I think a better approach to sensitivity analysis will be to make all assumptions change simultaneously within realistic ranges and then evaluate their impact on profit. This way you take into account the impact of two or more independent parameter interractions (assumptions) on the sensitivity of the dependent parameter (profit). This will make sensitivity analysis more robust.
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I have an exam tomorrow and this is part of a question... so perfectly explained there I'll be watching it again tomorrow afternoon before doing that question..
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I think a better approach to sensitivity analysis will be to make all assumptions change simultaneously within realistic ranges and then evaluate their impact on profit. This way you take into account the impact of two or more independent parameter interractions (assumptions) on the sensitivity of the dependent parameter (profit). This will make sensitivity analysis more robust.
If you find this video helpful, don't forget to like it! and SUBSCRIBE TO the tutor2u Channel to be alerted as soon as we've uploaded new topic videos like this one.
I have an exam tomorrow and this is part of a question... so perfectly explained there I'll be watching it again tomorrow afternoon before doing that question..
Good luck James!
@@tutor2u-official you are the best lecturer.. You must be from Oxford, you are more than perfect. Alien!!!
This was an amazingly well explained tutorial. The brevity and complete conveyance of the concept is to be commended. Thank you!
Glad it was helpful!
Very good video with useful information. I will apply this knowledge on a project I have at work now.
Sbu From South Africa, Cape Town Thanks
A clear explanation, thanks a lot!
thanks this video when I am taking the exam!
Please make a videos on monte carlo simulation on Project schedule sensitivity analysis
Thank you mate, this was fantastic. Great guide.
Thank you Man, that's very easy and helpful
Glad it helped
Well explained and very helpful. Thanks !
Glad it was helpful!
Grateful
Thank you for this!
Glad it was helpful!
thanks buddy
Very nicely explained sir
Your way of video is also very good. Through which application/software you created it if possible kindly let me know Sir
Thanks.
nicely explained
What is this ? Financial management or finance corporate?
thanks
helpful....thanks!!
how can be forecast profit of 9000 unit be 130000?
PRESENT SENSITIVITY
hi im still confused by how the profit dropped by 50% when 10% subtraction applied any feedback
thanks
1,000,000 - 800,000 = 200,000 but
900,000 - 800,000 = 100,000 which was 50% less than 200,000
so you just multiply everything back by the forecast sales
Yes - when you are testing the sensitivity of the other assumptions. I.e change one assumption at a time.
Are sensitivity and what-if analysis the same?
Essentially - yes. Both involve testing the impact on forecasts by changing the underlying assumptions.
@@tutor2u-official no any single difference between those two??
it's not a sensitivity analysis. It's GCSE calculation
This is a level
if 10% worse how vc and fc kept change any one could explain
How forecast profit for Variable cost is 170000 and fixed cost is 150000?
1000000-500000-330000=170000
1000000-550000-300000=150000
@@amaniaalyamohtar3842 how forecast profit of unit sales 130000?
hey could anyone help me understand how selling 1000 less units reduces your forecasted profit by £70,000?
A00A thanks mate!