Sensitivity Analysis
What is a Sensitivity Analysis?
A sensitivity analysis is a method used to determine how changes in variables impact an outcome, based on a given set of assumptions. By creating a model that plays out “what-if” scenarios—how a change in variable affects an output, such as profits—businesses or individuals can see how sensitive their results are to those changes. This helps identify which factors have the greatest impact, empowers companies to make more informed decisions, and mitigates risk.
About the Author
Emilie Rose Jones
Emilie currently works in Marketing & Communications for a non-profit organization based in Toronto, Ontario. She completed her Masters of English Literature at UBC in 2021, where she focused on Indigenous and Canadian Literature. Emilie has a passion for writing and behavioural psychology and is always looking for opportunities to make knowledge more accessible.