1. Sensitivity Analysis A systematic way of asking “what-if” scenario questions in order to understand what outcomes could possibly occur that would affect your decision which input assumptions will have the most impact on your decision and should be analyzed further Performed by setting all inputs equal to their base values and changing one variable’s value at a time

2. Spreadsheet Data Tables Data Table 1 allows you to change one input variable value at a time and record the impact that the input assumption has on selected outputs. Data Table 2 allows you to change two input variable values simultaneously and record the impact that the input assumptions have on one output.

3. Setting Up Data Table 1 for an Input Layout the table on the worksheet that has the input assumption cell. The first column of the table should contain possible values for the input assumption. Leave the top cell in the first column blank or filled with a label that documents the input being analyzed. Starting in the second column, enter formulas in the first row of the table that link to key output cells in the model. Each column represents an output variable for which data will eventually be collected. The table that is defined by the first column and first row is an array that will be filled in when you complete the Data Table menu option.

4. Recording the Data Table 1 Values Highlight the entire data table array! Go to the Data ribbon, Data Tool category, What-if Analysis submenu and select Data Tables. Fill in the Table dialog box by entering the cell address for the input assumption into the Column Input Cell box. Click OK. Excel will systematically place one value from the first column into the address you specified in the Table dialog box. It will then record the observed values for the output variable cells identified in row 1 into the corresponding row and column. It will repeat this until all values in column 1 have been tested.

5. Modifying the Data Table Array The Table{ } array function will be visible inside each cell of the data table. To remove the results and formulas, you must select the entire array and press delete. The Table{ } array function in the cells make the table dynamic to new scenarios that you may want to test: change the entries in the first column or formulas in the first row and the table will automatically update with the new observed results!