Sensitivity analysis may be used to
A)experiment with possible future changes in the firm that may affect profits.
B)determine whether a corner point of the feasible region actually yields optimal profit.
C)replace the simplex method.
D)reduce the number of variables in a complex LP problem.
E)solve LP problems that require solutions only in whole numbers.

Question

Quizplus · Accepted Answer

Sensitivity analysis allows a firm to experiment with different scenarios and possible changes that may impact their profits, helping them make more informed decisions. It is not used to determine corner points or replace the simplex method, nor does it necessarily involve reducing the number of variables or solving problems with whole numbers.

Sensitivity Analysis May Be Used to