Showing posts with label Sensitivity analysis. Show all posts
Showing posts with label Sensitivity analysis. Show all posts
Wednesday, September 23, 2009
Thursday, September 17, 2009
Sensitivity, what-if, and goal seeking analyses page 159
Sensitivity analysis
- Assesses the impact of change in inputs or parameters on solutions
- Allows for adaptability and flexibility
- Eliminates or reduces variables
- Can be automatic or trial and error
- Assesses solutions based on changes in variables or assumptions
- Backwards approach, starts with goal
- Determines values of inputs needed to achieve goal
- E.g. break-even point determination
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