Data Analysis with Microsoft Excel: Updated for Office 2007

480 Statistical Methods

You now have everything you need to use Solver.

To open Solver:

1 Click the Offi ce button and then click Excel Options.

2 Click Add-Ins from the list of Excel Options and then click Go next

to the Manage Excel Add-Ins list box.

3 Click the Solver Add-In check box if it is not already selected and

then click the OK button.

Once the Solver is installed and activated, you can determine the optimal

value for the smoothing constant.

To determine the optimal value for the smoothing constant:

1 Click the Solver button located on the Analysis group in the Data tab.

2 Ty p e F2 in the Set Target Cell text box. This is the cell that you will

use as a target for the Solver.

3 Click the Min option button to indicate that you want to minimize

the value of the mean square error (cell F2).

Figure 11-35

Exponential

smoothing

values

9 Click cell F2, type =SUM(D2:D120)/119, and then press Enter.

Verify that the values in your spreadsheet match the values in

Figure 11-35.