Uploaded on Jul 4, 2020
Institute of professional accountant offers a certificate course in advanced excel where you can learn advanced Excel techniques like what-if analysis, pivot table, VLookup, HLookup, and more. Visit the website for more information
Using the What-If Analysis in Excel
USING THE WHAT-IF ANALYSIS
IN EXCEL
INTRODUCTION TO WHAT-IF
ANALYSIS
• Say you are taking a class in school, and I'm not doing
very well so far. Luckily, if you get a high enough grade
on the final exam, there's a chance you may be able to
pass the class. The question is: What grade do you need
to get on the exam to raise your average to at least a
70?
• We can find out using a feature called What-If Analysis,
which allows you to fill in missing information based on
the data you already have. Right now, all know are the
grades you got on the first four assignments: 58, 70, 72,
and 60. Before we do our analysis, we need to figure out
my current average by adding formula or function in this
cell. In this case, each assignment is weighted equally,
so we can calculate the number we need using the
AVERAGE function.
WHAT IF ANALYSIS EXAMPLE
• To get the most out of What-If Analysis, you do need to
be fairly comfortable with formulas and functions-luckily,
this one is pretty simple.
• We'll just type an equal's sign, and then AVERAGE. Next,
we need to select all the cells-even the empty cell for
the final exam grade. If we don't, it won't calculate the
average for all five assignments. Looks like we're done,
so I'm just going to press Enter... and now we can see
my current average. Unfortunately, it's not high enough,
but we knew that was going to happen. Now we can
move onto the next step: using a feature called goal to
seek to figure out what we need on the final exam.
GOAL SEEK
• Goal Seek is a type of What-If Analysis that basically, lets you
work backward in order to find a missing value. It starts with
the result you want, then it calculates whatever input is
needed to get you there. To begin, select the cell that contains
your formula or function; in our case, B7. Then go to the Data
tab... and click the What-If Analysis command. There are
actually several different types of What-If Analysis, including
Scenario Manager and Data Table. But in this case, we're going
to use Goal Seek. A dialog box will appear where you can set
the parameters for the information you need.
COMPLETE SOLUTION
• In our example, we want to set cell B7 (that's our
selected cell) to a value of 70... by changing the cell that
contains our missing value. And that's going to be B6.
When you're done, click OK... and Goal Seek will take a
minute to see if it can find a solution. Based on the
message here, it looks like we were successful. So, we're
going to click OK and now we can see the result we were
looking for in the final exam cell. So, I guess you need to
make a 90 on the exam in order to pass the class. It's
going to be tough, but I think you can do it. At least now
you know thanks to the work we did with What-If
Analysis. It might take some practice to get the hang of
the feature on your own, but it's a great way to figure
out unknown values in your worksheet.
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• That's it for what-if analysis hope you will understand
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