Sensitivity Analysis.
Sensitivity Analysis.
(394 K)
Marshall, H. E.
Technology Management Handbook. Chapter 8.12, CRC Press
LLC, Boca Raton, FL, Dorf, R. C., Editor, 8/59-63 p.,
1999 AND
Engineering Handbook. Chapter 187, CRC Press, Inc.,
Boca Raton, FL, Dorf, R. C., Editor, 1962-1967 p., 1996,
1999.
Keywords:
sensitivity analysis; heating equipment; commercial
buildings
Abstract:
Sensitivity analysis measures the impact on project
outcomes of changing one or more key input values about
which there is uncertainty. For example, a pessimistic,
expected, and optimistic value might be chosen for an
uncertain variable. Then an analysis could be performed
to see how the outcome changes as each of the three
chosen values is considered in turn, with other things
held the same. In engineering economics, sensitivity
analysis measures the economic impact resulting from
alternative values of uncertain variables that affect
the economics of the project. When computing measures
of project worth, for example, sensitivity analysis
shows just how sensitive the economic payoff is to
uncertain values of a critical input, such as the
discount rate or project maintenance costs expected to
be incurred over the project's study period.
Sensitivity analysis reveals how profitable or
unprofitable the project might be if input values to the
analysis turn out to be different from what is assumed
in a single-answer approach to measuring project worth.
Building and Fire Research Laboratory
National Institute of Standards and Technology
Gaithersburg, MD 20899