Describe the relationship between Simulation analysis, Scenario analysis and Sensitivity analysis – how are they alike and how are they different

Q: Going beyond just calculating NPV, discuss it qualitatively. What is it used for? Is it a good…

A: Net present value is defined as the difference between the PV of the cash inflows as well as present…

Q: How is sensitivity analysis used to cope with uncertainty in decision making?

A:

Q: How is Parallel Simulation utilized during an audit?

A: Auditing:   It is the systematic verification of the books of accounts of an organisation by an…

Q: describe tools and techniques used in fi nancial analysis, including their uses and limitations;

A: Financial analysis can be defined as the evaluation of the profitability, durability and feasibility…

Q: Define sensitivity analysis

A: The process to evaluate the effect of change in one variable on the end result of a project is…

Q: Briefly explain the major components of AIS

A: SOLUTION- ACCOUNTING INFORMATION SYSTEM (AIS) IS A WAY OF TRACKING ALL ACCOUNTING AND BUSINESS…

Q: What is performance testing and what are its bottlenecks?

A: It examines financial records, individual transactions, and the processes involved in obtaining and…

Q: Describe sensitivity analysis? Give an example?

A: Sensitivity Analysis:The process to evaluate the effect of change in one variable on the end result…

Q: How can spreadsheet software, such as Excel, help with sensitivity analysis?

A: Sensitivity analysis: The method used to evaluate and analyze the various reasons for achieving the…

Q: Describe the assumptions underlying CVP analysis?

A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…

Q: What is Monte Carlo simulation analysis?

A: Answer: Monte Carlo simulation is the methodology used to consider the financial, cost, and project…

Q: How do you explain or interpret predictive model information?

A: Meaning- Predictive Model As the name suggest, where with the help of historical figures or even…

Q: QUESTION 28 The kind of analysis that consists of rerunning the model to determine the effect on the…

A: There are various financial model used to analyze data.

Q: Describe the differences between a data flow diagram and a system flowchart. Give an example of when…

A: Data flow diagram and system flowcharts are used in the business to graphically represent the…

Q: What is meant by volatility clustering? Briefly describe two models that areused to describe data…

A: When the large changes in financial asset prices are bundled together that further leads to results…

Q: Test data, an integrated test facility, and parallel simulation are compared and contrasted.…

A: Introduction: Test data is data used solely for testing within computer programs, and it is…

Q: suitable behavioral model?

A: Behavioral Model: Behavioral Model from its name only suggests the study of behavior. The study of…

Q: How can sensitivity analysis be incorporated in DCF analysis?

A:

Q: Explain the PSA prepayment model?

A: What Is a Prepayment Model? In lending, a prepayment model is used to estimate the level of…

Q: How are Sensitivty Analysis and Scenario Analysis different in details?

A: Sensitivity analysis is the evaluation of the impact on the project when there may be a few…

Q: What is a sensitivity analysis, and how does it work? Can you provide an illustration of this?

A: Here is the Answer

Q: NOT true about simulation models?

A: A simulation analysis is a technique of developing a mathematical representation of an original…

Q: Compare and contrast the following techniques based on costs and benefits: • Test data method • Base…

A: Costs: Costs are the cash expenses that are spent by individuals to buy an asset and pay for…

Q: Define scenario analysis

A: Scenario means a situation or circumstance which is influenced by various factors. Various if and…

Q: What are two approaches to conceptual systems design?

A: Conceptual Design:   Conceptual design is that structure which provides various conceptual system…

Q: Differentiate AIS from MIS

A: Accounting Information System: The system which helps to gather, store and process the accounting…

Q: Define simulation analysis

A: The Simulation Analysis is a method for analysis, wherein the infinite number of calculations are…

Q: Explain relationship between the client’s performance measurement system and client’s inherent risk.

A: Auditing is a process of inspecting the financial accounts of a company in order to determine the…

Q: Describe the procedure to obtain the best-case NPW with scenario analysis?

A: Scenario analysis is a technique to break down and survey potential events that may happen later on…

Q: Define each of the following terms: e. Sensitivity analysis; scenario analysis; Monte Carlo…

A: Sensitivity Analysis is a tool used in financial modeling to analyze how the different values of a…

Q: Why is the object-oriented approach particularly suited to ERP system design?

A:

Q: What advantage does scenario analysis have over sensitivityanalysis?

A: In finance, we are required to analyze the change in value of one variable over the change in the…

Q: Explain the concept of contribution and its importance to the CVP technique.

A: CVP Analysis: Cost-Volume-Profit (CVP) analysis is a technique that shows the relation of sales…

Q: Explain the Relationship to the PW Analysis?

A: The question is based on the concept of present worth analysis of a project or cash flows.

Q: What are some strengths and weaknesses in the  AIS system and ways to improve any weaknesses…

A: AIS stands for Accounting information system which is a method based of computer used through…

Q: Compare and contrast single equation and systems-based approaches to building models. How do we…

A: Explanation:- In economics, a number of approaches are used to evaluate models using only one…