Which of the Following Results in a Probability Distribution for Possible

question 18

Multiple Choice

Which of the following results in a probability distribution for possible project outcomes rather than a dollar estimate?

• A) Sensitivity analysis
• B) Simulation
• C) Value driver analysis
• D) Scenario analysis

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Definitions:

Random Sample

A subset of individuals chosen from a larger set (population) where each individual has an equal chance of being selected.

Sampling Distribution

The probability distribution of a statistic obtained through a large number of samples drawn from a specific population.

Probability Distribution

An analytical function that maps out every conceivable value and its associated likelihood for a random variable within a defined boundary.

Given Population

This term pertains to a specific group of individuals, items, or data points that are the focus of a statistical analysis.