Sensitivity (Meta) Math Example 1
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Example 1
easyCompute at and . Find the sensitivity: by what percentage does change when changes by 5%?
Solution
- 1 , .
- 2 Change in : . Relative change in : .
- 3 Change in : .
- 4 Sensitivity: a 5% increase in causes about a 15.8% increase in . The function is sensitive — it amplifies errors by a factor of about 3.
Answer
Sensitivity measures how much the output changes relative to the input. For , the exponent 3 amplifies percentage changes roughly threefold, which can be derived from the derivative: .
About Sensitivity (Meta)
The degree to which a result or output changes in response to small changes in its inputs, parameters, or assumptions.
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