Sensitivity analysis

From ACT Wiki
Revision as of 14:06, 8 April 2021 by imported>Doug Williamson (Add links.)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigationJump to search

Sensitivity analysis and stress testing.

The refinement of a financial valuation or decision making model. Sensitivity analysis quantifies the degree of change in a valuation or other assessment, to changes in one or more of the inputs.

It can also be used to identify the break even point or points, at which a financial decision would change.


An important type of sensitivity analysis is stress testing.


See also