Definitions for **"sensitivity analysis"**

Investigation into how projected performance varies along with changes in the...

method of testing the degree of sensitivity of a system, whether physical or notional, to incremental change s to its variables. This analysis enables the determination of those variables that are the most significant, and possibly the selection of the best or optimal settings or solution to a problem. [D03268] RMW technique used to discover how sensitive the results from economic and financial model s are to change s in the input values of the variables used to calculate the results. A high degree of sensitivity is a warning to interpret the results of the model with care and circumspection, especially because many of the input variables will themselves have been estimate d and therefore be subject to error. Use of econometric models must not obscure awareness of their limitations and possible pitfalls, especially when they are being used for forecasting. [D05120] RAMP

A method of valuation of the rate of return on an investment with changes in a single factor.

analysis of how errors in one or more Estimates (of amounts, etc.) would affect the conclusion drawn from the Estimates.

An analytical process by which the results and conclusions of an economic analysis are assessed for robustness.

The process of varying parameters in a given model to assess the level of change in its output.

A risk analysis technique in which key variables are changed one at a time and the resulting changes in the NPV and IRR are observed.

Analysis of the effect on a project's profitability of changes in sales, cost, and so on.

A method of testing the responsiveness of an option price or indeed of any estimated outcome to changes in inputs.

Modifying a numerical model's parameters to investigate the relationship between alternative [marina] designs and water quality.

A process in which the levels of one or more planning coefficients are changed within reasonable bounds of the original estimates to determine if the ranking of selected alternatives is affected.

an analytical tool that studies how the outputs of a model change as the assumptions of the model change.

An analytical procedure to determine how the results of a study would change if the facts were different or different studies included. This is chiefly important in meta-analysis or complex techniques such as decision analysis and cost-effectiveness analysis.

Analysis of how sensitive outcomes are to changes in the assumptions. The assumptions that deserve the most attention should depend largely on the dominant benefit and cost elements and the areas of greatest uncertainty of the program or process being analyzed. [GAO

a test used to measure the extent the results and outcomes of a study depend upon any assumptions

A method of analyzing the results of a sensitivity test. Because a sensitivity test does not provide individual measures of the critical stress levels of members of the sample, it is not possible to compute an estimate of the mean in the normal manner of adding up the values and dividing by the sample size. It is similarly difficult to calculate the estimate of the standard deviation.

An analysis where one or more independant variables is altered to determine the effect on a particular dependant variable. For example, one might test how different rental rates affect the cash flow before taxes or how different purchase prices affect the Internal Rate of Return. Also, What-If Analysis

Varying the parameters of a model to assess the change in its output.

Technique used to determine the effects on net income or cash flow due to changes in assumptions (i.e. "what if" analysis).

a systematic and comprehensive test to evaluate how changes in the parameters of a model affect the model's output. Often used to identify influential parameters.

An analysis of the effects of varying the projected values of variables, eg different values might be given for unemployment rates to project the effect of the differences on a local economy.

An analysis that tests the sensitivity of a variable to changes in input factors.

Sensitivity Analysis, is to investigate how the decision might change with different input data.

A method used to examine the behaviour of a model by measuring the variation in its outputs resulting from changes in its inputs. [10

Assessment of the response of some factors as a result of changes in others

Analysis to determine a portfolio's sensitivity to various influences: For example, if a given equity portfolio rises by around 1.2% when the global equity market rises by 1%, this portfolio has a sensitivity of 1.2 (in technical parlance, we refer to this as the 'beta').

a means to determine the robustness of a mathematical model or analysis (such as a cost-effectiveness analysis or decision analysis) that tests a plausible range of estimates of key independent variables (e.g., costs, outcomes, probabilities of events) to determine if such variations make meaningful changes the results of the analysis. Sensitivity analysis also can be performed for other types of study; e.g., clinical trials analysis (to see if inclusion/exclusion of certain data changes results) and meta-analysis (to see if inclusion/exclusion of certain studies changes results).

(2) An analysis of the impact on the investment return assuming graduated variations to each of the major variables, e.g. interest rates, holding period etc.

Used in life cycle cost (LCC) analyses to determine how robust a particular alternative is, and how sensitive the overall cost is to certain variables.

A technique for testing the robustness of a decision analysis by repeating the analysis with a range of probability and utility estimates.

The testing of the variation in the outcome of an evaluation by altering the values of key factors about which there may be uncertainty.

Analysis of the effect on the project when there is some change in critical variables such as sales and costs.

This is a technique that re-runs the comparison between inputs and consequences, and varies the assumptions that underlie the estimates. The aim of sensitivity analysis is to test the robustness of the conclusions by varying the items about which there is uncertainty.

The problems encountered in Flood Risk management often involve many sources of uncertainty and the propagation of uncertainty through a cascade of Models. This then results in a problem of deciding how to reduce the dimensions of the problem to a manageable computational requirement. One way of doing so is to carry out a Sensitivity Analysis (SA) of the various components in the Modelling problem ...

is a term applied to a range of techniques employed to assess how solutions derived from GIS systems are affected by the accuracy and platforms.

An analysis in which one or more independent variables is altered to determ ine the effects on a specific dependent variable. For example, one might test how different rental rate s alter the cash flow before taxes.

tests the robustness of the observed results relative to sensible modifications in important variables.

a methodology that introduces a range of estimates for key variables to see how these values affect the outcome of the analysis.

Assesses the potential effect on inputs (costs) and outcomes (benefits) that depends on the relative magnitude of change in certain factors or assumptions.

The analysis of the possible effects of adverse changes on a project. Values of key variables are changed one at a time, or in combinations, to assess the extent to which the overall project result, measured by the economic net present value, would be affected. Where the project is shown to be sensitive to the value of a variable that is uncertain, that is, where relatively small and likely changes in a variable affect the overall project result, mitigating actions at the project, sector, or national level should be considered, or a pilot project implemented.

A modelling and risk assessment technique in which changes are made to significant variables in order to determine the effect of these changes on the planned outcome. Particular attention is thereafter paid to variables identified as being of special significance.

A method that tests the responsiveness (sensitivity) of a system to changes in one variable (an element that varies) of the system.

In decision analysis, a method for determining the way the decision changes as a function of probabilities and utilities used in the analysis.

Analysis of the effect on a project when there is a change in the critical variables

A test that gauges the sensitivity of a variable to changes in inputs.

Subject: The Earth Sensitivity analysis- can be used in a prototype GIS project to estimate the degree of precision required to reach a particular analytical objective. [ Pics List

Examination of how the projected performance of the business varies with changes in key forecasted assumptions.

Technique of investment analysis that enables investors to determine variations in the rate of return on an investment property in accordance with changes in a critical factor, such as how much the rate of return will change if expenses rise 5% or rental income drops 10%. It's an experiment with decision alternatives using a what-if approach.

Sensitivity analysis is the study of how the variation in the output of a model (numerical or otherwise) can be apportioned, qualitatively or quantitatively, to different sources of variation

structured portfolio strategy systematic investment plan