Question: In a couple of sentences, explain what sensitivity analysis does, and why is it important to project risk management? Which variable will probably always be

In a couple of sentences, explain what sensitivity analysis does, and why is it important to project risk management? 


Which variable will probably always be in the top three in importance when doing sensitivity analysis? Why? 



There are many scenarios that firms can run. Why is it important to identify only a handful of the most important variables?

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