The Difference Between Scenario Analysis and Sensitivity Analysis Is That

question 62

Multiple Choice

The difference between scenario analysis and sensitivity analysis is that

• A) scenario analysis is based upon the IRR and sensitivity analysis is based upon NPV.
• B) only sensitivity analysis allows us to change our estimated inputs of our NPV analysis.
• C) scenario analysis considers the effect on NPV of changing multiple project parameters.
• D) only scenario analysis breaks the NPV calculation into its component assumptions.

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Definitions:

Participant Observation

A qualitative research method where the researcher immerses themselves in the community or group being studied to observe behaviors and interactions from an insider perspective.

Researcher Confront

The act of a researcher facing directly or challenging mishandled situations, biases, or unethical practices during the research process.

Observation Study

A research method involving the systematic watching and recording of behaviors and events in their natural settings without interference.

Survey Research

A method of gathering data from respondents through a structured questionnaire to collect information on opinions, behaviors, or characteristics.