TABLE OF CONTENTS The use of range names is probably one of the most contentious issues in financial modelling. For some they are just plain common sense, but for others they represent the dark side of modelling. In this section, we will look at range names in some detail, and in doing so explore the arguments for and against.
Many modellers seem to prefer the geographic precision of the cell reference there is no dispute over the location of Inputs!D4. Indeed there isn't but what exactly is Inputs!D4? Most of the time we are more interested in what the cell contains, rather than where it is located. And in Chapter 1 we covered a number of simple navigation techniques which would allow us to visit the cell if required. I have encountered modellers who claim that they can read a formula and intuitively understand the elements referred to by cell reference. I might suggest that intuition is not the most reliable of modelling skills.
Some modellers argue that it is much faster to write formulae using cell references. This is undoubtedly true, for anyone reasonably proficient with the keyboard and mouse. But the number one error in financial models is that of the pointing error inserting the wrong cell reference. We certainly should not type cell references, but should point to the cell using either the mouse or keyboard. It is all too easy to click on the...
