The Difference Between Scenario Analysis and Sensitivity Analysis Is That

question 58

Multiple Choice

The difference between scenario analysis and sensitivity analysis is that:

• A)scenario analysis is based upon the IRR and sensitivity analysis is based upon NPV.
• B)only sensitivity analysis allows us to change our estimated inputs of our NPV analysis.
• C)only scenario analysis considers the effect on NPV of changing multiple project parameters.
• D)only scenario analysis breaks the NPV calculation into its component assumptions.

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Definitions:

Behavioural Medicine

Application of the methods of behaviour modification to the treatment or prevention of disease—for example, the use of psychological techniques to control pain in patients undergoing medical procedures, or interventions to improve the diabetics’ ability to control their blood glucose.

Psychosocial Variables

Factors that involve both psychological and social aspects affecting an individual's behavior and thoughts.

Endocrine System

A network of glands in the body that produce and release hormones directly into the bloodstream, regulating various bodily functions and processes.

Hormones

Biological compounds produced by various body glands that regulate and control bodily functions.