What does the term 'what-if analysis' primarily assist with?

The term 'what-if analysis' primarily assists with understanding changes in variable outcomes. This analytical approach enables practitioners to assess the potential impact of different scenarios by altering one or more variables within a model or dataset. It is particularly valuable in decision-making processes, as it helps analysts predict how changes in inputs can affect results, thereby allowing for better strategic planning and risk assessment.

For instance, in a financial model, an analyst might conduct a what-if analysis to see how changes in sales volume, pricing, or cost structure could influence overall profitability. By exploring these hypothetical scenarios, organizations can prepare for various possibilities and make informed choices based on potential risks and rewards. This capability is essential for system analysts as it contributes to effective project management, resource allocation, and overall project success.