Excel 2019 Bible

715

C H A P T E R

31

Performing Spreadsheet What-If

Analysis

IN THIS CHAPTER

Considering a what-if example

Identifying types of what-if analyses

Looking at manual what-if analyses

Creating one-input and two-input data tables

Using Scenario Manager

O

ne of the most appealing aspects of Excel is its ability to create dynamic models. A dynamic

model uses formulas that instantly recalculate when you change values in cells that are used

by the formulas. When you change values in cells in a systematic manner and observe the

effects on specific formula cells, you’re performing a type of what-if analysis.

What-if analysis is the process of asking such questions as “What happens if the interest rate on

the loan changes to 7.5 percent?” and “What occurs if we raise our product prices by 5 percent?”

If you set up your worksheet properly, answering such questions is simply a matter of plugging in

new values and observing the results of the recalculation. Excel provides useful tools to assist you

in your what-if endeavors.

Looking at a What-If Example

Figure 31.1 shows a simple worksheet model that calculates information pertaining to a mortgage

loan. The worksheet is divided into two sections: the input cells and the result cells (which contain

formulas).

Excel® 2019 Bible, First Edition. Michael Alexander, Dick Kusleika and John Walkenbach.
© 2019 John Wiley & Sons, Inc. Published 2019 by John Wiley & Sons, Inc.