Which of the following is not a benefit of using sensitivity analysis? A. More people can see the impact of their ideas on the project. B. The use of a spreadsheet program increases the accuracy of the projections. C. What will happen is not known in advance so a variety of options can be explored prior to making a decision. D. A well-written spreadsheet will allow for a variety of questions to be answered in a minimal amount of time

Q: Your team is hard at work on their assigned project tasks when one team member discovers a risk that…

A: Risk planning involves identifying and managing risk. Every project has some risk factor, thus risk…

Q: Outline the weaknesses of sensitivity analysis

A: Sensitivity analysis uses in capital budgeting for measuring the risk in project. It helps in…

Q: Which of the following is not one of the main issues regarding data collection which can…

A: Data collection is one of the modt fundamental and important steps in any statistical analysis. If…

Q: Mazen is not keen on collecting facts and information while solving problems. He is spontaneous in…

A: Decision-making could be defined as the process of choosing the best alternative out of several ones…

Q: How do simulation analysis and scenario analysis differ in the way theytreat very bad and very good…

A: The process to evaluate different probable events and their outcomes that is end result of a project…

Q: Which of the following is not a cause of mistakes in model building? Choices:   A.Sub-optimal…

A: There are numerous mistakes in planning stage of model building. Unclear vision, lack of resources,…

Q: What detail would a decision maker require to analyse a dilemma with the expected value? What…

A: Settling on choices is surely the main undertaking of an administrator and it is regularly an…

Q: most significant drawback of evaluating investment centers using RO

A: ROI is an accounting metric used to evaluate the return on invested capital of the business.

Q: When a new system is being considered, one of the questions is whether or not to survey the current…

A: Survey refers to gathering the information on any considered subject. Survey could be done using…

Q: What is a scenario analysis? What is it designed to show, and how does it differ froma sensitivity…

A: Scenario analysis is the technique of analyzing the portfolio to find out the expected value of…

Q: Which one is not an advantage of the sensitivity analysis? A. To make contingency plans B. To adjust…

A: Some important factors are changeable and unpredictable in future like interest rates, cashflows,…

Q: Des the  Initial project screening by the payback method reduce the information search? How?

A: It refers to the time period that is required to get an amount invested in a project with some…

Q: The scenario analysis technique is versatile and rich. Of all the forecasting techniques, it may be…

A: Scenario analysis - It is mainly used to analyse the pros and cons of  organisational decisions. In…

Q: What are the steps in computing the cost of a prediction error when using the EOQ decision model?

A: Economic Order Quantity (EOQ): Economic order quantity is the quantity of order that is purchased…

Q: The internal rate of return (IRR), despite its shortcomings, can be a useful analysis tool for…

A: IRR is the required rate of return for the project to have zero Net Present value.

Q: Weaknesses of the high-low method include all of the following except:   a. only two observations…

A: Solution: Weaknesses of the high-low method include all of the following except "the mathematical…

Q: What are the two primary factors that are difficult to estimate in sensitivity analysis?

A: Answer: Sensitivity analysis is commonly used in determining the interactions in a system or even a…

Q: The value of any model is that it enables the user to make inferences about the real situation.…

A: The values derived from the model are useful for important hypothesis and is relevant in many…

Q: We can get a sense of how model output responds to changes in inputs from sensitivity analyses. Some…

A: Sensitivity analysis is used to find out the change in input of one value lead to change in the…

Q: Explain the term Flaws in Project Ranking by IRR?

A: Answer: IRR is nothing but an internal rate of return; it is the rate of discount which makes a…

Q: may be overlooked by many IT professionals, which may have a negative influence on the project's…

A: The concept of sun cost is associated with all those cost and expenditure which have been encloud…

Q: I have done this problem, but I don't understand how to interpret the results from this sensitivity…

A: Sensitivity analysis is the analysis which is made and prepared by the company in order to know well…

Q: Differentiate between sensitivity analysis and scenario analysis.What advantage does scenario…

A: Differentiate between sensitivity analysis and scenario analysis: Scenario analysis involves…

Q: Sensitivity analysis is the analysis of the effect of parameter changes on the optimal solution.…

A: Sensitivity analysis is done to understand changes in a target variable when changes are made in…

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

A: Here is the Answer

Q: When we perform sensitivity analysis for mutually exclusive alternatives, itmay be more effective to…

A: Net present worth is acknowledged as the current worth or value of a project which is adjusted as…

Q: When making decisions, will there be problems with the IRR method for choosing which project to push…

A: Capital budgeting techniques include: Payback Period Discounted Payment Period Net Present Value…

Q: George wants to calculate risk using risk assessment matrix ,should he assess for the worst credible…

A: Risk assessment matrix is a method used for finding the risk. This method prioritizes the risk by…

Q: Even when NPV and IRR give the same​ accept/reject decisions, they may not give the same…

A: Answer: The correct answer is TRUE.

Q: What do you mean by sensitivity analysis?What are the setting and the constraints of the sensitivity…

A: Sensitivity analysis is an analysis in finance, which used to help in an evaluation of that how an…

Q: Discuss the following statement: “A project may not be very riskyin spite of its high sensitivity to…

A: Sensitivity analysis is defined as the percentage change in one variable with respect to percentage…

Q: Explain what is qualitative research and why it might be useful to marketers. What are its major…

A: A research is made to get more data, information, details and deeper knowledge of any concept or an…

Q: The project with the highest IRR may not be the preferred alternative. To illustrate the flaws of…

A: Internal Rate of Return (IRR) is that discounting rate at which Net Present Value of the project is…

Q: hat are some of the difficulties that might occur with the application of an IRR approach in project…

A: Internal rate of return at which present value of cash flow is initial investment of the project and…

Q: What are some strengths and weaknesses of sensitivity analysis and scenario analysis?

A: Sensitivity Analysis determines how the dependent variable changes when the independent variable…

Q: While an engineering manager may prefer to use CFAT estimates to evaluate the AW of a project, a…

A: EVA, which stands for economic value added, seems to be a term based on the notion that a…

Q: 9. Which one is not an advantage of the sensitivity analysis? A. To make contingency plans B. To…

A: Sensitivity analysis determines how different values of an independent variable affect a particular…

Q: What are some pros and cons of computing an expected return using a user-specified model versus…

A: Expected Return: As opposed to observed returns that are measured at the end of a given period, the…

Q: How will management know if one of the hypotheses underlying the balanced scorecard is false?

A: The best way to sort out if the speculation is valid or bogus is by trying it. All the speculation…

Q: There are three options for the software package solution. Although all three packages are…

A: Solution- Payback period = Initial investment / Cash flow per year  Payback period for A = 9.46…

Q: Which of the following is NOT an advantage of using sensitivity analysis?

A: Which of the following is NOT an advantage of using sensitivity analysis? A  It identifies the…

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.