Sensitivity Analysis Definition and Explanation PDF | Download eBooks
Learn Sensitivity Analysis definition in project management with explanation to study “What is Sensitivity Analysis”. Study sensitivity analysis explanation with project management terms to review project management course for online MBA programs.
Sensitivity Analysis Definition:
Sensitivity analysis helps to determine which individual project risks or other sources of uncertainty have the most potential impact on project outcomes.
A Guide to the Project Management Body of Knowledge by Project Management Institute
Sensitivity Analysis Explanation:
There are several tools and techniques to perform quantitative risk analysis. One of them is sensitivity analysis. Sensitivity analysis identifies the project associated risks that have the highest impact on the project objective/s. Sensitivity analysis in general, studies the uncertainty in output in relation to the uncertainties in inputs. Sensitivity analysis used in quantitative risk analysis determines the correlation between the variation in the outcomes of the project and the variations in the quantitative risk analysis model. Tornado diagram can be used for sensitivity analysis. It helps to display the coefficient of correlation between the elements of the quantitative risk analysis model and the outcomes of the project.
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