Practical Spreadsheet Risk Modeling for Management

Modeling with Objects 61

and changing the model are more straightforward. Second, it is easier to

perform “what if” analyses. Suppose that we want to change severity dis-

tribution from a Lognormal to some other distribution. Our original model

would require us to adjust the formulas in column C for each driver. Our

new model only requires us to change one cell (D4) and the rest of the model

stays intact.

A greater benet, however, is that the use of Objects will also give us the

opportunity to model the total losses of all 100 households within a single

cell. To accomplish this, we use the Aggregate menu on the ModelRisk rib-

bon. The Aggregate ...