Excel includes many powerful
tools to perform complex mathematical calculations, including what-if analysis.
What-if analysis is a useful way of being able to test out various scenarios in
Excel. You can look at these things two
different ways.
The first way is to change the
input variables and see what impact that has on the output. The scenario
manager and data tables work in this way.
The second way is to say what
outcome you would like to have and ask Excel to calculate what change in the
inputs would be required to achieve this. The goal seek feature works this way.
Scenario Manager
The Scenario Manager allows
you to create and save different input values that create different results.
These are called scenarios.
To set up a scenario, the first
thing you have to do is identify the various cells whose values can vary in the
scenarios. Next, you select these
cells, then click the Data tab and go to What-If Analysis, then Scenario
Manager.
Click Add.
For our scenario, we're going
to do Most Likely Case.
Enter Most Likely Case in the
Scenario Name box.
Click OK.
Now enter the values for the
most likely case.
Click Add to add another
scenario.
When you're finished adding
scenarios, click OK.
Click on the scenario, then
click Show to see the numbers change.
From this window, you can also
produce a summary report. This shows the changing and resulting values for your
scenarios, in addition to the current values.
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