What-if analysis basically involves asking questions of the type “What if a value changes?” and is used every day by those involved in data analysis and decision making. “What will our profit be if our sales increase?” or “What will the future value of an investment be if we increase the annual deposit?” are common examples of what-if type questions. The flexible nature of spreadsheets makes them ideal for carrying out what-if analyses, and Excel provides a number of tools to simplify the process of creating dynamic models, such as data tables, the Scenario Manager, Goal Seek, and Solver. These tools will allow you to explore various outcomes or solve complex problems without having to enter multiple versions of formulas.
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