ECON361 Lecture Notes - Lecture 2: Sensitivity Analysis, Estimation Theory, Net Present Value
7 Dec 2017
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Module 2 the cba modeling process (chapter 1) Any chance they could be helpful: discounting and risk/sensitivity analysis: discount to find npv, and then find npv, and perform sensitivity analysis. A logical depiction of each step or decision. Always explicit of what the metrics, or variables are in an estimation is. Valuation and estimation parameter estimation and model inputs. Stakeholder vetting review, validate and adjust initial conceptual diagram and initial data assumptions (things don"t necessarily have to go in order from step 1 through 3) Step 4: discounting and risk/sensitivity analysis there is uncertainty in cba studies because data may not be the exact representation of what a point should be, or may not be conceptually correct. Forecasting has major uncertainty on the future as well: there may be jointly determined probabilities.
