Which three of the statements are advantages of using sensitivity analysis?
A) It provides information for decision making.
B) It can be used when making contingency plans.
C) It identifies the relationships between various unpredictable variables.
D) It may lead to an indication of where further investigation might be worthwhile.

Question

Quizplus · Accepted Answer

A) Sensitivity analysis helps in providing information for decision making by identifying the impact of changes in input parameters on the output.
B) It is useful when making contingency plans as it helps in understanding the impact of different scenarios.
C) This statement is not necessarily an advantage of sensitivity analysis. It may identify the relationships between various unpredictable variables, but it is not always a benefit.
D) Sensitivity analysis may help in identifying the areas where further investigation might be required by highlighting the parameters that are most sensitive to change.

Which Three of the Statements Are Advantages of Using Sensitivity