What-If Analysis Refers to a Process of Changing Assumptions or Data

question 190

True/False

What-if analysis refers to a process of changing assumptions or data in a model to see how the changes impact the predicted outcome.

---

Definitions:

Monthly Production Volume

The quantity of goods or products manufactured or produced in a factory or plant over the course of a month.

Fixed Manufacturing Cost

Expenses that do not change with the level of production, such as rent, salaries, and insurance, required to operate a manufacturing facility.

Mixed Cost

A cost that contains both variable and fixed cost elements; it changes with the level of activity but not in direct proportion.

Least-squares Regression

A statistical method used to determine the line of best fit by minimizing the squares of the differences between observed and predicted values.