sensitivity analysis



Simulation analysis in which key quantitative assumptions and computations (underlying a decision, estimate, or project) are changed systematically to assess their effect on the final outcome. Employed commonly in evaluation of the overall risk or in identification of critical factors, it attempts to predict alternative outcomes of the same course of action. In comparison, contingency analysis uses qualitative assumptions to paint different scenarios. Also called what-if analysis.

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  • Being able to break down a sensitivity analysis should help you to figure out the right places for your business to invest.

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  • VThe sensitivity analysis performed by the financial analyst was presented to the team and used for a new perspective on our business.

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  • I had to see how the variables would change, so I decided to go with a sensitivity analysis to test it all out.

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