Explain Sensitivity Analysis and How Do Managers Use Sensitivity Analysis

question 111

Essay

Explain sensitivity analysis and how do managers use sensitivity analysis to evaluate its implications?

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Definitions:

Climatic Conditions

The weather conditions prevailing in an area in general or over a long period, affecting living conditions, agriculture, and industry.

Location Decision

The process of selecting an optimal site for a new facility, taking into account factors like cost, logistics, and market access.

Clustering

The location of competing companies near each other, often because of a critical mass of information, talent, venture capital, or natural resources.

Region/Community Level

Analysis or intervention strategies designed to address or assess conditions at a specific geographic or social community scale.