Resolved: Sensitivity Analysis with Data Tables
Hi, I understand the given example and the goal of using this function, but I don't really understand how the data table works. Why do you enter "=C8" at the intersection of the first row and column? When selecting the parameters for the data table, how does excel know that the financing value is 1000 when you only selected values for i and t?
Thanks!
Hi Michelle,
Good to hear from you and thanks for reaching out.
The idea is that we add C8 because this is the cell that contains the formula we want to run sensitivity for.
Excel considers this calculation and then simulates what would happen if you change some of the values of the cells that are included in a calculation in C8 (the cell which is at the intersection of the data table). Excel considers the values that are included in C8 and then substitutes them with the values we have provided for each row and column.
Hope this helps!
Best,
Ned
Thanks for the quick response, it was really helpful!
I wasn't aware that C8 contained the formula, now I completely get it :)
Thank you for this simpler explaination, I was confused too
but you did not write the goals( what the company wants) in the instruction sheet,sir. that made it little unclear
Hi,
How did we get the value of the amount to be paid?