Let’s look at a simple exercise first, to see how Goal Seek works. The function is extremely useful for performing sensitivity analysis What is Sensitivity Analysis? Sensitivity Analysis is a tool used in financial modeling to analyze how the different values for a set of independent variables affect a dependent variable in financial modeling. For example, if the formula for revenue is equal to the number of units sold multiplied by the selling price, Goal Seek can determine how many units have to be sold to reach $1 million of revenue, if the selling price is known. 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 Goal Seek Excel function (often referred to as What-if-Analysis) is a method of solving for a desired output by changing an assumption that drives it.
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