Sensitivity Analysis
Sensitivity Analysis is a technique used to determine how different values of an input variable can impact a particular output in a mathematical model. By changing one variable at a time while keeping others constant, analysts can identify which inputs have the most influence on the results. This helps in understanding the robustness of the model and the potential risks involved.
In fields like finance, engineering, and environmental science, Sensitivity Analysis is crucial for decision-making. It allows stakeholders to assess how uncertainties in parameters, such as costs or resource availability, can affect outcomes, enabling better planning and risk management.