= Applications of sensitivity analysis to business
{wiki=Applications_of_sensitivity_analysis_to_business}
Sensitivity analysis is a powerful tool used in business to evaluate how changes in certain input variables can affect the outcome of a model or decision. Here are several applications of sensitivity analysis in a business context: 1. **Financial Modeling**: Businesses use sensitivity analysis to understand how changes in key financial assumptions (e.g., sales volume, pricing, cost of goods sold) impact profitability, cash flow, and overall financial performance.
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