What Does the Term 'Sensitivity Analysis' Refer To

question 5

Multiple Choice

What does the term 'sensitivity analysis' refer to?

• A)The process of analysing the effects of a range of possible future outcomes
• B)The process of analysing the effects of the most likely future outcomes
• C)The process of modelling the effects of the most likely future outcomes
• D)The process of modelling the effects of a range of possible future outcomes

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Definitions:

Nonoccurrence

The failure or absence of an event or condition that was anticipated or required.

Event

A specific occurrence or happening, often of significance, that takes place at a particular time.

Agreement

A mutual understanding or arrangement between two or more parties outlining terms and conditions for a specific purpose.

Payee

The party in a financial transaction who receives payment.