Limitations of Sensitivity Analyses

Limitations of Sensitivity Analyses

We know that sensitivity analyses is basically is predicting future value with the help of some variable. The different values of variable are put to estimate the impact on outcome.

Data Accuracy is vital :- the result are totally depends on quality of data , if the input is wrong output will be misinterpreted.

Special Skills :- The sensitivity analyses is a skillful job especially when the processes are being designed for data input to generate the relevant result. This require special skill over the computer software and relevant formulas .


Only Critical Variable Tested :- The sensitivity level normally critical variable are tested one by one and it is assumed that when the one variable tested other remains constant.

Methods of Forecasting Demand

Methods of Forecasting Demand

There are four types of methods for forecasting demand.

1. Perform Market Survey
2. Testing Market
3. Estimates of Sale force Team
4. Professional Assessment
5. Past Sales Record and Experience