What is a data table in Excel?

A data table in Excel is indeed a feature that illustrates how changes in one or two variables affect the output of a formula. This is especially useful for analyzing different scenarios, allowing users to see the relationship between input values and resulting calculations without changing the original data.

By utilizing data tables, you can create a systematic way to show how variations in inputs can lead to different results, making it easier to perform sensitivity analysis. For instance, if you have a formula that calculates profit based on sales price and quantity sold, a data table can automatically compute profit based on various combinations of sales prices and quantities, providing a comprehensive view of the outcome for each scenario.

This functionality distinguishes data tables from other tools in Excel, such as pivot tables, which are designed primarily for data summarization and analysis but do not directly show how altering specific variables influences formula results.