One Characteristic of Scenario Analysis Is That

question 118

Multiple Choice

One characteristic of scenario analysis is that:

• A)it allows only one variable at a time to change.
• B)it limits variation to only three of the more likely variable combinations.
• C)all or nearly all variations are analyzed, regardless of likelihood.
• D)managers generate each variation by hand.

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Definitions:

Normative Statements

Assertions about how the world ought to be, reflecting opinions or values rather than objective observations.

Rational Choice

The theory that individuals always make prudent and logical decisions that provide them with the greatest benefit or satisfaction and are in their highest self-interest.

Normative Statements

Assertions about how the world ought to be, involving opinions and subjective judgements.

Rational Choice

A theory assuming individuals use logical calculations to make prudent decisions that provide them with the greatest benefit or satisfaction.