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

As the sensitivity of a project to a single variable rises, it becomes more important to accurately forecast the future value of that variable. This is because small changes in the variable can have a significant impact on the outcome of the project, making accurate forecasting crucial. Option A, B, D, and E are not correct as they do not reflect the impact of rising sensitivity on the project.

As the Degree of Sensitivity of a Project to a Single