If a Firm Knows That a Price Change Will Have

question 32

True/False

If a firm knows that a price change will have an effect on a number of other forecast variables, such as the sales forecast, then the firm might require scenario analysis rather than sensitivity analysis.

---

Definitions:

Conditional Discrimination

The process where an organism learns to respond differently to various stimuli depending on the conditions or context.

Discrimination Learning

The ability to differentiate between different stimuli and respond appropriately to each.

Prefrontal Cortex

The front part of the frontal lobes of the brain, involved in executive functions such as judgement, decision-making, and social behavior.

Generalization Gradient

A measure of how an organism responds to various stimuli that are similar but not identical to the conditioning stimulus, showing a gradation in response strength.