Sensitivity Analysis Using Data Tables in Excel

Data tables and sensitivity analysis in Excel
Sensitivity analysis is important in all areas of research and finance. Data tables and sensitivity analysis are closely linked in Excel.
If you are offered a loan by a bank, you would like to know how the monthly installments will change if you change the period of the loan, interest rate or both. Profits in business depend on sales or services of a product at a certain price. Often we would like to know the sensitivity of the sales volume to a price. Also our net profit will depend on our expenses to execute the sale. If we can optimize our expenses and the sales price we can optimize our profits. The sensitivity analysis using the data table feature comes very handy in such cases.
For performing more analysis involving more than two variables you can use the scenario manager.

Further reading:
Spreadsheet Sensitivity Analysis

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.