Types Cont. Goal Seek Analysis Data tables Analysis It evaluates the expected value of a proposed investment or business activity. The process of finding the correct input when only the output is known.
Sensitivity Analysis is a tool used in financial modeling to analyze how the different values for a set of independent variables affect a dependent variable in financial modeling. Let’s look at a simple exercise first, to see how Goal Seek works.
What is the Goal Seek Excel function? The Goal Seek Excel function (often referred to as What-if-Analysis) is a method of solving for a desired output by changing an assumption that drives it. The function essentially uses a trial and error approach to back-solving the problem by plugging in guesses until it arrives at the answer.
Types of What If Analysis Scenario Analysis Data Tables Analysis What-If Analysis is the process of changing the values in cells to see how those changes will affect the outcome of formulas on the worksheet. Goal Seek Analysis 6.
Let’s look at a simple exercise first, to see how Goal Seek works. Suppose we have a very basic model that takes the number of units sold, the retail price, and a discount to calculate total net revenue.
Here is a more advanced video demonstration of how to use the Goal Seek Excel function.
Suppose you want to find the NPV equal to $500 million based on a certain discount rate. In order to do that, what I’m going to do is use the GOAL SEEK Excel function. I’m going to press Alt, A, W, and G for GOAL SEEK.
Thank you for reading CFI’s explanation of the Goal Seek Excel function.