What is the role of a data table in Excel for simulation?

• A. Creates static charts only
• B. Calculates only a single scenario
• C. Facilitates execution of multiple simulation trials
• D. Computes summary statistics

Answer: (C)

A data table in Excel is a method for batch evaluating a formula across many input values, which is exactly what you need for simulation. In a Monte Carlo-style setup, you have a cell that computes an outcome (like profit or NPV) based on input assumptions. A data table lays out a grid of those input values—one variable for a one-variable table, or two variables for a two-variable table—and Excel fills in the corresponding outcomes. This gives you a matrix of results representing many trial runs without manually changing inputs each time.

This setup makes it possible to study how the outcome behaves across a range of possibilities, to build distributions from the results, and to derive summary statistics or create charts from those results. While a data table can be used alongside random inputs to simulate many trials, its main role is to enable the execution of multiple simulation trials by re-evaluating the formula for many input combinations in one organized table.