Scenario analysis is different than sensitivity analysis:
A)as no economic forecasts are changed.
B)as several variables are changed together.
C)because scenario analysis deals with actual data versus sensitivity analysis which deals
With a forecast.
D)because it is short and simple.
E)because it is a "by the seat of the pants" technique.

Question

Quizplus · Accepted Answer

Sensitivity analysis involves changing one variable at a time to see its effect on the outcome, while scenario analysis involves changing multiple variables together to create different possible scenarios. Economic forecasts may or may not be changed in both types of analysis. Scenario analysis can involve both actual data and forecasts, just like sensitivity analysis can. The other choices are not accurate explanations of the differences between scenario and sensitivity analysis.

Scenario Analysis Is Different Than Sensitivity Analysis