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Identifying which activities have the most affect on the project and understanding how
activities are correlated with each other is important for establishing project priorities.
Our judgment about correlation and causation is affected by a number of biases, such as
illusory and invisible correlations, covariation assessment, and others. Sensitivity analysis
helps to discover correlations within a project.
($ thousands)
600
Unit Price
500 Cost of Fuel
400
Revenue
300
200
Cost of Materials
Project Cost
Hourly Rate