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The Role of Risk in Capital Budgeting
Scenario and Simulation Assessments
Finance Textbooks Boundless Finance The Role of Risk in Capital Budgeting Scenario and Simulation Assessments
Finance Textbooks Boundless Finance The Role of Risk in Capital Budgeting
Finance Textbooks Boundless Finance
Finance Textbooks
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Concept Version 5
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Sensitivity Analysis

Sensitivity of a Variable

Sensitivity of a Variable

Sensitivity analysis determines how much an output is expected to change due to changes in a variable or parameter. In this case, the output (y-axis) decreases exponentially with an increase in the input (x-axis). This is mapped out for each input.

Source

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    "All sizes | exponential curve data | Flickr - Photo Sharing!."
    http://www.flickr.com/photos/rlodan01/4387091613/sizes/m/in/photostream/ Flickr CC BY-SA.

Related Terms

  • sensitivity analysis
  • parameter
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