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Exhibit 7.9 Entry fee needed to achieve $125,000 with fair odds
$50 to some higher value. In complex problems there will be many changes in vari-
ables that will be possible. Sensitivity analysis provides a starting point for dealing
with these difficult what-if questions. Once we have determined areas of interest, we
can take a more focused look at specific changes we would like to consider. To study
these specific changes, we can use the DataTable feature in the Data ribbon. It is
located in the What-If Analysis sub-group in the Data Tools group. The Data Table
function allows us to select a variable (or two) and find the corresponding change
in formula results for a given set of input values of the variable(s). For example,
suppose we would like to observe the changes in the formula for Profit associated
with our Cloudy scenario in Exhibit 7.10, by changing the value of Bets in a range
from $10 to $100. Exhibit 7.11 shows a single-variable Data Table based on $10
increment changes in Bets . Note that for $10 increments in Bets the corresponding
change in Profit is $10,000. For example, the difference in the Profit when Bet Value
is changed from $30 in cell N5 to $40 in cell N6 is $10,000 ($115,000–$105,000).
What about simultaneous changes in Bets and Entry Fee ? Which of the changes
will lead to greater increases in Profit ? A two-variable data Table is also shown in
Exhibit 7.11, where values of Bets and Entry Fee are changed simultaneously. The
cell with the rectangle border in the center of the table reflects the profit generated
by the nominal values of Bets and Entry Fee , $50 and $30 respectively. From this
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