What-If Analysis

What-If Analysis is a process used to explore different scenarios by changing specific variables to see how those changes affect outcomes. It helps individuals or businesses make informed decisions by testing possible situations without real-world risks. For example, a company might analyze how increasing advertising affects sales or how a change in costs impacts profit. This method uses data and models to predict potential results, allowing better planning and strategy development. Essentially, it's a way to simulate different options to understand their possible impacts before committing resources or making important choices.