Sensitivity Analysis Is a "What-If" Technique That Managers Use to Examine

question 140

True/False

Sensitivity analysis is a "what-if" technique that managers use to examine how a result will change if the originally predicted data are not achieved or if an underlying assumption changes.

---

Definitions:

Rats

Small to medium-sized rodents that are known for their strong survival skills and adaptability to various environments.

Consume

The act of using up a resource or goods, or the process of buying and using products and services.

Inflation Rate

The percentage increase in the general price level of goods and services in an economy over a period of time.

Nominal Interest Rate

The interest rate before adjustments for inflation, reflecting the rate at which money borrowed today can grow over time.