The Slope of a Sensitivity Graph of -5 with Respect

question 28

Multiple Choice

The slope of a sensitivity graph of -5 with respect to operating costs means

• A)a 1% increase in operating costs leads to a 5% decrease in PW of the project.
• B)a 1% increase in operating costs leads to a $5 decrease in PW of the project.
• C)a $1 increase in operating costs leads to a 5% decrease in PW of the project.
• D)a $1 increase in operating costs leads to a $5 decrease in PW of the project.
• E)a 1% increase in operating costs leads to a 5% increase in PW of the project.

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Definitions:

Empirical Method

A scientific approach that relies on observation and experiment rather than theory or pure logic.

Fundamental Personality Traits

Core traits believed to constitute the foundation of human personality, often related to the Big Five personality dimensions.

Rational Method

An approach based on reason and logic in decision-making or problem-solving, often involving systematic steps.

P-value

A statistical parameter that indicates whether the observed results of a study could occur by chance, typically used in hypothesis testing.