Sensitivity analysis

Activities

• Activity 4: Assessing and selecting the solution concept

Necessary tools

• Spreadsheet program

Description

In a sensitivity analysis, the effects of a Parameter variation can be checked and parameters with a significant influence can be identified. There can also be different scenarios be generated.

Procedure

1. Specify the input variables to be varied
2. Sizes vary in different combinations; On the one hand, a small parameter variation of around ten or twenty percent should be made and, on the other hand, individual parameters should be changed radically
3. Consider the effects of the combined variation of input variables on the final result, where visualization of the deviations from the original result is helpful

Sources

• Lindemann 2009, p. 306