"What if...

" simulation
Business Analysis Methods Guide
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"What if..." simulation

The ‘what if…’ simulation is also known as sensitive analysis (SA) or uncertainty analysis (UA). The ‘what if…’
simulation is a technique of changing the parameters in a model or a situation to determine the exact
effects of these changes. In other words, sensitive analysis is the study of variations or uncertainties in the
outputs of any mathematical model and how these variations or uncertainties could be apportioned either
quantitatively or qualitatively to each source of variation in the inputs of the model. The ‘what if…’
simulation investigates the correctness of
of a study that includes some type of mathematical modeling.

In social sciences, natural sciences, and economics, mathematical models are used to solve issues or
problems, when such problems do not lend themselves normally to a straightforward or clear
understanding
rstanding of the relationship between the input factors that go into the model and the output
variables. This ‘what if…’ simulation is necessary to understand how the mathematical models behave in
response to input changes, so that the models are correctively
correctively used. It is obvious that inputs are subject to
various sources of uncertainties such as measurement errors, lack of proper information, partial or poor
understanding of the driving mechanisms and forces. These uncertainties impose a limit to our confidence
confid
about the output of the model. The sensitive analysis solves these issues.

1.1. What problems are solved by this method?

This method provides valid and effective tools to characterize the uncertainties associated with any model
but the major problems resolved by ‘what if…’ simulations are

• Simplification of models,
• Investigation of the robustness of the predictions of a model,
• Exploration of the impact of various input scenarios and assumptions, and
• Identification of the elements of quality assurance

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More in the full version of the Business Analysis

Methods Guide:
• 29 page SWOT guide (Adobe PDF file):

• Alternative methods to SWOT analysis

• Steps in solving problems using Porter’s Five Forces for Competitive Position
• Solving problems using the SWOT analysis
ana - 5 examples in format: Problem, Response with SWOT,
Result
• SWOT analysis: conclusions
• SWOT FAQ
• SWOT checklist

• 21 PowerPoint templates (.pptx file; check examples below) for SWOT analysis
presentation

• 32 page PEST Analysis Guide (Adobe PDF file)

• Introduction to the method and problem of PEST

• PEST and SWOT
• PEST and its extensions
• Step-by-step
step guide on how to use PEST for solving business problems
• Key success factors of PEST
• Examples of real-life
life usage of PEST
• Conclusions
• PEST FAQ
• Checklist for PEST
• Other aspects related to PEST

Review of the most popular business analysis methods

The review includes introduction to the method, step-by-step
step step algorithms, pros and cons, best
practices.

• 80/20 Pareto Analysis (4 page)

• Break-even
even Analysis (4 page)
• Competitive Analysis (4 page)
• Key Ratio Analysis (3 page)
• PEST Analysis (3 page)
• SWOT Analysis (4 page)
• Variance analysis (4 page)
• "What if..." simulation (4 page)

Learn more online: http://www.measurebusiness.com/

Business Analysis Methods AKS-Labs ▪ 2501 Blue Ridge Road www.measurebusiness.com

Guide Suite 150 ▪ Raleigh ▪ NC ▪ 27607 support@bscdesigner.com