Sensitivity analysis is the study of how the uncertainty in the output of a mathematical model or system (numerical or otherwise) can

be apportioned to different sources of uncertainty in its inputs.

 Testing the robustness Understanding of the relationships between input and output variables Uncertainty reduction Searching for errors in the model Model simplification

Advantages
Strengthening the "weak spots" in the project Inappropriate forecasts

Disadvantages
Ambiguity Fails to focus on the interrelationship

Microsoft Excel 12.0 Answer Report Worksheet: [Sensititvity Analysis.xlsx]Sheet1 Report Created: 1/4/2013 10:46:27 PM

Target Cell (Max) Cell Name $F$6 Total Profit

Original Value Final Value 0 58000

Adjustable Cells Cell Name $B$2 Number $B$3 Number $B$4 Number $B$5 Number

Original Value Final Value 0 0 0 16000 0 6000 0 0

Constraints Cell Name $C$6 Total Assembly $D$6 Total Polish $E$6 Total Pack

Cell Value Formula Status 82000 $C$6<=$C$7 Not Binding 50000 $D$6<=$D$7 Binding 60000 $E$6<=$E$7 Binding

Slack 18000 0 0