Sensitivity Analysis Is Based On

question 14

Multiple Choice

Sensitivity analysis is based on:

• A)varying a single variable and measuring the resulting change in the NPV of a project.
• B)applying differing discount rates to a project's cash flows and measuring the effect on the NPV.
• C)expanding and contracting the number of years for a project to determine the optimal project length.
• D)the best, worst, and most expected situations.
• E)various states of the economy and the probability of each state occurring.

---

Definitions:

Questionnaires

A research instrument consisting of a series of questions designed to gather information from respondents.

Quantitative Research

Quantitative research refers to the systematic empirical investigation of observable phenomena via statistical, mathematical, or computational techniques to collect and analyze numerical data and generate factual conclusions.

ELM (Elaboration Likelihood Model)

A theory in social psychology that explains how the likelihood of persuasion can vary based on the audience's ability and motivation to process a message.

Central Route

A concept from the Elaboration Likelihood Model, where persuasion occurs through thoughtful consideration of arguments and evidence.