Ch 9: Sensitivity Analysis in Business

About This Chapter

Show how decisions can be affected when factors change in these lessons about sensitivity analysis. Take a few minutes to review each of the video lessons, and challenge your skills by answering quiz questions about the sensitivity analysis process.

Sensitivity Analysis in Business - Chapter Summary and Learning Objectives

Most people make decisions based on known variables, but if some of those variables change, you can use sensitivity analysis methodologies to determine how such changes will affect your final decision. Our instructors have created several short lessons that make this complex subject easier to grasp. Each lesson uses pragmatic examples that are supported by clever graphics, so by the time you complete this chapter you will be able to discern more details about the following:

  • The definition of sensitivity analysis
  • Reasons to use sensitivity analysis in business
  • Running analyses with both constant and changing variables
  • Using variable linear programming to create graphic interpretations of analyses

Video Objective
Sensitivity Analysis: Definition, Uses & Importance Go over the key characteristics of sensitivity analysis, and then determine its uses and necessity in business.
Conducting Sensitivity Analysis for Objective Function Coefficients Define the following terms associated with running a sensitivity analysis: objective function coefficients, reduced costs, range, right-hand side values, shadow prices, and constraints.
Graphical Sensitivity Analysis for Variable Linear Programming Problems Establish the steps for building a graph interpretation of sensitivity analysis using linear programming equations.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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