Page 68 - Excel Data Analysis

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EXCEL DATA ANALYSIS

CREATE SCENARIOS

ne major benefit of analyzing data is forecasting You create each scenario in the Add Scenario dialog box.
future events with today's information. By asking First, you specify the cells in which you want to see
O "what-if" and constructing various scenarios with predicted changes. See Chapter 1 for information on
your data and the Excel Scenario Manager, you can direct selecting a range of cells. You specify multiple cells by
your current activities to reach long-term company goals. separating each cell reference with a comma, for example:
For example, you can create several scenarios to determine A3:D4. Next, you assign new values to each cell in the
the cost of a business loan at various interest rates. Scenario Values dialog box. Excel uses these values
Comparing these scenarios can help you decide which rate whenever you select the corresponding scenario. For
is financially feasible. By viewing individual scenarios, you example, if you specify a value of 45 for A3, Excel changes
can quickly see how an increase or decrease in an interest the cell value of A3 to 45 every time you select the scenario.
rate can impact your monthly budget. You can also From your input, Excel generates a scenario. You can apply
construct scenarios that involve changing multiple cell a specific scenario at any time and change the specified
values. For example, you may not only want to change the values of the worksheet by simply selecting it from Scenario
interest rate, but also the loan amount with each scenario.
Manager dialog box. When you select a different scenario,
Constructing scenarios will change your worksheet's data. Excel changes the values of the cells as specified in the
For that reason, you may want to create one scenario that scenario.
contains your original data, or copy your worksheet before
applying the scenario feature.

CREATE SCENARIOS

⁄ Click Tools ➪ Scenarios. ■ The Scenario Manager ■ The Add Scenario dialog ■ You can type comments
dialog box opens box displays. about the scenario in the
Comment box.
¤ Click Add. ‹ Type the scenario name.
ˇ Click OK.
› Specify the cells to
change.

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