### Our Services

Get 15% Discount on your First Order

# Each reply at least 120 words Reply 1 Advantages and disadvantages of sensitivity analysis The tool used for calculating the impact on dependent variables by

Each reply at least 120 words

The tool used for calculating the impact on dependent variables by various values of independent variables is known as sensitive analysis. Calculated under a specified set of rules and regulations, the process of sensitive analysis is widely used in financial models. Other than that, biology, economics, engineering, and geography also use this process (Munikoti et al., 2021). Scenario analysis and switching values are two approaches for sensitive analysis. The scenario analysis approach considers various situations that might affect future value. It then questions these scenarios and recalculates the expected net present values. The switching value approach analyses how much the value of some given variable needs to change to finally affect the choice of an option. These approaches are relative to each other. Both have their advantages and disadvantages. The scenario analysis approach allows managers to verify and change the values of potential variables and different situations. Therefore, the advantage of this process provides a full understanding as well as tests the results to get a profit situation. With future outcomes predicted from before, one can stay prepared for that. The disadvantage of scenario analysis is that the entire process becomes ineffective if one value of the model is incorrect. On the other hand, the advantage of switching values is that by altering discount prices and exchange rates, many scenarios can be predicted (Cinelli and Hazlett, 2020). This is a crucial advantage of ‘what if’ analysis. The disadvantage of switching value analysis is that, with any misinformation about the risks, the accuracy of the process would be hampered. It would not be able to accurately determine the robustness of the preferred option.

Sensitivity analysis refers to a technique that is used in assessment of variation in the input parameters of a model affecting the output. There are various approaches to sensitivity analysis and each of them have their, merits and demerits that are related to each other. The key approaches in this section include; The first one is One- factor- at a time approach. This parameter develops interest in only one input parameter at time as the other inputs are kept constant. This method is advantageous in that it is easy to understand and also easy to carry out the implementation. This approach however assumes on the independence of the input parameters towards each other. This case is rare in the real word applications. The second one is the local sensitivity analysis that enhances measurement in change in the output as a result of a minute perturbation around a distinct point. This method is applicable in continuous and differentiable input parameters. The merit of this method is that it generates more information based on models behavior. The demerit in this case is that it is computationally time consuming in calculating derivatives for each formula. (Borgonovo, E., … & Maier, 2021)

Global sensitivity approach it conducts investigation based on the input parameter affects the output parameter in that respective manner. This approach provides more detailed information. The disadvantage in this approach is that the process of computation is a bit expensive. The final one is the regression based methods that involves the fixation of the regression model to the output. (Mulani, S. B., & Walters, R. W, et.al, 2021)

Order a Similar Paper and get 15% Discount on your First Order

## Related Questions

### Scenario You are the director of community affairs for the health lobby organization, Pathways to a Healthy America. In 2010, President Barack Obama

Scenario You are the director of community affairs for the health lobby organization, Pathways to a Healthy America. In 2010, President Barack Obama signed the Affordable Care Act into law. As a result, millions of Americans who were previously uninsured gained access to the healthcare system. One of the

### Research and find any free organizational culture quiz. Some free quiz sites are provided below, but feel free to search and use your own quiz. ·

Research and find any free organizational culture quiz. Some free quiz sites are provided below, but feel free to search and use your own quiz. · Culture QuizLinks to an external site. · What’s Your Organizational Culture? Links to an external site. Take the quiz and then copy/paste your results into

### Team Effectiveness in the Workplace Instructions Teams and their use in organizations seem to have

Team Effectiveness in the Workplace Instructions Teams and their use in organizations seem to have varying degrees of success. We all know what a successful athletic team looks like. Managers often times try to translate that structure and in turn success back to the organization by organizing their employees in

### Watch the “Lack of Commitment” video. on Youtube Post your response in a conversational tone and narrative form. When there is not a natural

Watch the “Lack of Commitment” video. on Youtube Post your response in a conversational tone and narrative form. When there is not a natural consensus- can you disagree as individuals and commit as a team? What Scriptures or other faith-based references support this concept?

### What are some challenges managers face when communicating with virtual teams?

What are some challenges managers face when communicating with virtual teams?

### KRYSTEL BERGHER PROFILE Accomplished Customer Service Expert committed to the delivery of quality service. Professional and Ethical.

KRYSTEL BERGHER PROFILE Accomplished Customer Service Expert committed to the delivery of quality service. Professional and Ethical. Seeking to assist or help a new customer service department in creating and achieving the much-needed customer service goals. CONTACT ADDRESS: 15851 Southwest 139th Place, Miami FL 33177. PHONE: 305-992-6010 EMAIL: [email protected] om

### Homework  Sustainability, Social Impact, and the Bottom Line Think about a product or service

Homework  Sustainability, Social Impact, and the Bottom Line Think about a product or service you recently purchased that originated from a company whose Mission includes a focus on sustainability or social impact. In other words, a company that “does well by doing good.“ Then read and reply to each of the prompts

### Business Law BUS 3301 VII Question 12 The principal agent relationship, the employer-employee relationship, and the employer-independent contractor

Business Law BUS 3301 VII Question 12 The principal agent relationship, the employer-employee relationship, and the employer-independent contractor relationship are three types of agency relationships commonly found in business settings. Why is it important for business professionals to know what type of agency relationship they are forming?   Your response must

### Information Systems Management ITC 3301 Unit VII Essay In this final assignment, you will develop a paper that reviews some of the main topics

Information Systems Management ITC 3301 Unit VII Essay In this final assignment, you will develop a paper that reviews some of the main topics covered in the course. Compose an essay to address the following: · Identify the components of an information system using the five-component framework and provide a

### Business Law BUS 3301 VII Question 11 Have you ever bought something, paid for it, and arranged to have it delivered to you at a later date? That is

Business Law BUS 3301 VII Question 11 Have you ever bought something, paid for it, and arranged to have it delivered to you at a later date? That is a fairly typical transaction, and, under the Uniform Commercial Code (UCC), a delivery contract is created. However, it is a little

### 1. How did Apple’s introduction of the IPhone in 2007 lead to its success over its main competitors? Think about which industries it has disrupted and

1. How did Apple’s introduction of the IPhone in 2007 lead to its success over its main competitors? Think about which industries it has disrupted and how. 2. What are some the challenges facing Apple today? What should Apple do to address them? Be Specific.

### Creating a mission vision instruction and an organizational chart Creating an Organization Chart BUS 100 Introduction to Business Organization

Creating a mission vision instruction and an organizational chart Creating an Organization Chart BUS 100 Introduction to Business Organization Chart Instructions Organization Chart Create a hierarchy (think inverted tree) with the top decision maker at the top. Identify the different levels of management down to non-management roles. Determine if you

### Project Overview: In the previous project part, you developed a flexible (flex) budget based on an unforeseen expense provided to you by your professor.

Project Overview: In the previous project part, you developed a flexible (flex) budget based on an unforeseen expense provided to you by your professor. For this project part, you will take things one step further by determining ways to reduce spending in different areas or aspects of your business.  Using

### Project Overview: In the previous project part, you developed a flexible (flex) budget based on an unforeseen expense provided to you by your professor.

Project Overview: In the previous project part, you developed a flexible (flex) budget based on an unforeseen expense provided to you by your professor. For this project part, you will take things one step further by determining ways to reduce spending in different areas or aspects of your business.  Using

### plan is based on research and organizational goals. Refer to the Balanced Scorecard you created in Week 3.

plan is based on research and organizational goals. Refer to the Balanced Scorecard you created in Week 3.

### Select 1 well-known business you would like to research and use as the basis for developing a marketing campaign. Refer to the

Select 1 well-known business you would like to research and use as the basis for developing a marketing campaign. Refer to the following resources, as needed, for assistance selecting a business and locating information about it: · Marketing professional organizations, such as  4 A’s  website or  American Marketing Association  website

### pfa TASK 1: By Tuesday Evening Reflection and Discussion Forum Week 3

pfa TASK 1: By Tuesday Evening Reflection and Discussion Forum Week 3 Assigned Readings: Chapter 8. Understanding Markets and Industry Changes. Chapter 9. Market Structure and Long-Run Equilibrium. Chapter 10. Strategy: The Quest to Keep Profit from Eroding. Initial Postings: Read and reflect on the assigned readings for the week.

### INSTRUTIONS ATTACHED TOPIC TO DISCUSS How gps tracking units placed on cars can be obtained by law enforcement

INSTRUTIONS ATTACHED TOPIC TO DISCUSS How gps tracking units placed on cars can be obtained by law enforcement consistent with the 4th amendment and how such devices can help criminal investigations? Remember there must be critical analysis from you I the paper and not just a book report. Overview: A