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Essay heading: Sensitivity/Scenario Analysis
 
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Issue: Business
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Date added: December 29, 1998
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No of pages / words: 2 / 333
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Therefore, in our sensitivity analysis we hold the other variables at their base case levels and then examine the situation when the key variables change. We assume that the company regards the worst case as one where each of the three variables is 30% worse than the base level, and the best case has each variable 30% better than base...
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We also assume that there is a 25% chance of the best and worst cases, and a 50% chance of base case levels.
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