Sensitivity analysis highlights the impact of a change in one key variable on another key variable.

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Sensitivity analysis is a tool used in financial modeling and decision-making to understand how changes in one variable affect another variable. It involves testing different scenarios and seeing how sensitive the results are to variations in key inputs, such as interest rates or sales volumes. By identifying the most important drivers of a decision or project, sensitivity analysis helps decision-makers to make more informed choices and manage risk effectively.

Sensitivity Analysis Highlights the Impact of a Change in One