What term is used for calculating how changes in project variables can affect outcomes?

The term used for calculating how changes in project variables can affect outcomes is sensitivity analysis. This analytical method involves varying the input parameters of a project to observe how changes can influence the results, helping project managers and stakeholders understand the potential risks and uncertainties associated with those variables. Sensitivity analysis is crucial for decision-making, as it allows for a clearer understanding of which variables have the most significant impact on project outcomes, thereby enabling better risk management and resource allocation.

While project evaluation is more about assessing the overall impact and effectiveness of a project, and impact assessment typically focuses on understanding the broader implications of a project’s outcomes on stakeholders or the environment, sensitivity analysis precisely targets the relationship between variable changes and resulting outcomes. Resource allocation, on the other hand, concerns distributing available resources effectively across project components, rather than analyzing the effects of variable changes on project results.