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musicgold
Posts:
12
From:
x
Registered:
4/16/09


Analysing the dependence of a variable on other variables
Posted:
Aug 24, 2011 10:41 PM



Hi,
I am trying to analyze the sensitivity of a variable to three other variables. Please see the attached document explaining the relationship. The document shows how I reached to Eqn 1. It is nothing but a DCF analysis for a oneyear period.
I wish to understand how the variables d, g, and T influence the variable C. I wish to know by how much C changes when d or g or T move increases or decreases by 10%.
I kind of did some sensitivity analysis in Excel by changing the values of d, g, and T, but I feel that I still don?t have the whole picturel.
In eqn 2, 3, and 4, I tried to find the derivatives of C wrt to d, g, and T, but they are more confusing than eqn 1. I am not able to interpret the equations.
Also I have the following questions.
Q1. Is this the right way of analyzing such a relationship? Q2. Are there any other methods for doing this kind of analysis?
Thanks.
Cross posted at http://www.physicsforums.com/showthread.php?p=3463582



