Sensitivity analysis can be used to manipulate the degree of risk in various options.

Question

Quizplus · Accepted Answer

Sensitivity analysis is a technique used to assess the impact of changes in input variables on the output of a model. By manipulating the input variables, it is possible to determine how sensitive the model is to changes in these variables and to identify the variables that have the greatest impact on the output. This information can be used to make informed decisions about which variables to focus on when managing risk.

Sensitivity Analysis Can Be Used to Manipulate the Degree of Risk