Which One of These Is a Disadvantage of Sensitivity Analysis

question 23

Multiple Choice

Which one of these is a disadvantage of sensitivity analysis?

• A)Sensitivity analysis may decrease the false sense of security among managers.
• B)Sensitivity analysis fails to identify the key variable that affects a project's net present value.
• C)Each variable in sensitivity analysis is treated in isolation.
• D)A sophisticated computer program is required to conduct sensitivity analysis.
• E)Sensitivity analysis assumes most variables will achieve their most optimistic value.

---

Definitions:

Broadcast

means the transmission of information, such as radio or television signals, over a wide area to be received by a broad audience.

Truck Data Bus

A communication system within a truck that allows for the exchange of data between electronic control units (ECUs) and devices.

Vehicle Computer Processing

The computing systems within a vehicle that manage various functions such as engine operation, navigation, and infotainment.

Algorithm

Software term that describes a programmed sequence of operating events; the rules and conditions for producing a processing outcome from a computer. This is also known by some OEMs as mapping.