Sensitivity Analysis

question 73

Multiple Choice

Sensitivity analysis:

• A)is more difficult to conduct than simulation analysis.
• B)provides its user with the rate of return that corresponds to the project's IRR.
• C)is affected primarily by the interrelationships between project variables.
• D)indicates which variable(s)need to be most closely monitored.
• E)provides limited information and therefore is rarely used in practice.

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Definitions:

Correlate

To establish a mutual relationship or connection between two or more things.

Numeric Ages

The dating of geological or archaeological materials based on absolute dating methods, providing specific numbers of years.

Fossils

Preserved remains, impressions, or traces of once-living organisms from the distant past.

Cyanobacteria

Photosynthetic microorganisms found in water, sometimes referred to as "blue-green algae," important for their role in nitrogen fixation and oxygen production.