In a What-If Analysis the Decision Maker

question 82

Multiple Choice

In a what-if analysis the decision maker

• A) changes the values of the uncertain input variables to see what happens to the performance measure being studied
• B) assumes that all inputs are random variables
• C) assumes that all outputs are deterministic
• D) corrects for underestimated risk

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Definitions:

Uniform Probability Distribution

A type of probability distribution where all outcomes are equally likely to occur within a defined interval.

Normally Distributed

This describes a type of continuous probability distribution for a real-valued random variable where data is symmetrically distributed around the mean.

Gasoline Prices

The cost per unit volume of gasoline, typically influenced by supply and demand factors, taxation, and global oil prices.