Why Is Sensitivity Analysis Less Realistic Than Monte Carlo Simulation

question 23

Essay

Why is sensitivity analysis less realistic than Monte Carlo simulation?

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Definitions:

Market

A space or system in which parties engage in exchange, buying and selling goods and services.

Price

The monetary total projected, essential, or disbursed as payment for an item.

Equilibrium Price

The price in the market where the amount of goods available matches the amount of goods people want to buy.

Supply

The aggregate quantity of a product or service that can be bought at a specific price point within a particular market.