Question
Which of the following statements about project risk analysis techniques is most correct? a. Sensitivity analysis considers the joint (combined) impact of changes in uncertain
Which of the following statements about project risk analysis techniques is most correct?
a. | Sensitivity analysis considers the joint (combined) impact of changes in uncertain input variables on profitability. | |
b. | Scenario analysis considers the joint (combined) impact of changes in uncertain input variables on profitability. | |
c. | Scenario analysis, as it is done in practice, usually involves four scenarios. | |
d. | When standard deviation of NPV is used to measure risk, the smaller the value, the greater the risk. | |
e. | In a sensitivity analysis graph, the steeper the plot lines, the lower the risk. |
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