Which of the Following Is Not Used to Deal with Uncertainty

question 157

Multiple Choice

Which of the following is not used to deal with uncertainty in the capital budgeting process?

• A) What-if analysis.
• B) Sensitivity analysis.
• C) Monte Carlo simulation.
• D) Real options analysis.
• E) Linear programming analysis.

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Definitions:

Social Customs

Established patterns of behavior and traditions that are socially accepted within a specific culture or society.

Social Occupations

Jobs or careers focused on providing social services to individuals or communities, often involving counseling, social work, or community organization.

Low-ball Technique

A persuasion strategy by which an initially attractive offer is made to get a person to commit to an action, then terms are made less favorable.

Door-in-the-face Technique

A persuasion strategy where a large, unreasonable request is first made knowing it will be rejected, followed by a smaller, more reasonable request.