9. Sensitivity Analysis Flashcards
1
Q
What is a sensitivity analysis?
A
Required for key variables such as GDV, build costs and the finance rate, to show a range of values
2
Q
What are the three forms of sensitivity analysis?
A
Simple sensitivity analysis of key variables
Scenario analysis
Monte Carlo simulation
3
Q
Explain the simple sensitivity analysis of key variables
A
Such as the yield, GDV, build costs and finance rate
4
Q
Explain the Scenario analysis
A
change scenarios for the development content / timing / costs.
Such as phasing the scheme or modifying its design
5
Q
Explain the Monte Carlo simulation
A
Using probability theory, using software such as ‘crystal ball’
