Contribution of variance

September 1, 2016

Q: Contribution of variance
I saw different ways to calculate sensitivity coefficients in RiskyProject. What is a contribution to variance?

A: RiskyProject uses two algorithms to calculate sensitivity calculation: rank order correlation coefficient and contribution to variance. You can select either way to perform calculation. In most cases we use Spearman's rank correlation coefficient .
1. Spearman's rank correlation coefficient is a non-parametric measure of statistical dependence between two variables. Perfect positive correlation coefficient equals +1.
2. Contribution to Variance is calculated by squaring the rank correlation coefficients and normalizing them to 100%.

To select the sensitivity calculation method:
1.Click the Analysis tab on the Workflow bar and then click Sensitivity Analysis.
2.Click Sensitivity Calculation Algorithm.The Sensitivity Calculation dialog box opens.
3.Select the calculation method.

For more information please visit: http://www.intaver.com/IntaverFrm/viewtopic.php?f=2&t=1290