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Chapter 6
1.3 Advantages and disadvantages of sensitivity analysis
Simple to calculate and evaluate. Assumes variables change
independently of each other.
Provides further information to allow Only assesses the impact of one variable
management to make subjective changing at a time.
judgements.
Identifies critical estimates. Does not assess the likelihood of a
variable changing.
Does not directly identify a correct accept
/reject decision for a project.
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