Which of the Following Results in a Probability Distribution for Possible

question 104

Multiple Choice

Which of the following results in a probability distribution for possible project outcomes rather than a dollar estimate?

• A)Sensitivity analysis
• B)Simulation analysis
• C)Value driver analysis
• D)Scenario analysis

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Definitions:

Loan

A sum of money that is borrowed and expected to be paid back with interest.

Compounded Semi-annually

Interest that is calculated and added to the principal twice a year.

Semi-annual Payments

Payments made twice a year as a part of a financial agreement or loan.

Loan

Borrowed money that is expected to be paid back with interest.