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Project Decisions by Michael Trumper, Lev Virine

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CHAPTER 14

Choosing what Is Most Important: Sensitivity Analysis and Correlations

To establish project priorities, it is important to identify which activities will have the most effect on a project and to understand how those activities correlate. Our judgment about correlation and causation is affected by a number of biases, such as illusory and invisible correlations and covariation assessment. Sensitivity analysis helps us discover correlations within a project.

WHAT ARE CORRELATIONS? WHY DO WE NEED TO ANALYZE THEM?

In early January 2005 the state of Maine officially launched its new Medicaid claim system (Holmes 2006). This web-based software ...

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