What kind of analysis is known as the "what if" analysis?

The term "what if" analysis specifically refers to scenario-based analysis. This approach involves evaluating and projecting the potential outcomes of various scenarios or changes to variables within a model. It allows decision-makers to explore different possibilities and understand the implications of specific actions or decisions by assessing the outcomes under varied conditions.

Scenario-based analysis is particularly useful in strategic planning and risk management because it enables stakeholders to anticipate challenges and opportunities that might arise from their decisions. By creating diverse scenarios based on different assumptions, organizations can better prepare for potential future events and adjust their strategies accordingly.

While predictive analysis forecasts future trends based on data, and historical analysis examines past performance, scenario-based analysis focuses fundamentally on evaluating different "what if" situations, which is what sets it apart. Statistical analysis, on the other hand, involves applying mathematical principles to collect and analyze quantitative data rather than exploring conditional future scenarios.