Sensitivity Analysis Calculator

Formula

The formula to calculate Sensitivity (S) is:

\[ S = \frac{X_1}{Y_1} \times Y_2 \]

Where:

\( S \) is the Sensitivity (or final value of the fixed variable)
\( X_1 \) is the initial value of the fixed variable
\( Y_1 \) is the initial value of the changing variable
\( Y_2 \) is the final value of the changing variable

What is Sensitivity Analysis?

Sensitivity analysis is a technique used in finance and other fields to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions. It is commonly used to assess how changes in one variable, such as sales volume, can impact another variable, such as revenue or profit.

Example Calculation

Let's consider an example:

Initial Value of the Fixed Variable (X₁): 100 units
Initial Value of the Changing Variable (Y₁): 50 units
Final Value of the Changing Variable (Y₂): 70 units

Using the formula to calculate Sensitivity:

\[ S = \frac{100}{50} \times 70 = 140 \, \text{units} \]

This shows that with the given values, the sensitivity analysis results in a final value of 140 units for the fixed variable.