Dependencies and sensitivity in financial forecasting

Financial Forecasting in Python

Victoria Clark

CGMA Financial Analyst

Explaining forecasting dependencies and sensitivities

  • Interlinked variables
  • Changing one variable has a knock-on effect on other variables

assumptions

Financial Forecasting in Python

Working with dependencies and sensitivities in Python

if x = 0:
   x_costs + y_costs
 else
   x_costs
  • Expect rush orders
  • Increases delivery costs by 10%
if month = December:
   delivery_costs + delivery_costs*0.1
 else
   delivery_costs
Financial Forecasting in Python

Let's practice!

Financial Forecasting in Python

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