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What is sensitivity analysis?

Changing one assumption at a time, holding the rest constant, to measure its isolated impact and rank single points of failure (e.g., how a 100-bp rate move affects DSCR).

Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.

Related terms

From the free Real Estate Finance course by Devon Coombs, CPA, MBA.