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Scenario Analysis Vs Sensitivity Analysis

oboloo Glossary

Scenario Analysis Vs Sensitivity Analysis

Scenario analysis is a process of considering and forecasting the potential outcomes of a situation based on different hypothetical scenarios. It involves examining numerous possible results, then weighing the probabilities of each. On the other hand, sensitivity analysis is the process of determining which factors have the most significant effect on the outcome of a situation. This type of analysis helps to identify where changes can be made in order to achieve a desired result. By comparing these two types of analysis, you can better understand the dynamics at play in any given situation and make informed decisions that take into account likely outcomes.

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