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What are the strengths and weaknesses of sensitivity analysis?

What are the strengths and weaknesses of sensitivity analysis?

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Answer :-

Sensitivity analysis :-

  • Affectability examination is an examination that is driven by information.
  • It decides how free factor of a business can affect the needy factors.
  • This at last prompts change in the yield and gainfulness of the business.
  • The idea of affectability examination is utilized to assess the general hazard and distinguish basic components of the business.
  • Thusly, the business endeavors to discover elective answers for various issues.

Weaknesses :-

1.Does not reflect enhancement

2.Says nothing about the probability of progress in a variable

3.Ignores the relationship among factors

Strengths :-

1.Gives a thought of remain solitary hazard

5.Identifies risky factors

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