Which of the following statements is correct concerning sensitivity analysis?
A)it ignores interrelationships between variables.
B)several variables are allowed to change concurrently.
C)it considers all feasible variable combinations.
D)its results are free from ambiguity.

Question

Quizplus · Accepted Answer

Sensitivity analysis is a technique used to evaluate the effect of changes in certain variables on the outcome of a model or decision. However, it assumes that the variables are independent of each other and ignores any interrelationships between them. Therefore, statement A is the only correct statement. Statements B, C, and D are incorrect.

Which of the Following Statements Is Correct Concerning Sensitivity Analysis