What-If Analysis
Definition
A what-if analysis shows how changed assumptions affect the results of a model.
The targeted alteration of inputs or assumptions to examine impacts on model results.
Simply explained
You change an assumption and observe what happens: for example, how higher energy prices affect costs.
Why it matters in practice
The term helps to select, develop, evaluate AI systems in a well-founded manner and realistically assess their technical risks.
Example from business
A company varies sales, energy price, and delivery time and examines results as well as liquidity.
Limits and pitfalls
- Single variations ignore interactions; plausible ranges, joint assumptions, and uncertainty must be documented.
Origin & history
What-if analyses became a widespread planning tool through spreadsheets, decision theory, and simulation.
Use in mid-sized companies
- Possible example: A company varies sales, energy price, and delivery time and examines results as well as liquidity.
Frequently asked questions
What does what-if analysis mean?
The targeted alteration of inputs or assumptions to examine impacts on model results. What should be considered? Single variations ignore interactions; plausible ranges, joint assumptions, and uncertainty must be documented.
Sources
- Engineering Statistics Handbook · NIST, Engineering Statistics Handbook
Source checked on 10.10.2026. Editorial application examples are hypothetical; no evidence of real customer results.
Editorially reviewed on: