Sensitivity Analysis - Microsoft Excel

Example of how to build a sensitivity analysis table in Excel to evaluate how changing two inputs simultaneously will affect an output (profit). This is one of the functions in the "What-If-Analysis" section of Excel.

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Sensitivity analysis in Excel is one of the skills that separates the common Excel user from the power user.

Often we try to analyze business problems by thinking about what will happen if certain things change. For instance, what happens if we change the price? Well, the revenue would go up if we just change the price, but the total customers stay the same...but does that make sense?

The reality is that you never have scenarios where one variable changes and everything else stays the same. Variables all change when you change one thing. When you raise the price, usually some customers will stop buying, and some won't.

So when trying to analyze situations, it is better to try to build models and analyses that reflect many different variables changing at the same time.

This is where sensitivity analysis comes in. Using this Excel feature, we are able to examine how multiple changing variables will affect different business metrics. To do this, we can build a "sensitivity data table" to examine the range of possible outcomes.

In this tutorial, we learn how to build a sensitivity analysis table in Excel 2016 to evaluate how changing two inputs simultaneously will affect an output (profit).

#sensitivityanalysis #excel

[eric_andrews]

I made this video in 5 minutes at my kitchen table one afternoon and forgot about it for literally 4 years. Still can't believe how many people watched it. Thank you 🙏

[JeanPaulUS]

I've never seen a YouTube video that is so precise, concise and straight to the point before. Thank you, Eric

[shinlanten]

No matter how much experience you have using Excel, there's always something new to learn 👍

[JayKayHP]

The part where the data table self populated blew my mind. Thank you Eric

[mazaheerrajwani]

Thank you Eric, that was useful and easy to follow

[snigdhabhatnagar]

You explained everything so clearly and didn't waste any time! Everything so precise.

[millycentaoko]

This is one of the most precise and succinct Excel Youtube tutorial that I have watched, thank you

[zhuoqinghan]

As a Chinese, his English still make sense to me to understand how to use Excel Table function to solve practical problems/assignments. Many thanks!

[jurgvogt]

Thanks - very helpful and straightforward!

[TimFlaherty]

Thanks for responding to my email on a Sunday within 2 hours! You really helped me out today and I look forward to accessing your coursework in the future.

[firasezraa]

gg bang erik kamu sangat membantu tugas akhir aku bang semangat ngontennya !

[albertrzeszutek]

Great Video. Clearly explained! Thank you !

[mrCetus]

great video! Love kind of short lessons. Thank you and waiting more ones like that!

[nink]

so good and very easy to comprehend, concise!! Thank youuu

[mokichoki]

Hi, This was very easy, crisp and concise. Thank you!

[muditmohan]

Thankyou !, after a lot of struggle I got the video that I was looking for.

[vigneshie]

Excellent video! Conveyed the content clearly and efficiently.

[brshankar]

Very clear, simple presentation. Thank you.

[mainey]

Andrew - awesome video! Clear Explanation!

[jordiortega]

What. A. Great. Example. Simple. Clear. Great! Thank you, Eric. -Jordi