Sensitivity analysis examines how changes to one or more variables in a decision-making model affect other variables.
Sensitivity analysis analyses the effects of different values of an independent variable on a certain dependent variable under a specified set of assumptions. Sensitivity analyses, in other words, examine how various sources of uncertainty in a mathematical model impact the model's overall level of uncertainty.
The comparison of sales results from advertisements that differ solely in whether or not they contain a certain piece of information is a simple use of sensitivity analysis in business. This analysis examines the effects of a certain piece of information being used in advertising by a business.
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