Which of the Following Best Describes Sensitivity Analysis

question 81

Multiple Choice

Which of the following best describes sensitivity analysis?

• A)setting the budgets of an investment
• B)analyzing the effect of an investment on workers' morale
• C)evaluating the different investment options available
• D)testing the results of an investment analysis with varying assumptions

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Definitions:

Richard Alm

An economic journalist and author known for co-authoring publications on economic issues, notably with economist William A. "Sandy" Darity.

Consumption

The use of goods and services by households, which is a primary component of GDP.

Workers

Individuals engaged in any form of employment for compensation.

Firm

A business organization or entity engaged in commercial, industrial, or professional activities, designed to provide goods or services for profit.