The-definition.com

Definition

“What-if” analysis

“What-if” analysis is the process of assessing the impact of changes made to model variables, the values of the variables, or the interrelationships among variables.

Example:

A Marketing manager might ask, “What would be the impact of a 12% increase in the cost of raw materials on future demand?”

Or A Bank manager might ask, “What would be the impact of an increase in interest rates on loan approvals?” and similar questions.

Thus the “what-if” analysis helps to assess the impacts of different scenarios on the bottom line.

Share it:  Cite

More from this Section

  • Common carrier
    Common carrier is a company that furnishes voice and data communication services both ...
  • Data manipulation language (DML)
    Data manipulation language (DML) is the language that processes and manipulates the data ...
  • Intelligent support systems (ISS)
    Intelligent support systems (ISS) are that facilitate decisions requiring the use of knowledge, ...
  • The Histogram
    Histogram is a bar graph. The histogram is the most common graphical display for showing ...
  • Pointers
    Pointers are pieces of data that identify the links between different records. ...