Sensitivity Anallysis

In: Computers and Technology

Submitted By rajinimass
Words 989
Pages 4
Sensitivity Analysis Using Data Tables In Excel
A data table in Excel is a kind of What-If scenario. The table allows you to create instant results based on two variables which change along the rows and columns of the table.

Let’s say we’re trying to predict the number of periods until a currently unprofitable company becomes profitable. We have a goal for managing expense growth rates and a goal for increasing sales growth rates but of course, we don’t know whether or not we’ll hit our targets! A data table can show us at a glance the effects of missing and/or exceeding our target numbers.
In a new Excel spreadsheet create an area to hold our assumptions. You can create this region yourself, or download the sample spreadsheet.

We need figures in year ‘0’ (the current year) for Revenues, Expenses, Revenue Growth, and Expense Growth. We include the year of interest at the bottom so that we can quickly change the year of interest to see how the company would be doing for a particular year given a variety of revenue and expense estimates.

Amount Growth Rate
Revenues $1,000,000 15.0%
Expenses $1,700,000 3.0%
Year 0

Be sure to name your ranges; we’ll be using the names to create a cumulative profit formula.

We then ‘surround’ our growth targets with higher and lower estimates as shown below. We place our formula for cumulative profit at the top left corner of the table, using the named ranges we created above:

=(Revenues*((1+RevGrowth)^Years))-(Expenses*((1+ExpGrowth)^Years))

Lastly, we formatted the center cells with some shading and borders so that we know exactly what figure represents our target.
Now let’s create the data table itself. Highlight the cells beginning with our formula all the way down to the last intersection of growth rates. If you like shortcut keys, just click on the formula and click Ctrl * or Crtl-Shift 8.…...

Similar Documents

Sensitivity Analysis

...Sensitivity ANALYSIS Sensitivity analysis is the study of how the uncertainty in the output of a mathematical model or system (numerical or otherwise) can be apportioned to different sources of uncertainty in its inputs.[1] A related practice is uncertainty analysis, which has a greater focus on uncertainty quantification and propagation of uncertainty, but gives no distinction given to different sources of uncertainty. Ideally, uncertainty and sensitivity analysis should be run in tandem. Sensitivity analysis can be useful for a range of purposes,[2] including: * Testing the robustness of the results of a model or system in the presence of uncertainty. * Increased understanding of the relationships between input and output variables in a system or model. * Uncertainty reduction: identifying model inputs that cause significant uncertainty in the output and should therefore be the focus of attention if the robustness is to be increased (perhaps by further research). * Searching for errors in the model (by encountering unexpected relationships between inputs and outputs). * Model simplification - fixing model inputs that have no effect on the output, or identifying and removing redundant parts of the model structure. * Enhancing communication from modelers to decision makers (e.g. by making recommendations more credible, understandable, compelling or persuasive). * Finding regions in the space of input factors for which the model output is either......

Words: 299 - Pages: 2

Cultural Sensitivity

...Cultural Sensitivity Company A is headquartered in a regional manufacturing area in the United States. Company A produces engine components that undergo an extra heat-hardening process that provides extended life for engines of heavy-duty trucks, and it provides specialized machined engine components to all major U.S. truck and automobile manufacturers. Company A currently has 5,000 employees in the United States and wants to double its size within the next four years. After establishing through market research that a huge growth potential exists for new entrants of heavy-duty trucks in several target countries, Company A expanded successfully into one European country this past year. The company is now considering expansion into an Eastern Asian market. Senior management believes Company A will more than double company profits with its expansion in the international market. As a member of the expansion team, you will be a key player in ensuring the success of this new venture. You will be responsible for providing assessments, analysis, and written plans for successful furtherance of Company A’s global marketing plan. Your manager at Company A has asked you to submit a detailed marketing approach that the manager will present to the operating committee. Your approach should address any major cross-cultural challenges that may likely surface as Company A expands into an Eastern Asian market. A. Identify one country in Eastern Asia a. After researching a......

Words: 1172 - Pages: 5

Cultural Sensitivity

...Aishani Rungta Mrs. Subhamitra Adhikari Academic Writing (b) July 23, 2013. Main Essay: 1111 words. CULTURAL SENSITIVITY Essay Plan: (Cultural Sensitivity in Business) First paragraph- Introduction Second paragraph: What is cultural sensitivity, different types of Cultural Sensitivity. Third paragraph: Cultural Sensitivity in Communication, business, tourism, etc. Fourth paragraph: (CONCLUSION)- importance of cultural sensitivity, Negative impacts of Cultural Sensitivity, Consequences of lack of cultural sensitivity in day to day life, Inter-relation of Cultural sensitivity in various aspects. THESIS STATEMENT: How has the aspect of cultural sensitivity affected various marketing strategies in business? MY POINT OF VIEW: Cultural Sensitivity broadly means being aware of and open to other diverse cultures. It makes a person more compatible to other countries traditions and culture and their way of thinking. Hence, according to me, culturally sensitive people are more open to the changes around them and can adjust easily with their surroundings. This article mainly focuses on the importance of cultural sensitivity in the marketing sector of the business. Most businesses operate on an international scale, which requires large scale interaction with people from all over the world. Hence, it is extremely important to be culturally sensitive towards the different......

Words: 1362 - Pages: 6

Cultural Sensitivity

... Assignment 1: Cultural Sensitivity in Business. What is cultural sensitivity? Are you culturally sensitive? Health Corps defines cultural sensitivity as having the capacity and sensitivity to function effectively with people from different cultures. It means valuing and respecting differences and diversity and being sensitive to cultural differences. It helps us become more culturally sensitive to the community we are in, making us more culturally competent and aware, understanding that cultural sensitivity is a finite achievement. Cultural sensitivity is a set of skills that helps us learn about various kinds of people, cultures that are different from ours thus teaching us how to serve better in a community. Cultural Sensitivity enables us to treat people of different classes, genders, race, religion in an appropriate manner and respect and judge them on their personality, value their worth and what they bring to the table. It is a great concept and it enables us to be closer to different kinds of people from all over the globe. Belonging from one of the most culturally diverse countries in the world, I have seen how the littlest thing can offend a person. Thus, being sensitive is crucial- be it in the corporate world or in your daily life. Something as simple as shaking hands with a lady in a country where it is considered a taboo can lose you an enormous contract. Cultural Sensitivity does not only imply having the knowledge of how......

Words: 951 - Pages: 4

Cultural Sensitivity

...“One world, one way, one way, many paths.” Well this saying cannot be defined any better in the world of cultural sensitivity. With business activities going global, the organizations are riding the waves of culture more than ever, giving cultural sensitivity an important place in dealings. “Kiss, Bow or Shake Hands?” the international business best seller by  Terri Morrison, Wayne A. Conway suggests on how to maintain international relations in different business environment. Cultural sensitivity has taken toll taking business dealings to a whole professional level. Cultural sensitivity means being aware that cultural differences and similarities exist and have an effect on values, learning and behaviour (Stafford). In many cultures establishing relationships is very important while doing business together.” Pulling the plug too soon” as described in an article by Huffington post, people who tend to think that having a basic ‘business goal’ doesn’t work enough and you have to actually work and put your time and effort into it and waiting patiently for the results. Everyone understands that the basic problem of communication is caused by lack of common language. Even when you’re all speaking ‘English’, we don’t seem to understand the reality is that different assumptions based on different cultures can be the main barrier to effective communication. Cultures affect our own attitudes and expectations let alone others. Until recently large firms that operate......

Words: 914 - Pages: 4

Multiple Chemical Sensitivity

...Chapter 1 INTRODUCTION Multiple Chemical Sensitivity (MCS) is a syndrome that needs more attention than several other diseases that is curable by modern technologies. This syndrome is said to be a traitor when a person is infected because it has no definite causation and definition. Many people claimed that they have Multiple Chemical Sensitivity but most accounts are disregarded because of factors that made doctors conclude that they have allergies, some similar diseases, or they are psychologically “hypnotized” by the alarming issue. MCS have specific symptoms such as chest pain, headache, depression, memory loss and many more. These symptoms are very common and most diseases nowadays have congruent symptoms as with MCS. MCS is considered as a dangerous illness because it bears other effects that bothers the minds and threatens the life of many. These effects are neurological disorders, cardiovascular disorders, convulsions and seizures. Now, caution and prevention are implemented in order to put the consciousness of the people affected to silence. These preventions done are neutralization of hazardous chemicals and other simple ways to avoid the activation of MCS. Multiple Chemical Sensitivity can be a dreadful disease but can also be deactivated to a calm state. I. Background of the study The condition now most commonly known as multiple chemical sensitivity (MCS) was brought to the attention of the U.S. medical establishment when the late Theron......

Words: 1172 - Pages: 5

Cultural Sensitivity

...background knowledge and experiences (Cross, 2003). Or so they said... The experimenter concluded from this study that even though teachers say they hold on to ideals of a diverse classroom, students may in fact be "learning" racism. One teacher explained her version of diverse literature, "We do Black History Month and that's all that is expected" (Cross, 2003). That doesn't exactly sound like an extensive curriculum of diverse literature to me. Curriculum needs to be examined before-hand to make sure teachers aren't teaching racism by providing little time to address its existence (Cross, 2003). Urban elementary teachers should be taught straight from the beginning about social issues concerning urban schools. This way, cultural sensitivity can be implemented at any early stage in education (Leland, 2005). Another article suggests that there ought to be national standards for urban teacher education. This way, all teachers could have this key knowledge and understanding embedded into their education (DeMarrais, 2005). For example, there is the Urban Education Program in Chicago (ACM). This program is aimed towards providing undergraduate students with internships and courses that address cultural pluralism. Students in this program work closely with trained mentors to analyze various methods of teaching in a diverse class setting. This program recognizes how challenging it can be for new teachers when immersed into an urban school and plans to educate future......

Words: 1089 - Pages: 5

Cultural Sensitivity

...Cultural sensitivity is accepting of the values and beliefs of others. It can also be defined as developing a sincere and deep understanding of the differences between various people and working past them by also seeing and appreciating the similarities between those same people. Cultural sensitivity is difficult to put into practice especially for national organizations of large size. Three factors that can affect an organization’s strategic plan are classes of employees working within the organization, regional variations that exist within the organization, and the impact of the changing family definitions in today’s world. Each of these three factors has an influence on the successful recruitment and retention of a diverse workforce. Southwest Airlines (Southwest) is an example of a national organization that demonstrates the impact of these three factors. The organizational status of each employee would be achieved through personal effort in an open class system versus the social class to which each employee belongs (Kottak & Kozaitis, 2003). Guaranteed merit based upward mobility is a factor that can motivate top candidates to come to work for a given organization. Furthermore, merit base upward mobility will go on to motivate top candidates to stay and continue working with the organizations because he or she see that their efforts are being recognized and rewarded with upward mobility within the organization. Another motivational benefit of an open class system within...

Words: 2046 - Pages: 9

Cultural Sensitivity

...Cultural sensitivity is accepting of the values and beliefs of others. It can also be defined as developing a sincere and deep understanding of the differences between various people and working past them by also seeing and appreciating the similarities between those same people. Cultural sensitivity is difficult to put into practice especially for national organizations of large size. Three factors that can affect an organization’s strategic plan are classes of employees working within the organization, regional variations that exist within the organization, and the impact of the changing family definitions in today’s world. Each of these three factors has an influence on the successful recruitment and retention of a diverse workforce. Southwest Airlines (Southwest) is an example of a national organization that demonstrates the impact of these three factors. The organizational status of each employee would be achieved through personal effort in an open class system versus the social class to which each employee belongs (Kottak & Kozaitis, 2003). Guaranteed merit based upward mobility is a factor that can motivate top candidates to come to work for a given organization. Furthermore, merit base upward mobility will go on to motivate top candidates to stay and continue working with the organizations because he or she see that their efforts are being recognized and rewarded with upward mobility within the organization. Another motivational benefit of an open class system within...

Words: 2126 - Pages: 9

Cultural Sensitivity

...Cultural Sensitivity Cynthia Phillips Rasmussen College This paper is being, submitted by Cynthia Phillips for class, G141/ COM1002 Section 09 Introductions to Communication Cultural Sensitivity During the year when we had all the hurricanes and when Katrina hit the coast off Florida. During that time, I had become a Disaster hurricane worker and helper. It was a very changing job; it changed me as a person it taught me a lot about people and their cultural. In New Orleans, they are very different; they are a mix of people that come from old bloodlines, most are very proud of where they live. Some not so they just did not care ready to live off the Government. Our company had to hire local people to work, they did not want to brother with any work to build up the area that was destroyed from the storm. New Orleans is a place where Africans and American Indians shared their culture. In addition, they intermingled with other European settlers. Encouraged by the French government the strategy produced a durable culture; they are different today as in the past from other cities. New Orleans served as a cultural gateway to North America. I stood looking out over the bridge that was destroyed, and saw the gateway of many people being together. It gave me new insight just how devise the culture was. With the French and Creole language being prominent, most of the Creole people and the new Americans live in different areas of the city. I could see......

Words: 779 - Pages: 4

Gender Sensitivity

...During the early times, women were deprived in their social, economic and political status. They were looked upon as men’s accessory and are always confined to the domestic domain. This situation gave birth to the idea of Gender Sensitivity which is defined as the ability to recognize gender issues and to recognize women's different perceptions and interests arising from their different social position and gender roles. Gender sensitivity is often used to mean the same as gender awareness. But it is actually the beginning of gender awareness, which is more analytical and critical, questions gender disparities, and motivates one toward actions to address gender issues. It exercises neutrality and gives importance to both men and women. Also, it looks at how men and women act and are treated and the different ways that men and women understand their roles. Equally important is advocacy, which is a conscientization strategy concerned with increasing people's sensitivity to the implications of gender inequality, and demanding that problems of gender discrimination be identified and overcome in policies and programs. Furthermore, it entails an activist and assertive form of gender awareness, vigilance that gender issues are not overlooked, and persistence that gender issues be addressed. Personally speaking, I am of the opinion that men and women should be treated equally, whether in the workplace or at home. This is where gender equality comes in. That is, to have equal......

Words: 277 - Pages: 2

Sensitivity Analysis

...Sensitivity Analysis Sherri Fergusson HCS/405 December 22, 2014 Terri Andrews Sensitivity Analysis Many organizations have data analysis to review the financial statements, annual report, and budget issue documents; The Patton-Fuller Community Hospital is no different. In this analysis we will look over and address all of the areas that affect staffing at Patton-Fuller. These areas will vary between the numbers of nurses to the number of patients as well as staff compensation from wages to raises. A comparison of two years’ worth of data while also using Trend Analysis will explain future budgeting aspects and the pros and cons to these decisions. Comparative data is an important tool for managers to use when analyzing data with consistency, verification, and unit measures to fully meet the requirements of understanding the reporting financial results (Baker, PhD, CPA & Baker, JD, 2011, "Chapter 14/Using Comparative Data"). Using Patton-Fuller’s 2008-2009 financial statements to provide a comparative analysis for their expenses that occurred within a 2 year period. Patton-Fuller’s balance sheet provides comparative analysis that total current assets of 130,026 in 2008, and other assets in 2009 of 128,867 decreased to a negative difference of (1159.00). Liabilities reported a gain in 2009 of 462,153 from 2008 213,450 a growth percentage of 46.19 gain. However, factoring the equity of 335,035 in 2008 to 125,564 in 2009 a percentage of 62.52 gain, the total......

Words: 1355 - Pages: 6

Emotional Sensitivity

...I. ABSTRACT Emotional sensitivity refers to how would a person respond emotionally to different situations (Understanding Temperament: Emotional Sensitivity, n.d.). There are certain type of people who have high sensitivity to their own feelings and towards others. For some, they are not easily affected by various events or by others. This experiment aims to identify the various mental agitation or distress experienced by an individual under social pressure. In the experiment,subjects were asked to discuss about a certain topic individually in front of an audience for a limited time. The audience listened to them then after a minute they made a weak commotion and ignored the subject for a short period of time then went back again to listening. The observers noted how did the subjects reacted to the commotion happened. Overall, the experimenter have observed that almost all the subjects who participated in the experiment showed different signs and indicators that could be interpreted as a manifestation of distress and mental agitation. II. INTRODUCTION Emotional sensitivity is how a person responds emotionally, either easily or with difficulty, under various conditions. This trait can be measured in two ways. The first is how a person knows his/her own feelings. Some may be highly sensitive with their emotions very deeply,while some are not aware of it. The second is how sensitive a person when it comes to other people's feelings. Some might be aware of what other......

Words: 2084 - Pages: 9

Gender Sensitivity

...Gender Sensitivity During the early times, women were deprived in their social, economic and political status. They were looked upon as men’s accessory and are always confined to the domestic domain. This situation gave birth to the idea of Gender Sensitivity which is defined as the ability to recognize gender issues and to recognize women's different perceptions and interests arising from their different social position and gender roles. Gender sensitivity is often used to mean the same as gender awareness. But it is actually the beginning of gender awareness, which is more analytical and critical, questions gender disparities, and motivates one toward actions to address gender issues. It exercises neutrality and gives importance to both men and women. Also, it looks at how men and women act and are treated and the different ways that men and women understand their roles. Equally important is advocacy, which is a conscientization strategy concerned with increasing people's sensitivity to the implications of gender inequality, and demanding that problems of gender discrimination be identified and overcome in policies and programs. Furthermore, it entails an activist and assertive form of gender awareness, vigilance that gender issues are not overlooked, and persistence that gender issues be addressed. Personally speaking, I am of the opinion that men and women should be treated equally, whether in the workplace or at home. This is where gender equality comes in. That is,......

Words: 279 - Pages: 2

Sensitivity Training

...to be called off- the-job training. Sensitivity training can be defined as a practice that involves small or large group meetings that are organized or held by the company to discuss openly intimate and personal issues and opinions, values or beliefs and or to act out feelings and emotions towards one on other in a group, using techniques of self-confession and mutual criticisms. Sensitivity training is about developing social sensitivity and behavioural flexibility. It is also about making people understand about themselves and others reasonably, which is done by developing in them, social sensitivity and behavioral flexibility. Social sensitivity is the ability of an individual to sense what others feel and think from their own point of view. Behavioral flexibility is the ability to behave suitably in line of understanding. Sensitivity Training involves three stages which are unfreezing the old values where old values are considered, development of new values and freezing the new ones. Sensitivity Training is often offered by organizations and agencies as a way for members of a given community to learn how to understand better and appreciate the differences in other people. It asks training participants to put themselves into another person’s place in hopes that they will be able to better relate to others who are different than they are. Sensitivity Training often addresses specifically concerns like gender sensitivity, sensitivity towards those who are disabled in......

Words: 1678 - Pages: 7