#sensitivityanalysis

Sensitivity analysis is basically a tool that detects how much an outside variable has an impact on your company. Are your teeth sensitive to cold or heat, that's the kind of question which we ask ourselves when we do sensitivity analysis, not about our teeth but about the assumptions that are used in various business forecasts. So sensitivity analysis is all about challenging and analyzing the effect of changes in assumptions used in forecasts and as we know there are various different places in business where we may need to forecast some information.