Defining Assumptions

To define a simulation, first determine your key input cells and define them as assumptions.

An assumption is a probability distribution that describes a range of results for an uncertain input and their likelihood of occurring.

1. Select a cell on an input row in the Account View. The cell should contain a value that you are uncertain of that drives the values of accounts you want to evaluate.

   For example you might want to define Unit Volume as an assumption to evaluate its impact on Total Sales Revenue.

2. On the Simulation panel, click Set Assumption.
3. Click the distribution type you want to use for your assumption. Select the distribution type that best represents your knowledge about the uncertain input.

   Tip:

   Hover over the distribution to learn more about it. For more information, see
   Probability Distribution Descriptions for Strategic Modeling Simulations.
4. Enter the required parameters for your selected distribution type. The current cell value is used as a starting point.
5. Define assumptions for as many input cells as you need.