Which of the Following Statements Is CORRECT

question 57

Multiple Choice

Which of the following statements is CORRECT?

• A) in comparing two projects using sensitivity analysis, the one with the steeper lines would be considered less risky, because a small error in estimating a variable such as unit sales would produce only a small error in the project's npv.
• B) the primary advantage of simulation analysis over scenario analysis is that scenario analysis requires a relatively powerful computer, coupled with an efficient financial planning software package, whereas simulation analysis can be done efficiently using a pc with a spreadsheet program or even with just a calculator.
• C) sensitivity analysis is a type of risk analysis that considers both the sensitivity of npv to changes in key input variables and the probability of occurrence of these variables' values.
• D) as computer technology advances, simulation analysis becomes increasingly obsolete and thus less likely to be used as compared to sensitivity analysis.
• E) sensitivity analysis as it is generally employed is incomplete in that it fails to consider the probability of occurrence of the key input variables.

Discuss contemporary approaches to enhance decision-making in organizations.

Understand how different domains like fashion and sports apply analytics and big data.

Comprehend the role of guessing and personal favoritism in organizational decision-making processes.

Understand the concept and effects of communication filtering in organizations.

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Definitions:

Natural Consequences

Punishments enacted naturally as a consequence of the negative behavior.

Time-Out

A behavioral intervention technique where an individual is temporarily removed from an environment to decrease undesirable behaviors.

Cell Phone

A portable electronic device that combines telecommunications and computing functions, allowing for voice and data communication, as well as various applications.

Operant Conditioning

Shaping behavior through rewards and punishments.