Sensitivity Analysis May Be Used to

question 43

Multiple Choice

Sensitivity analysis may be used to

• A)experiment with possible future changes in the firm that may affect profits.
• B)determine whether a corner point of the feasible region actually yields optimal profit.
• C)replace the simplex method.
• D)reduce the number of variables in a complex LP problem.

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Definitions:

Investment

The allocation of resources, such as time, money, or effort, in expectation of a future benefit or return.

Missing Value

A term used to describe data that is absent or not available in a dataset or equation.

Compounded Annually

Interest calculation method where the interest is added to the principal at the end of each year, impacting the amount in the following year.

Maturity Value

The amount that will be received at the end of a fixed-income investment period such as a bond or certificate of deposit.