Showing posts with label excel. Show all posts
Showing posts with label excel. Show all posts

7/20/2012

Head First Data Analysis: A Learner's Guide to Big Numbers, Statistics, and Good Decisions Review

Head First Data Analysis: A Learner's Guide to Big Numbers, Statistics, and Good Decisions
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(More customer reviews)
This book is for professionals that must analyze data in their daily work. First off, if you are unfamiliar with the approach of the "Head First" series of books by O'Reilly, the approach was and is revolutionary in the field of technical writing. The authors of this series know that page after page of terse text will not easily penetrate the brain of the working professional who needs help rather quickly. Traditional textbook models work best on students in a traditional classroom setting who can slowly absorb material over a period of several months with the help of bi-weekly classroom sessions with a professor. The working professional does not have this luxury of time or of personal tutoring.
Thus the authors both penetrate your brain and hold your interest by serving information up in unusual ways - odd pictures and illustrations, Q&A sessions, repeating the same material in different ways, and interesting case studies in which you are asked at every step to give your input. They'll even lead you down the the wrong path every now and then so that you remember the right one all the better.
As for the subject matter, this is not a book on statistics and how to solve problems in statistics. Instead, it is how you use various statistical models and tools and visualization to analyze often confusing corporate data and come up with recommendations based on that data. Some mathematical methods will be presented as they are necessary to solving the underlying problems - optimization, hypothesis testing, bayesian statistics, subjective probabilities, heuristics, and histograms - these are all mentioned and even have their own chapters. However, this book is also about tools - R and the analysis tools of Excel specifically. In the appendix, this book even shows you how to install R.
However, I don't believe that you could get away with knowing nothing of statistics and really get the most out of this book. If you do happen to have the luxury of a little time I suggest the following. Read the excellent Head First Statistics as a tutorial, and then use the problems in Schaum's Outline of Statistics (Schaum's Outline Series) to test your knowledge. Then you should be more than ready for this book.
The author has a chapter entitled "leftovers" that tells you what this book does not cover. I include that here so that you don't waste your time if this is what you are looking for:
1 Everything else in statistics
2 Excel skills - (book assumes previous experience)
3 Edward Tufte and his principles of visualization
4 PivotTables
5 Nonlinear and multiple regression
7 Null-alternative hypothesis testing
8 Randomness
9 Google Docs
I highly recommend this book for the right audience with the right experience level.

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Today, interpreting data is a critical decision-making factor for businesses and organizations. If your job requires you to manage and analyze all kinds of data, turn to Head First Data Analysis, where you'll quickly learn how to collect and organize data, sort the distractions from the truth, find meaningful patterns, draw conclusions, predict the future, and present your findings to others. Whether you're a product developer researching the market viability of a new product or service, a marketing manager gauging or predicting the effectiveness of a campaign, a salesperson who needs data to support product presentations, or a lone entrepreneur responsible for all of these data-intensive functions and more, the unique approach in Head First Data Analysis is by far the most efficient way to learn what you need to know to convert raw data into a vital business tool. You'll learn how to:



Determine which data sources to use for collecting information
Assess data quality and distinguish signal from noise
Build basic data models to illuminate patterns, and assimilate new information into the models
Cope with ambiguous information
Design experiments to test hypotheses and draw conclusions
Use segmentation to organize your data within discrete market groups
Visualize data distributions to reveal new relationships and persuade others
Predict the future with sampling and probability models
Clean your data to make it useful
Communicate the results of your analysis to your audience

Using the latest research in cognitive science and learning theory to craft a multi-sensory learning experience, Head First Data Analysis uses a visually rich format designed for the way your brain works, not a text-heavy approach that puts you to sleep.


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6/12/2012

R Through Excel: A Spreadsheet Interface for Statistics, Data Analysis, and Graphics (Use R) Review

R Through Excel: A Spreadsheet Interface for Statistics, Data Analysis, and Graphics (Use R)
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Skip this paragraph if you know about R and Excel.... R is a powerful programming language that is useful for generating scientific graphics (both simple and extremely complex) and for statistical work. Unfortunately it has a steep learning curve and many say the help files are not particularly helpful for novices. Excel has a user friendly system for entering data and doing basic graphics but has relatively very limited tools for statistics or complex scientific graphics. Combining the strengths of the two is the goal of this book and the free software that goes with it.
With the tools described in this book the user can point and click their way to common analyses and graphics inside of Excel without having to learn to write code in the R programming language. Both the software and book are good but not great because they do not add much to the existing tools for R.
Years ago, John Fox wrote a point-and-click code-generating add-on package for R called R Commander that revolutionized the usability of R. Inside of the R programming environment you can download the Rcmdr package and type library(Rcmdr) and get practically all the same functionality as the tools provided here. What the authors of this book do is bring the functionality of Rcmdr into a Excel as an add-on to the Excel 2003 menus or 2007 ribbon. The implementation is surprisingly smooth (including adding nice right-click menu items) and bug free.
The book itself is mostly nicely rendered color pictures. Think of it as a very well annotated PowerPoint presentation. You will be able to quickly page through it and it is well indexed. The less than 10 page appendix which explains how to install the R packages and required services (or how to install from scratch) is probably the most useful part of the book. The authors do not focus much on the "behind the scenes" strengths of their work which allow you to recalculate and pass information into and out of R "on the fly." However, they do include a few worksheets that demonstrate the ability to pass information into R and return graphics effortlessly. Think of this as the ability to add sliders and push buttons to Excel and have instantly updated high quality graphics. Unfortunately, they only give one example where they use there new RApply function to return a calculated value from R into Excel. There clearly is a lot of functionality but the book does not explain it.
If you are just starting with R this book will probably be a HUGE help to you because it saves you from memorizing a lot of code and it will help you learn how to write code by showing you the commands that were used to generate analyses and graphics. However, if you have experience with R and Rcmdr you probably want to save your money.

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In this book, the authors build on RExcel, a free add-in for Excel that can be downloaded from the R distribution network. RExcel seamlessly integrates the entire set of R's statistical and graphical methods into Excel, allowing students to focus on statistical methods and concepts and minimizing the distraction of learning a new programming language.

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5/27/2012

Microsoft Access 2010 Inside Out (Inside Out (Microsoft)) Review

Microsoft Access 2010 Inside Out (Inside Out (Microsoft))
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The book is very comprehensive. I have not read through the complete book as yet, however, the big advantage is that you can go to any section/subject and get the in depth information you require at any particular time. The information is also very clear and delves in great depth into each subject.
I especially like the complete samples of various database(s) as well as samples and code where applicable on the companion CD. With the CD you have the ability to load all these items onto your computer and make the references available at all times.
The greatest asset on the companion CD for me is the PDF file of the complete book. As I get older my eyesight is not like it used to be and I have trouble reading many books and periodicals. Having the book on PDF format makes it very easy for me to read.
Overall, I am very pleased with this purchase.

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You're beyond the basics, so dive right in and really put your database skills to work! This supremely organized reference is packed with hundreds of timesaving solutions, troubleshooting tips, and workarounds. It's all muscle and no fluff. Discover how the experts tackle Access 2010 -- and challenge yourself to new levels of mastery!

Master essential data management and design techniques
Import and link to data from spreadsheets, databases, text files, and other sources
Use action queries to quickly insert, update, or delete entire sets of data
Create custom forms to capture and display data
Design reports to calculate, summarize, and highlight critical data--and learn advanced techniques
Automate your application with macros and Visual Basic® for Applications (VBA)
Use Access Services to extend your database application to the Web
A Note Regarding the CD or DVD The print version of this book ships with a CD or DVD. For those customers purchasing one of the digital formats in which this book is available, we are pleased to offer the CD/DVD content as a free download via O'Reilly Media's Digital Distribution services. To download this content, please visit O'Reilly's web site, search for the title of this book to find its catalog page, and click on the link below the cover image (Examples, Companion Content, or Practice Files). Note that while we provide as much of the media content as we are able via free download, we are sometimes limited by licensing restrictions. Please direct any questions or concerns to booktech@oreilly.com.

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3/21/2012

Data Analysis and Decision Making (with Online Content Printed Access Card) Review

Data Analysis and Decision Making (with Online Content Printed Access Card)
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On the positive side, this book has many excellent case studies and examples. It is well written and interesting. However, I was disappointed, as I was expecting use of Excel to rigorously solve decision making and data analysis problems. The focus of the book is mostly traditional statistics solved using a group of commercial add-ins for Excel. If this is what you want, then the book would get five stars. However, for data analysis and decision making, I think a more thorough treatment using Excel without relying so much on the add-ins would have been appropriate.

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DATA ANALYSIS AND DECISION MAKING is a teach-by-example approach, learner-friendly writing style, and complete Excel integration focusing on data analysis, modeling, and spreadsheet use in statistics and management science. The Premium Online Content Website (accessed by a unique code with every new book) includes links to the following add-ins: the Palisade Decision Tools Suite (@RISK, StatTools, PrecisionTree, TopRank, RISKOptimizer, NeuralTools, and Evolver); and SolverTable, allowing users to do sensitivity analysis. All of the add-ins is revised for Excel 2007 and notes about Excel 2010 are added where applicable.
About This Edition
New Features
Chapters 2 and 3 are completely rewritten and reorganized, focusing on the description of one variable at a time, and relationships between variables. Both chapters have more coverage of categorical variables, as well as new and more interesting data sets in the examples. Many of the problems in previous editions were deleted or updated, and a number of brand new problems were added for relevance to current statistical analysis. A problem guide is available to instructors showing the context of each of the "data" problems, and it also shows the correspondence between problems in this edition and problems in the previous edition.
The previous edition's Chapter 4 is renamed Chapter 17, "Importing Data into Excel," and is completely rewritten with its section on Excel tables located in Chapter 2. (Previous edition chapters 5-17 were renumbered 4-16.)
The book is still based on Excel 2007, but notes about changes in Excel 2010 have been added where they apply. Specifically, there is a small section on the new slicers for pivot tables, and there are several mentions of the new statistical functions (although the old functions still work).
Each chapter now has 10-20 more consistent and relevant "Conceptual Questions" in the end-of-chapter sections.
The first two linear programming examples in Chapter 13 (replacing the former Chapter 14) are replaced by two product mix models, where the second builds on the first. The previous "diet" model was overly complex as a first linear programming example.
Several chapter-opening vignettes are replaced with newer and more interesting ones and there are now many short "fundamental insights" throughout the chapters. These insights are designed to allow the students to step back from the details and see the really important ideas.
All updated screenshots and accompanying explanations to reflect Excel 2007 and updated add-ins. Tips on Excel 2010 have been added where applicable. This edition now provides access to Excel add-in software via an access code to a Premium Online Content Website for every student purchasing a new book.
Instructors' Resource CD: PowerPoints, and Solutions, Case, and Example files have been updated to reflect the core text 4th edition. The Test Bank has been updated with new questions and is now offered in ExamView testing software.


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3/15/2012

Analyzing Business Data with Excel Review

Analyzing Business Data with Excel
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I like the viewpoint of this book; I have a business problem, now how do I attack that in Excel? So many books come at business problems from the perspective of a specific feature in the product. This book teaches the solution to a complex business data analysis problem through use of the features in Excel. Excellent!
It's a small book. The text is a little terse, but that's ok. Screenshots are used sparingly.
If what you want is a feature by feature breakdown of Excel then this book isn't for you. But if what you have is some data that you need to crunch and you don't know much about Excel then check this book out.

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As one of the most widely used desktop applications ever created, Excel is familiar to just about everyone with a computer and a keyboard.Yet most of us don't know the full extent of what Excel can do, mostly because of its recent growth in power, versatility, and complexity.The truth is that there are many ways Excel can help make your job easier-beyond calculating sums and averages in a standard spreadsheet.

Analyzing Business Data with Excel shows you how to solve real-world business problems by taking Excel's data analysis features to the max.Rather than focusing on individual Excel functions and features, the book keys directly on the needs of business users.Most of the chapters start with a business problem or question, and then show you how to create pointed spreadsheets that address common data analysis issues.

Aimed primarily at experienced Excel users, the book doesn't spend much time on the basics.After introducing some necessary general tools, it quickly moves into more specific problem areas, such as the following:

Statistics
Pivot tables
Workload forecasting
Modeling
Measuring quality
Monitoring complex systems
Queuing
Optimizing
Importing data

If you feel as though you're getting shortchanged by your overall application of Excel, Analyzing Business Data with Excel is just the antidote.It addresses the growing Excel data analysis market head on.Accountants, managers, analysts, engineers, and supervisors-one and all-will learn how to turn Excel functionality into actual solutions for the business problems that confront them.


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3/11/2012

Management Science: The Art of Modeling with Spreadsheets, Excel 2007 Update Review

Management Science: The Art of Modeling with Spreadsheets, Excel 2007 Update
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I bought this book because it is mandatory reading material for a course which I am taking. So far, I like the book and I find it easy to follow. The book provides good practical examples and the publisher's companion site provides a download of all major spreadsheets which are used as examples in the text. The one problem which I have had so far is that I have not been able to download Oracle's Crystal Ball trial software which is supposed to be provided as a companion to the book. The user name and password combination provided with the book does not match what is requested on the download website.

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The update to the second edition of Management Science: The Art of Modeling with Spreadsheets by Steve Powell and Ken Baker is revised to be compatible with Microsoft Excel 2007. Like the original second edition, the text expands upon the essential skills needed to develop real expertise in business modeling. In principle, two students could work side by side in a course, one using the Second Edition and relying on Excel 2003, the other using the Update Edition and relying on Excel 2007. They will be able to learn the same skills, as both versions of the book are self-contained.

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3/07/2012

Excel Data Analysis: Your visual blueprint for creating and analyzing data, charts and PivotTables Review

Excel Data Analysis: Your visual blueprint for creating and analyzing data, charts and PivotTables
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The third updated edition of Microsoft Excel Data Analysis offers an excellent visual approach to professional-level computer instruction in Excel, and uses web-based applications as keys to creating formulas, working with functions, performing predictions, automating Excel with macros, and adding color and customizing results. No Excel collection should be without this!


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Advanced techniques for Excel power users
Crunch and analyze Excel data the way the professionals do with this clean, uncluttered, visual guide to advanced Excel techniques. Using numerous screenshots and easy-to-follow numbered steps, this book clearly shows you how to perform professional-level modeling, charting, data access, data slicing, and other functions. You'll find super techniques for getting the most out of Excel's statistical and financial functions, Excel PivotTables and PivotCharts, Excel Solver, and more.
Provides a clear look at power-using Excel, the world's leading spreadsheet application from Microsoft, and part of the new Microsoft Office 2010 suite
Expands your Excel knowledge and helps you use Excel data more efficiently
Demonstrates how to retrieve data from databases;; cut, slice, and pivot data using PivotTables; model data and chart data; and use advanced formulas
Explores all features and functions in friendly, two-color pages packed with screenshots, numbered steps, and other visual graphics that clearly show you how to accomplish tasks
Includes practical examples, tips, and advice to help you get the most out of Excel's features and functions

Learn Excel at the highest levels with this practical guide.

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2/05/2012

Modeling Financial Markets : Using Visual Basic.NET and Databases to Create Pricing, Trading, and Risk Management Models Review

Modeling Financial Markets : Using Visual Basic.NET and Databases to Create Pricing, Trading, and Risk Management Models
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This is a "How To Program" book which uses financial applications as samples. It is heavy on programming basics and scratches the surface of financial modeling. That's fine if that's what you expect from the book, but the title led me to believe that I'd learn modeling techniques. I expected a book that assumed proficiency in VB and dealt with moderate to advanced financial topics.
If you already know what a where clause is and are proficient at VB.Net, this is not for you. If you know nothing about VB and want to learn it using interesting examples, this is for you.


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Limitations in today's software packages for financial modeling system development can threaten the viability of any system--not to mention the firm using that system. Modeling Financial Markets is the first book to take financial professionals beyond those limitations to introduce safer, more sophisticated modeling methods. It contains dozens of techniques for financial modeling in code that minimize or avoid current software deficiencies, and addresses the crucial crossover stage in which prototypes are converted to fully coded models.


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1/30/2012

Modeling Online Auctions (Statistics in Practice) Review

Modeling Online Auctions (Statistics in Practice)
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This book can be read as a sequel to an earlier text, Statistical Methods in e-Commerce Research (Statistics in Practice). That looked at various types of websites, like Amazon and Wikipedia, while the current offering specialises to the key case of studying auction websites. Of these, eBay dominates the discussion, simply because it is the largest such website on the Internet. In a way, the exposition is simpler than it might have been just a few years ago, when Amazon and Yahoo also ran auctions. They were keying off eBay's success and hoped to take some of that business. But their efforts came to nought, so that now if you study online auctions, it is really only eBay and a handful of much smaller entities like uBid.
The screen captures in chapter 2 of typical web pages from an auction [on eBay] shows the complex spaghetti-like source code. Note that if you do decide to screen scrape, then this is brittle, since if the website makes just minor changes in the format of their pages, extensive changes to your parsing might be necessary, to extract the same information. But as the authors make clear, screen scraping has the advantage of being free. An alternative is to use a Web Service, if that is offered by the website. Much more efficient and robust. But not all websites have this, and those that do could require payment. Plus the information offered by their Web Service might not include data that you need.
Chapter 3 tackles the problem of how to simulate data using continuous distributions, when actual auction data often looks like a mixture of continuous and spiky inputs, where the latter are bids of high frequency, that stand significantly above the rest of the bid distribution.
Chapter 4 discusses various models - exponential, log, logistic and inverse logistic, that can be used to model a given auction. But the problem is that across a set of auctions, even for instances of the same item being offered, all such models might be observed. Where a specific auction could be best fitted by a log, say, while another auction looks like a logistic. The authors suggest a "Beta()" function that has only 2 parameters. This turns out to be easy to compute, and, depending on the choices of parameter values, can replicate each of the 4 earlier models. Just as importantly, the fitting of a Beta to a given auction can be automated, which gets around an earlier problem of having to make a manual choice between one of the earlier models.
Perhaps as interestingly, the chapter goes further, into studying what the book calls the spatial similarity between auctions. The spatial refers to auctions where items differ slightly. For example, a gaming computer that has different colours, and different disk sizes and different memory sizes installed. This is a multidimensional feature space, where the features might differ continuously [like memory] or discretely [like colour]. It reflects the well known attraction of eBay where if you search for a popular item, you can find hundreds [or even thousands] that differ in parameters like these. Modelling the behaviour of bidders when confronted by a surfeit of choices would be good. The authors show a way to tackle how to define a metric in the feature space.

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Explore cutting-edge statistical methodologies for collecting, analyzing, and modeling online auction data
Online auctions are an increasingly important marketplace, as the new mechanisms and formats underlying these auctions have enabled the capturing and recording of large amounts of bidding data that are used to make important business decisions. As a result, new statistical ideas and innovation are needed to understand bidders, sellers, and prices. Combining methodologies from the fields of statistics, data mining, information systems, and economics, Modeling Online Auctions introduces a new approach to identifying obstacles and asking new questions using online auction data.
The authors draw upon their extensive experience to introduce the latest methods for extracting new knowledge from online auction data. Rather than approach the topic from the traditional game-theoretic perspective, the book treats the online auction mechanism as a data generator, outlining methods to collect, explore, model, and forecast data. Topics covered include:
Data collection methods for online auctions and related issues that arise in drawing data samples from a Web site
Models for bidder and bid arrivals, treating the different approaches for exploring bidder-seller networks
Data exploration, such as integration of time series and cross-sectional information; curve clustering; semi-continuous data structures; and data hierarchies
The use of functional regression as well as functional differential equation models, spatial models, and stochastic models for capturing relationships in auction data
Specialized methods and models for forecasting auction prices and their applications in automated bidding decision rule systems

Throughout the book, R and MATLAB software are used for illustrating the discussed techniques. In addition, a related Web site features many of the book's datasets and R and MATLAB code that allow readers to replicate the analyses and learn new methods to apply to their own research.
Modeling Online Auctions is a valuable book for graduate-level courses on data mining and applied regression analysis. It is also a one-of-a-kind reference for researchers in the fields of statistics, information systems, business, and marketing who work with electronic data and are looking for new approaches for understanding online auctions and processes.
Visit this book's companion website by clicking here

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10/24/2011

The Active Modeler: Mathematical Modeling with Microsoft Excel Review

The Active Modeler: Mathematical Modeling with Microsoft Excel
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This text is a softcover, even though at this time Amazon still lists it as a thin hardcover. It is written on the same level as Giordano, Wier and Fox's Mathematical Modelling, but focuses directly on the use of Microsoft's Excell. I am one of the many annoyed with Microsoft, but since Excell is ubiquitious, it makes a reasonable choice for a course. The book is very visual showing, for example, how to use Excell to draw Feigenbaum diagrams to illustrate chaos, how to illustrating Newton's method (drawing the tangent lines...), drawing Bezier curves for smoothing... It points out many of Excell's useful features (some have found just learning how to add scrollbars useful).

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This is a hands-on introduction to modeling a wide variety of applications in Microsoft Excel. It features numerous tutorials and applications to illustrate how to model and solve problems in Excel. It can be used by itself or as a supplement to a text in Mathematical Modeling or Liberal Arts Mathematics. Neuwirth and Arganbright offer a more accessible and hands-on alternative than do other modeling texts.

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9/15/2011

Modeling Derivatives Applications in Matlab, C++, and Excel Review

Modeling Derivatives Applications in Matlab, C++, and Excel
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I highlight two points:
1. The inclusion of Matlab and Excel code in almost all topics of the book.
2. All the content is new and more advanced, there is no recovered topics of his previous book.


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Prebuilt Code for Modeling and Pricing Today's Complex DerivativesJustin London shows how to implement pricing algorithms for a wide variety of complex derivatives, including rapidly emerging instruments covered in no other book. Utilizing actual Bloomberg data, London covers credit derivatives, CDOs, mortgage-backed securities, asset-backed securities, fixed-income securities, and today's increasingly important weather, power, and energy derivatives.His robust models are designed for both ease of use and ease of adaptation, and may be downloaded by the book's purchasers from a secured Web site.Modeling Derivatives Applications in Matlab, C++, and Excel will be indispensable to sell-side professionals who model derivatives; buy-side professionals who must understand the derivatives offered to them; experienced quants; developers at Wall Street firms; and any financial engineering practitioner or student entering the derivatives field for the first time.Presents broader coverage and more models than any competitive book Covers everything from swaps to interest rate models, mortgage- and asset-backed securities to the HJM model Includes code for all three leading derivatives development platforms The only book to present models for Matlab, C++, and Excel Addresses the fastest-growing areas of derivatives development Includes models for weather, power, and energy derivatives, CDOs, and more Contains extensive real-world examples. Theentire book utilizesMatlab, C++, and Excel. Users need Matlab installed, Visual C++, and Excel.In addition, some examples using Matlab toolkits are used: Chapter 1makes use of the Fixed-Income Toolkit. Appendix A makes use of the Financial Derivatives Toolkit and Matlab Excel Link.These toolkits do not come with the book, but can be obtained from Mathworks.Downloadable models available ONLY to purchasers of this book.Purchasers receive a unique access code enabling secure access to downloadable, prebuilt code and templates for Matlab, C++, and Excel. Preface xv Acknowledgments xix About the Author xxiChapter 1Swaps and Fixed Income Instruments 1 Chapter2 Copula Functions 67Chapter3 Mortgage-Backed Securities 91Chapter4 Collateralized Debt Obligations 163Chapter5 Credit Derivatives 223Chapter6Weather Derivatives 299Chapter7 Energy and Power Derivatives 333Chapter8 Pricing Power Derivatives: Theory and Matlab Implementation 407Chapter9 Commercial Real Estate Asset-Backed Securities 447Appendix AInterest Rate Tree Modeling in Matlab 473Appendix BChapter 7 Code 503 References 543 Index 555

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9/08/2011

Managing Business Complexity: Discovering Strategic Solutions with Agent-Based Modeling and Simulation Review

Managing Business Complexity: Discovering Strategic Solutions with Agent-Based Modeling and Simulation
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'Managing Business Complexity' is a great start at bridging the significant academic work in complexity science over recent years to business applications. It provides an introduction to agent-based simulations and an overview of the characteristics and advantages of agents, and walks the reader through two illustrative examples. Such examples are especially helpful to readers with little or no previous experience using agent-based models.
Applications of complexity science to business are still in their infancy. As such, the discussion in the book leans towards the academic, and more pointedly towards programmers rather than business practitioners with scant scientific background. Future editions of this book might benefit from including further business applications, and including the impact to bottom line.
This book is highly recommended as an overview of this exciting subject and its applicability to business situations.

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Agent-based modeling and simulation (ABMS), a way to simulate a large number of choices by individual actors, is one of the most exciting practical developments in business modeling since the invention of relational databases. It represents a new way to understand data and generate information that has never been available before--a way for businesses to view the future and to understand and anticipate the likely effects of their decisions on their markets and industries. It thus promises to have far-reaching effects on the way that businesses in many areas use computers to support practical decision-making.Managing Business Complexity is the first complete business-oriented agent-based modeling and simulation resource. It has three purposes: first, to teach readers how to think about ABMS, that is, about agents and their interactions; second, to teach readers how to explain the features and advantages of ABMS to other people and third, to teach readers how to actually implement ABMS by building agent-based simulations. It is intended to be a complete ABMS resource, accessible to readers who haven't had any previous experience in building agent-based simulations, or any other kinds of models, for that matter. It is also a collection of ABMS business applications resources, all assembled in one place for the first time. In short, Managing Business Complexity addresses who needs ABMS and why, where and when ABMS can be applied to the everyday business problems that surround us, and how specifically to build these powerful agent-based models.

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8/27/2011

Excel Modeling and Estimation in Investments Review

Excel Modeling and Estimation in Investments
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Craig W. Holden's "Excel Modeling in Investments" came as an excellent surprise to me when I received a faculty review copy from the publisher. I have long used Simon Benninga's competing text "Financial Modeling in Excel" to teach undergraduate and graduate financial modeling courses, however, I seriously am considering switching to Holden's EMinI. Holden correctly emphasizes discounting a bond's value on various yield curves, rather than a linear or fixed discount rate as in Benninga. Holden has some flaws, his layouts for binomial pricing models are inefficient for adapting to trinomial converging tree models, for example, but Holden is the only serious rival to Benninga in coverage of the major topics of modeling. Holden covers bonds, duration, convexity, portfolio optimization, financial planning, and the leading option pricing models. In addition, he covers cost of carry in the context of spot and futures prices, and interest rate parity. Holden does not cover Value at Risk, cheapest to deliver bonds, and has little on Visual Basic. However he does cover the Vasicek and Cox-Ingersoll-Ross interest rate models more thoroughly than Benninga. Holden's flaws are many: there is no index, and this is a text that cries out for one. Similarly, the footnotes are inadequate, and a broad "Further Reading" and bibliography should be here. Holden also suffers from being written as a companion text to popular finance textbooks such as Bodie Kane and Marcus, however, one always has the impression that the author was looking more to maximizing the market share of the text than really selecting the best chapters. We can only hope that Holden follows the better angels of his nature and includes more detail and chapters, perhaps on Monte Carlo simulation, VaR, and VBA programming. The CD-Rom, while helpful, is a little light, but this is the author's intention for he wishes students to build their own models from scratch.
In summary, I heartily recommend this book coupled with Benninga's more detailed "Financial Modeling in Excel" and find the practical emphasis indispensable for those working with or using a theoretical text such as Bodie Kane and Marcus. For those students that want careers in finance, this book is fundamental, primary, and necessary, for it emphasizes practical skills you will be executing everyday at a much higher level in a bank or asset management firm. Master these skills and models now before beginning your career and the acceleration of your promotions responsibilities will exceed those of your peers quickly.

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8/05/2011

Modeling Structured Finance Cash Flows with Microsoft Excel: A Step-by-Step Guide.Book & CD-ROM Review

Modeling Structured Finance Cash Flows with Microsoft Excel: A Step-by-Step Guide.Book and CD-ROM
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In structured finance, there is a tremendous discrepancy between academic literature and practice. In purporting a generalizable, scientific approach, many textbooks avoid explaining the intracacies of actual structured finance deals. The fundamental issue is that the implicit value of deal transparency required for issuer and investor tends to be overlooked by authors approaching the field from an academic background. Technical pyrotechnics that suit liquid markets fail when fees, interest rates, and other deal specifics are malleable constructs negotiated among a handful of parties. At the same time, basic bond math on an unsegregated pool of loans cannot accurately describe how assets generate cash flows and the risks faced by investors.

MFSC is the *only* book (afaik) that demonstrates how real structured finance pros bridge the void between these 2 common pitfalls made by other structured finance books. For one, the calculations that belie each component of a structured finance deal is integrated into a single model rather than considered separately. Other books may describe how cash flows pay out in a senior-sub structure, but they won't, for example, take the time to step through how funding costs and triggers affect the cash flows. The primary model also gives the user flexibility to stress the model and enables the user to treat the model as a base for all structured finance deals. Through a neatly organized inputs sheet, each component in the primary model described painstakingly anticipates the gamut of variations common to these types of deals.

All this in a book that's easy to follow and a delight to read. Five stars.


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A practical guide to building fully operational financial cash flow models for structured finance transactions
Structured finance and securitization deals are becoming more commonplace on Wall Street. Up until now, however, market participants have had to create their own models to analyze these deals, and new entrants have had to learn as they go. Modeling Structured Finance Cash Flows with Microsoft Excel provides readers with the information they need to build a cash flow model for structured finance and securitization deals. Financial professional Keith Allman explains individual functions and formulas, while also explaining the theory behind the spreadsheets. Each chapter begins with a discussion of theory, followed by a section called "Model Builder," in which Allman translates the theory into functions and formulas. In addition, the companion CD-ROM features all of the modeling exercises, as well as a final version of the model that is created in the text.
Note: CD-ROM/DVD and other supplementary materials are not included as part of eBook file.

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8/04/2011

Excel Modeling &_Estimation in Corporate Finance (2008 publication) Review

Excel Modeling and_Estimation in Corporate Finance (2008 publication)
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I am a huge fan of this book for several reasons. First, I believe that Professor Holden is absolutely right in trying to move finance from a calculator driven study to spreadsheets. Everyone uses spreadsheets in their work, NOT calculators. So, it is not only useful to use spreadsheets, but to learn how to build them.
Another very nice thing about this book is that it uses plain vanilla Excel. You don't need any special add-ins. This allows the user to understand what Excel on its own is capable of (and that is quite a bit). It also means the student doesn't have to buy anything more than this book to get everything the author intended.
I also like the way he takes the student along. You build the first spreadsheet with the steps he provides, and then you modify that to make the second, and then the third, and so on. You get to see the increasingly powerful things one can do with Excel. The graphs he has one build also help because it allows you to change different values and immediately see how it changes the graph. This is immensely important in helping the student develop intuitions about how the changing of this or that number affects the topic of the spreadsheet.
This book on corporate finance begins with the time value of money, a basic concept, but one that seems to elude any number of people. Part 2 takes the student into the valuation of bonds and stocks. You also get to build a yield curve (very useful) and US yield curve dynamics. Part 3 is Capital Budgeting and this means Project Net Present Value (NPV), Cost-Reducing Project, Break-Even Analysis, Adjusted Present Value, Flows to Equity, and WACC.
Part 4 takes on topics of financial planning such as Corporate Financial Planning, the Du Pont System of Ratio Analysis, and Life-Cycle Financial Planning. The last part, Part 5 deals with options and corporate finance. You get to build spreadsheets for Binomial Option Pricing, Black Scholes Option Pricing, Debt and Equity Valuation, and Real Options.
While the book uses the Brigham text notation, the accompanying CD has several important chapters with the Brealy, Keown, Ross, and Van Horne notation systems. The CD also supplies databases and problems to solve using the spreadsheets. The author also has a website for additional info and updates.
Terrific book for finance classes or as a supplement to your own study.

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8/02/2011

Next Generation Excel: Modeling in Excel for Analysts and MBAs (Wiley Finance) Review

Next Generation Excel: Modeling in Excel for Analysts and MBAs (Wiley Finance)
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I heartily recommend this book to anyone that uses Excel on a daily basis for business analysis or for MBA students. Early in the introduction, Dr. Gottlieb promises that if you use Excel for 10 hours a week or more, this book will save you hundreds of hours per year. He delivers!
You don't need to build an excel spreadsheet to calculate that this book is worth many times its cover price to users of excel. Even if you are a "power user" you will quiclky find tips that will make you more efficient.
I was fortunate enough to take an Excel class from Dr. Gottlieb a few years ago during the "crash math course" week while getting an MBA at Columbia University. I don't want to offend any of my esteemed professors, but those few hours with Dr. Gottlieb were probably more useful than several of my semester-long courses to me. I currently use Excel for 3-4 hours per day to analyze stocks at my hedge fund and his tips have saved me hours and helped to make my graphical representation of data look top-notch.
This book is not a basic "how-to" or "for dummies" book on Excel. It is the perfect book for you if you use Excel frequently, but are frustrated that you have to perform certain repetitive keystrokes or clicks to get it do what you want. Perhaps you want your charts to look better. Maybe you didn't even know that you could have custom lists built in, for example, instead of manually entering FQ01, FQ02, etc. You can add trend lines to graphs; you can format parts of graphs differently than other parts. You can name cells, groups of cells to make your work easier.
Dr. Gottlieb exposes the many keystroke shortcuts that can make your daily grind with Excel less laborious. His book is laid out in a very concise, neat organization. I think the best way to really benefit from it is to power through entire sections that apply to your work and try his examples. He provides some problems at the end of each chapter (he is in academia, after all) but mercifully; he provides the answers, too!
This book is only about 280 pages long, but don't let that fool you, if you compare it to some other Excel books with 800 pages. He has more time-saving information in it than books 2 or 3 times as long. The beauty of his book is everything he shows is something an analyst using Excel in the real world actually uses it for. He is not just running through every menu, detailing every useless capability of Excel, like the other books.
This is the key advantage to Dr. Gottlieb's book. He has a list of over 50,000 people that he sends his "tip of the month" to and they (like me) are not shy about emailing him questions. This gives him keen insight into what real Excel jockeys are interested in, and he addresses those issues in this book. Get it today and you will discover many things that Excel can do for you, in a much easier way than you are using it today!

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Dr. Isaac Gottlieb personally trained 35 of our top analysts and finance professionals in a customized advanced Excel seminar. Many of the tools covered in this book were part of this well-received training. For the past five years, Isaac's monthly Excel-Tip-Of-The-Month newsletter has been a personal favorite of mine. In an age where email overload is common, I always look forward to his email and many of my associates and team members around the world are part of his over 50,000 monthly recipients. This compilation is a must-have for any finance professional who wants to be a better business partner and truly add value in a more efficient manner!
Anthony N. Caspio, CMAVice President - FinanceSealed Air Corporation
Excel has been one of the most powerful applications of recent times, but most users, unfortunately, only scratch its surface. Prof. Gottlieb's book leverages his years of Excel workshops in the US, Europe and Asia, and he unleashes the tremendous potential and power of Excel. His to-the-point explanations and his innovative screenshots bring Excel alive to readers who may just have a working knowledge of the software. This amazing volume is an application-oriented book for Excel users who want answers fast, and who need to maximize the application's awesome potential.
Prof. Farrokh Langdana, Ph.D.Director, Rutgers Executive MBAProfessor, Rutgers Business School
If I should thank Microsoft for inventing Excel, then I would like to thank Dr. Isaac Gottlieb more for teaching me how to use it to solve the real problems in my real work. Keep going Isaac!
Wu HaowenDirector of International ProgramsSchool of Management, Dalian University of Technology
Isaac Gottlieb's Next Generation Excel is an invaluable resource. The fruit of many years of teaching Excel to university business students, Gottlieb's book covers the topics that the Excel user needs to become more efficient and sophisticated. It is easy to read and follow. A wonderful book!
Simon BenningaProfessor of Finance, Faculty of Management, Tel Aviv UniversityAuthor of Principles of Finance with Excel
As an avid user of Excel, several years ago I came across Isaac's Excel-Tip-Of-The-Month newsletter. I quickly realized that Isaac exploits Excel to the "next usability level." Like his monthly newsletters, Isaac has composed a book that is clear and concise similarly reflecting his teaching methods. This book helps intermediate users to rapidly acquire Excel-pro skills, while allowing advanced users to grasp concepts in one single pass-through. Furthermore, Isaac takes day-to-day challenges and provides elegant ease of use solutions.
Moshe CastielManager, IT – Technology & OperationsTIAA-CREF
Next Generation Excel presents an interesting perspective on the resourcefulness of Microsoft Excel like never before. This book is an excellent and a much-needed resource to MBA students, educators and Excel enthusiasts. In reviewing this book, the principal criteria included content, organization and Excel add-on files. The book is neatly organized into sections; starting with basic Excel tools and functions, commonly used statistical tools, what-if-analysis and then moving on to advanced data features, solver-add ins and various other ToolPaks, nicely complemented with the Excel snapshots to provide a user friendly experience. As a result, one can jump directly to the relevant sections and use the Excel files provided to get a more hands-on experience. The right mix of theory and practice, is the unique selling point (USP) of this book!
Anirudha "Andy" Vaidya, MBACEOAVS System

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Excel Data Analysis: Modeling and Simulation Review

Excel Data Analysis: Modeling and Simulation
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I was a graduate student of Professor Guerrero at The College of William and Mary and have to recommend this book. For those unfortunates who did not have him as an instructor, this is a book that gives you the experience of spending time with him in the classroom. The practical application of Excel as a modeling and simulation tool is delivered in a conversational style that engages the reader and occasionally generates a chuckle. Yes, a chuckle in a text that includes the words Excel, Modeling and Simulation in the title. However, inbetween the chuckles is solid theory and application. It's a clever text.
I would recommend this book if only for the discussion of the feng shui of worksheet development - as users, we sometimes don't think through the design of the excel workbook. We build and link, build and link, build and link...
So, Senior Brain, I put my workbook in your hands...

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This book is written for the students and practitioners who are looking for a single introductory Excel-based resource that covers three essential business and analytical skills-Data Analysis, Business Modeling, and Simulation of Complex Problems. The focus of the book is clearly on analysis of problems for decision making, yet detailed explanations regarding how to use Excel tools are provided. After many years of teaching and consulting, it is abundantly clear to me that for most students, a good example is worth its weight in gold. This book contains many excellent examples in each chapter, some simple and others more complex, and there is an abundance of exhibits to guide the student through the maze of steps necessary for each analysis.The content is quite diverse: data presentation - the Feng Shui of spreadsheets, effective communication and collaboration, data preparation - import, scrub, manipulate data, data analysis - statistical methods: descriptive, inferential, and predictive, Design of Experiments, modeling - deterministic, probabilistic, What-if, Scenarios, simulation - quantifying uncertainty, Monte Carlo Simulation, optimization - constrained, Linear Programming, non-linear models, Goal Seek.Couple these features with detailed discussions of how to realistically organize and extract insight from complex problems, and I believe you have a unique educational combination in one book.

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