what if analysis in excel

 what if analysis in excel

"What-if analysis" is a feature in Microsoft Excel that allows users to explore different scenarios and see how they affect the outcome of a particular formula or calculation. It's a powerful tool that can help users make better decisions based on the different possible outcomes of a situation.

There are three main types of what-if analysis in Excel:

Goal Seek: This tool allows users to find the input value that will produce a specific output value. For example, if a user wants to know what sales volume is required to reach a particular revenue target, they can use Goal Seek to find the answer.

Scenario Manager: This tool allows users to create and compare different scenarios based on different sets of input values. For example, a user can create a scenario where sales increase by 10% and another where they decrease by 5%, and compare the results.

Data Tables: This tool allows users to compare the results of a calculation across different values of one or two input variables. For example, a user can create a data table to see how different interest rates and loan amounts affect the monthly payment on a loan.

All three types of what-if analysis in Excel are useful for exploring different scenarios and making better decisions based on the possible outcomes. They are especially helpful for financial modeling, budgeting, and forecasting.

In summary, what-if analysis is a powerful feature in Microsoft Excel that allows users to explore different scenarios and see how they affect the outcome of a particular formula or calculation. There are three main types of what-if analysis in Excel: Goal Seek, Scenario Manager, and Data Tables. Each of these tools is useful for exploring different scenarios and making better decisions based on the possible outcomes.

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