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Sensitivity Analysis (Análisis De Sensibilidad)

20 Pages Posted: 16 May 2007  

Ignacio Velez-Pareja

Grupo Consultor CAV Capital Advisory & Valuation

Date Written: October 20, 2003

Abstract

This is a course material from the book Managerial Decision Making Under Risk and Uncertainty. The book is originally in Spanish and is untitled as Decisiones empresariales bajo riesgo e incertidumbre. The level of the book is basic. We use very few mathematics and it is expected to be used by managers.

In this sixth chapter we present the idea of sensitivity analysis. We illustrate the different ways to do sensitivity analysis with one, two and more variables. We include what if analysis with and without probabilities, reverse engineering, one and two way tables, scenarios, and Montecarlo Simulation (MCS). We use intensively the spreadsheet.

Notes: Downloadable document is in Spanish

Keywords: Sensitivity analysis, one way table, two way table, montecarlo simulation, scenarios, solver

JEL Classification: G31

Suggested Citation

Velez-Pareja, Ignacio, Sensitivity Analysis (Análisis De Sensibilidad) (October 20, 2003). Available at SSRN: https://ssrn.com/abstract=986887 or http://dx.doi.org/10.2139/ssrn.986887

Ignacio Velez-Pareja (Contact Author)

Grupo Consultor CAV Capital Advisory & Valuation ( email )

Ave Miramar # 18-93 Apt 6A
Cartagena
Colombia
+573112333074 (Phone)

HOME PAGE: http://cashflow88.com/decisiones/decisiones.html

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