Sensitivity Analysis
Examining how changes in key variables affect outcomes/decisions.
Formula
Change in outcome ÷ Change in variable
Real World
Netflix uses sensitivity analysis when commissioning original content, modelling how subscriber growth changes if a show attracts 10%, 20%, or 30% fewer viewers than projected.
Exam Focus
State which variable you are changing and by how much — vague answers about 'changing figures' will not score application marks.
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