# 9. Tornado Charts Part 2

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Overview

In this lesson, we'll finish building our chart and identify some valuable insights that the chart provides.

Lesson Notes

- Identifies what variables can most affect your outcome values
- Great tool for identifying your biggest source of risk
- Referred to as a tornado chart given its shape (plot largest outcome changes at top)

How to build tornado charts in Excel

1 Select variables to be included on tornado chart
2 For each variable, create a data table that accepts two values, +/- 10% from base case
3 Record the two outcome values obtained from each data table
4 Subtract base case outcome from these two outcome values and plot on chart
Note: Make sure inputs to Data Table are not connected to row input cell

Keyboard shortcuts

ALT + E , S , F: Paste formulas
CTRL + →: Move to the last cell in the data region
ALT + N , B: Insert barchart

Transcript

In the previous lesson, we ran our model 10 different times adjusting each of our five variables plus or minus 10% percent of the base case. This left us with 10 values for the return on investment for each of these variable changes. In this lesson, we'll use this data to create our tornado chart. Off camera, I've named this outcome cell Return on Investment, because we'll be using it repeatedly in our formulas. I've also moved the data below the input parameters and created an area for our chart to input data. 6 00:00:39.01 --&gt; 00:00:43.13 This new area is where our chart information will be stored.

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