Sensitivity Analysis Helps You Determine The

question 337

Multiple Choice

Sensitivity analysis helps you determine the:

• A) Range of possible outcomes given possible ranges for every variable.
• B) Degree to which the net present value reacts to changes in a single variable.
• C) Net present value given the best and the worst possible situations.
• D) Degree to which a project is reliant upon the fixed costs.
• E) Level of variable costs in relation to the fixed costs of a project.

---

Definitions:

Cognitive Psychology

A branch of psychology focused on studying how people perceive, think, understand, and remember information.

Long-Term Memory

A type of memory that holds vast amounts of information for periods ranging from hours to a lifetime.

Cognitive Psychologist

A professional who studies mental processes such as "attention, language use, memory, perception, problem-solving, creativity, and thinking."

Information Processing

Describes the manner in which individuals encode, store, and retrieve information, based on theories comparing the mind to a computer.