How to Develop a Tornado Graph
To develop a tornado graph, we complete the following steps:
• Make sure that each uncertainty is set to its base value (p50). Input each uncertainty’s p10 and p90, one at a time, into our deterministic model and record the resulting measure of value (usually we use NPV as our measure of value for the tornado graph).
• In a similar fashion, input each discrete variable as success and failure, one at a time, into the deterministic model and record the result.
• Compute the absolute value of the difference between the p90 and p10 resulting measure of value for each uncertainty.
• Compute the absolute value of the difference between the success and fail cases for each discrete variable.
• Rank the differences from ...