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Sensitivity Analysis: Definition, Uses & Importance

Instructions:

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question 1 of 3

Which of the following answers best defines 'sensitivity analysis?'

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1. How can sensitivity analysis be used in a production setting?

2. What do you need to use sensitivity analysis?

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About This Quiz & Worksheet

A sensitivity analysis often provides crucial information that can be used to help determine the best businesses strategies to employ. In addition to what a sensitivity analysis is, quiz questions focus on the process involved in conducting a sensitivity analysis.

Quiz & Worksheet Goals

To pass this quiz, you must:

  • Define sensitivity analysis
  • Identify the reasons for conducting a sensitivity analysis
  • Know the importance of coefficients

Skills Practiced

  • Interpreting information - verify that you can read information regarding signs of coefficients and interpret it correctly
  • Information recall - access the knowledge you've gained regarding the role of sensitivity analysis in a production environment
  • Making connections - apply knowledge to answer questions pertaining to performing a sensitivity analysis

Additional Learning

For reinforcement on this topic, see the related lesson called Sensitivity Analysis: Definition, Uses & Importance. After reading this lesson you will be able to:

  • Use the demand equation to solve problems
  • Distinguish between dependent and independent variables
  • State the benefits of performing a sensitivity analysis
Final Exam
Chapter Exam
Sensitivity Analysis in Business
Chapter too short for exam
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