Sensitivity Analysis and Finances

The financial projections used in decision-making are associated with a degree of uncertainty regarding the correct choice of the hypotheses used or the certainty of the value of the variables, which is why it is necessary to place ourselves in several scenarios in which the hypotheses and the value...

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Bibliographic Details
Main Author: Juan Gaytán Cortés
Format: Article
Language:English
Published: Universidad de Guadalajara 2024-01-01
Series:Mercados y Negocios
Subjects:
Online Access:http://mercadosynegocios.cucea.udg.mx/index.php/MYN/article/view/7724
Description
Summary:The financial projections used in decision-making are associated with a degree of uncertainty regarding the correct choice of the hypotheses used or the certainty of the value of the variables, which is why it is necessary to place ourselves in several scenarios in which the hypotheses and the value of the variables over which we have less control and which in turn have the most significant impact on the results must be varied. Expected results. The above process is known as Sensitivity Analysis.
ISSN:2594-0163