According to the PMBOK® Guide (Project Risk Management), specifically within the Perform Quantitative Risk Analysis process, Sensitivity Analysis is a data analysis technique used to determine which individual project risks or other sources of uncertainty have the most potential impact on project outcomes.

The typical display for this analysis is a Tornado Diagram.

How it works: Sensitivity analysis correlates variations in project outcomes with variations in elements of the quantitative risk analysis model. It involves changing one uncertain variable at a time while holding all other uncertain variables at their baseline values to see how much the outcome changes.

The Tornado Diagram: This is a special type of bar chart used in sensitivity analysis for comparing the relative importance of variables. In a tornado diagram, the Y-axis contains each type of uncertainty (risks), and the X-axis represents the spread or correlation to the studied objective (e.g., cost or schedule).

Visual Structure: The bars are ordered by the width of their impact, with the largest impact at the top and the smallest at the bottom, giving the chart a funnel or " tornado " appearance. This allows the project manager to quickly identify the " critical " variables that require the most attention.

Analysis of Distractors:

A. Decision tree diagram: This is a tool used in Decision Tree Analysis (another quantitative risk technique) to calculate the Expected Monetary Value (EMV) of different decision paths. It is not the standard display for sensitivity.

C. Pareto diagram: This is a vertical bar chart used in Quality Management to identify the " vital few " sources of problems (based on the 80/20 rule). It ranks causes from most frequent to least frequent.

D. Ishikawa diagram: Also known as a Fishbone or Cause-and-Effect diagram, this is used to identify the root causes of a problem. It is used in Quality Management and the Identify Risks process, but not for numerical sensitivity analysis.