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Because What-If Analysis Usually Involves Many Estimates and Other Projections

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Because what-if analysis usually involves many estimates and other projections, range analysis helps managers learn how tolerant the projected results are of changes in those estimates and assumptions.


Definitions:

Random Sample

A subset of individuals chosen from a larger set in such a way that every individual has an equal chance of being included in the sample.

Excel Output

The results produced by Microsoft Excel after processing data through formulas, functions, or simulations.

Sum of Squares

A statistical measure that quantifies the total variation within a dataset, calculated by summing the squares of differences from the mean.

Sum of Squares

The sum of the squared differences between each observation and the overall mean, used in various statistical models to measure variability.

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