<Li> To optimize the tolerance of manufactured parts in terms of the uncertainty in the parameters </Li> <Li> To optimize resources allocation </Li> <P> However, there are also some problems associated with sensitivity analysis in the business context: </P> <Ul> <Li> Variables are often interdependent (correlated), which makes examining each variable individually unrealistic . E.G. changing one factor such as sales volume, will most likely affect other factors such as the selling price . </Li> <Li> Often the assumptions upon which the analysis is based are made by using past experience / data which may not hold in the future . </Li> <Li> Assigning a maximum and minimum (or optimistic and pessimistic) value is open to subjective interpretation . For instance one person's' optimistic' forecast may be more conservative than that of another person performing a different part of the analysis . This sort of subjectivity can adversely affect the accuracy and overall objectivity of the analysis . </Li> </Ul>

Sensitivity analysis information in computer output is based on the assumption of