| Applying science to business management |
  
Sensitivity Graphs
Assume, for example, that you have developed the following
model to calculate the monthly payment for an installment loan.
This model requires three input values: Principal, Annual
Rate, and Years. It calculates one output value, Payment.
Next, assume you want to generate a graph showing what happens
to Payment as each of the inputs is changed. To do this,
point to Sensitivity Analysis in the Tools menu and
click Sensitivity Graph. This command brings up the Sensitivity
Graph dialog box.
Here, you specify the output and input nodes in your model and
the range over which you want to change the input node values.
You are not required to explicitly list all input nodes in this
dialog box. Instead, you tell DecisionPro to assume that all end
nodes are inputs, or that all input nodes have been explicitly
declared.
After entering the appropriate options in the Sensitivity
Graph dialog box, click OK to produce a graph similar
to the following:
This graph shows what happens to the value of the output node,
Payment, as each of the input nodes is varied from their
current value by -50% to +50%. These results tell you that Payment
is most sensitive to changes in Principal. You know this
because the Principal line has the steepest slope. You can
also see that Payment increases as both Principal
and Annual Rate increase, and it decreases as Years
increases.
A model can contain tens or even hundreds of end nodes. If
this is the case, having DecisionPro treat all end nodes as
inputs will create a very cluttered graph. You can explicitly
specify which input nodes you want to include in the sensitivity
analysis by first declaring the nodes as inputs and then using
the each declared input option in the while changing
field. Nodes are declared as inputs by choosing the appropriate
option in the Type page of the Node Format dialog
box.
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