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.

---

Definitions:

Expanded Coverage

Typically references broader insurance or service offerings, extending additional benefits or services to more individuals or areas.

Raised Benefits

Increased provisions or advantages provided to employees or members of society, such as higher insurance coverages, better retirement plans, or more comprehensive welfare programs.

Suburbanization

describes the process in which residential areas develop outside of city centers, often characterized by lower density, single-family homes, and reliance on automobile transport.

Inner-City Neighborhoods

Typically refers to the more central, often older and more densely populated areas of a city, which may face economic, social, and infrastructural challenges.