime the sheet is recalculated, a new number will be randomly drawn from the distribution. Thats the first part of what @Risk does. The other part is doing all the recalculations for you. After adding uncertainty to the model in however many cells you want, you pop a menu and specify what output cells (profit or whatever) you want it to track, and how many iterations you want it to perform. It will then do all the recalculations, storing your output each time. Up to 1000 output cells can be tracked, and up to 33,000 iterations can be performed. When it finishes all the iterations, it will analyze all the outputs and summarize the results both in tables and in graphics. It will compute mean,range, min,max, s.d., percentiles, etc. and graph them as well. Graphs can be edited and overlayed before printing. You also have the choice of monte carlo or latin hypercube sampling, and can specify correlated sampling of variables. Its really quite a powerful package. Versions are available for 123 versions 2.xx and 3.1, as well as excel for the PC and the Mac. I believe the current price is around $400. If you would like, I could mail you the latest newsletter I got from the company that makes it (their name slips my mind right now). They also will mail you a demo disk for free. Send me email if you would like the newsletter or their address. ------------------------------------------------------------- Bob Larson blarson@uiuc.edu Illinois State Water Survey Office of Surface Water Resources and Systems Analysis -- Lotus Software SIG xx051
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Path: arc1-ca.pugleaf.net!sparky!uunet!ogicse!uwm.edu!ux1.cso.uiuc.edu!news.cso.uiuc.edu!larson From: larson@minerva.sws.uiuc.edu (Bob Larson) Newsgroups: comp.apps.spreadsheets Subject: Re: @RISK and FORECALC Message-ID: <Bw79MH.198@news.cso.uiuc.edu> Date: 16 Oct 92 05:51:52 GMT Article-I.D.: news.Bw79MH.198 References: <1992Oct12.163650.5776@gw.wmich.edu> Sender: usenet@news.cso.uiuc.edu (Net Noise owner) Organization: University of Illinois at Urbana Lines: 56