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Although Sensitivity Analysis Can Provide Managers with Keen Insights, There

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Essay

Although sensitivity analysis can provide managers with keen insights, there can be problems with the reliability of the NPV revisions.Discuss potential reasons for these problems, and how these problems might be confronted.


Definitions:

Six Sigma

A program to save time, improve quality, and lower costs.

Run Test

A test used to examine the points in a control chart to see if non-random variation is present.

Control Chart

A statistical tool used to analyze the stability of processes and monitor if they are in control by plotting data over time.

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