Definition of Scenario Analysis

Scenario Analysis is a process to analyze the possible steps that anticipate to happen in future.

Explanation

It is an important tool in finance and economics is to measure the possibility of events to happen in future and analyzing the process step by step. It is extensively effective to make projections for the future.

Scenario Analysis can also be termed as what-if analysis. In finance, it is most commonly uses to estimate. The expected value of an investment in a number of situations such as best case scenario or worst case scenario.