What-if analysis is a technique used to assess the potential outcomes of different scenarios by changing variables in a model. It helps decision-makers understand how alterations in inputs can impact the results, enabling them to evaluate risks and opportunities. This approach is closely tied to sensitivity analysis, which examines how sensitive an outcome is to changes in input parameters, and shadow prices, which provide insight into the value of resources that are constrained in a model.
congrats on reading the definition of What-if analysis. now let's actually learn it.