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You are walking to the water cooler and overhear analysts talking about risk analysis. Which analyst is INCORRECT? Analyst 1 - Sensitivity analysis only changes

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You are walking to the water cooler and overhear analysts talking about risk analysis. Which analyst is INCORRECT? Analyst 1 - Sensitivity analysis only changes one driver at a time and does not take into consideration correlation between drivers. If the price of a widget goes up because of inflation, It's possible that quantity sold will go down. So we should consider another risk analysis tool if two or more drivers change at the same time. Analyst 2 - We could use scenario analysis whicle will produce various NPVs given scenarios that include more than one changing driver. We could build a simple model in excel and it will also give us the probability of each scenario Analyst 3 - I would use simulation analysis. It would require special software, but it will produce thousands of scenarios and will give the probability of a positive or negative NPV given various scenarios: 1. Analyst 1 2 Analyst 2 3. Analyst 3 Enter Number Choice

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