Question: what formula do you use for a sensitivity analysis bases on these data sets? A B C D E F G 1. If the company
what formula do you use for a sensitivity analysis bases on these data sets?

A B C D E F G 1. If the company does not hire a business analyst: States of Nature Alternatives EMV Node Optimistic Conditions Realistic Conditions Pessimistic Conditions Apartment Building 480000 380000 -70000 353,000 Office Building 390000 310000 -150000 274,400 Warehouse 280000 180000 -50000 183,800 Probability 0.36 0.5 0.14 2. If the company hires a business analyst: 10 Fee for Survey $14,000 11 12 2.1 If the analysis report is positive: 13 14 Alternatives States of Nature Optimistic Conditions Realistic Conditions | Pessimistic Conditions EMV Node 15 Apartment Building 466000 366000 -84000 367,500 16 Office Building 376000 296000 164000 286,200 17 Warehouse 266000 166000 -316000 163,980 18 Probability 0.51 0.38 0.11 19 20 2.2 If the analysis report is negative: 21 Alternatives States of Nature 22 EMV Optimistic Conditions Realistic Conditions Pessimistic Conditions Node 23 Apartment Building 466000 366000 -84000 137,000 24 Office Building 376000 296000 164000 58,800 25 Warehouse 26600 166000 316000 -80,280 26 Probability 0.14 0.32 0.54 27 28 3. Final Solution 29 3.1 EMV (hire a business analyst) 30 Probability of report results positive 0.42 31 Probability of report results negative 0.58 32 Node 33 EMV (Report results positive) $367,500 34 EMV (Report results negative) $137,000 35 EMV ( Hire a business analyst) $353,000 36 37 3.2 Final EMV Node 38 EMV (Hire a business analyst) $223,222 39 EMV (Do not hire a business analyst) $32,898 40 Final EMV (Hire/Do not hire a business analyst) $232,222 Hire 41
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