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sensitivity analysis

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Sensitivity analysis
Analysis of the effect on a project'sprofitability of changes in sales, cost, and so on.

Sensitivity Analysis
The analysis of an investment's profitability according to various changes. That is, sensitivity analysis considers potential changes to interest rates, costs, and/or other variables and measures how this will affect the return on the investment. Sensitivity analysis is a form of quantitative research. It can be useful in making investment decisions. It is sometimes called a what-if analysis. See also: Volatility.

sensitivity analysis

Use of spreadsheets to analyze an income-producing property or a development project, and then changing key assumptions in order to view the changes this causes. The creation of a best-case,worst-case,and most-likely-case pro forma is one type of sensitivity analysis.



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A toolbox of forecasting techniques used at Aviasolutions depending on the nature of the forecast required includes traffic allocation model, gravity modelling, econometric modelling, including elasticity of demand and economic growth, time series,peer benchmarking, network gap analysis, peak period and design day modelling and sensitivity analysis.
You must look for real estate investing software that allows powerful sensitivity analysis by incorporating variations in purchase price, loan interest rate, appreciation growth rate, income growth rate, expense growth rate, vacancy rate and reinvestment rate of return.
The sensitivity analysis undertaken at SBP suggests that the banking sector is well placed to withstand credit risk shocks of a modest nature, Mr Raza said and added that the provisioning coverage ratio of around 70 percent at end March 2009 also shows a prudent and proactive approach towards credit risk management.
 
 
 
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