Sensitivity and uncertainty analysis: applications to small-land scale agriculture systems in Nigeria

Type Journal Article - Global Journal of Management And Business Research
Title Sensitivity and uncertainty analysis: applications to small-land scale agriculture systems in Nigeria
Author(s)
Volume 10
Issue 1
Publication (Day/Month/Year) 2010
Page numbers 176-183
URL http://journalofbusiness.org/index.php/GJMBR/article/viewFile/22/20
Abstract
Sensitivity and uncertainty analysis is useful in
providing information about local and global change tendency
of the management of enterprise mixtures to the choice of
target return level. Hence, the study examines the sensitivity
and uncertainty analysis in small-land scale agriculture in
Nigeria. The study used both primary and secondary data
(time series). A structured questionnaire was employed to
obtain information from the five hundred (500) randomly
selected small-land scale farmers in central part of Nigeria.
Descriptive statistics and Target-MOTAD (Minimization of
Total Absolute Deviation) model were used to analyze the data.
The result reveals the normative plans for the small-land scale
agriculture system in Nigeria. The sensitivity analysis reveals
that there is a positive relationship between capital and returns
and negative relationship exists between risk level and returns
in small-land scale agriculture systems. Hence, policies and
programmes that increase returns and reduce risk level should
be put in place in order to shape the small land scale
agriculture system.

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