As the degree of sensitivity of a project to a single variable rises, the:
A) Lower the forecasting risk of the project.
B) Smaller the range of possible outcomes given a pre-defined range of values for the input.
C) More attention management should place on accurately forecasting the future value of that variable.
D) Lower the maximum potential value of the project.
E) Lower the maximum potential loss of the project.

Question

Quizplus · Accepted Answer

When a project is highly sensitive to a single variable, it means that small changes in that variable can have a significant impact on the project's outcome. Therefore, management should focus more on accurately predicting the future value of that variable to mitigate risks and make informed decisions.

As the Degree of Sensitivity of a Project to a Single