Sensitivity determination in Microsoft Excel

Worksheet - Sensitivity determination in Microsoft Excel

Good afternoon. Now, I learned about Worksheet - Sensitivity determination in Microsoft Excel. Which could be very helpful to me so you. Sensitivity determination in Microsoft Excel

One of the finest features in Microsoft Excel is sensitivity analysis using whether a table (Excel 2003) or 'What-if' in Excel 2007. Suppose you want to start a cybercafe or a cafeteria in a new mall. You have done a study on the footfall and the kind of citizen who visit the mall. You have also found out about the company atmosphere, security and rent or the outright buy price. You also know the rates in the shop that other businesses are charging, let's say, for surfing the net per hour. You then estimation your capital costs like doing up the cybercafe and the price of the computers. You also use the Excel spreadsheet to estimation and calculate the number of citizen you'll need to run the show and the number of salaries you'll have to pay. You have also estimated other changeable costs like electricity and phone.

What I said. It shouldn't be the actual final outcome that the real about Worksheet. You check this out article for information about an individual wish to know is Worksheet.

Worksheet

From the above data in the Excel worksheet you can calculate your total monthly or annual costs. Now based on a confident price that you will payment the customers, number of computers and working hours you can calculate your wage per month or per year. From the data of wage and wage you can de facto calculate the profit. Till now everything was easy to implement in Excel.

Now you decide to find out how your profit can vary if you vary the payment per hour or the number of citizen who will visit your cybercafe or establishment. Of course, you cannot payment what you want but you can get a good estimation by observing what others are charging and what quality of service and environment they are providing.

Arranging all your data properly, click on 'Data' in the ribbon in Microsoft Office 2007 or 'Data' in the menu bar in Excel 2003. In Excel 2007 opt 'What-if' analysis and finally 'Data Table...'. In the popup window in the 'Row input cell' type the data that you have input horizontally next to the profit and in the 'column input cell' write down the price and vary it it by 1% 0r 2% so that that Excel can accomplish an analysis for, say., .5 per hour payment for a cybercafe to .5 per hour. The horizontal values can be the number of citizen per hour or month or year that will visit the shop and keep on varying the values by a confident estimated percentage. Click 'Ok' and you can see how your profit varies with the number of customers and the price you charge. This is also known as a two changeable table because you calculated the changes in your profit based on two parameters - price and number of customers.

You can also do a singular changeable sensitivity analysis by selecting only one parameter.

You can use the 'Data' and 'Table' highlight in Excel 2003 to implement the same analysis.

The practical implementation of the above sensitivity analysis in the form of a training video can be found in the link below.

I hope you have new knowledge about Worksheet. Where you'll be able to put to use in your daily life. And above all, your reaction is passed about Worksheet.