Sensitivity Analysis Examines the Effect of Changing One or More

question 4

Short Answer

Sensitivity analysis examines the effect of changing one or more ______________ to observe the effect on results.

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Definitions:

Cost Focus Strategy

A business strategy aimed at becoming the lowest-cost producer in a particular sector or for a specific segment of the market.

Reducing Expenses

The act of cutting back on costs or spending in order to improve financial health.

Market Segments

Subsets of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as prices or function.

Product Prices

The amount of money required to purchase a good or service, often influenced by factors such as production costs, competition, and demand.