what is the difference between scenario analysis and sensitivity analysis 
scenario analysis looks at a wide range of possible outcomes but it analyzes the effect of manipulating all variables at the same time the result is typically a base case scenario a best case scenario and a worst case scenario on the other hand sensitivity analysis assesses the impact of changing just one variable at a time the bottom linescenario analysis is the process of estimating the expected value of a portfolio after manipulating a number of key variables the method can be used in both investment strategy and corporate finance while it s a great tool for investors and managers to utilize scenario analysis is only as good as the assumptions and inputs made by the user 