Why are Spreadsheets So Important.

  I saw a tweet the other day in which the person indicated it is important students know how to use spreadsheets because most managers use them among others.  Its considered a 21st century skill.

Spreadsheets can play an important part in the mathematics classroom because spreadsheets allow calculations to be carried out faster, organize data and information, makes math more fun, and allows answers to "What if?" questions.

Its the last one that is today's focus because you can play with minor changes to see how each change effects the final results.  For instance, if you compare various offers from the bank, credit union, or the company financing to see which one is the best deal for buying a car.

The last time I purchased a car, I sat down and compared the offers to determine the best for me.  The cool thing about using a spreadsheet, one can figure see how a small change in the interest rate effects payments or final amount.  Students can even change the down payment to see how the final amounts are changed.

Adam Liss mentioned he used a spreadsheet to see how small differences in interest rates of mortgages can effect the total amount paid at the end 15 or 30 years.  Usually when one buys a house, a person has access to several mortgages.  A spreadsheet makes it easier to determine which one is best. In addition, if you are looking at pricing items in a business, its possible to see how changes in the cost of materials can change your profit margin. 

I found a lovely 32 page pdf on evaluating spreadsheet models filled with great information developing a good spreadsheet model before showing how to apply the technique to various situations such as finding the best break even point for a new pair of shoes and for modeling the multiple criteria decision making for a restaurant looking for deciding where to place a new restaurant.

Each example is done in detail following the suggested steps for creating a spreadsheet model.  At the end is a list of problems students could apply the steps to on their own so they can find an answer. I love the detail used because it makes it easier for students to follow the steps.

Check it out, play around, have fun.  Let me know what you think.  I love hearing from people and thanks to Adam Liss again for his suggestion.