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Explain the term ‘Scenarios’ in relation to the Spreadsheets with example.

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Scenarios are a tool to test “What-if” questions. Each scenario is names and can be edited and formatted separately . When you print the spreadsheet, only the content of the currently active scenario is printed. A scenario is essentially a saved set of cell values for your calculations. You can easily switch between these sets using the navigator or a drop-down list which can be shown beside the changing cells. For example , if you wanted to calculate the effect of different interest rates on investment, you could add a scenario for each interest rate and quickly view the results. Formulas that rely on the values changed by your scenario are updated when the scenario is opened. If all your sources of income used scenarios, you could efficiently build a complex model of your possible income.

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