For Task 3, the question says: "Using the same metrics recommended in Task 2, do appropriate tests to determine which assumptions included in the model are the most/least critical".
If say, we choose CTE(95)>0 as the risk metric for price setting, should we be keeping the price at the recommended level from Task 2 and then seeing if CTE(95)>0 with the various assumption changes? Or should we be comparing the new price under each sensitivity scenario to the originally recommended price by using goal seek and the metric CTE(95)>0?
I don't think the end result of which assumptions are most/least critical is heavily impacted by this, but just want to make sure the methodology is not completely off-base in the write-up.
Any feedback is appreciated!
If say, we choose CTE(95)>0 as the risk metric for price setting, should we be keeping the price at the recommended level from Task 2 and then seeing if CTE(95)>0 with the various assumption changes? Or should we be comparing the new price under each sensitivity scenario to the originally recommended price by using goal seek and the metric CTE(95)>0?
I don't think the end result of which assumptions are most/least critical is heavily impacted by this, but just want to make sure the methodology is not completely off-base in the write-up.
Any feedback is appreciated!
BBA Task 3 - Determining Sensitivity
0 commentaires:
Enregistrer un commentaire