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From SystemsWiki

Sensitivity Analysis is the process of testing aspects of a simulation model to determine the relationship between the change within one portion of the system to the change in some other portion of the system.

The general approach is to pick an element of the system and vary its values by small increments, while assuming all other inputs are not changing, and monitor the changes which appear in another portion of the system which is of interest.

Contents 1 Savings Account 2 Interest Rate Sensitivity 3 Initial Deposit Sensitivity 4 References

[edit] Savings Account

Fig. 1 presents a Reinforcing Loop representing a typical Savings Account. An initial deposit is paid interest at the end of each year and the interest is added to the Principal.

[edit] Interest Rate Sensitivity

Fig. 2 shows the changes in Principal with interest rate of 0, .3, .4, and .5.

[edit] Initial Deposit Sensitivity

Fig. 3 shows the changes in Principal with initial deposit of 100, 200 and 300 dollars.

Click Sensitivity Analysis to interact with this model on the web.

It is realized that this is probably neither interesting or enlightening. The results that one finds with more complex models are often quite startling and both interesting and enlightening.

Sensitivity Analysis is an approach for identifying leverage points, points where small changes in one part of the system produce a substantial change in some other part of the system. And what one is generally seeking is a leverage point where a small change will result in the desired change in the system.

[edit] References

• Simgua software used for simulations

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