Sensitivity analysis, also called "what-if" analysis, predicts a variety of potential outcomes based on changes in independent variables.

A sensitivity analysis can determine whether a project is worth the risk involved, especially if the project does not go according to plan. A project may be proposed with an estimated budget, ...

Sensitivity analysis helps managers assess what factors would cause a project to turn out a smaller profit, affecting the net profit value of the planned activity.

In capital budgeting calculations, sensitivity analysis changes one assumption or estimate at a time to see how the results change. For example, a business may expect to earn $500, $1,000 and ...

Sensitivity analysis, or susceptibility testing, helps doctors figure out treatment for infections and if they are resistant to antibiotics.

We will see sensitivity analysis of how the changes in determining factors impact option valuations. Consider a stock with current market price at Rs.100 We can buy call option for a strike price ...

How Sensitivity Analysis Is Used . Sensitivity analysis can be helpful in various situations, including forecasting or predicting as well as identifying where improvements or adjustments need to ...