Perform what-if analysis and goal seek

What‑If Analysis

Think of What‑If Analysis as a video game level editor. You can change the number of enemies, the weather, or the power‑ups and instantly see how the score changes. In spreadsheets, you change input values and watch the outputs update.

1. Open the Data tab and click What‑If Analysis.
2. Select Scenario Manager to create multiple “scenarios” (e.g., high sales, low sales).
3. Define the changing cells (inputs) and the result cells (outputs).
4. Switch between scenarios to compare results instantly.

Example: Sales Forecast – change the unit price and quantity to see profit variations.

Goal Seek

Goal Seek is like a puzzle solver. You tell the spreadsheet: “I want the profit to be $1,200. What unit price should I set?” The tool works backwards to find the answer.

1. Click What‑If Analysis → Goal Seek.
2. Set the Set cell (e.g., Profit).
3. Enter the To value you want (e.g., $1,200).
4. Choose the By changing cell (e.g., Unit Price).
5. Press OK and watch Excel adjust the price.

Mathematically, Goal Seek solves for $x$ in the equation:

$$\text{Profit}(x) = \text{Revenue}(x) - \text{Cost} = 1{,}200$$

It uses an iterative method (like guessing and refining) until the equation balances.

Exam Tips

• Understand the difference: What‑If is for exploring multiple scenarios; Goal Seek finds a single input value that achieves a target output.
• Show steps clearly: In written answers, list the cells you changed, the target value, and the final result.
• Use diagrams: A simple flowchart or table helps the examiner see your logic.
• Check units: Make sure all monetary values use the same currency symbol and decimal places.
• 📝 Practice with sample data: The more you play with scenarios, the faster you’ll spot the right inputs.