Sensitivity Analysis Considers

question 23

Multiple Choice

Sensitivity analysis considers

• A) how sensitive the decision maker is to risk.
• B) changes in the number of states of nature.
• C) changes in the values of the payoffs.
• D) changes in the available alternatives.

---

Definitions:

Altruism

The selfless concern for the well-being of others without expecting any reward or benefit in return.

Egoism

An ethical theory that treats self-interest as the foundation of morality.

Reciprocity Principle

A social norm suggesting that people are likely to respond to actions with similar actions, contributing to cooperation and social exchange.

Compliance

Superficial, public and transitory change in behaviour and expressed attitudes in response to requests, coercion or group pressure.