Technical Note: Constructing Tornado Diagrams with Spreadsheets

Author: Eschenbach, Ted

Source: The Engineering Economist, Volume 51, Number 2, April-June 2006 , pp. 195-204(10)

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Abstract:

Tornado diagrams are a classic tool of sensitivity analysis for decision analysis, yet engineering economy texts and TEE articles rarely include them. It is suggested that this is due to apparent barriers in constructing them—particularly for problems with positive and negative values. While the texts and articles may not represent typical engineering economy practice, they certainly lay the foundation for it. This note summarizes how to construct tornado diagrams in Excel. A template for constructing these diagrams is available from the author at aftge@uaa.alaska.edu.

Document Type: Research article

DOI: http://dx.doi.org/10.1080/00137910600695676

Affiliations: 1: TGE Consulting, Anchorage, Alaska, USA

Publication date: 2006-04-01