Spreadsheets are used in financial modeling.Once you have set up the basic formula it is easy to determine the effect of changing price,costs,volume amounts,or any other variable deemed important to the analysis.This analysis is called which of the following?
A)"single substitution" analysis
B)"variable substitution" analysis
C)"multiple substitution" analysis
D)"what-if" analysis.

Question

Quizplus · Accepted Answer

The analysis described in the question, where different variables are changed to determine their effect on the overall analysis, is known as "what-if" analysis. It allows for the creation of various scenarios to compare and inform decision-making. Therefore, the best choice is D, "what-if" analysis.

Spreadsheets Are Used in Financial Modeling