How to perform a sensitivity analysis


Problem

We used the phrase "rules for clear thinking" to refer to the axioms described in this chapter. However, these "rules" do not cover every aspect of decision making as we have discussed it in this book. In particular, the axioms do not tell us in detail how to structure a problem, how to generate creative alternatives, or how to perform a sensitivity analysis. Can you give some "rules for clear thinking" that would help a decision maker in these aspects of decision making? (See Frisch and Clemen 1994.)

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Econometrics: How to perform a sensitivity analysis
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