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sensitivity analysis
(redirected from What-if analysis)

   Also found in: Wikipedia 0.01 sec.
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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