Section 4
Scenario and Simulation Assessments
Book
Version 3
By Boundless
By Boundless
Boundless Finance
Finance
by Boundless
4 concepts
Sensitivity Analysis
Sensitivity analysis determines how much a change in an input will affect the output.
Scenario Analysis
Scenario analysis is a process of analyzing decisions by considering alternative possible outcomes.
Monte Carlo Simulation
Monte Carlo simulation uses statistical data to figure out the average outcome of a scenario based on multiple, complex factors.
Decision Trees
A decision tree is a decision support tool that uses a tree-like graph or model of decisions and their possible consequences.