Sensitivity Analysis Is Useful Because

question 87

Multiple Choice

Sensitivity analysis is useful because:

• A)payoffs and probabilities are estimates.
• B)most decisions will affect employees.
• C)expected payoffs are sensitive to the time value of money.
• D)it is the second step in the decision model.
• E)with the passage of time, small decisions get bigger.

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Definitions:

Duty of Care

A legal obligation requiring a person to adhere to a standard of reasonable care while performing any acts that could foreseeably harm others.

Negligent Misstatement

A false statement made carelessly rather than with the intent to deceive, leading to someone's loss.

Economic Loss

Financial loss experienced as a result of another’s actions or failure to act, which can include lost profits, repair costs, and decreased value of property.

Defamation

The act of communicating false statements about a person that injure the reputation of that person.