Difficulty: Easy
Correct Answer: goal
Explanation:
Introduction / Context:
Financial modeling tools extend spreadsheets by adding sensitivity analysis, scenario management, and optimization helpers. A classic capability is "goal seeking," where the software iteratively adjusts an input to achieve a specified output (for example, finding the interest rate that yields a given Net Present Value).
Given Data / Assumptions:
Concept / Approach:
Goal seek automates reverse calculation. Instead of trial-and-error, the tool iteratively updates a chosen variable to minimize the difference between a formula’s result and the target value. This is distinct from generic planning or aiming; it is a named feature in many spreadsheet and modeling systems and is specifically called "goal seek" or "goal seeking."
Step-by-Step Solution:
Verification / Alternative check:
Common office suites document this feature as Goal Seek; financial modeling platforms adopt the same naming convention.
Why Other Options Are Wrong:
Target/aim/plan: Related concepts but not the established function name.
None of the above: Incorrect because "goal" is the conventional term.
Common Pitfalls:
Confusing goal seek with solver optimization; goal seek handles a single variable and single target, whereas solver can handle multi-variable constraints.
Final Answer:
goal
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