In sensitivity tables, where should data be placed for the table to work correctly?

Prepare for the CFI FMVA Exam. Study with detailed multiple choice questions, hints, and explanations. Enhance your financial modeling and valuation skills, and ace your assessment!

Multiple Choice

In sensitivity tables, where should data be placed for the table to work correctly?

Explanation:
Data tables rely on being able to substitute each test value into the formula on the worksheet and recalculate. For that to work, the inputs you’re varying must be on the same worksheet tab as the calculation table so Excel can reference and update them directly. If the data live in another workbook or on a different sheet, the data-table engine can’t map those values into the formula, and the table won’t populate correctly. Keeping the data on the same worksheet as the table ensures the references remain intact and the sensitivity results update as you change the inputs.

Data tables rely on being able to substitute each test value into the formula on the worksheet and recalculate. For that to work, the inputs you’re varying must be on the same worksheet tab as the calculation table so Excel can reference and update them directly. If the data live in another workbook or on a different sheet, the data-table engine can’t map those values into the formula, and the table won’t populate correctly. Keeping the data on the same worksheet as the table ensures the references remain intact and the sensitivity results update as you change the inputs.

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