Definition
Sensitivity Analysis is a method for examining how changes in input values, parameters or assumptions affect the results of a model or analysis.
Human Explanation
It shows which assumptions have the greatest influence and how much the result changes when they are modified.
Why it Matters
It helps assess the stability of results, identify influential factors and determine where uncertainty matters most for a decision.
Conceptual Boundary
Sensitivity Analysis does not estimate the probability that an input will change. It shows how a result responds when selected inputs or assumptions are changed.
Practical Perspective
When a small change in one parameter produces a large change in the result, decisions based on the model require particular caution. The tested ranges should remain plausible for the intended context.