Sensitivity analysis is not used in simulation.
Sensitivity analysis cannot be used to identify required market share to make a new product viable.
Sensitivity analysis is used to determine how an amount will change if factors that were involved in predicting that amount change. If a small change in the value of one of the inputs causes a large change in the recommended decision, then we say it is sensitive to that input. If we know that a particular input makes a big difference in the analysis, we can take extra care to make sure the value assigned to that input in the analysis is as accurate as possible. Furthermore, the measure of the sensitivity of a project to a change in one of the variables is also an indication of the risk of the project. The more sensitive the project is to a change in one or more variables, the more risky it is.
A project's internal rate of return cannot be estimated by using sensitivity analysis.
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