Scenario Modelling in Excel Mini-Masterclass (Includes Monte Carlo Simulation)

This mini-masterclass with Financial Modelling in Excel specialist Danielle Stein Fairhurst shows various techniques for building scenarios into financial models. This session explores how to reduce uncertainty in decision-making with sensitivity and scenario analysis techniques, applying in-built standard spreadsheet tools, and understanding the inputs, assumptions and drivers when creating forecasts. Discussion includes identifying best practices for dealing with the unknown, while utilising several different methods to perform scenario and sensitivity analysis in Excel models with the goal of reducing volatility and mitigating risk.
3:11 What is a financial model?
4:25 Is it a spreadsheet or a financial model?
6:21 What's the difference between sensitivities, scenarios and what-if analysis?
9:35 Manual Scenario selection (Data validation dropdown & Combo box dropdown)
13:10 Scenario Manager
14:27 Data Tables
18:57 Goal Seek (What-if Analysis)
21:01 Advantages and disadvantages of scenario methods
26:58 Statistical background for Monte Carlo simulations
29:52 Building a Monte Carlo (Stochastic) Simulation in Excel
★ Download the Excel file ► plumsolutions....
★ Learn Financial Modelling ► plumsolutions....

[@tibibara]

I just loved this masterclass, Danielle the BEST, thanks so much!💮

[@kikiz1994]

Thank you, Danielle. Simple, direct and informative. 👍🏼

[@yurobert3007]

Great tutorial. Enjoyable to watch

[@johnadair4979]

This is a VERY helpful (useful) tutorial on scenario modelling. Download the file and go through it with Danielle. You've greatly benefit from it.

[@plumsolutions]

Thanks John, glad you liked it!

[@Bestafghanboy]

Thank you for the great share

[@sachin.tandon]

Very high quality! I think the video could be slightly higher resolution. Otherwise excellent!

[@a7medmostafaabuhatab]

Perfect Danielle

[@kpradeepsingh]

Hi Danielle, how did you get 1500 Std Dev in Monte Carlo Bird cages example? Thanks

[@plumsolutions]

It's just an assumption..