Hi Ian,
Thanks for your response.
Yes you are right. I want to do a sensitivity analysis so see how sensitive a variable is to a certain variation of inputs. Actually I am myself in the process of understanding a tornado diagram and want to create one to see how it really works. Google search mainly shows only Excel related information and the templates from excel dont seem to work in Numbers.
Here is an example. I want to calculate profit using formula: Profit = Volume * (Price – Cost).
For each of my input variables (volume, price and cost), I have the base case (median) and the best and worst case values. Using base case values for volume, price and cost, I find the profit to be $62 million and draw a vertical line at 62 on the horizontal scale. Now in this formula I put the best and worst case values of each of these variables one at at a time to find out what will be the profit for each such change. Plotting all these values and sorting the highest sensitivity (biggest bar) top-to-bottom will give me the tornado. From the tornado I see which variable (in this case price) is the most sensitive to profit.
