What is the primary focus of sensitivity analysis?

Sensitivity analysis is primarily concerned with evaluating how the outcomes of a decision model change in response to variations in input parameters. This focus allows decision-makers to understand the robustness and reliability of their recommendations under different scenarios. By systematically altering key assumptions—such as costs, resource availability, or constraints—sensitivity analysis helps in identifying which variables have the most significant impact on the final decision.

This process not only aids in assessing the stability of optimal solutions but also enables better preparedness for potential changes in the underlying data. It provides a clearer picture of risk and uncertainty surrounding key inputs, allowing for more informed and strategic decision-making. In contrast, the other options primarily revolve around retrospective analysis, probabilistic outcomes, or forecasting, rather than the direct impact of variable changes on decision recommendations.