Goal Seek and One-Way Data Tables

In this lesson, you started working with the powerful What-If Analysis tools in Excel. With these
tools, you can let Excel take care of the complicated calculations so that you can easily explore
different scenarios in a systematic way.

Using data tables, you can see what happens to formulas as their inputs change. On the other hand,
with Goal Seek, you can begin with a desired output in mind and find the necessary input to make it
happen.

Goal Seek
With Goal Seek, you can tell Excel the output you want from a formula. Then, Excel will go through
the trial and error process for you, saving you the work and usually giving a more precise answer
than you could guess yourself.

The application of Goal Seek that you saw in the example was finding the break-even point, when a
company’s profit is zero.

To use Goal Seek,

1. Go to the Data Tab. Click on What-If Analysis, then Goal Seek (in the Data Tools or Forecast
group).
2. A pop-up window will appear. Fill out the fields as follows:
a. Set cell: Enter the reference to the cell that contains the formula for the output.
b. To value: Enter the result that you want.
c. By changing cell: Enter the reference to the cell that contains the input you want to
adjust.
3. Click OK. Goal Seek will run and update your spreadsheet to the desired result.
In the Quality Sweater Company example, you were asked to find the response rate for which the
company breaks even. To do this, you told Goal Seek to set the cell containing profit to the value 0 by
changing the cell containing the response rate.

For more guidance, you can visit the page Use Goal Seek to find the result you want by adjusting an
input value (Microsoft Support).
One-Way Data Tables
In the last module, you saw how using cell references helps create a flexible spreadsheet that lets
you experiment with different values. When modeling for a business, you usually want to experiment
with a whole range of different situations. You could plug different numbers into your model and
keep track of the results manually, but this can be time-consuming and potentially adds human error.
Generating a data table in Excel is a quick way to see a range of different situations. Data tables can
also automatically recalculate when you make changes in your spreadsheet model.

A one-way data table (also called a one-variable data table) lets you see how one or more outputs
change as a single input changes.

To create a simple one-way data table, with one input and one output:

1. Type the list of different values that you want to use as inputs in one column of your
spreadsheet.
2. Enter the formula in the cell one row above and one column to the right of your column of
values. This is the “ghost cell” that you saw in the video example. Excel needs this cell to
create the data table, but it usually does not make much sense to a person reviewing the
table - for this reason, you might choose to make the text or background of the cell gray.
3. Select the range that includes both the column of values and the “ghost cell” with the
formula. Do not select table headers, only numbers.
4. Go to the Data tab. Click What-If Analysis, then click Data Tables (in the Data Tools or
Forecast group).
5. A window will pop up with fields for column input cell and row input cell. Enter the cell
reference for the input of the formula as the column input cell. You list it as the column input
cell because the inputs are listed down a column.
6. When you click OK, your data table will appear.
To create this table, Excel took each value from your column of inputs, substituted it into the
designated column input cell, recalculated the formula in the “ghost” cell, and then put the result in
the corresponding row of the data table. You can always tell whether a cell is part of a data table by
clicking and looking in the formula bar: you will see the expression {=TABLE()} with a cell reference
in the parentheses.

There are more options to explore for one-way data tables. You can make a row-oriented table with
a similar process, listing your inputs along a row instead of down a column. You can also add more
than one formula to a data table to show how the input affects multiple outputs. To learn more about
these options, see Calculate multiple results by using a data table (Microsoft Support).

Recalculating Data Tables

By default, Excel automatically recalculates formulas when you make changes in your spreadsheet.
If you have a lengthy data table, automatic recalculation might slow things down. For this reason,
Excel provides different options, which you can find under Calculation Options in the Calculation
group on the Formulas tab.

 Automatic - recalculates everything when you make a change

 Automatic Except for Data Tables - recalculates everything except for data tables when you
make a change. To recalculate the data tables, hit the Calculate Now button (on the
Formulas tab) or use the function key f9.
 Manual - Excel will never recalculate on its own. It only recalculates if you click the Calculate
Now button (on the Formulas tab) or use the function key f9.
You can choose the option that works best for you.

For more information, see Change formula recalculation, iteration, or precision in Excel (Microsoft
Support).

In the next example, you will learn how to use the other type of data table, with two variables.

Two-Way Data Tables and More

Functions
In the previous example, you continued to work with what-if analysis tools in Excel. You learned how
to use a two-way data table, and how to incorporate some new functions to build more complex
models.

Two-Way Data Tables

Two-way data tables (also called two-variable data tables) let you see how two different inputs jointly
affect a single output.

The process for creating a two-way data table is similar to creating a one-way data table, but the set-
up is slightly different.

1. Place the formula in one cell in your spreadsheet. This is the “ghost cell” that you saw in the
video example. Excel needs this cell to create the data table, but it usually does not make
much sense to a person reviewing the table - for this reason, you might choose to make the
text or background of the cell gray.
2. Type the list of input values for one of the inputs in one column below the formula.
3. Type the list of input values for the other input in one row to the right of the formula.
 4. Select the entire range, including the whole row and column and the formula. Do not select
any titles or headers for the table.
5. Go to the Data Tab. Click What-If Analysis, then click Data Tables (in the Data Tools or
Forecast group).
6. A window will pop up with fields for column input cell and row input cell. Enter the cell
references:
a. The column input cell is where you want to substitute the values listed down the
column.
b. The row input cell is where you want to substitute the values listed along the row.
7. When you click OK, your data table will appear.
For more help, you can visit Calculate multiple results by using a data table (Microsoft Support).

Conditional Formatting for Tables

Two-way data tables can get large and difficult to parse at a glance. When presenting your
spreadsheet to others, you might consider showing trends in a data table with conditional formatting.

Conditional Formatting can be found on the Home tab in the Formatting group. There are many
options for you to experiment with.

 Highlight Cells Rules and Top/Bottom Rules: These options apply formatting to only the cells
that meet certain criteria. For example, you can use this to highlight the maximum value in
the table, or mark values below a certain number.
 Color Scales: This option is useful to show the relationship between values. Cells are filled in
a gradient to show where they fall on a scale between the highest and the lowest value. This
was the option used in the video example.
 Data Bars: Similar to color scales, you can use this option to show the relationship between
values. Instead of being filled with color, a rectangular bar is drawn in each cell to show its
relative size. This might be less readable than a color scale in a two-way data table.
For more information, see this page on conditional formatting on Microsoft Support.

More Functions
In this example, you also worked with some new functions: you used the IF function to help model
sales and demand, and you used the VLOOKUP function to simplify calculations involving a table.

Help with Functions

Recall that for help with functions, you can use the function library in Excel by clicking the fx button
to the left of the formula bar. When you select a function through the library, Excel will walk you
through each of the necessary inputs with a detailed description in a pop-up window.

Excel will also give you some guidance when you are typing a function in yourself. Below the cell,
Excel provides a list of the short names of the required inputs. Inputs in square brackets [] are
optional. The input you are currently on is bolded. This is a good option if you are familiar with the
function already, but may need a reminder of the exact order in which to place your inputs. For
example, the guide for the VLOOKUP function is shown in the screenshot below.
IF function
The IF function chooses the content of a cell based on the truth of a logical statement.

The IF function takes three inputs:

1. logical_test: A logical statement that you want to test.

2. value_if_true: The desired result when the statement is true.
3. value_if_false: The desired result when the statement is false.
For example, you saw how to use the IF function to determine surplus based on order quantity and
demand. Suppose you had the order quantity in cell A1 and the demand in cell A2.

1. The logical test is whether order quantity was greater than demand: A1 > A2
2. If this is true, then the surplus is the difference of the order quantity and the demand, so the
value is A1 - A2.
3. If this is false, then there is no surplus, so the value is 0.
Thus surplus could be computed with the formula =IF(A1>A2, A1-A2, 0).

For more information and to resolve common problems, see IF function (Microsoft Support).

VLOOKUP function
The VLOOKUP function can be used to retrieve values from a table. For example, in the video you
saw how to use VLOOKUP to retrieve a unit price based on an order quantity.

The VLOOKUP function takes four inputs:

1. lookup_value: The value you want to look for.

2. table_array: The range of cells where you want to look for that value.
3. col_index_num: The column number in the range that contains the value you want to return.
4. range_lookup: This is either TRUE if you want an approximate match or FALSE if you want
an exact match. If you leave off this input, the default is TRUE.
For more information, see VLOOKUP function (Microsoft Support).