Dear sir, as I know sensitivity analysis is technique for analysing the uncertainty.Why the answer of Q32c in Mar/Jun 2017 said that it is a way of considering risk.Thank you.
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Sensitive analysis
The examiners explains this in the last sentence to this part of his answer :-)
Thank you sir, but I do not understand
If sensitivity is not a way to consider risk (as the requirement of the question); it should not be discussed at first.
In stead of discussion on sensitivity at first; and at last, it said that however it is not to use to consider risk
Do you think so ?
No. As the examiner writes in his answer, although strictly speaking sensitivity is more concerned with measuring the effect of uncertainty, risk and uncertainty are inter-connected. The smaller the sensitivity the more risk there is of the uncertainty affecting the decision.
I do say this in my free lectures.
I wonder that if there is a multi choice question said that sensitivity analysis is technique for analyzing the risk. It is true or false ?
False - nobody is saying that it analyses risk.
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