What Does What-If Analysis Mean?
A what-if analysis is a technique that is used to determine how projected performance is affected by changes in the assumptions that projections are based upon. What-if analysis is used to compare different scenarios and their potential outcomes based on fluctuating conditions.
The purpose of a what-if analysis is to determine the effect of these outcomes in a statistical model in conjunction with risk assessment. Different methods of sensitivity analysis are available, including scenario-management tools, brainstorming techniques, and modeling and simulation techniques. What-if analysis is frequently used by researchers, analysts, scientists, and investors.
It is also known as sensitivity analysis.