SayPro Sensitivity Analysis

In this part the application helps the user define how sensitive the results are to changes in the costs and benefits. This sensitivity involves costs and benefits whose definition is not straightforward or is not easy to be exactly defined. Sensitivity analysis tests the sensitivity and reliability of the results obtained from the cost-benefit analysis. Since the CBA is normally the key document in the investment review process, reviewers want assurance that the analysis is reliable. Sensitivity analysis identifies those input parameters that have the greatest influence on the outcome, repeats the analysis with different input parameter values, and evaluates the results to determine which, if any, input parameters are sensitive. If a relatively small change in the value of an input parameter changes the alternative selected, then the analysis is considered to be sensitive to that parameter. If the value of a parameter has to be doubled before there is a change in the selected alternative, the analysis is not considered to be sensitive to that parameter. The estimates for sensitive input parameters should be re-examined to ensure that they are as accurate as possible.