Sensitivity analysis

Recomputing an outcome while one input at a time moves across its plausible range, with every other input held at its base value, to rank what drives the result.

Sensitivity analysis answers which inputs a result actually depends on. Starting from a base case, each variable in turn is moved to its low value and its high value while the rest are held still, and the outcome is recomputed each time, so the spread it produces is a clean measurement of that one variable’s influence. Holding the others still is what makes the results comparable, and it is also the technique’s limitation, because it can say nothing about variables that move together. The output is a ranking, usually drawn as a tornado diagram, and it separates the few variables worth managing from the many that barely register.

See also

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