Question

Of the three methods listed below, which one do you think is most valuable and why?

1. Data tables
2. Goal seek
3. Scenario manager

Answer 1

Ans:- Goal seek is most valuable method out of three methods.

This method is most valuable because it provides a feature to lets you adjust a value used in a formula to achieve a specific goal. Goal Seek determines input values needed to achieve a specific goal. Use Goal Seek when you don't have an exact value to use. This is a method of solving for a desired output by changing an assumption that drives it. The function essentially uses a trial and error approach to back-solving the problem by plugging in guesses until it arrives at the answer. The function is extremely useful for performing sensitivity analysis in financial modeling.