Contribution of variance

General discussion and questions about project risk management and risk analysis software RiskyProject. Includes discussion on how to perform efficient project risk analysis using our software.

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Monte Carlo
Posts: 12
Joined: Sat Jun 16, 2007 7:03 pm
Location: USA

Contribution of variance

Post by Monte Carlo » Thu Sep 01, 2016 9:55 am

I saw different ways to calculate sensitivity coefficients in RiskyProject. What is a contribution to variance?
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Intaver Support
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Joined: Wed Nov 09, 2005 9:55 am

Re: Contribution of variance

Post by Intaver Support » Thu Sep 01, 2016 10:02 am

RiskyProject uses two algorithms to calculate sensitivity calculation: rank order correlation coefficient and contribution to variance. You can select either way to perform calculation. In most cases we use Spearman's rank correlation coefficient .
1. Spearman's rank correlation coefficient is a non-parametric measure of statistical dependence between two variables. Perfect positive correlation coefficient equals +1.
2. Contribution to Variance is calculated by squaring the rank correlation coefficients and normalizing them to 100%.

To select the sensitivity calculation method:
1.Click the Analysis tab on the Workflow bar and then click Sensitivity Analysis.
2.Click Sensitivity Calculation Algorithm.The Sensitivity Calculation dialog box opens.
3.Select the calculation method.

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