sensitivity analysis

Question 1

is an analysis technique that works on the basis of what-if analysis like how independent factors can affect the dependent factor and is used to predict the outcome when analysis is performed under certain conditions.

Answer 1

sensitivity analysis

Question 2

The key application of sensitivity analysis is to indicate the ______ to uncertainties in the input values of the model.

Answer 2

sensitivity of simulation

Question 3

Helps in identifying how ______ the output is on a particular input value. Analyses if the dependency in turn helps in assessing the risk associated

Answer 3

dependent;

Question 4

is the simplest method of sensitivity analysis. It involves changing one factor at a time and observing how it affects the outcome.

Answer 4

one way analysis

Question 5

is a variation of one-way analysis that allows you to change two factors at the same time and observe how they affect the outcome.

Answer 5

Two-way analysis

Question 6

is a method of sensitivity analysis that involves creating different scenarios based on different combinations of factors and assumptions.

Answer 6

scenario analysis

Question 7

is a method of sensitivity analysis that uses random sampling and simulation to generate many possible outcomes based on the inputs and their probability distributions.

Answer 7

monte carlo analysis

Question 8

is derivative based (numerical or analytical). The term local indicates that the derivatives are taken at a single point. This method is for simple cost functions, but not feasible for complex models.

Answer 8

local sensitivity analysis

Question 9

is the second approach to sensitivity analysis, often implemented using Monte Carlo techniques. This approach uses a global set of samples to explore the design space

Answer 9

Global sensitivity analysis

Question 10

Sensitivity analysis helps in understanding which variables or factors have the most impact on the outcome or results.

Answer 10

Identifies key drivers

Question 11

Sensitivity analysis helps in assessing the level of risk and uncertainty associated with the project or decision.

Answer 11

Evaluates risk and uncertainty

Question 12

Sensitivity analysis aids in developing robust plans by considering multiple scenarios and variations, ensuring that plans can adapt to different possible outcomes

Answer 12

Supports effective planning

Question 13

Sensitivity analysis relies on assumptions that may not accurately represent the real-world complexity and dynamics, potentially leading to biased or incomplete results.

Answer 13

Assumption limitations

Question 14

Sensitivity analysis requires reliable data, and if the data is insufficient or of poor quality, the analysis may produce unreliable or misleading outcomes.

Answer 14

data requirements

Question 15

Conducting sensitivity analysis can be time-consuming and resource-intensive, especially with complex models or numerous variables.

Answer 15

time consuming

Question 16

Sensitivity analysis is one of the tools that help decision makers with more than a solution to a problem. It provides an appropriate insight into the problems associated with the model under reference. Finally the decision maker gets a decent idea about how sensitive is the optimum solution chosen by him to any changes in the input values of one or more parameters.