Misconception · MIS:sensitivity-boundary-shortcut

Mistaken idea “A what-if change is evidence that the scenario is likely”

Mistaken reasoning: The mistake turns a mechanical model response into support for an estimate, probability, causal claim, or selected accounting result.

Updated Sep 11, 2026 Review due Nov 8, 2026

Why this is mistaken

State the base case, changed input, source, units, assumptions, interactions, tax effect, and output. The result shows model response under that input. Separate support for the scenario and estimate from the arithmetic.

Where to watch

When this mistake may appear

  • The ten-percent case shows what management should record.
Check your work

Your work may contain this mistake if:

  • Reports a sensitivity without its range source, held-constant assumptions, interactions, or evidence limitation.