Sensitivity analysis: Difference between revisions
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imported>Doug Williamson (Link with Quantitative techniques page.) |
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Revision as of 20:22, 23 February 2020
The refinement of a financial valuation or decision making model. Sensitivity analysis quantifies the degree of change in a valuation or other assessment, to changes in one or more of the inputs.
It can also be used to identify the break even point or points, at which a financial decision would change.
An important type of sensitivity analysis is stress testing.