Question: Sensitivity analysis is the study of how the changes in the coefficients of an optimization model affects the optimal solution. Suppose you are traveling in

Sensitivity analysis is the study of how the changes in the coefficients of an optimization model affects the optimal solution. Suppose you are traveling in six months and you know how much your airfare, hotel, and total of money you will need for this. This is your optimal solution. The sensitivity analysis is done when there is a change in any of the two variables (airfare & hotel) or a change on the right side of the equation (total cost you can spent). How would you apply sensitivity analysis if the airfare price, hotel price, or you have less money to spent? You find out that you can travel to another country for almost the same price, how would you decide which country to go to using sensitivity analysis?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!