Sensitivity Analysis Helps Managers Evaluate Risks ________

question 96

Multiple Choice

Sensitivity analysis helps managers evaluate risks ________.

• A) by showing the effects of changes to the original data or an underlying assumption
• B) by identifying inconsistencies in underlying assumptions and actual conditions
• C) by removing the effects of foreign currency exposure and other uncontrollable factors
• D) by identifying gaps in the production process using information on setups needed to manufacture products

---

Definitions:

Rejecting Goods

The act of a buyer refusing to accept delivery of products or services because they do not meet the specified requirements or standards.

Services

Intangible actions or performances that one party can offer to another that does not result in the ownership of anything.

Intangible Products

Goods that cannot be seen, touched, or physically measured, such as services or digital products.

Design Thinking

A problem-solving approach that involves empathy, creativity, and rationality to meet user needs and solve complex problems.