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MS Excel What If Analysis Tools

The document discusses three tools in MS Excel for what-if analysis: Scenario Manager, Goal Seek, and Solver. Scenario Manager allows users to create and switch between different sets of input values to view their effects on model results. Goal Seek varies an input cell value until a formula returns the desired output value. Solver is more powerful than Goal Seek by allowing constraints and finding the optimal values for multiple changing cells to maximize or minimize an output cell.

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Reagan Ssebbaale
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© © All Rights Reserved
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Download as PPT, PDF, TXT or read online on Scribd
147 views

MS Excel What If Analysis Tools

The document discusses three tools in MS Excel for what-if analysis: Scenario Manager, Goal Seek, and Solver. Scenario Manager allows users to create and switch between different sets of input values to view their effects on model results. Goal Seek varies an input cell value until a formula returns the desired output value. Solver is more powerful than Goal Seek by allowing constraints and finding the optimal values for multiple changing cells to maximize or minimize an output cell.

Uploaded by

Reagan Ssebbaale
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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MS Excel

What if Analysis Tools

NYESIGA CATHERINE
Makerere University Business School
Tools
Scenario Manager
Goal Seek
Solver

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Scenario Manager
A scenario is a set of values that Excel saves and can
substitute on command in a worksheet model. You can
create and save different groups of values on a worksheet
and then switch to any of these new scenarios to view
different model results.
For example, if you create a budget worksheet but are
uncertain what revenue value to include, you can define
different values for the revenue and then switch between the
scenarios to perform what-if analyses.
To build scenarios, choose Data, what analysis then
“Scenario Manager” dialog. Follow the prompts.
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Scenario Manager
SM may be similar to data tables, however, instead
of showing the changed values in a table of results
we show a number of possible variations individually
as different worksheet scenarios. This method has
the advantage of allowing the viewer to see the
changes within the worksheet itself and is often
useful if you have a small number of scenarios you
want to work with or present.

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To create a scenario
Click the Add… button on the “Scenario Manager”
dialog. The “Edit Scenario” dialog opens.
2) Complete the “Edit Scenario” dialog.
3) Click OK.
4) Excel displays a “Scenario Values” dialog and
prompts for values for each of the model cells
identified as changing cells.
5) Click OK to return to the “Scenario Manager”
dialog.
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To create a scenario Cont
6) To display a scenario, return to the “Scenario Manager” dialog,
select a scenario by name, and click the Show button at the bottom
of the dialog. The cells in red at left are identified as changing cells.
7) Generate a summary of the various scenarios you’ve built by
clicking the Summary… button on the “Scenario Manager” dialog.
8) Excel opens a “Scenario Summary” dialog that prompts for the
type of report (summary or PivotTable) and “result cells”. Result cells
are cells you want the summary report to track.
9) Click OK. Excel inserts a new worksheet into the workbook and
gives it the name “Scenario Summary” The summary devotes one
column to each of the scenarios created

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Goal Seek
When you know the result you want from a
single formula but not the input value the
formula needs to determine the result, use
Excel’s Goal Seek.
When goal seeking, Excel varies the value
in a worksheet cell you specify until the
formula that's dependent on that cell
returns the result you want.
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Goal Seek cont
Open Goal seek from “What-If Analysis” group from the Data tab.
A “Goal Seek” dialog opens. Identify the “set cell”, or the cell
whose value you know you want to change. The “set cell” must
hold a formula. In the “to value” box enter the value you want the
formula to return.
In the “by changing cell” identify one model cell that affects the
formula you identified and that holds a value you will allow Goal
Seek to change. Click OK.
Goal seek goes to work and if it finds a solution it displays a “Goal
Seek Status” dialog with its results.
To keep the results click OK. To discard the results click Cancel.

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Solver
Its a problem-solving tool like Goal Seek; however, the
Solver provides a much more powerful and flexible
approach.
Use Solver to determine the maximum or minimum value of
one cell by changing other cells— e.g, the maximum profit
you can generate by changing advertising expenditures. You
specify one or more “changing cells” which must be related
through formulas on the worksheet.

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Solver Cont
In addition, you can establish model constraints, and
Solver will search for a solution without violating the
constraints. Solver adjusts the values in the changing
cells you specify to produce the result you want from
the formula.
Solver is an Excel add-in, but is part of Excel. If you
don’t find Solver on the ribbon, add it by opening the
“Excel Options” dialog and going to the “Add-Ins”
section. You may need to return to your Excel software
media to add it as an option to your Excel installation.

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