WHAT-IF Analysis - Goal Seek - Data Table

I.
What-If Analysis
What-If Analysis in Excel allows you to try out different values (scenarios) for formulas.
Assume you own a book store and have 100 books in storage. You sell a certain % for the
highest price of $50 and a certain % for the lower price of $20.
If you sell 60% for the highest price, cell D10 calculates a total profit of 60 * $50 + 40 * $20 = $3800.
II. Create Different Scenarios

But what if you sell 70% for the highest price? And what if you sell 80% for the highest price? Or
90%, or even 100%? Each different percentage is a different scenario. You can use the Scenario
Manager to create these scenarios.
Note: You can simply type in a different percentage into cell C4 to see the corresponding result of a
scenario in cell D10. However, what-if analysis enables you to easily compare the results of
different scenarios. Read on.
1. On the Data tab, in the Forecast group, click What-If Analysis.

2. Click Scenario Manager.
The Scenario Manager dialog box appears.
3. Add a scenario by clicking on Add.
4. Type a name (60% highest), select cell C4 (% sold for the highest price) for the Changing cells and
click on OK.
5. Enter the corresponding value 0.6 and click on OK again.
6. Next, add 4 other scenarios (70%, 80%, 90% and 100%).
Finally, your Scenario Manager should be consistent with the picture below:
Note: to see the result of a scenario, select the scenario and click on the Show button. Excel will
change the value of cell C4 accordingly for you to see the corresponding result on the sheet.
III. Scenario Summary

To easily compare the results of these scenarios, execute the following steps.
1. Click the Summary button in the Scenario Manager.
2. Next, select cell D10 (total profit) for the result cell and click on OK.
Result:
Conclusion: if you sell 70% for the highest price, you obtain a total profit of $4100, if you sell
80% for the highest price, you obtain a total profit of $4400, etc. That's how easy what-if analysis in
Excel can be.
IV. Goal Seek

What if you want to know how many books you need to sell for the highest price, to obtain a
total profit of exactly $4700? You can use Excel's Goal Seek feature to find the answer.
2. Click Goal Seek.
The Goal Seek dialog box appears.
3. Select cell D10.
4. Click in the 'To value' box and type 4700.
5. Click in the 'By changing cell' box and select cell C4.
6. Click OK.
Result. You need to sell 90% of the books for the highest price to obtain a total profit of exactly
$4700.
For example : Set Cell as $D$10, To Value as 4500 & By changing Cell as $C$4 then we will get
Result. You need to sell 83% of the books for the highest price to obtain a total profit of exactly
$4500.
NOTE: If you know the result you want from a formula, use Goal Seek in Excel to find the input value
that produces this formula result.
V. Goal Seek Example 1

Use Goal Seek in Excel to find the grade on the fourth exam that produces a final grade of 70.
1. The formula in cell B7 calculates the final grade.
2. The grade on the fourth exam in cell B5 is the input cell.
4. Click Goal Seek.

5. Select cell B7.
6. Click in the 'To value' box and type 70.
7. Click in the 'By changing cell' box and select cell B5.
8. Click OK.
Result. A grade of 90 on the fourth exam produces a final grade of 70.
VI. Goal Seek Example 2

Use Goal Seek in Excel to find the loan amount that produces a monthly payment of $1500.
1. The formula in cell B5 calculates the monthly payment.

Explanation: the PMT function calculates the payment for a loan. If you've never heard of this
function before, that's OK. The higher the loan amount, the higher the monthly payment. Assume,
you can only afford $1500 a month. What is your maximum loan amount?
2. The loan amount in cell B3 is the input cell.
4. Click Goal Seek.
5. Select cell B5.
6. Click in the 'To value' box and type -1500 (negative, you are paying out money).
7. Click in the 'By changing cell' box and select cell B3.
8. Click OK.
Result. A loan amount of $250,187 produces a monthly payment of $1500.
VII. Goal Seek Precision

Goal seek returns approximate solutions. You can change the iteration settings in Excel to find a
more precise solution.
1. The formula in cell B1 calculates the square of the value in cell A1.
2. Use goal seek to find the input value that produces a formula result of 25.
Result. Excel returns an approximate solution.
3. On the File tab, click Options, Formulas.
4. Under Calculation options, decrease the Maximum Change value by inserting some zeros. The
default value is 0.001.
5. Click OK.
6. Use Goal Seek again. Excel returns a more precise solution.
VIII. More about Goal Seek

There are many problems Goal Seek can't solve. Goal Seek requires a single input cell and a
single output (formula) cell. Use the Solver in Excel to solve problems with multiple input cells.
Sometimes you need to start with a different input value to find a solution.
1. The formula in cell B1 below produces a result of -0.25.
2. Use Goal Seek to find the input value that produces a formula result of +0.25.
Result. Excel can't find a solution.
3. Click Cancel.
4. Start with an input value greater than 8.
5. Use Goal Seek again. Excel finds a solution.
Explanation: y = 1 / (x - 8) is discontinuous at x = 8 (dividing by 0 is not possible). In this example,

Goal seek cannot reach one side of the x-axis (x>8) if it starts on the other side of the x-axis (x<8) or
vice versa.
IX. Data Tables

Instead of creating different scenarios, you can create a data table to quickly try out different values
for formulas. You can create a one variable data table or a two variable data table.
Assume you own a book store and have 100 books in storage. You sell a certain % for the highest
price of $50 and a certain % for the lower price of $20. If you sell 60% for the highest price, cell D10
below calculates a total profit of 60 * $50 + 40 * $20 = $3800.
X. One Variable Data Table

To create a one variable data table, execute the following steps.
1. Select cell B12 and type =D10 (refer to the total profit cell).
2. Type the different percentages in column A.
3. Select the range A12:B17.
We are going to calculate the total profit if you sell 60% for the highest price, 70% for the highest
price, etc.
5. Click Data Table.

6. Click in the 'Column input cell' box (the percentages are in a column) and select cell C4.
We select cell C4 because the percentages refer to cell C4 (% sold for the highest price). Together
with the formula in cell B12, Excel now knows that it should replace cell C4 with 60% to calculate the
total profit, replace cell C4 with 70% to calculate the total profit, etc.
Note: this is a one variable data table so we leave the Row input cell blank.
7. Click OK.
Result.
Conclusion: if you sell 60% for the highest price, you obtain a total profit of $3800, if you sell 70% for
the highest price, you obtain a total profit of $4100, etc.
XI. Two Variable Data Table
To create a two variable data table, execute the following steps.
1. Select cell A12 and type =D10 (refer to the total profit cell).
2. Type the different unit profits (highest price) in row 12.
3. Type the different percentages in column A.
4. Select the range A12:D17.
We are going to calculate the total profit for the different combinations of 'unit profit (highest price)'
and '% sold for the highest price'.
6. Click Data Table.

7. Click in the 'Row input cell' box (the unit profits are in a row) and select cell D7.
8. Click in the 'Column input cell' box (the percentages are in a column) and select cell C4.
We select cell D7 because the unit profits refer to cell D7. We select cell C4 because the percentages
refer to cell C4. Together with the formula in cell A12, Excel now knows that it should replace cell D7
with $50 and cell C4 with 60% to calculate the total profit, replace cell D7 with $50 and cell C4 with
70% to calculate the total profit, etc.
9. Click OK.
Result.
Conclusion: if you sell 60% for the highest price, at a unit profit of $50, you obtain a total profit of
$3800, if you sell 80% for the highest price, at a unit profit of $60, you obtain a total profit of $5200,
etc.
Note: the formula bar indicates that the cells contain an array formula. Therefore, you cannot delete
a single result. To delete the results, select the range B13:D17 and press Delete.

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I.

II. Create Different Scenarios

1. On the Data tab, in the Forecast group, click What-If Analysis.

The Scenario Manager dialog box appears.

3. Add a scenario by clicking on Add.

6. Next, add 4 other scenarios (70%, 80%, 90% and 100%).

III. Scenario Summary

1. Click the Summary button in the Scenario Manager.

IV. Goal Seek

2. Click Goal Seek.

The Goal Seek dialog box appears.

3. Select cell D10.

4. Click in the 'To value' box and type 4700.

V. Goal Seek Example 1

2. The grade on the fourth exam in cell B5 is the input cell.

3. On the Data tab, in the Forecast group, click What-If Analysis.

4. Click Goal Seek.

The Goal Seek dialog box appears.

6. Click in the 'To value' box and type 70.

Result. A grade of 90 on the fourth exam produces a final grade of 70.

VI. Goal Seek Example 2

1. The formula in cell B5 calculates the monthly payment.

3. On the Data tab, in the Forecast group, click What-If Analysis.

4. Click Goal Seek.

The Goal Seek dialog box appears.

5. Select cell B5.

VII. Goal Seek Precision

Result. Excel returns an approximate solution.

3. On the File tab, click Options, Formulas.

6. Use Goal Seek again. Excel returns a more precise solution.

VIII. More about Goal Seek

4. Start with an input value greater than 8.

5. Use Goal Seek again. Excel finds a solution.

Explanation: y = 1 / (x - 8) is discontinuous at x = 8 (dividing by 0 is not possible). In this example,

IX. Data Tables

X. One Variable Data Table

2. Type the different percentages in column A.

3. Select the range A12:B17.

4. On the Data tab, in the Forecast group, click What-If Analysis.

5. Click Data Table.

2. Type the different unit profits (highest price) in row 12.

3. Type the different percentages in column A.

4. Select the range A12:D17.

5. On the Data tab, in the Forecast group, click What-If Analysis.

6. Click Data Table.

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