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Sensitive analysis

DDinh5y ago
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.
John MoffatJohn MoffatTutor5y ago#1
The examiners explains this in the last sentence to this part of his answer :-)
DDinh5y ago#2
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 ?
John MoffatJohn MoffatTutor5y ago#3
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.
DDinh5y ago#4
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 ?
John MoffatJohn MoffatTutor5y ago#5
False - nobody is saying that it analyses risk.
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