Explanation
What-If Analysis helps users understand how changes in input values affect a calculated result.
The three major tools are:
- Goal Seek
- Data Table
- Scenario Manager
Goal Seek
Goal Seek finds the input required to achieve a specific result.
Example
|
Item |
Value |
|
Quantity |
1000 |
|
Price |
500 |
|
Revenue |
500000 |
|
Cost |
350000 |
|
Profit |
150000 |
Formula for Profit:
=B4-B5
Suppose the target profit is:
₹200,000
Goal Seek can determine what input needs to change to reach that target.
Data Table
A Data Table shows how different input values affect a formula.
Example:
|
Interest Rate |
EMI |
|
8% |
|
|
9% |
|
|
10% |
|
|
11% |
|
|
12% |
Instead of changing the rate manually five times, a Data Table can calculate the corresponding results together.
Scenario Manager
Scenario Manager stores different groups of input values.
Example:
|
Scenario |
Sales |
Expenses |
|
Best Case |
200000 |
80000 |
|
Normal Case |
150000 |
90000 |
|
Worst Case |
100000 |
95000 |
This allows users to compare possible business situations.
Practice
Create a simple profit model and identify how Goal Seek, Data Table, and Scenario Manager could be used with it.
At this stage students only learn the tools and basic workflow. Each What-If tool will be taught in detail in its separate Topic.