Question

Explain various ‘Data tables’ used in Pivot Table.

Hint:

Use data tables in financial modeling to perform sensitivity analysis and compare multiple scenarios with minimal effort.

Answer 1

Data tables in Pivot Tables allow dynamic analysis of data by varying input values and observing their impact on outputs. The two main types of data tables are: 
1. Single-variable data tables: - Used to evaluate how changes in a single input affect the outcome of a formula. - For example, testing the impact of varying interest rates on loan repayments while keeping other variables constant. 
2. Two-variable data tables: - Analyze the combined effect of two different variables on a formula. - For instance, examining the impact of varying both interest rates and loan amounts on monthly installments. 
Key Features of Data Tables: - Automatically update results when input values or the linked formula changes. - Provide a structured format to visualize multiple scenarios. - Simplify sensitivity analysis for decision-making processes. 
Advantages of Data Tables: - Useful in "What-If" analysis to model different scenarios efficiently. - Help users make informed decisions by comparing outcomes under varying assumptions. - Time-saving for repetitive calculations, as they eliminate the need to create multiple individual formulas.