• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 14. Using Excel's Business-Model... > A Note About Goal Seek's Approximati...

A Note About Goal Seek's Approximations

Notice that the solution in Figure 14.13 is an approximate figure. That is, the margin value is 29.92%, not the 30% we were looking for. That's pretty close (it's off by only 0.0008), but it's not exact. Why didn't Goal Seek find the exact solution?

The answer lies in one of the options Excel uses to control iterative calculations. Some iterations can take an extremely long time to find an exact solution, so Excel compromises by setting certain limits on iterative processes. To see these limits, choose Tools, Options, and select the Calculation tab in the Options dialog box that appears (see Figure 14.14). Two options control iterative processes:


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint