Sensitivity Analysis Is Required Because _______

question 110

Multiple Choice

Sensitivity analysis is required because _______.

• A)payoffs and probabilities are estimates
• B)most decision will affect employees
• C)expected payoffs are sensitive to the time value of money
• D)it's the second step in the decision model
• E)with the passage of time, small decisions get bigger

---

Definitions:

Contract Remedies

Legal actions or compensation methods available to enforce, rectify, or compensate for the breach of a contract.

Express Agency

A principal-agent relationship formed by explicit written or oral agreement between the agent and the principal.

Implied Authority

Authority of an agent that is not explicitly stated but is deemed necessary to carry out express authority.

Duty of Performance

An obligation of a party in a contract to fulfill the terms and conditions as agreed within the contract.