A "What-If" Technique That Examines How a Result Will Change

question 41

Multiple Choice

A "what-if" technique that examines how a result will change if the original predicted data are NOT achieved or if an underlying assumption changes is called ________.

• A) sensitivity analysis
• B) net present value analysis
• C) internal rate-of-return analysis
• D) adjusted rate-of-return analysis

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Definitions:

Actual Input

The real, measured input into a process, system, or activity, as opposed to theoretical or estimated input.

Actual Output

The real quantity of goods or services produced by a company or a production process.

Change in Backlog

The variation in the quantity of unfulfilled orders or processes that are yet to be completed over a period of time.

Assignment Method

A mathematical technique used for allocating resources or tasks to recipients or locations in an optimal way.