Cost-effectiveness analysis uncertainly

Perform a sensitivity analysis Sensitivity analysis is based on the idea of setting up nms that fluctuate some components of the data. This could be a cost that is uncertain or has potential to change. By modifying this single parameter, the effect on the run can be determined. 

An economic analysis generally involves more imcertain-ties than a thermodynamic analysis. In the above discussion, it has been assumed that each variable in the eco-norrric analysis is known with certainty. However, many values used in the calcirlation are uncertain. A sensitivity artalysis determines by how much a reasonable range of uncertainty assiuned for each uncertain variable affects the frrral decision. Sensitivity studies are recommended to irrvestigate the effect of major assmnptions about values referring to future years (e.g., cost of money, inflation rate, and escalation rate of fuels) on the results of an economic analysis. 

In practice, defining and controlling life-cycle costs is difficult. The future behavior of materials is often uncertain, as are the future uses of most systems, the environmental conditions to which they may be exposed, and the financial and economic conditions that influence relationships between present and future costs. An effective life-cycle cost analysis depends on having a reasonable range of possible alternatives that are likely to dehver equally satisfactory service over a given service life. Substantial obstacles to implementing life-cycle cost control in practice include ... 

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