In what scenario do we use sensitivity, stimulation, scenario analysis
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In a sensitivity analysis, you are only looking at how sensitive the change in an outcome is based on changing a single variable. But, you can consider many more factors than just the outcome. For example, you may think a manufacturer is going to pay big bucks for your composite, but think about the implications.
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A sensitivity analysis determines how different values of an independent variable affect a particular dependent variable under a given set of assumptions. In other words, sensitivity analyses study how various sources of uncertainty in a mathematical model contribute to the model's overall uncertainty. This technique is used within specific boundaries that depend on one or more input variables.
Sensitivity analysis is used in the business world and in the field of economics. It is commonly used by financial analysts and economists, and is also known as a what-if analysis.
Sensitivity analysis is a financial model that determines how target variables are affected based on changes in other variables known as input variables. This model is also referred to as what-if or simulation analysis. It is a way to predict the outcome of a decision given a certain range of variables. By creating a given set of variables, an analyst can determine how changes in one variable affect the outcome.
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