Excel ScenariosforData Analysis

What is a Scenario?

• Scenarios are easy-to-use Data Analysis tools • Scenarios give a snapshot of what things would be like if

certain conditions were to change. • A scenario contains sets of values that influence an outcome• They can be used to forecast the effects of just about

anything• They are particularly useful in financial models

Using Scenarios for “What-If” Analysis• Scenarios can be named and saved with different sets of

figures to represent specific values. •When several scenarios have been saved they can be viewed

to compare the different results each would bring. • An example would be where you create a budget but are not

sure of the amount of revenue your business will generate• A scenario can be defined for each predicted revenue figure

and then switched between to calculate “what-if” analysis.

Scenario Reporting

• You can create a Scenario Report from the scenarios you generate• This report can also be turned into a Pivot Table report • This makes it ideal for further analysis• Scenarios are great when the data sets become large.

How to Add a Scenario

• From the Data tab navigate to What-if Analysis• Click Scenario Manager

Adding a Scenario

• The Scenario Manager dialogue box will be displayed• Click Add to add your first set of

figures

Edit the Scenario

• Select the cells that will change • These should be value cells not

formula cells• Click OK

Change the Scenario values

• The Scenario Values dialogue box will be displayed:

• If necessary change the values for the changing cells• Click OK

The first Scenario

• The first Scenario is added

Adding another Scenario

• Click Add to add another scenario• Type the scenario name•Modify the Changing cells • Set any other required

options and click OK

Adding another Scenario

• Change the Scenario values• Click OK

The second Scenario

• The second Scenario is added to the Scenario Manager• Click Add to add another

Adding a Third Scenario

• Enter the name and the changing values• Click Add to add another or OK then Close• The Scenario Manager dialog box closes

Switching between Scenarios

• Click on the name of the scenario and click Show• The appropriate values appear in the spreadsheet•When you have finished click Close.

Switching with the Scenario box

• The Scenario Box is a better way of displaying scenarios• Simply add it to the Quick Access Toolbar• You can switch between scenarios with ease• It makes it very easy to compare different outcomes

Adding the Scenario box

• From the drop-down menu at the right of the Quick Access Toolbar, click Customize Quick Access Toolbar.• Click More Commands

• Under Choose Commands From: pick Commands not on the Ribbon

• Find Scenario in the list and click Add.

Adding the Scenario box

Adding a Scenario Summary

• Add a Scenario Summary from Scenario Manager• Choose either a Scenario summary or a Pivot Table Report• You can change the Result cells for specific results

The Scenario Summary

• The Scenario Summary is added to a new sheet

Scenario Pivot Table Report

• The Pivot Table is also placed on a new sheet

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