Which of the Following Are Viable Techniques to Cope with the Uncertainty

question 3

Multiple Choice

Which of the following are viable techniques to cope with the uncertainty inherent in realistic financial projections?
I.Simulation
II.Ad hoc adjustments
III.Scenario analysis
IV.Sensitivity analysis

• A) II and IV only
• B) III and IV only
• C) II,III,and IV only
• D) I,II,and III only
• E) I,III,and IV only

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Definitions:

Median

A statistical measure representing the middle value in a set of data, dividing it into two equal halves.

Distribution of Scores

The way in which a set of scores is spread out across the possible values, which can be depicted in a graph.

Correlation Between Two Variables

A measure indicating the extent to which two variables change together, showing the strength and direction of their relationship.

Positive Correlation

A relationship between two variables where both either increase or decrease together, indicating a direct association.