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Paper PM

This topic has 5 replies, 2 voices, and was last updated 2 years ago by John Moffat.

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August 6, 2022 at 7:56 pm #662561
fizaali
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Can we be tested on sensitivity analysis in paper PM nowadays?
August 7, 2022 at 9:30 am #662579
John Moffat
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Yes you can be.
August 7, 2022 at 11:26 am #662599
fizaali
Participant
- Topics: 53
- Replies: 36
Can you please explain should we take the profit before interest and tax OR profit after tax for the calculation of sensitivity analysis?
Is this the correct formula =? PBIT / Any variable item
The higher the percentage the better it is.
August 8, 2022 at 8:50 am #662636
John Moffat
Keymaster
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It depends on what you are required to calculate the sensitivity of.
August 8, 2022 at 4:07 pm #662686
fizaali
Participant
- Topics: 53
- Replies: 36
Plesse respond to this whether we should take the profit before interest and tax (PBIT) OR profit after tax (net profit) for the calculation of sensitivity analysis?
Secondly, the higher the % of sensitivity analysis the better it is. (Is this correct too?)
August 8, 2022 at 7:31 pm #662695
John Moffat
Keymaster
- Topics: 57
- Replies: 54656
I did respond – it depends what you are being asked to calculate the sensitivity of.
It is not really a question of ‘better’ or ‘worse’. However the greater the sensitivity the less worried we are about the uncertainty.
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