Factorial Design Applications in Sensitivity Analysis

This paper present a direct yet effective method to determine the sensitivity of managerial decisions to a multitude of inherent assumptions and factors. The approach used the factorial design framework to uncover the critical individual uncertainties and assumptions and their interactions, with the objective of improving the overall quality of the decision and assisting in the development of contingency plans. A real life case study is used to compare this appioach with the conventional sensitivity analysis methodology.