What is the purpose of entering 'Low COLA' as a scenario name in Scenario Manager?

Entering 'Low COLA' as a scenario name in Scenario Manager serves the purpose of reflecting a change in predictions based on specific assumptions or conditions. Scenario Manager is a powerful tool in spreadsheet applications that allows users to create and evaluate different scenarios by altering variable values and observing how these changes impact overall results or calculations.

In this case, 'Low COLA' suggests a scenario in which the Cost of Living Adjustment (COLA) is expected to be low. By naming the scenario this way, it immediately communicates to the user that the scenario will explore how a low COLA affects forecasted outcomes, such as expenses, budgets, or other financial models. This clarity helps in running what-if analyses and making informed decisions based on potential future conditions.

Effective scenario naming is crucial for organizing and differentiating between various assumptions. Therefore, using descriptive names that capture the essence of the changes being modeled, like 'Low COLA', enhances the user's ability to analyze different situations accurately.