Scenario Analysis Is Different Than Sensitivity Analysis

question 7

Multiple Choice

Scenario analysis is different than sensitivity analysis:

• A) as no economic forecasts are changed.
• B) as several variables are changed together.
• C) because scenario analysis deals with actual data versus sensitivity analysis which deals with a forecast.
• D) because it is short and simple.

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Definitions:

Summary Statistics

Numeric values that summarize and provide information about your sample data, including measures like mean, median, and standard deviation.

Lower Fence

A term used in descriptive statistics and boxplot construction, referring to a value below which lies an outlier in a dataset, typically calculated as Q1 - 1.5*IQR, where Q1 is the first quartile and IQR is the interquartile range.

Box And Whisker Plot

A graphical representation of data that displays the median, quartiles, and extremes, providing a visual summary of the distribution.

Percentiles

Statistical measures indicating the value below which a given percentage of observations in a group of observations falls.