What are the strengths and shortcomings of sensitivity analysis and of scenario analysis?

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Entrepreneurial Finance Venture Capital Deal Structure And Valuation

ISBN: 9781503603219

2nd Edition

Authors: Janet Kiholm Smith, Richard L. Smith

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Question Posted: Apr 26, 2024 06:02 AM

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What are the strengths and shortcomings of sensitivity analysis and of scenario analysis?

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Sensitivity Analysis Strengths Identifies Key Variables It helps in identifying which variables have the most significant impact on the outcome of a model or decision This understanding can guide reso...View the full answer

Entrepreneurial Finance Venture Capital Deal Structure And Valuation

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