Which of the following options highlights a key benefit of scenario analysis when compared with sensitivity analysis?
A) It considers situations in which many variables change at the same time.
B) It highlights factors that managers may previously not have considered.
C) It calculates the probability of various outcomes.
D) It focuses on the effect of changes in a single variable.

Question

Quizplus · Accepted Answer

Scenario analysis considers multiple variables changing simultaneously, providing a more comprehensive view of potential outcomes compared to sensitivity analysis, which typically examines changes in one variable at a time.

Which of the Following Options Highlights a Key Benefit of Scenario