Purchase Solution

What is a sensitivity analysis?

Not what you're looking for?

Ask Custom Question

What is a sensitivity analysis? How would you use it in planning for future expansions? What role does this kind of analysis play in your work environment and/or your home environment? If you were trying to add a new service to your facility, what ratios would you use to determine if it would be profitable and how long until it would break even?

I need 1 page including citations and APA format with references.

Purchase this Solution
Solution Summary

Discusses definition, use and role of sensitivity analysis in work environment. Includes 270 words and 4 references.

Solution Preview

A sensitivity analysis determines the impact on a dependent variable due to different values of an independent variable under given assumptions. Sensitivity analysis is very useful in predicting varying outcomes due to different situations or conditions that may prevail in the future. For example, sensitivity analysis can help in identifying different price of a stock in the future due to different PE multiples and earnings reported by the company. Thus, sensitivity analysis helps us to determine the potential outcome or consequence ...

Solution provided by:
Sandeep Bardia, MBA
Education
  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
Recent Feedback
  • "Thank you. "
  • "Thank you"
  • "Thank you. I got 20/20 last week for my discussion you help me out with."
  • "Thank you. Great Job. "
  • "Thank you. Great Job. "
Purchase this Solution
Free BrainMass Quizzes
Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Introduction to Finance

This quiz test introductory finance topics.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

View More Free Quizzes
Related BrainMass Solutions

  • Sensitivity Analysis and CEA

    591792 Sensitivity Analysis and CEA In your own words define what a sensitivity analysis is and discuss why it is a critical step in conducting CEA. Provide examples.

  • Advantages and disadvantages: sensitivity analysis

    As a tool for risk analysis there are several advantages and disadvantages of sensitivity analysis. Sensitivity analysis is a great decision making tool.

  • Sensitivity Analysis Benefits

    For each source a reasonable range of values is established. • Step 2: Sensitivity analysis is performed for all combinations of input values for which project worth is computed.

  • Strenghth and weaknesses of Sensitivity analysis?

    32798 Strenghth and weaknesses of Sensitivity analysis? What are the primary weaknesses of sensitivity analysis? What are its primary advantages? Sensitivity analysis is a technique to assess the effects of adverse changes on a project.

  • Financial Management

    207509 What is a sensitivity analysis? What is a scenario analysis? 5. What is a sensitivity analysis? 6. What is a scenario analysis? 7. How would you apply each one to a potential investment opportunity? 8.

  • Advantages of using sensitivity and scenario analysis

    In other words, sensitivity analysis is useful in pinpointing which variables deserve the most attention. Scenario analysis is the determination of what happens to NPV estimates when we ask what-if questions.

  • Sensitivity Analysis and Scenario Analysis Evaluation

    The solution examines sensitivity analysis and scenario analysis evaluations. What involvement would non financial people in marketing, accounting and production have in the analysis is determined.

  • Sensitivity Analysis of NPV

    WACC a) Include a spreadsheet file with the analysis, b) including a graph of the sensitivity/NPV review. c) Along with a brief written review of what this analysis tells you about the project.

  • ROP and Sensitivity Analysis

    220001 ROP and Sensitivity Analysis What is the ROP? How is it determined? What is the purpose of sensitivity analysis? Hi Here are the answers to your questions. Hope you find them useful.

View More Related Solutions