As the name suggests what if analysis,means the analysis of different scenarios with provided different conditions.Excel,being considered the most easy tool but it includes the powerful tools for mathematical calculations. This feature ‘what if analysis’ helps you to experiment with you data,means what will happen if this condition occurs.Let’s take a deep dive into what if analysis with an example.
Assume you own a book store and you need to find out your highest selling price rates and lowest selling price rates with the different scenarios.We already decided the highest price of the book will be 50 units and lowest price will be 20 units.
The total profit of Book Store will be 3800 units.
Different Scenarios in Mind
It can be possible that highest price either can increase or decrease,might go to 40 units or 90 units or 70 units also.We can use Scenario Manager to create different scenarios. Let’s make different scenarios by following up the steps
- Go to Data tab and click on what if analysis
- Click on Scenario Manager and add a scenario by clicking add on it and change the column changing cells and click ok.
- Enter any scenario value whatever you want.
- Enter OK and pop up will occur and press Show Button.
- See the results have changed in your first input values.
This is the basic example which involves what if analysis.