Scenario Analysis Is Technically Considered Forecasting and Attempts to Explore

question 69

True/False

Scenario analysis is technically considered forecasting and attempts to explore and prepare for a few possible future scenarios that may have a significant negative impact on the costs and operations of an organization.

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Definitions:

Chi-Square Goodness-of-Fit Test

A statistical test used to determine whether a set of observed frequencies differ from a set of expected frequencies.

Expected Frequencies

The theoretically predicted counts of occurrences across different categories in a contingency table, used in chi-squared tests.

Chi-Square Distribution

A statistical distribution used to assess the goodness-of-fit between observed and expected frequencies.

Degrees of Freedom

The number of independent pieces of information available to estimate another parameter.