Downloadable - About University

Sensitivity analysis 47
Sensitivity analysis
Sensitivity analysis is used to examine how robust the choice of an
alternative is to changes in the figures used in the analysis. The owner is
a little worried about the weight of turnover (i.e. 81) relative to working
conditions (i.e. 19) and he would like to know what would happen if this
weight was changed. Figure 3.7 shows how the value of benefits for the
different offices varies with changes in the weight placed on turnover.
For example, if turnover had a weight of zero this would imply that the
three turnover attributes would also have zero weights, so the weights
for the six lowest-level benefit attributes would now be: closeness to
customers 0, visibility 0, image 0, size 30, comfort 20, car parking 10.
These normalize to 0, 0, 0, 50, 33.3, and 16.7, respectively, which would
Value of benefits
81.7
100
90
80
70
60
50
40
30
20
10
0 0
E
52.1
Weight placed on turnover
Current weight
Figure 3.7 – Sensitivity analysis for weight placed on turnover
G
D
B
C
F
A
100
60.4