The Type of Analysis That Models Some Event and Requires

question 28

Multiple Choice

The type of analysis that models some event and requires that estimates be made of the probability distribution of each cash flow element is _____.

• A) scenario
• B) sensitivity
• C) simulation
• D) net present value/payback approach

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Definitions:

Solution Implementation

The process of executing a plan or method to solve a problem or address a specific need.

Monitor

To observe or check something over a period of time for the purpose of tracking its progress or quality.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives, often involving judgment and evaluation.

Programmed Decision

Decision-making processes that follow established patterns or rules designed to handle routine situations and problems.