Data Analysis in Excel
Nick Edwards
Analyst at Mynd
Independent variables derive their value from outside of the model
Dependent variables derive their value from the model and rely on inputs
Example: Taxes Owed = (Total Income - Deductions) * Tax Rate
Sensitivity analysis is a type of what-if analysis that evaluates the impact of a dependent variable given a range of inputs.
Example: Find the growth rate if total sales in year 1 is $50M and in year 2 is $70M.
g = ($70M-$50M)/$50M
g = ($20M)/$50M
g = 0.4
or 40%
1
to g
before multiplying!Example: If total sales is $90M today, find what it would be at a 20% growth rate.
x = $90M * (1 + 20%)
x = $90M * (1.2)
x = $108M
Data Analysis in Excel