Sensitivity Analysis of the Base-Case Financial Model Is a Useful

question 46

Multiple Choice

Sensitivity analysis of the Base-Case Financial Model is a useful tool for which of the following reasons?

• A)To determine how long the development process can profitably last.
• B)To understand how many technical people are needed to make the project a success.
• C)To help understand the basic trade-offs of resources committed and cash received.
• D)To identify the necessary product launch date.
• E)To set marketing and sales budgets.

---

Definitions:

Stroop Effect

A demonstration of cognitive interference where the brain's reaction time slows down when the color of words on a test and their meaning differ.

Automatization

The process by which a task becomes automatic after extensive practice, requiring little to no cognitive effort to perform.

Phenomenon

An observable event or fact, especially one that is not fully understood.

Means-End Analysis

A problem-solving strategy in which you continually evaluate the difference between your current state and your goal, and consider how to use your resources to reduce the difference.