Sensitivity Analysis

Decempber 15, 2015

Q: Sensitivity Analysis

I have been viewing some of you videos and it was showing the sensitivity as a % rather than a decimal value (eg. 45% vs 0.345). It seems to provide a bit more intuitive value when it is a %. I have looked in the Project options views and Calculations etc and can’t seem to find anything to switch it over.

A: As you noticed the sensitivity value can be shown using two types of methods. The first is the Spearman rank correlation and is the standard calculation method that we use to calculate all correlation and sensitivity (which is a type of correlation) during the monte carlo simulation. However as you noted, it is not particularly user friendly especially for anyone who is not familiar with these types of statistical analysis. The % values you are seen is call Contribution to Variance. This calculation uses the Spearman rank correlation, but normalizes the values to provide a % that the particular risk or activity contributes to the variance that we see in a specific project parameter.
You can select which method in the Sensitivy view not the Project Options. After running a simuilation, go the Analysis views, Sensitivity Analysis. At the top right corner click the Sensitivity Calculation Algorithm button and you can switch between the methods.

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