# Part 5: Simulate
URL: https://docs.valsight.ai/part-5-simulate/
Description: In this part, you create a workspace, set up assumptions in the Scenario Manager, and activate a simulation scenario.
In this part, you create a workspace, set up assumptions in the Scenario Manager, and activate a simulation scenario.

**Simulations** in Valsight start from a data baseline, apply line items to simulatable nodes, and **calculate scenarios as changes on top of that baseline**.

For detailed reference on any of the concepts here, see [Workspaces](/workspaces/) and [Scenario Manager](/scenario-manager/).

## Watch the video guide

Video: [Simulation](https://vs-documentation-assets.fsn1.your-objectstorage.com/videos/6896648198_Simulation.mp4)

## Steps

### Create a workspace

A workspace is where you analyze results and run simulations.

1. Go to the **Workspace overview** within your project.
2. Click **Add**.
3. Enter the workspace details:

| Field            | Value                     | Notes                                    |
| ---------------- | ------------------------- | ---------------------------------------- |
| Name             | Revenue Driver Simulation |                                          |
| Model            | 100\_P\&L                 | Select the topmost submodel.             |
| Default scenario | Data                      | The baseline with no assumptions active. |

4. Click **Create**.
5. Open the workspace.

### Create the price adjustment assumption

The Scenario Manager is where you define assumptions and scenarios.

1. Open the **Scenario Manager**.
2. Click **Create assumption**.
3. Enter the name **Price Adjustment**.

### Add a line-item to price adjustment

1. Click the **+** icon on the assumption.
2. Select the simulatable node **Price Adjustment**.
3. Choose **Absolute**. This adds the entered value directly on top of the baseline, as opposed to **Relative**, which applies it as a percentage change.
4. Click **Create**.

### Enter a premise

1. Click on the line-item name to open the input table.
2. Enter `10` for `Premium / USA / 2026` in the **Change** column.
3. Click **Save**.

### Create the volume change assumption

1. Create a second assumption called **Volume Change**.
2. Add the simulatable node **Market Growth**.
3. Choose **Absolute**.
4. Click on the line-item name to open the input table.
5. Enter `5` for `Europe / 2026` and `3` for `America / 2026` in the **Change** column.
6. Click **Save**.

### Activate the assumptions

Activate both assumptions for the **Simulation** scenario.

## What you have done

* Created a workspace
* Set up two assumptions in the Scenario Manager
* Activated the simulation scenario